Marshall v. Baltimore & Ohio Railroad

57 U.S. 314, 14 L. Ed. 953, 16 How. 314, 1850 U.S. LEXIS 1556
CourtSupreme Court of the United States
DecidedMay 18, 1854
StatusPublished
Cited by241 cases

This text of 57 U.S. 314 (Marshall v. Baltimore & Ohio Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marshall v. Baltimore & Ohio Railroad, 57 U.S. 314, 14 L. Ed. 953, 16 How. 314, 1850 U.S. LEXIS 1556 (1854).

Opinions

Mr. Justice GRIER

delivered the opinion- of the court.

A question, necessarily preliminary to our consideration of the merits of this case,-has been brought to the notice of the court, though not argued or urged by the counsel.

The plaintiff in error,, who was also plaintiff below, avers in his declaration that he is a citizen of Virginia, and that “ The Baltimore and Ohio Railroad Company, the defendant, is a body corporate by an act'of the General Assembly of Maryland.” It has been objected, that this averment is insufficient to show jurisdiction in the courts of the United States over the “ suit ” or “ controversy.” The decision of this court in the case of the Louisville Railroad v. Letson, 2 Howard, 497, it is said, does not sanction it, or if some of the doctrines advanced should seem so to do, they are extrajudicial, and therefore not authoritative.

The published report of that case (whatever the fact may have been) exhibits no dissent to the opinion of the c'ourt by any member of it. It has, for the space of ten years, been received by the bar as a final settlement of the questions which have so frequently arisen under this clause of the Constitution; and the practice and forms of pleading in the courts of the United States have been conformed to it. Confiding in its stability, numerous controversies involving property and interests to a large amount, have been heard and decided by the circuit courts, and by this court; and many are still pending here, where the jurisdiction has been assumed on the faith of the sufficiency of such an averment. If we should now declare these judgments to have been entered without jurisdiction or authority, we should inflict a great and irreparable evil on the community. There are no cases, where an adherence to the maxim of “ stare decisis ” is so absolutely necessary to the peace of society, as those which affect retroactively the jurisdiction of courts. For this reason alone, even if the court were now of opinion, that the principles affirmed in the case just mentioned, and that of [326]*326The Bank v. Deveaux, 5 Cranch, 61, were not founded on right reason, we should' not be justified in overruling them. The practice founded on these decisions, to say the least, injures or wrongs no man; while their reversal could not fail to work wrong and injury to .many,

Besides the numerous cases, with similar averments, over which the court have exercised jurisdiction without objection, we may mention that of Rundle v. The Delaware and Raritan Canal, 14 Howard, 80, as one precisely in point with the present. The report of that case shows that the question of jurisdiction, though not noticed in the opinion of the court, was not overlooked, three of the judges having severally expressed their opinion upon it. Its value as a precedent is therefore not merely negative. But as we do not rely only on precedent to' justify our conclusion in this case, it may not be improper, once again, to notice the argument used to impugn the correctness of our former decisions, and also to make a brief statement of the reasons which, in our opinion, fully vindicate their propriety.

By the Constitution, the jurisdiction of the courts of the United States is declared to extend, inter alia, to “ controversies between citizens of different States.” The Judiciary Act confers on the circuit courts jurisdiction “ in suits between a citizen of the State where the suit is brought and a citizen of another State.”

The reasons for conferring this jurisdiction on the courts of ■ the United States, are- thus correctly stated by a- contemporary, writer (Federalist, No. 80.) “ It may be esteemed as the basis of the Union, ‘ that the citizens of each State shall be entitled to all the privileges and immunities of the citizens of the several States.’ And’ if it be a just principle, that every government ought to possess the means of executing its own provisions by its own-authority, it will follow, that in order to the inviolable maintenance of that equality of privileges and immunities, the national judiciary ought to preside in all cases, in which one State or its citizens are opposed to another State or its citizens.”

Now, if this be a right, or privilege guaranteed by the Constitution to citizens of one State in their controversies with citizens of another, it is plain that it cannot 'be taken away from the plaintiff by any legislation of the State in which the defendant resides. If A, B, and C, with other dormant or secret partners, be empowered to act by their representatives, to sue or to be sued in a collective or corporate name, their enjoyment of these privileges, granted by State authority, cannot nullify this important right conferred on those who contract with them. It was [327]*327well remarked by Mr. Justice Catron, in his opinion delivered in the case of Bundle, already referred to, that “if the United States courts could be ousted of jurisdiction, and citizens of other States be forced into the State courts, without the power of election, they would often be deprived, in great cases, of all benefit contemplated by the Constitution ; and in many cases be compelled to submit their rights to judges and juries who are inhabitants of the cities where the suit must-be tried, and to contend with powerful corporations, where the chances of ip> partial justice.would be greatly against them; and where no prudent man would engage with such an antagonist, if he could help it. State laws, by combining large masses of men under a corporate name, cannot repeal the Constitution. All corporations must have trustees and representatives who are usually citizens of the State where the Corporation is created: and these citizens can be sued, and the corporate property charged by the suit. Nor can the courts allow the constitutional security to be evaded by unnecessary refinements, without inflicting a deep injury on the institutions of the country.”

Let us now examine the reasons which are considered so conclusive and imperative, that they should compel the.court to give a construction to this clause of the Constitution, practically- destructive of the privilege so clearly intended to be conferred by it.

“A corporation, it is said, is an artificial person, a mere legal entity, invisible and intangible.”

This is no doubt metaphysically true in a certain sense. The inference, also, that such an artificial entity “ cannot be a citizen ” is a logical conclusion from the premises which cannot be denied.

But a citizen who has made a contract, and- has a “ controversy ” with a corporation, may also say, with equal truth, that he did not deal with.a mere metaphysical abstraction, but with natural persons ; that his writ has not been served on an imaginary entity, but on men and citizens; and that his contract was made with them as the legal representatives of numerous unknown associates, or secret and dormant partners.

The necessities and conveniences of trade and business require that such numerous associates and stockholders should act by representation, and have the faculty of contracting, suing, and being sued in a factitious or collective name. But these important faculties, conferred on them by State legislation, for their, own convenience, cannot be wielded to deprive others of acknowledged rights. It is not reasonable that those who. deal wiih such persons should be deprived of a valuable privilege by a. syllogism, or rather sophism, which deals subtly with [328]

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Cite This Page — Counsel Stack

Bluebook (online)
57 U.S. 314, 14 L. Ed. 953, 16 How. 314, 1850 U.S. LEXIS 1556, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marshall-v-baltimore-ohio-railroad-scotus-1854.