Louisville & N. R. v. Western Union Telegraph Co.

218 F. 91, 1914 U.S. Dist. LEXIS 1378
CourtDistrict Court, E.D. Kentucky
DecidedSeptember 28, 1914
DocketNo. 758
StatusPublished
Cited by18 cases

This text of 218 F. 91 (Louisville & N. R. v. Western Union Telegraph Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisville & N. R. v. Western Union Telegraph Co., 218 F. 91, 1914 U.S. Dist. LEXIS 1378 (E.D. Ky. 1914).

Opinion

COCHRAN, District Judge.

This cause is before me on plaintiff’s motion to remand. It is a civil suit at law, brought in the circuit court of Fayette county, Ky., in this district, and removed thence to this court by the defendant. The plaintiff seeks therein to recover of the defendant $682,972.95 and interest from August 17, 1913. Question is made as to the exact nature of plaintiff’s cause of action as set forth in its petition. But for the purposes of this motion I will accept it to he as plaintiff claims it is; that is, a suit to recover that sum as a reasonable rental for one year from August 17, 1912, for the use and [92]*92occupation of its right of way and other property located in 13 different states by the defendant for its telegraph line and apparatus. The ground of the removal was the diversity of citizenship between the parties.

The plaintiff is a Kentucky corporation and citizen, and the defendant is a New York corporation and citizen. No question is made as to the regularity of the removal proceedings. The sole ground of the motion to remand is that the cause was not removable; and the ground upon which it is contended that it was not removable is that it could not have been brought originally in this court.

It is clear that the suit could not have been brought originally in this court, notwithstanding the diversity of citizenship between the parties. This is so because of the “but” clause of section 51 of the Judicial Code (Comp. St. 1913, § 1033), which is in these words:

“But where the jurisdiction is founded only on the fact that the action is between citizens of different states, suit shall be brought only in the district of the residence of either the plaintiff or the defendant.”

This district is not the district of the residence of the defendant, because it is a foreign corporation. Shaw v. Quincy Mining Co., 145 U. S. 444, 12 Sup. Ct. 935, 36 L. Ed. 768. It is not the district of the residence of the plaintiff, for, though a large part of plaintiff’s railroad system is located in this district, its principal office is at Louisville, in the Western district of this state. Galveston, H. & S. A. R. Co. v. Gonzales, 151 U. S. 496, 14 Sup. Cf. 401, 38 L. Ed. 248. This decision is not only an authority for the position that the district of the plaintiff’s residence is the Western district, and not this, but also for the position that, this being so, the suit could not have been brought originally in this court.

It follows, then, that the removability of the suit and the decision of the motion to remand depend solely on the question whether the circumstance that the suit could not have been brought originally in this court rendered it nonremovable, or, more specifically, whether the place where a suit is required to be brought, if brought in the federal court, is an element in determining its removability when brought in the state court. And on this question the decision of the Supreme Court in the case of Ex parte Wisner, 203 U. S. 449, 27 Sup. Ct. 150, 51 L. Ed. 264, is a direct authority in support of the position that it is. It was there held that a civil suit at law, brought by a citizen and resident of Michigan against a citizen and resident of Lousiana in a state court of Missouri within the Eastern district thereof, and removed by defendant to the Circuit Court of that district, was nonremovable, and a mandamus was awarded against that court, which had assumed jurisdiction of the suit, commanding it. to remand the suit to the1 state court. 'It was so held, because the suit could not have been brought originally in the Circuit Court, or, in other words, that district was not the place in which it could have been brought, if brought in a federal court, instead of a state court.

There is just one particular in which that case, in its facts, differs from the one in hand, and that is that there the plaintiff was a nonresident and noncitizen of the state where the suit was brought, where[93]*93as here the plaintiff is a citizen and resident of the state where the suit was brought. But there is nothing in this difference calling for a difference in decision. For here, as there, the suit was brought in a district of which the plaintiff was a nonresident, and because of this circumstance the suit could not'have been brought originally in this court, and the decision in the Wisner Case was placed, and could only have been placed, on the ground that in no case can a suit be removed to a federal court that could not have been brought originally in ‘that court. And in the cases of Shawnee National Bank v. M., K. & T. Ry. Co. (C. C.) 175 Fed. 458, and Wheeler v. A. T. & S. F. Ry. Co. (not reported), the decision in the latter case being quoted in that of Stone v. C., B. & Q. Ry. Co. (D. C.) 195 Fed. 832, which in their facts are exactly like those of the case in hand, the Wisner Case -was followed and the suits were held nonremovable.

In the Shawnee National Bank Case a suit was brought in a,court of the state of Oklahoma within the Eastern district thereof by a citizen of that state resident in the Western district against a foreign corporation; i. e., a corporation of Kansas, and removed to the Circuit Court of the Eastern district by the defendant. It was held that the suit was nonremovable, and it was remanded to the state court.' In the Wheeler Case a suit was brought in a court of the state of Missouri within the Western district thereof by a citizen of that state, resident in the Eastern district, against.a foreign corporation — i. e., a corporation of Kansas — and removed to the Circuit Court of the Western district by the defendant. There it was likewise held that the suit was nonremovable, and it was remanded to the state court. I think that there is no escaping the conclusion that, if the Wisner Case is binding on the point decided therein, these two cases were decided as they should have been.

The result o.f this reasoning is to bring us square up against the decision of the Supreme Court in the Wisner Case. Ordinarily a lone District Judge, when confronted with such a situation as this, has nothing to do but to obey. But here I am going to treat the matter as open for discussion as to whether it is incumbent on me to follow this decision. And, before dealing directly with it, certain preliminary matters call for consideration. .

In the first place I would note the state of opinion prior to the decision of that case. There had been no decision of the Supreme Court dealing with that question prior thereto, but there had been numerous cases in the lower federal courts in which it had been considered and decided. And there had been some conflict in the decisions. Judge Keller of the Southern district of West Virginia, in his opinion in the case of Foulk v. Gray (C. C.) 120 Fed. 156, where the decision was against the removability of the suit, cites, as in accord therewith, the following decisions of the lower federal courts, to wit: Yuba County v. Pioneer Gold Mining Co. (C. C.) 32 Fed. 183; Telegraph Co. v. Brown (C. C.) 32 Fed. 337; Pitkin Mining Co. v. Markell (C. C.) 33 Fed. 386; Harold v. Mining Co. (C. C.) 33 Fed. 529; Tiffany v. Wilce (C. C.) 34 Fed. 230; Cooley v. McArthur (C. C.) 35 Fed. 372; Central T. Co. v. Virginia, etc., Co. (C. C.) 55 Fed. 769.

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Bluebook (online)
218 F. 91, 1914 U.S. Dist. LEXIS 1378, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisville-n-r-v-western-union-telegraph-co-kyed-1914.