Grosch v. Central Vannina, Inc.

7 P.R. Fed. 55
District Court, D. Puerto Rico·Decided May 14, 1914·No. No. 945·Published

Opinion

HamultoN, Judge,

delivered tbe following opinion:

After tbé decision bere bolding that a defendant in tbis and in another court bad no right to raise tbe question of conflict of jurisdiction, tbe Porto Rico district court proceeded to tbe appointment of receivers, and they now apply to tbis court to have tbe property of tbe Central Vannina turned over to them for administration under tbe orders of tbe local court. Tbis is tbe mode of procedure which was followed in tbe case of McKinney v. Landon, 126 C. C. A. 226, 209 Fed. 300. Tbe application requires tbe decision of tbe question as to which court first obtained jurisdictipn. Tbe matter is now submitted upon tbe pleadings and affidavits both of tbis and tbe preceding application.

1. There is no question involved of tbe relative dignity of [59] ■the courts. There should never be such a question except where appeals lie, as each court within its jurisdiction is the equal of every other court. The question to be decided has nothing to do with the relative grade of the local and the Federal courts. For the purposes of-this proceeding they stand on an absolute equality, and in this jurisdiction their relations are not only of comity, but of cordiality. The only question is as to which obtained prior jurisdiction. Riggs v. Johnson County, 6 Wall. 166, 195, 18 L. ed. 768, 776; Wabash R. Co. v. Adelbert College, 208 U. S. 54, 52 L. ed. 386, 28 Sup. Ct. Rep. 182.

The decision of the question of jurisdiction is in any event to be made according to the principles of American law. The Federal court, of course, proceeds according to American practice, and the Porto Rican courts are governed by a Code of Civil Procedure which is taken from that of California and •other western states.

2. Such a question as between courts is generally spoken ■of as comity between courts. This, however, does not mean mere courtesy; for a proceeding in a court is one to enforce rights, and, as observed in Baltimore & O. R. Co. v. Wabash R. Co. 57 C. C. A. 322, 119 Fed. 680, where there is a •concurrent jurisdiction, it is a matter of right in a plaintiff to •choose his forum. This is a privilege which cannot be denied him. However a court might prefer that a question do not arise, it cannot neglect its duty to decide the question when it does arise. And this being so, it is not material whether other •creditors, or the majority of them, might prefer some other forum. This is not a case where creditors control the appointment of receivers as is the case with the trustee in bankruptcy. [60] The court appoints the receivers it thinks will properly admin* ister the trust, but, of course, the court will always listen to proper applications as to the conduct of its receivers, and see that the trust is administered in a businesslike manner.

3. It is settled that the court first acquiring jurisdiction will1 retain it. In such case all other courts, although their jurisdiction otherwise might be perfect, are excluded from the consideration of this particular matter. Wabash C. Co. v. Adelbert College, 208 U. S. 38, 52 L. ed. 379, 28 Sup. Ct. Rep. 182; Baltimore & O. R. Co. v. Wabash R. Co. 57 C. C. A. 322, 119 Fed. 678; Harkrader v. Wadley, 172 U. S. 148, 43 L. ed. 399, 19 Sup. Ct. Rep. 119; Covell v. Heyman, 111 U. S. 176, 28 L. ed. 390, 4 Sup. Ct. Rep. 355; Ball v. Tompkins, 41 Fed. 486; Onslow County v. Tollman, 76 C. C. A. 317, 145 Fed. 753; Mound City Co. v. Castleman, 110 C. C. A. 55, 187 Fed. 921. This rule is clear, but it is not quite so clear as to what time and in what manner jurisdiction is first acquired by the court. Cooper v. Beynolds, 10 Wall. 316, 19 L. ed. 932. There is no question that the jurisdiction between the two parties is complete when the proper pleading is filed and the proper process, has been served upon the defendant. Sometimes, under the doctrine of lis pendens, it is held that the issue of process is the commencement of a suit, or even in some cases the filing of' the bill. Pacific Coast S. S. Co. v. Bancroft-Whitney Co. 36. C. 0. A. 135, 94 Bed. 180.

In the case at bar the decision is made difficult by the fact that the steps in the two cases run almost parallel, and were-different in time only minutes or hours, being all on the same day. The petition was first filed and first served in the local' court, while, on the other hand, the bill may have been filed [61] in the Federal court before service in the local court, and certainly was before appearance made in the local court. The Federal court first took judicial action as distinguished from the administrative action of its clerk, by appointing receivers, possibly before service in the local court, and those receivers went into possession about the time or shortly after the local ■court was fixing a later day on which to appoint its own receivers. Which court, under these conflicting steps, first acquired jurisdiction?

4. The question of jurisdiction is a relative one. It differs in suits in personam and in rem, and in some respects it varies .as to parties. The question now under consideration, however, has no reference to parties; it is as between two courts. If the jurisdiction as to parties depends upon filing and the like, which parties control, it would seem as if on principle the question as between courts should depend upon the acts of the courts. It is true the court is an entity, consisting of judge, clerk, and marshal, but these officers have different functions. The decision of a case — the literal meaning of jurisdiction — • rests solely with the judge, and it would seem that jurisdiction must depend upon his act, and not upon that of the clerk. See Lansing v. Easton, 7 Paige,, 364. If jurisdiction as between •courts attaches to the court making the first order, in the case at bar this would be the Federal court. This court, at about ten minutes after 12, noon, made an order taking jurisdiction of the case and appointing receivers. The insular court made no order of this nature until later in the day, and in fact did not appoint receivers for a week. East Tennessee, V. & G. R. Co. v. Atlanta & F. R. Co. 15 L.R.A. 109, 49 Fed. 608, 610.

It may well be that the act of the clerk, for instance in [62] filing tbe papers, is considered tbe act of tbe court, and tbat tbe order made by tbe court assuming jurisdiction relates back to tbis, tbe initial step in tbe case. Tbis may be necessary for tbe orderly conduct of tbe business of tbe court. But, nevertheless, it would seem tbat relation back should not apply where conflicting rights have intervened. Where time is of the essence of tbe transaction, in tbis case taking jurisdiction, a subsequent order of one court should not relate back so as to take precedence of a prior conflicting order of another court.

It is, however, not necessary to rest tbe decision of tbe case upon tbis view of tbe principle involved.

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Grosch v. Central Vannina, Inc., 7 P.R. Fed. 55 (prd 1914).

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