Dalton v. Milwaukee Mechanics' Ins.

118 F. 876, 1902 U.S. App. LEXIS 5227
CourtU.S. Circuit Court for the District of Northern Iowa
DecidedNovember 24, 1902
StatusPublished
Cited by4 cases

This text of 118 F. 876 (Dalton v. Milwaukee Mechanics' Ins.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Northern Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dalton v. Milwaukee Mechanics' Ins., 118 F. 876, 1902 U.S. App. LEXIS 5227 (circtnia 1902).

Opinion

SHIRAS, District Judge.

This suit was brought in the district court of Plymouth county, Iowa, and in due season the defendant filed a petition for removal of the suit into this court, it being averred in the said petition “that in the above-entitled cause there is a controversy which is wholly between persons of different states, to wit, a controversy between your petitioner, the Milwaukee Mechanics’ Insurance Company, a corporation which your petitioner avers was at the commencement of this suit, ever since has been, and still is, a citizen and resident of the state of Wisconsin, and said plaintiff, P. F. Dalton, who, your petitioner avers, was at the commencement of this suit, ever since has been, and still is, a citizen and resident of the state of Iowa, and that your petitioner was not at the commencement of this suit, nor has it ever been, and is not now, a resident or citizen of the state of Iowa.” The transcript having been filed in this court, the plaintiff moves for an order remanding the case on the ground that this court is without jurisdiction over the suit, for the reason that the jurisdictional facts authorizing a removal are not made to appear upon the record; and thereupon the defendant asks leave to amend the petition for removal by adding thereto the averments “that the amount in controversy between said plaintiff and defendant exceeds in value the sum of $2,000, exclusive of interest and costs,” and that “the defendant is a corporation organized and existing under and by virtue of the laws of the state of Wisconsin.”

THe first question to be considered is whether the record upon its face was sufficient to inform the state court that its jurisdiction over the case was at an end. Thus in Insurance Co. v. Pechner, 95 U. S. 183, 24 L. Ed. 427, it is said:

“This right of removal is statutory. Before a party can avail himself of it, he must show upon the record that his is a case which comes within the provisions of the statute. His petition for removal, when filed, becomes a part of the record in the cause. It should state facts which, taken in connection with such as already appear, entitle him to the transfer. If he fails in this, he has not, in law, shown to the court that it cannot proceed further with the cause. Having once acquired jurisdiction, the court may proceed until it is judicially informed that its power over the cause has been suspended.”

In Water Co. v. Keyes, 96 U. S. 199, 24 L. Ed. 656, it was ruled that:

“It is well settled that in the courts of the United States the special facts necessary for jurisdiction must in some form appear in the record of every [878]*878suit, and that the right of removal from the state courts to the United States courts Is statutory. A suit commenced In a state court must remain there until cause is shown under some act of congress for its transfer; The record in the state court, which includes the petition for removal, should be in such condition when the removal takes place as to show jurisdiction in the court to which it goes.”

In Brown v. Keene, 8 Pet. 115, 8 L. Ed. 886, Mr. Chief Justice Marshall, speaking for the court, said:

“The decisions of this court require that the averment of jurisdiction shall be positive; that the declaration shall'state expressly the fact on which jurisdiction depends. It is not sufficient that jurisdiction may be inferred argumentatively from its averments.”

In Robertson v. Cease, 97 U. S. 646, 24 L. Ed. 1057, it is declared that: .

“As the jurisdiction of the circuit court is limited in the sense that it has none except that conferred by the constitution and laws of the United States; the presumption now, as well as before the adoption of the fourteenth amendment, is that a cause is without its jurisdiction unless the contrary affirmatively appears. In cases where jurisdiction depends upon the citizenship of the parties, such citizenship, or the facts which in legal intendment constitute it, should be distinctly and positively averred In the pleadings, or they should appear affirmatively and with equal distinctness in other parts of the record.”

In the case now before the court the defendant sought to remove the suit on the ground of the diversity of citizenship, and the question is whether such diversity was clearly and affirmatively made to appear in the state court when the petition for removal was filed therein.

It is sufficiently averred that the plaintiff, Dalton, was, when the suit was begun and when the petition for removal was filed, a citizen of the state of Iowa. With respect to the defendant, it is averred, in substance, that when the suit was begun and when the petition for removal was filed the Milwaukee Mechanics’ Insurance Company was a corporation, and was a citizen and resident of the state of Wisconsin. Neither in the petition for removal, nor in any other part of the record, is it averred that the insurance company is a corporation created or organized under the laws of the state of Wisconsin. On behalf of the defendant it is contended that from the averment that the corporate insurance company is a citizen of the state of Wisconsin tlie inference should be drawn that the corporation was created under the laws of that state.

In Insurance Co. v. French, 18 How. 404, 15 L. Ed. 451, it was said:

“In the declaration the plaintiffs are averred to be citizens of Ohio, and they complain of the Lafayette Insurance Company, a citizen of the state of Indiana. This averment is not sufficient to show jurisdiction. It does not appear from it that the Lafayette Insurance Company is a corporation-, or, if it be such, by the law of what state it was created. The averments that the company is a citizen of the state of Indiana can have no sensible meaning attached to it. This court does not hold that either a voluntary association of persons, or an association into a body politic, created by law, is a citizen of a state, within the meaning of the constitution.”

In Muller v. Dows, 94 U. S. 444, 24 L. Ed. 207, it was said:

“The two original defendants, the Chicago & South Western Railway Company and the Chicago, Rock Island & Pacific Railroad Company, are averred to be citizens of the state of Iowa. Were this all that the pleadings [879]*879exhibit of the citizenship of the parties, it would not be enough to give the .circuit court jurisdiction of the case. In Insurance Co. v. French, 18 How. 404, 15 L. Ed. 451, a similar averment was held to be insufficient, because it did not appear from it that the Lafayette Insurance Company was a corporation, or, if it was, that it did not appear by the law of what state it was made a corporation. A corporation itself can be a citizen of no state in the sense in which the word ‘citizen’ is used in the constitution of the United States. A suit may be brought in the federal courts by or against a corporation, but in such a case it is regarded as a suit brought by or against the stockholders of the corporation; and, for the purposes of jurisdiction, it is conclusively presumed that all the stockholders are citizens of the state which by its laws created the corporation.

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Bluebook (online)
118 F. 876, 1902 U.S. App. LEXIS 5227, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dalton-v-milwaukee-mechanics-ins-circtnia-1902.