Gableman v. Peoria, D. & E. Ry. Co.

101 F. 1, 41 C.C.A. 160, 1900 U.S. App. LEXIS 4365
CourtCourt of Appeals for the Seventh Circuit
DecidedMarch 22, 1900
DocketNo. 546
StatusPublished
Cited by17 cases

This text of 101 F. 1 (Gableman v. Peoria, D. & E. Ry. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gableman v. Peoria, D. & E. Ry. Co., 101 F. 1, 41 C.C.A. 160, 1900 U.S. App. LEXIS 4365 (7th Cir. 1900).

Opinion

GROSSOUP, Circuit Judge.

This action was brought originally in the superior court for Vanderburg County, in the State of Indiana, by the plaintiff in error, a citizen of Indiana, against the defendants in error, to recover damages for personal injuries said to have been sustained by the plaintiff in error through the negligence of the defendants in error in the operation of a railway train, and the failure to properly operate the gates at a railway crossing. The defendant railway company is a corporation organized under the laws of the State of Indiana, and the defendant George Colvin is a citizen of Indiana. The defendant Edward O. Hopkins was, at the time the injuries were received, and the suit was commenced, receiver of the defendant rail[2]*2way company, by appointment of the United States Circuit Court for the Southern district of Illinois, and was, at the time of the injuries, in sole control and management of the railway company; having an office in Vanderburg County, in the State of Indiana. The record does not disclose his place of residence as an individual. In due time after the commencement of the suit the defendant, Edward O. Hopkins, receiver, on his sole petition, removed the cause into the 'Circuit Court for the District of Indiana, upon the ground that it was a case arising under the Constitution and laws of the United 'States. A motion to remand was entered by .the plaintiff in error, and overruled by the Circuit Court for the District of Indiana (82 Fed. 790); and at the trial, subsequently, a verdict was, by direction of the court, returned for the defendants in error.

The plaintiff in error challenges the jurisdiction of the Circuit Court for the District of Indiana, and the inquiry thus raised lies at the threshold of this case.

The receiver is not appointed under any law or provision of the Constitution of the United States peculiarly relating to a receiver. His appointment arises from the general equity powers of the United States Courts, in common with other courts exercising chancery jurisdiction, to appoint receivers in given cases. If an action against him, such as the one under consideration, can he said to arise under the Constitution and laws of the United States, it is simply because the court making the order of appointment is itself organized under the laws and the Constitution of the United States. In the earliest case (Osborn v. Bank, 9 Wheat. 738, 6 L. Ed. 204), construing the language of the constitution relating to cases arising under the Constitution and laws of the United States, Chief Justice Marshall says:

“We think, then, that, when a question to which the judicial power of the Union is extended by the constitution forms an ingredient of the original cause, it is in the power of congress to give the circuit courts jurisdiction of that cause, although other questions of fact or of law may be involved In it. * * * The ease of the bank is, we think, a very strong case of this description. The charter of incorporation not only creates it, but gives it every faculty which it possesses. The power to acquire rights of any description, to transact business of any description, to make contracts of any description, to sue on those contracts, is given and measured by its charter, and that charter is a law of the United States. This being can acquire no right, make no contract, bring no suit, which is not authorized by a law of the United States. It is not only itself the mere creature of a law, but all its actions and all its rights are-dependent on the same law. Can a being thus constituted have a case which does not arise literally, as well as substantially, under the law? Take the-ease of a contract, which is put as the strongest against the bank. When a bank sues, the first question which presents itself, and which lies at the foundation of the cause, is, has this legal entity a right to sue? Has it a right to come, not into this court particularly, but into any court? This depends Mm a law of the United States! The next question is, has this being a right to make this particular contract? If this question be decided in the negative, the cause is determined against the plaintiff; and this question, too, depends entirely on a law of the United States. These are important questions, and they exist in every possible case. The right to sue, if decided once, is decided forever; but the power of congress was exercised antecedently to the first décision on that right, and, if it was constitutional then, it cannot cease to-be so, because the particular question is decided. It may be revived at the will of the party, and most probably would be renewed, were the tribunal to be changed. But the question respecting the right to make a particular eon-[3]*3tract, or to acquire a particular property, or to sue on account of a particular injury, belongs to every particular case, and inay be renewed in every case. Tiie question forms an original ingredient in every canse. Whether it be in fact relied on or not in the defense, it is still a part of the cause, and may bo relied on. The right of the plaintiff to sue cannot depend on the defense which the defendant may choose to set up. His right to sue is anterior to that defense, and must depend on the state of things when the action is brought. The questions which the case involves, then, must determine its character, whether those questions be made in the cause or not.”

In Railway Co. v. Cox, (145 U. S. 594, 12 Sup. Ct. 905, 26 L. Ed. 829,) the action was by defendant in error, a citizen of Texas, in the United States Circuit Court for the Eastern District of Texas, against John C. Brown and Lionel L. Sheldon, as receivers of the Texas <& Pacific Railway Company, to recover damages for the death of the defendant in error. It did not appear that the defendants were citizens of a state other than the plaintiff, and for that failure the jurisdiction of the court was questioned. Fuller, C. J., said:

“The Texas & Pacific Railway Company is a corporation deriving its corporate powers from acts of congress, and was held in Pacific R. Removal Cases, 115 U. S. 1, 5 Sup. Ct. 1113, 29 L. Ed. 319, to be entitled, under the act. of March 3, 1875, to have suits brought against it in the stale courts removed to the circuit courts of the United States, on the ground that they were suits arising under the laws of the United States. The reasoning was that this must be so, since the company derived its powers, functions, and duties from those acts, and suits against it necessarily involved the exercise of those powers, functions, and duties, as an original ingredient. * * * In respect of liability, such as is set up here, the receiver stands in the place of tlio corporation. As observed by Mr. Justice Brown, delivering the opinion of Ihe court, in McNulta v. Lochridge, 141 U. S. 327, 331, 12 Sup. Ct. 11, 13, 35 L. Ed. 796, 800: ‘Actions against the receiver are, in law, actions against tlio receivership, or the funds in the hands of the receiver; and his contracts, misfeasances, negligences, and liabilities are oficial, and not personal, and judgments against him as receiver are payable only from funds in Ms hands.’ ”

Railway Co. v. Cody, (166 U. S. 606, 17 Sup. Ct. 703, 41 L. Ed.

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Cite This Page — Counsel Stack

Bluebook (online)
101 F. 1, 41 C.C.A. 160, 1900 U.S. App. LEXIS 4365, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gableman-v-peoria-d-e-ry-co-ca7-1900.