Coler v. Grainger County

74 F. 16, 20 C.C.A. 267, 1896 U.S. App. LEXIS 1886
Court of Appeals for the Sixth Circuit·Decided April 14, 1896·No. No. 368·Published·Cited by 10 cases

Opinion

TAFT, Circuit Judge

(after stating the facts as ahoye). It is first objected that this court has no jurisdiction of the appeal here [21] taken, because it presents only the question of tlie jurisdiction of the court below. The argument is that by section 5 of the court of appeals act, where the question is alone of jurisdiction, it is to be certified to the supreme court, and by section 6 of the same act the court of appeals is given jurisdiction only in those cases of appeal and error not provided for in section 5. It lias been held that, where the only question raised upon the record before the court of appeals is a question of jurisdiction of the court below, the appeal must be dismissed, because the court of appeals is not vested with jurisdiction to consider that question only. Manufacturing Co. v. Barber, 9 C. C. A. 79, 60 Fed. 465; Railroad Co. v. Meyers, 10 C. C. A. 485, 62 Fed. 371; Allen v. Strong, 17 C. C. A. 124, 70 Fed. 273; U. S. v. Severens, 18 C. C. A. 314, 71 Fed. 768. The motion to dismiss the appeal, however, cannot be sustained in the case at bar, because the record does present questions other than that of the jurisdiction of the circuit court. This is quite evident from the assignments of error. It is true that the court below dismissed-the bill for want of jurisdiction, but this court could not dispose of the case, should it disagree with the court below on the question of jurisdiction, without proceeding to consider the other grounds stated in the demurrer to the amended bill, which questioned the equity of the bill, and the validity of the county’s subscription for stock. In such a case it is quite clear that an appeal lies to this court, and that, ex necessitate, this court must consider the question of jurisdiction in order that it may proceed to decide the other questions raised upon the merits. Railroad Co. v. Meyers, 10 C. C. A. 485, 62 Fed. 371. We are therefore brought to the question wrhether there1 was in fact jurisdiction in the court below to entertain the bill. Section 1 of the act of March 3, 1875, which fixed the jurisdiction of the circuit court of the United States, as amended by the acts of March 3, 1887, and August 13, 1888 (25 Stat. 433), contains this provision:

"Nor shall any circuit or district court llave cognizance of any suit, except upon foreign bills of exchange, to recover the contents of any promissory note or other chose in action in favor of any assignee, or of any subsequent holder if such instrument he payable to bearer and be not made by any corporation, unless such suit might have been prosecuted in such court to recover the said contents if no assignment or transfer had been made.”

This clause has been construed by several circuit courts of the United Rates, and its effeei: has been held to be to prevent jurisdiction of the circuit and district courts in all suits by an assignee of a chose in action, except where the chose in action is a foreign bill of exchange, or where it is founded on an obligation made by a corporation that is payable to bearer, and is negotiable by mere delivery. Wilson v. Knox Co., 43 Fed. 482; Newgass v. City of New Orleans, 33 Fed. 196; Jackson & Sharp Co. v. Pearson, 60 Fed. 113. A contract to pay money for stock is a chose in action, within the meaning of this section. The term “chose in action'’ is one of comprehensive import. It includes tiie infinite variety of contracts, covenants, and promises which confer on one party the light to recover a personal chattel or sum of money from [22] another by action. Sheldon v. Sill, 8 How. 449; Corbin v. Black Hawk Co., 105 U. S. 664, 665. The original parties to the chose in action were both citizens of Tennessee. The obligor, Grainger county, was a corporation of that state, and the railroad was a corporation organized under its laws. The chose in action passed by voluntary assignment to the principal contractors of the railroad company; from them to the Western National Bank, as collateral, by voluntary assignment from the bank, through a public sale, to a citizen of New York; and from him to a citizen of New Jersey. It is sought to bring the case within an alleged exception to the statute by contending that the transfer of title was, by operation of law, like that from an intestate to his administrator, because it is said in the bill that the sale by the Western Bank of the stock to Mott, a citizen of New York, was a judicial sale. This contention is obviously untenable. The original assignment was to the principal contractors, and by them to the bank. These assignments were voluntary. The subsequent changes of title, whether forced by operation of law or voluntary, could have no effect to avoid the operation of the statute, even if it be conceded that a transfer of title by operation of law does not come within its terms. If such an exception could be upheld, it certainly could only apply to a transfer of title by operation of law from the original holder of the chose in action, — the original obligee under its terms.

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Coler v. Grainger County, 74 F. 16, 20 C.C.A. 267, 1896 U.S. App. LEXIS 1886 (6th Cir. 1896).

74 F. 16 (Coler v. Grainger County) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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