Continental Nat. Bank of Memphis v. Buford

191 U.S. 119, 24 S. Ct. 54, 48 L. Ed. 119, 1903 U.S. LEXIS 1469
CourtSupreme Court of the United States
DecidedNovember 16, 1903
Docket60
StatusPublished
Cited by47 cases

This text of 191 U.S. 119 (Continental Nat. Bank of Memphis v. Buford) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Continental Nat. Bank of Memphis v. Buford, 191 U.S. 119, 24 S. Ct. 54, 48 L. Ed. 119, 1903 U.S. LEXIS 1469 (1903).

Opinion

Me. Justice Hablan

delivered the opinion of the court.

Has this court authority to review the judgment of the Circuit Court of Appeals in this case?

This question arises upon the face of the record, aifd' cannot be ignored; for, the rule is well established that, “on every writ of error or appeal, the first and fundamental question is that of jurisdiction, first of this court, and then of the court from which the record comes.” M. C. & L. M. Railway Co. v. Swan, 111 U. S. 379, 382; King Bridge Co. v. Otoe County, 120 U. S. 225; Martin v. Balt. & Ohio R. R. Co., 151 U. S. 673, 690; Powers v. Chesapeake .& Ohio Railway, 169 U. S. 92, 98; Great Southern Fire Proof Hotel Co., v. Jones, 177, U. S. 449, 453.

The plaintiff in error, plaintiff below — the Continental National Bank, organized under the acts of Congress, and located for purposes of business at Memphis, 'Tennessee — alleged in its complaint that the Bank of Mammoth Springs, an Arkansas corporation, was indebted to it in a named sum, and it sought by this action to hold the defendant liable for thé amount of such debt. ■

The action was based upon certain sections of the Statutes of Arkansas, c. 47, Sandels & Hill’s Digest, as follows:'

“§ 1337. The president and secretary of every corporation organized under the provisions of this act shall annually make *121 a certificate showing the condition of the affairs of such corporation, as nearly as the same can be ascertained, on the 1st day of January or of July next preceding the time of making such certificate; in the following particulars, viz: The ■amount of capital actually paid in; the cash value of its real estate; the cash value of its personal estate; the cash value of its credits; the amount of its debts; the names and .number of . shares, of each stockholder; which certificate shall be deposited on or before the 15th day of February or of August with the county clerk of the county in which said corporation transacts its business, who shall record the same at length in a book to be kept by him for that purpose.”

“ § 1346. The certificates, required by sections 1334,1337,1343 and 1344, except certificates of transfers of stock, shall be made under oath or affirmation by the person subscribing the same; and if any person shall knowingly swear or affirm falsely as to any material- facts, he shall be deemed guilty of perjury, and • be punished accordingly. •

“§ 1347. If the president and secretary of any such corporation shall neglect or refuse to comply with the provisions of section 1337, and to perform the duties required of them re- ' spéctively, ;the persons so neglecting or refusing shall jointly and severally be liable to an action founded on this statute, for all debts of such corporation contracted during the period of' any such neglect or refusal.”

The complaint alleged that during the entire period of his term of office as President of the Bank of Mammoth Springs, ' that is, from June 9, 1891, to June 9, 1896, the defendant Buford “wholly neglected to comply with the provisions and perform the duties required of him by said sections 1337 and 1346, by making, swearing to and causing to be filed the statement or certificate required thereby.”

The defendant demurred to the complaint on various grounds, one being that the plaintiff’s action appeared to be barred by the statute of limitations of Arkansas. The Circuit Court sustained the demurrer, it being of opinion that the complaint did *122 not show any cause of action; also, that a suit for the debt in question was barred by the'statute of limitations of Arkansas. The plaintiff declining to amend, the suit was dismissed. That judgment was affirmed by the Circuit Court of Appeals, 114 Fed. Rep. 290, and from that judgment the present writ of error was prosecuted. .

' .By the very - terms of the Judiciary Act of March 3,1891, 26 Stat. 826, c. 517, the judgment of a Circuit Court of Appeals of the United States is final where the jurisdiction of the Circuit Court depends •entirely upon the diverse citizenship of the parties. No ground whatever of jurisdiction in the Circuit Court appears in the complaint or elsewhere in the record, other than diversity in the citizenship of the parties, unless it can be said that by reason alone of the plaintiff bank having been organized under an act of Congress the suit is one arising under-the laws of the United States. This, however, could not be said of the present suit, if regard be had to the acts of Congress defining and regulating the jurisdiction of the courts' of the United States. . ■

The Judiciary Act of March 3, 1875, for the first time, in-' vestéd the Circuit Courts of the United States, without refers ence to the citizenship of the parties, with original- jurisdiction of all suits of a civil nature at common law or in equity, where the matter in dispute exceeded a prescribed sum, and the suit '■ was one “ arising under the Constitution or laws of the United States.” Referring to that statute, this court, in Petri v. Commercial Bank, 142 U. S. 644, 648, said: “ Suits by or against national banks might therefore be brought or removed upon the ground of diverse citizenship, or of subject matter, since as they were created by Congress, and could .acquire no right, make no cofitract and bring no suit, which was not authorized by a law of the United States, a suit by or against them was necessarily a suit arising under the laws of the United States. Osborn v. Bank of the United States, 9 Wheat. 738; Leather Manufacturers’ Bank v. Cooper, 120 U. S. 778; Pacific Railroad Removal Cases, 115 U. S. 1. And of course national banks, as *123 well as state, banks and individuals, might bring, or remove suits otherwise arising :under the Constitution, laws or treaties of the United States.”.

But, in respect of national bank associations, a radical change was introduced by subsequent acts of Congress.

By the act of July 12, 1882, c. 290, it was. provided: "That the jurisdiction for suits hereafter brought by or against any association established under any'.law providing for national banking associations, except suits between them-and the United States, or its officers and agents, shall be the same as., and not other than; the jurisdiction for suits by or against banks not.

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Bluebook (online)
191 U.S. 119, 24 S. Ct. 54, 48 L. Ed. 119, 1903 U.S. LEXIS 1469, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-nat-bank-of-memphis-v-buford-scotus-1903.