Georgia Power Co. v. Hudson

49 F.2d 66, 75 A.L.R. 1439, 1931 U.S. App. LEXIS 3132
Court of Appeals for the Fourth Circuit·Decided April 13, 1931·No. 3117·Published·Cited by 20 cases

Opinion

PARKER, Circuit Judge.

This was a suit instituted in the court below to enjoin the prosecution by defendants of a number of actions for damages instituted by them against complainant. The jurisdiction of the federal court was invoked on the ground of diversity of citizenship; plaintiff being a Georgia corporation and defendants being residents of the state of South Carolina. Jurisdiction in equity was asserted on the ground that the bill was filed to avoid a multiplicity of suits. On motion of defendants, the suit was dismissed on the ground that as to no defendant did it involve the jurisdictional amount, that the amounts of their various claims could not be aggregated for the purpose of conferring jurisdiction, and that jurisdiction in equity to avoid a multiplicity of suits did not extend to the enjoining of the prosecution at law of actions for damages, such as had been instituted by defendants.

From the bill of complaint it appears that complainant is a public service corporation maintaining a power dam on the Túgalo river. The defendants own lands lying along the river below the dam. Complainant impounds water above its dam and releases it from time to time as the necessities of its business require, releasing a much greater volume at certain hours of the day than at others. Defendants have instituted in the state courts of South Carolina actions for damages, claiming that complainant, by interfering with the natural flow of the river so as to diminish the’flow for a part of the time and increase it for the remainder, has damaged their lands and crops as a result of overflowing bottom lands, filling up drains, and deadening the current in creeks and ditches, thereby causing their -lands to become saturated with water and unproductive.

It is not alleged that any of the defendants asks as much as $3,000 damages, and *68 it is admitted thatmone of the actions which complainant seeks to enjoin is for as much as this amount. It is alleged that defendants have “combined and confederated together” for the purpose of prosecuting their various suits, have employed the same counsel, and have agreed to render advice and assistance and furnish testimony to each other. There is no allegation of any fraudulent conspiracy between them, however, and no facts alleged upon which a charge of fraud or conspiracy could be based. Complainant alleges that it has a right to operate its dam as it is being operated, that the defense of the damage suits would involve great inconvenience and expense, and that it is entitled to have its rights determined in one suit and to an injunction for- . bidding defendants to further prosecute the actions which they have instituted.

We agree with the learned judge below that a sufficient ground for the dismissal of the bill is to be found in the fact that none of the claims -of defendants amounts to as much as $3,000, and that only by aggregating them can the requisite jurisdictional amount be obtained. Complainant argues that the value of the right which it seeks to protect by injunction measures the amount in controversy, and that this right is the .right to maintain its dam. The defendants, however, do not question the right of plaintiff, as a public service corporation, to maintain the dam. They seek merely to recover damages occasioned by its maintenance, for which they have not been compensated; and, as to each defendant, the only matter involved in his suit is the amount of damages sued for. Their claims are entirely separate and distinct from each other; and, as stated, there is no allegation of fraudulent conspiracy, such as was held to justify considering such claims in the aggregate for the purposes of jurisdiction in Woodmen of the World v. O’Neill, 266 U. S. 292, 45 S. Ct. 49, 69 L. Ed. 293, and McDaniel v. Traylor, 196 U. S. 415, 427, 25 S. Ct. 369, 49 L. Ed. 533. The case presented was clearly one for the, application of “the settled general rule, frequently applied by this Court in tax cases, that in a suit based on diversity of citizenship brought against several defendants to enjoin the collection of claims against the plaintiff which are separate and distinct—although depending for their validity upon a common origin—the test of jurisdiction is the amount of each separate claim, and not their aggregate amount.” Sanford, J., in Woodmen of the World v. O’Neill, supra, at page 295 of 266 U. S., 45 S. Ct. 49, 50; Wheless v. St. Louis, 180 U. S. 379, 21 S. Ct. 402, 45 L. Ed. 583; Citizens' Bank v. Cannon, 164 U. S. 319, 322, 17 S. Ct. 89, 41 L. Ed. 451; Walter v. Northeastern R. Co., 147 U. S. 370, 13 S. Ct. 348, 37 L. Ed. 206; Eaton v. Hoge (C. C. A. 8th) 141 E. 64, 5 Ann. Cas. 487, and note and cases there cited; Hagge v. Kansas City S. Ry. Co. (C. C.) 104 E. 391.

And, without regard to the jurisdictional amount, we do not think that a suit like •this to enjoin the prosecution in the state courts of actions at law for damages can be maintained for two reasons(1) Because the federal courts are expressly forbidden by statute to enjoin such proceedings in state courts; and (2) because a federal court of equity has no jurisdiction, for the purpose of avoiding a multiplicity of suits, to enjoin the prosecution of such actions, irrespective of the court in which they are pending.

On the first question the statute, 28 USCA § 379, provides: “The writ of injunction shall not be granted by any court of the United States to stay proceedings in any court of a State, except in cases where such injunction may be authorized by any law relating to proceedings in bankruptcy.”

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Georgia Power Co. v. Hudson, 49 F.2d 66, 75 A.L.R. 1439, 1931 U.S. App. LEXIS 3132 (4th Cir. 1931).

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