First State Bank v. Chicago, R. I. & P. R.

63 F.2d 585, 90 A.L.R. 544, 1933 U.S. App. LEXIS 3497
CourtCourt of Appeals for the Eighth Circuit
DecidedFebruary 16, 1933
Docket9599
StatusPublished
Cited by26 cases

This text of 63 F.2d 585 (First State Bank v. Chicago, R. I. & P. R.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
First State Bank v. Chicago, R. I. & P. R., 63 F.2d 585, 90 A.L.R. 544, 1933 U.S. App. LEXIS 3497 (8th Cir. 1933).

Opinion

KENYON, Circuit Judge.

Appellee, herein termed plaintiff, filed a hill in equity in the United States District Court for the Eastern District of Arkansas against Bankers’ Trust Company, Union' Trust Company, and First State Bank (corporations of Arkansas) as defendants (so designated here), asking that they be restrained from subjecting the plaintiff to a multiplicity of suits and to vexatious litigation by the bringing of separate suits to recover from plaintiff on each of forty-eight alleged forged bills of lading. A motion to dismiss was made by defendants on the grounds that the court had no jurisdiction to hear the cause, that the bill showed on its face a lack of equity, and that plaintiff had a plain, adequate, and complete remedy at law. The court overruled the motion and entered judgment for plaintiff granting the prayer for an injunction. Defendants, Bankers’ Trust. Company and Union Trust Company do not appeal. The First State Bank is the only appellant; proper severance having been made. As the ease was determined upon the bill, and *586 motion to dismiss, the facts properly pleaded in the bill must be taken as established. Merinos Viesea y Compania v. Pan American P. & T. Co. (D. C. N. Y.) 49 F.(2d) 352; Central Shoe Co. v. Central Shoe Co., Inc. (D. C. Mass.) 58 F.(2d) 680; Lucas v. Federal Reserve Bank of Richmond (C. C. A. 4) 59 F.(2d) 617.

The bill alleges that plaintiff operates a line of railroad through fourteen states, including the state of Arkansas; that defendants are corporations, two of them having places of business in Little Rock, and one in 'Stuttgart, Ark.; that a partnership engaged in business at Stuttgart under the firm name and style of McGill Bros. Rice Mill forged, or caused to be forged, some forty-eight bills of lading purporting to have been issued by plaintiff at Stuttgart and covering supposed shipments of rice by said McGill Bros. Rice Mill; that the Bankers’ Trust Company is the owner of twenty-eight of said bills purporting to cover shipments of the value of $79,-316, and has made demand upon plaintiff for the payment of said amount; that defendant Union Trust Company is the owner of six of said bills purporting to cover shipments of the value of $14,690, and has likewise made demand upon plaintiff for the payment of said amount; that defendant First State Bank is the owner of fourteen of said bills purporting to cover shipments of the value of $31,400, and it also has made demand upon plaintiff for payment of said amount; that said bills of lading were made to resemble genuine bills of lading, and were made apparently negotiable in form in the manner provided by the acts of Congress; that each of said bills purports to represent a separate and definite liability against plaintiff for the value of rice pretended to be covered thereby and. to represent a separate and distinct cause of action against plaintiff, and on which separate suits can be brought in any county in 'the state of Arkansas or in any of the fourteen states through which plaintiff operates a line of railroad; that the demands of each of the defendants could have been made the basis of one suit in the Eastern District of Arkansas, but that said Bankers’ Trust Company, a defendant, has brought two .separate suits against plaintiff, based on two of said forged bills of lading, in the circuit court of Calhoun county, Ark., some one hundred miles from Stuttgart where the alleged bills of lading were forged, and where plaintiff cannot compel the attendance of witnesses who live at Stuttgart and have Icnowledge of the facts relating to the for-gery,. on account of the distance, as under the laws of Arkansas a witness cannot be compelled to attend a trial except in the county of Ms residence or in an adjoining county; that in one of these suits defendant Bankers’ Trust Company, seeks to recover $2.,640 for the value of rice alleged to have been covered by a bill of lading, and in the other $2,-670 for the value of rice likewise covered by another bill. The bill sets forth that it is necessary to the proper conduct of plaintiff’s business as a carrier in interstate commerce that the potential liability of the carriers on these forged bills of lading be held for naught, and that to require litigating the question in separate suits based on each of said forged bill of lading and in separate jurisdictions will constitute an undue and unreasonable burden on interstate commerce. It is alleged therein that, unless defendants are restrained, they or their assigns will subject plaintiff to a multiplicity of suits and to burdensome and vexatious litigation by bringing separate suits on each alleged cause of action in courts far removed from Stuttgart, where it is claimed said causes of action accrued and in courts which have no jurisdiction to compel the attendance of witnesses necessary to plaintiff’s defense, and that plaintiff has no adequate remedy at law. The prayer for relief is this: "Wherefore, inasmuch as plaintiff, has no adequate remedy at law, and, in order to avoid a multiplicity of suits, plaintiff prays that the defendants and each of them be enjoined from negotiating or assigning any of said bills of lading, from prosecuting suits based upon said bills of lading elsewhere than in tMs Court; that they be required to submit said alleged bills of lading to this Court, and that the same be cancelled and held for naught; that, pending a final hearing hereof, a temporary injunction be granted as herein prayed.”

The first- question raised is that, as none of the alleged bills of lading held by appellant exceed the sum of $3,000-, the jurisdiction of the federal court must fail. Some of the purported bills of lading held by defendant Bankers’ Trust Company do exceed $3,-000, but that is of no avail. The amount in controversy between plaintiff and the appealing defendant must exceed $3,000 in order to give jurisdiction, and the requirement as to jurisdiction is the same for eases in equity as for eases at law. Delaware Consol. Oil Co. v. Randall et al. (D. C. Okl.) 34 F.(2d) 666; Adam Schumann Associates, Inc., v. City of New York (C. C. A. 2) 40 F.(2d) 216. It is conceded by plaintiff in its complaint that each of -the bills of lading represents “a separate and distinct liability” against plaintiff, *587 and “a, separate and distinct cause of action.” Collectively the fourteen bills aggregate $31,-400. Separately no one equals the jurisdictional amount.

The general rule is that jurisdiction is not conferred upon the federal court by joining claims against distinct and separate defendants, no one of which equals the jurisdictional amount. Walter v. Northeastern Railroad Co., 347 U. S. 370, 13 S. Ct. 348, 37 L. Ed. 206; Northern Pacific R. R. Co. v. Walker, 148 U. S. 391, 13 S. Ct. 650, 37 L. Ed. 494; Citizens’ Bank of Louisiana v. Cannon, 364 U. S. 319, 17 S. Ct. 89, 41 L. Ed. 451. Nor can several plaintiffs joining in. a suit against one or more defendants aggregate for jurisdictional purposes separate and distinct claims, no one of which is equal to the jurisdictional amount, although, when several plaintiffs “unite to enforce a single title or right, in which they have a, common and undivided interest, it is enough if their interests collectively equal the jurisdictional amount.” Troy Bank v. Whitehead & Co., 222 U. S. 39, 40-41, 32 S. Ct. 9, 56 L. Ed. 81; Wheless v. St.

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Bluebook (online)
63 F.2d 585, 90 A.L.R. 544, 1933 U.S. App. LEXIS 3497, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-state-bank-v-chicago-r-i-p-r-ca8-1933.