Dinzy v. Illinois Cent. R.

61 F. 49, 1894 U.S. App. LEXIS 2778
CourtDistrict Court, N.D. Iowa
DecidedApril 23, 1894
StatusPublished
Cited by5 cases

This text of 61 F. 49 (Dinzy v. Illinois Cent. R.) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dinzy v. Illinois Cent. R., 61 F. 49, 1894 U.S. App. LEXIS 2778 (N.D. Iowa 1894).

Opinion

SHIRAS, District Judge.

The plaintiff herein is a citizen of the state of Iowa, residing in Blackhawk county; and the defendant company is a corporation created under the laws of the state of Illinois, and is engaged in operating lines of railway in Iowa under leases from the original owners of the leased lines. The plaintiff brings this action to recover damages, in the sum of $20,000, for personal injuries received while in the employ of the company as a conductor. The summons was served upon a ticket agent of the defendant company. The defendant appears specially, and objects to the court taking jurisdiction of the case on the ground that the defendant company is an Illinois corporation; that the general office and headquarters' of the company are located at the city of Chicago, HI.; thpt it is not an inhabitant or resident of the state of Iowa, or of the northern district thereof; that the station and ticket agents have only authority to act in connection with the business tributary to the particular station at which they are located; that the defendant company is engaged in operating lines of railway leased from the Dubuque & Sioux City Railroad Company, —an Iowa corporation,—part of which extend into Linn county, Iowa; and that the defendant has in the state of Iowa no office or place of business, except the local freight and ticket offices, and such offices and officials, only, as are necessarily connected with the management of the* leased lines. Thus two questions are presented: First, is the case one of which this court can, under any circumstances, take jurisdiction? And, second, is the service sufficient, in case jurisdiction exists?

The plaintiff, when the action was brought, was a citizen of Iowa, residing in the northern district; and the defendant was a corporation created under the laws of the state of Illinois, and, for jurisdictional purposes, is deemed to be a citizen of that state. The case being between citizens of different states, and involving over $2,000, exclusive of costs and interest, it was and is a case within the federal jurisdiction; and, as the jurisdiction is based upon the fact of diverse citizenship, then, under the provisions of section 1 of the act approved August 13,1888, the action might be brought in the district wherein either the plaintiff or defendant resides. As the plaintiff-resided in the northern district of Iowa when the action was brought, the circuit court of the United States of this district could rightfully take jurisdiction of the case, and could exercise jurisdiction over the defendant, provided proper and sufficient service of the summons could be made upon the company. Thus, in Machine Co. v. Walthers, 134 U. S. 41, 10 Sup. Ct. 485, the plaintiff was a citizen and resident of the state of Nebraska, and the defendant a corporation created under the laws of the state of Illinois. The defendant pleaded that under the provisions of the act of congress of August 13, 1888, it could not be sued in the district of Nebraska, because it was neither a citizen, resident, nor inhabitant of that state or district; but the jurisdiction was maintained, it being said by the supreme court that:

“Where the jurisdiction is founded upon any of the causes mentioned in this section, except the citizenship of the parties, it must be brought in the [51]*51district of which the defendant is an inhabitant; hut, where the jurisdiction is founded solely upon the fact mat. the párties are citizens of different states, the suit may he brought in the district in which either the plaintiff or the defendant resides.”

See, also, Shaw v. Mining Co., 145 U. S. 444, 12 Sup. Ct. 935.

Is the service in this ease such that the court thereby obtains jurisdiction over the defendant corporation? It is settled by the decisions of the supreme court that, within the meaning of the acts of congress conferring jurisdiction on the circuit and district courts of the United States, a corporation cannot be deemed to be a citizen, resident, or inhabitant of any state other than that in which it has been created a corporation. Ex parte Schollenberger, 96 U. S. 369; Railroad Co. v. Estill, 147 U. S. 591-610, 13 Sup. Ct. 444. It is equally well settled that a corporation may engage in the transaction of business in other states; and under the provisions of the judiciary act of 1789, and the acts amendatory thereof, down to the act of 1887, it was uniformly held that a corporation might be found in a state other than that of its creation, for the purposes of suit, after the decision of the supreme court in Ex parte Schollenberger, supra. See, also, Railroad Co. v. Harris, 12 Wall. 65; Railway Co. v. Whitton, 13 Wall. 270. These cases recognize the principle that where a corporation of one state engages in business in another state under such circumstances that, by the law of the latter state, the corporation may be sued in the courts thereof, then it may be sued in the federal courts of that state, if the case is otherwise of federal jurisdiction. Does the act of 1887, as amended by that of 1888, change the rule in this particular? The admitted facts in this case show that the Illinois Central Railroad Company is permanently engaged in the railway business in the state of Iowa. Under the provisions of the laws of Iowa, it has been permitted to lease lines of railway in this state, and is now engaged in operating the same, and is thus enjoying, within the state of Iowa, the full exercise of its powers as a corporation created to cany on the business of railroading. By the provisions of chapter 128 of the acts.of the 18th General Assembly of the State of Iowa, it is declared that railroad companies created under the laws of other states, and operating lines within this state, “shall have and possess all the powers, franchises, rights and privileges and be subject to the same liabilities of railroad companies, organized and incorporated under the laws of this state, including the right to sue and the liability to be sued, the same as railroads organized under the laws of this state.” In Railroad Co. v. Estill, 1,47 U. S. 591-608, 13 Sup. Ct. 444, the supreme court held that “the principle applicable under such circumstances is that, if the corporation does business in the state, it will be presumed to have assented to the statute, and will be bound accordingly.” And in Ex parte Schollenberger, 96 U. S. 369, 376, it is ruled that the statute does not confine the right of suit to courts of the state, but was intended to confer upon the citizens of the state the right to maintain actions against the foreign corporations, and this right might be exercised in any court within the state, either state or federal, which otherwise [52]*52would” have jurisdiction. Thus, we find it to be the law that the plaintiff, being a citizen of Iowa, has a right to maintain suits for the protection or enforcement of his rights against the Illinois Central Railroad Company in any proper state or federal court exercising jurisdiction in Iowa, and'that the company cannot question the jurisdiction because it is a foreign corporation.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Anderson v. Standard Accident Ins. Co.
36 F. Supp. 7 (E.D. Louisiana, 1940)
Atchison, T. & S. F. RY. CO. v. Drayton
292 F. 15 (Eighth Circuit, 1923)
Nickerson v. Warren City Tank & Boiler Co.
223 F. 843 (E.D. Pennsylvania, 1915)
Kibbler v. St. Louis & S. F. R.
147 F. 879 (U.S. Circuit Court for the District of Northern Alabama, 1906)
Gale v. Southern Building & Loan Ass'n
117 F. 732 (U.S. Circuit Court for the District of Western Virginia, 1902)

Cite This Page — Counsel Stack

Bluebook (online)
61 F. 49, 1894 U.S. App. LEXIS 2778, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dinzy-v-illinois-cent-r-iand-1894.