James G. Hadge v. Second Federal Savings and Loan Association of Boston

409 F.2d 1254, 1969 U.S. App. LEXIS 12601
CourtCourt of Appeals for the First Circuit
DecidedApril 29, 1969
Docket7269_1
StatusPublished
Cited by18 cases

This text of 409 F.2d 1254 (James G. Hadge v. Second Federal Savings and Loan Association of Boston) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
James G. Hadge v. Second Federal Savings and Loan Association of Boston, 409 F.2d 1254, 1969 U.S. App. LEXIS 12601 (1st Cir. 1969).

Opinion

ALDRICH, Chief Judge.

The present questions in this case arise out of the district court’s dismissal of the complaint for .lack of jurisdiction. The facts are relatively simple. In October 1967'bne Mamber filed a complaint in the district court asserting that he was a member of defendant Second Federal Savings and Loan Association of Boston and seeking mandamus to compel disclosure of a list of the other members, their addresses, and number of shares held by each, for use in connection with a forthcoming election. Defendant contended that its bylaw, approved by the Federal Home Loan Bank Board, permitted Mamber to communicate with other members only through it, in a limited manner, and without Mamber’s knowledge of their identity. On this basis it moved under F.R.Civ.P. 12(b) (6) to dismiss for failure to state a claim. This motion was assigned for hearing together with a motion by Hadge, the present plaintiff appellant, to be substituted as party plaintiff. Hadge, a director, not up for re-election, asserted that Mamber was his undisclosed agent. The court did not reach the parties’ motions but, sua sponte, dismissed the complaint for lack of jurisdiction of the subject matter. It said,

“No special jurisdictional statute is relevant. The Home Owners Loan Act of 1933, 12 U.S.C. §§ 1461-1468, is not an act regulating commerce such as might make applicable the jurisdictional provisions of 28 U.S.C. § 1337. Rather it rests upon Congress’ power to tax and make appropriations for the general welfare by virtue of clause 1 of Art. I, § 8, of the Constitution of the United States, First Federal Savings & Loan Ass’n of Wisconsin v. Loomis, 7 Cir., 1938, 97 F.2d 831, 836-839, 121 A.L.R. 99.
“Accordingly, the complaint is dismissed for lack of jurisdiction over the subject matter.”

Mamber v. Second Fed. Sav. & Loan Ass’n, D.Mass., 1967, 275 F.Supp. 170, 171.

No appeal was taken from the dismissal. Hadge, instead, brought a suit in the Massachusetts state court, which denied relief. His appeal therefrom was dismissed on the ground of mootness, the election in connection with which he wanted relief having already been held. Hadge v. Second Fed. Sav. & Loan Ass’n, 1968 Mass.Adv.Sh. 1377, 242 N.E.2d 861.

Hadge’s term of office was set to expire at the January 1969 meeting and he desired to stand for re-election. Not deterred by his prior failure, in August 1968 he made a personal request for a list of members. Upon rejection he sought relief from the Federal Home Loan Bank Board, which refused, stating that defendant’s bylaw was valid even as to directors. The following week plaintiff brought this suit. The district court promptly dismissed the action and plaintiff appealed. Both the district court and this court denied temporary relief pending appeal.

A preliminary question is whether the election having now passed, the appeal has become moot. Under the circumstances we prefer not to follow the Massachusetts court, but to construe this as a claim for continuing relief. A party who failed in the trial court could not, as a practical matter, ever obtain review and we would go on year after year dismissing appeals before they could be decided. We do not think such a result desirable, or necessary. See United States v. W. T. Grant Co., 1953, 345 U.S. 629, 632-633, 73 S.Ct. 894, 97 L.Ed. 1303; Offner v. Shell’s City, Inc., 5 Cir., 1967, 376 F.2d 574, 576; Woods v. Wright, 5 Cir., 1964, 334 F.2d 369, 375. Cf. Wirtz v. Local 153, Glass Bottle Blowers Ass’n, 1968, 389 U.S. 463, 474-476, 88 S.Ct. 643, 19 L.Ed.2d 705.

However, we still do not reach the merits. Defendant asserts that *1256 Hadge, admittedly in privity with Mamber, is collaterally estopped from asserting the district court’s jurisdiction because of the adverse decision in the Mawber case. Defendant, properly, does not assert the doctrine of direct estoppel, known loosely as res judicata. Because Hadge’s second action involves a different election and a different denial this broader doctrine does not apply. Lawlor v. National Screen Serv. Corp., 1955, 349 U.S. 322, 326-328, 75 S.Ct. 865, 99 L.Ed. 1122; Cromwell v. County of Sac, 1876, 94 U.S. 351, 24 L.Ed. 195; Developments in the Law—Res Judicata, 65 Harv.L. Rev. 818, 840 (1952). Collateral estoppel would normally apply, however, between the same parties as to any matter which involved the same questions of fact and law and was actually litigated in the earlier suit. Commissioner of Internal Revenue v. Sunnen, 1948, 333 U.S. 591, 597-598, 68 S.Ct. 715, 92 L.Ed. 898.

Plaintiff contends that there is an exception to this principle, when the question is “purely” of law, and that the present is the exceptional case. 1 There is an exception, but it is not easy to define. This is illustrated by the fact that both parties cite the same case as authority for their positions. In United States v. Moser, 1924, 266 U.S. 236, 45 S.Ct. 66, 69 L.Ed. 262, the original dispute had been over the question whether enrollment at the Naval Academy was “service during the Civil War,” entitling the plaintiff to a higher pension. Moser sued for one installment and won. The government did not appeal, but resisted subsequent payments. The Court held the government was bound by the principle of collateral estoppel, since Moser’s right to a Civil War pension had been conclusively established by the first suit. The Court said,

“The contention of the Government seems to be that the doctrine of res judicata does not apply to questions of law; and, in a sense, that is true. It does not apply to unmixed questions of law. Where, for example, a court in deciding a case has enunciated a rule of law, the parties in a subsequent action upon a different demand are not estopped from insisting that the law is otherwise, merely because the parties are the same in both cases. But a fact, question or right distinctly adjudged in the original action cannot be disputed in a subsequent action, even though the determination was reached upon an erroneous view or by an erroneous application of the law.”

266 U.S. at 242, 45 S.Ct. at 67. The Court later made it clear that a “right” would only be held conclusively determined by a prior suit if the “right” in both suits rested on the same historical facts. In Commissioner of Internal Revenue v.

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Bluebook (online)
409 F.2d 1254, 1969 U.S. App. LEXIS 12601, Counsel Stack Legal Research, https://law.counselstack.com/opinion/james-g-hadge-v-second-federal-savings-and-loan-association-of-boston-ca1-1969.