Liggett v. Glenn

51 F. 381, 1892 U.S. App. LEXIS 1368
CourtCourt of Appeals for the Eighth Circuit
DecidedJune 13, 1892
DocketNos. 61, 62
StatusPublished
Cited by16 cases

This text of 51 F. 381 (Liggett v. Glenn) 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
Liggett v. Glenn, 51 F. 381, 1892 U.S. App. LEXIS 1368 (8th Cir. 1892).

Opinion

Shiras, District Judge,

(after stating the facts.f The first position taken by counsel for the plaintiff in error is that the decrees or orders entered by the chancery court of the city of Richmond, and by the circuit court of Henrico county, Va., making assessments upon the capital, stock of the insolvent corporation, were mere nullities, for want of jurisdiction on part of said courts over the subject-matter and over the company named as defendant therein. The contention on part of the plaintiff in error is that the pendency of the suit brought by Reynolds in the. United States court in 1866, and the appointment of the receiver in that ease, with the powers conferred upon him, precluded the chancery court of the city of Richmond from taking jurisdiction over the company in the suit brought by W. \V. Glenn in 1871; and that the assets of the corporation, including the liability of the stockholders for assessments upon the capital stock, became subject to the jurisdiction of the federal court in such sense that no other court could assume control over the same. This contention involves two propositions; First, that the pendency of the Beynolds Case in the federal court ousted the jurisdiction of the state court over the case brought by W. W. Glenn; and, second, that, granting jurisdiction over the caso in the state court, the assets of the company wore wholly withdrawn from the operation of any decree or order affecting the same made by the state court, by reason of the appointment of the receiver in the federal court. If it appears that two suits are pending in the same jurisdiction in which there is identity of subject-matter, of parties, and of relief sought, the pendency of the first suit may he pleaded in abatement of the second, on the ground that the bringing of the latter subserves no good purpose, subjects the party to increased expense, and is therefore vexatious; but the pendency of a suit in a state court cannot be pleaded in abatement of a suit in a federal court, because the jurisdictions are, in this sense, foreign to each other. Insurance Co. v. Brune’s Assignee, 96 U. S. 588; Gordon v. Gilfoil, 99 U. S. 168.

Furthermore, if the pendency of another suit in the same jurisdiction is pleaded in abatement, it must appear that the former suit presents the same case; that is, there must he identity in the interests represented, in the rights asserted, and in the purpose sought. Thus, as is said by the supreme court in Watson v. Jones, 13 Wall. 679:

“But, when the pendency of such a suit is set up to defeat another, the case must be the same. There must be the same parties, or, at least, such as represent the same interest; there must be the same rights asserted, and the same relief prayed for. This relief must he founded on the same facts, and the title or essential basis of ttie relief sought must be the same. The identity in these particulars should be such that, if the pending case had already been disposed of, it could be pleaded in bar as a former adjudication of the same matter between the same parties.”

[390]*390In our judgment, the case brought in the name of Reynolds is not identical with that brought in the name of W. W. Glenn, according to the test furnished by this decision of the supreme court. Reynolds sued as a stockholder, and for the protection and enforcement of the rights of himself and all other stockholders. Glenn sued as a creditor on behalf of himself and such other creditors as might unite in the proceedings. The basis of the relief sought in the two proceedings was essentially .different, the one counting upon* the rights of the stockholders to control the management of the affairs of the company, and as an incident thereto to require the company to pay its debts; the other upon the right of creditors to reach the assets of the compauy, including the unpaid subscriptions to the capital stock for the payment of the debts due. It is certainly not true that there is identity of interests, of title and of rights between the stockholders and creditors of a corporation. If in the Reynolds Case the federal court had refused to order an assessment upon the capital stock, could such finding or decree have been pleaded in bar of a suit by the creditors to enforce their rights? Certainly the rights.of creditors are not subject to be barred by proceedings had solely between the company and its own shareholders. Furthermore, one of the principal objects of the Glenn Suit was to obtain an adjudication upon the question of the validity of the deed of assignment executed by the corporation, and as to the rights of creditors under this deed,—a purpose wholly without the purview of the bill filed in the Reynolds Case. For these reasons we are of the opinion that, even if the pendency of the Reynolds Case had been pleaded in abatement of the Glenn Suit, which it was not, it would not have availed to defeat the jurisdiction of the chancery court of the city of Richmond in that cause.

Jurisdiction of the case existing in that court, does it appear that it had jurisdiction to make assessments upon the capital stock of the company, and to authorize the collection thereof by the trustee by it appointed to execute the deed of assignment? It mnst be borne in mind that .this court is dealing only with the question of the jurisdiction of the chancery court of the city of Richmond over the. proceedings had before it. On part of the plaintiff in error it is contended that the action had in the federal court in the Reynolds Cause in the appointment of a receiver subjected to the jurisdiction of that court the assets of the company, including the liability of the shareholders to' calls upon the shares of stock owned by them, and therefore the Richmond chancery court could not bring the same within its jurisdiction. The general doctrine that, in cases of concurrent jurisdiction, the jurisdiction of the court first taking control of the property involved is exclusive, does not justify the claim asserted by the plaintiff in error. If it be admitted that the .proceedings taken in the federal court in the Reynolds Case had the effect of bringing within the exclusive control of that court the assets Of the National1 Express & Transportation Company, and that it was within the power' of that court to have wound up the affairs of the company, yet such exclusive control terminated when that court discharged the receiver, vacated all orders made by it, and dismissed the. case. [391]*391From that time forward the assets of the corporation were not within the control of the federal court, but were subject to the jurisdiction of any other competent tribunal, just the same as though no suit had ever been brought in the federal court. From the record before us it appears that in the Reynolds Case the only property that came into the actual possession of the receiver appointed by 'the federal court was two freight cars, which were sold, and the proceeds were used in meeting the expenses of the receiver.

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Cite This Page — Counsel Stack

Bluebook (online)
51 F. 381, 1892 U.S. App. LEXIS 1368, Counsel Stack Legal Research, https://law.counselstack.com/opinion/liggett-v-glenn-ca8-1892.