Centre for the Independence of Judges & Lawyers of the United States, Inc. v. Mabey

19 B.R. 635, 1982 U.S. Dist. LEXIS 11961
District Court, D. Utah·Decided March 12, 1982·No. C 82-0158J·Published·Cited by 8 cases

Opinion

MEMORÁNDUM OPINION

JENKINS, District Judge.

The plaintiff commenced this action through the filing of its complaint on March 3,1982. Plaintiff complains that defendant has presided over thousands of bankruptcy cases where a local bank on whose board his father sits, is a creditor; that certain orders converting reorganization proceedings (Chapter XI) to liquidation proceedings (Chapter VII) were inappropriate; that certain unnamed attorneys are afraid to properly represent their clients and such unnamed attorneys gave unnamed clients bad advice; that certain international accords give plaintiff special power to complain in this matter; that Walker Bank should not be a depository of estate funds; that this Court should issue certain injunctions; and, that plaintiff be paid a sum of money. The matter is now before this Court for consideration sua sponte of the question of subject-matter jurisdiction.

I. JURISDICTION OF THE FEDERAL COURTS

That the federal courts are courts of limited jurisdiction is a fundamental premise of our American constitutional system. “The limits on federal jurisdiction, whether imposed by the Constitution or by Congress, must be neither disregarded nor evaded.” Owen Equipment & Erection Co. v. Kroger, 437 U.S. 365, 374, 98 S.Ct. 2396, *638 2403, 57 L.Ed.2d 274 (1978); accord, Northwest Airlines, Inc. v. Transport Workers Union of America, 451 U.S. 77, 95, 101 S.Ct. 1571, 1582, 67 L.Ed.2d 750 (1981); General Atomic Co. v. United Nuclear Corp., 655 F.2d 968 (9th Cir. 1981); 13 C. Wright, A. Miller & E. Cooper, Federal Practice and Procedure § 3522 (1975).

A party seeking to maintain an action in the federal courts must affirmatively establish the jurisdiction of the court over the subject-matter of his claims before any disposition of the action on the merits is attempted. “The presumption is that the court lacks jurisdiction in a particular case until it has been demonstrated that jurisdiction over the subject matter exists.” C. Wright, Law of Federal Courts § 7, at 17 (3d ed. 1976); accord, Turner v. President, Directors and Company of the Bank of North America, 4 U.S. (4 Dall.) 8, 1 L.Ed. 718 (1799); Bingham v. Cabot, 3 U.S. (3 Dall.) 382, 1 L.Ed. 646 (1798); McNutt v. General Motors Acceptance Corp., 298 U.S. 178, 56 S.Ct. 780, 80 L.Ed. 1135 (1935).

“[T]he rule, springing from the nature and limits of the judicial power of the United States, is inflexible and without exception which requires this court, of its own motion, to deny its own jurisdiction, and, in the exercise of its appellate power, that of all other courts of the United States, in all cases where such jurisdiction does not affirmatively appear in the record on which, in the exercise of that power, it is called to act.... This question the court is bound to ask and answer for itself, even when not otherwise suggested, and without respect to the relation of the parties to it.”

Mansfield, Coldwater & Lake Michigan Ry. v. Swan, 111 U.S. 379, 382, 4 S.Ct. 510, 511, 28 L.Ed. 462 (1884). The rule declared in Mansfield finds direct reflection in Rule 12(h)(3) of the Federal Rules of Civil Procedure, which provides that “[wjhenever it appears by suggestion of the parties or otherwise that the court lacks jurisdiction of the subject matter, the court shall dismiss the action.”

The principle declared in the Mansfield case and codified in the Federal Rules can properly be called the first principle of federal jurisdiction. The principle is reflected not only in the requirements of proper pleadings and requests for review but in the accepted form of workmanlike briefs and oral argument. The first duty of counsel is to make clear to the court the basis of its jurisdiction as a federal court. The first duty of the court is to make sure that jurisdiction exists. If the record fails to disclose a basis for federal jurisdiction, the court not only will but must refuse to proceed further with the determination of the merits of the controversy unless the failure can be cured. This is true whether the case is at the trial stage or the appellate stage, and whether the defect is called to the court’s attention “by suggestion of the parties or otherwise.” . ..

H. Hart & H. Wechsler, The Federal Courts and the Federal System 719 (1953) (emphasis added).

The question of jurisdiction is the “threshold inquiry” in all federal proceedings. See e.g., Reid v. Ford, Bacon & Davis Constr. Corp., 405 F.2d 861 (8th Cir. 1969); Rock Island Millwork Co. v. Hedges-Gough Lumber Co., 337 F.2d 24 (5th Cir. 1964); Roberson v. Harris, 393 F.2d 123, 124 (8th Cir. 1968); Rice v. Rice Foundation, 610 F.2d 471, 474 (7th Cir. 1979). “A court lacking jurisdiction cannot render judgment but must dismiss the cause at any stage of the proceedings in which it becomes apparent that jurisdiction is lacking.” Basso v. Utah Power & Light Co., 495 F.2d 906, 909 (10th Cir. 1974) (emphasis in original); Bradbury v. Dennis, 310 F.2d 73 (10th Cir. 1962), cert. denied, 372 U.S. 928, 83 S.Ct. 874, 9 L.Ed.2d 733 (1963).

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Centre for the Independence of Judges & Lawyers of the United States, Inc. v. Mabey, 19 B.R. 635, 1982 U.S. Dist. LEXIS 11961 (D. Utah 1982).

19 B.R. 635 (Centre for the Independence of Judges & Lawyers of the United States, Inc. v. Mabey) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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