Matter of Dunn

212 U.S. 374, 29 S. Ct. 299, 53 L. Ed. 558, 1909 U.S. LEXIS 1820
CourtSupreme Court of the United States
DecidedFebruary 23, 1909
Docket10, Original
StatusPublished
Cited by61 cases

This text of 212 U.S. 374 (Matter of Dunn) 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
Matter of Dunn, 212 U.S. 374, 29 S. Ct. 299, 53 L. Ed. 558, 1909 U.S. LEXIS 1820 (1909).

Opinion

*383 Mb. Justice Peckham,

.after making the foregoing statement, delivered the opinion of the court.

It is agreed by all that there is in this case no separable controversy, and the important question is whether, upon the facts stated, a removal can be ordered, notwithstanding the individual defendants were made parties to the suit, and were not residents or inhabitants of the. Northern District of. Texas when sued. - „

The question arises under the act of Congress of 1888, relative to the removal of cases from state to Federal courts. 25 Stat. 433, chap. 866. This act, as its title shows, was passed for the purpose of correcting the enrollment qf the act approved March 3, 1887, 24 Stat. 552, chap. 373, which amended the act approved March 3, 1875, 18 Stat. 470, chap. 137. The first clause of the first section of the act of 1888 gave to the Circuit Courts of the. United States “original cognizance,- concurrent with the courts of the several States, of all suits of a civil nature, at common law or in equity, where the matter in dispute exceeds, exclusive of interest and costs, the sum or value of two ' thousand dollars, and arising under the Constitution or laws of the United States, or treaties made, or which shall be made,' under their authority. . ,

The second section of the act provided “that any suit of a civil nature, at law or in equity; arising -under the Constitution or laws of the United States,' or treaties made, or which shall be made, under their authority, of which the Circuit Courts of the United States are given original jurisdiction by the preceding section, which may now be'pending, or which may hereafter be brought; in any state court, may be removed by the defendant or defendants therein to the Circuit Court of the United States for the proper district. , .

If the.question were as to the right to remove a case to the Federal court where the sole defendant was a corporation created by an act of Congress, there can be no dispute as to the right of such a defendant to claim the removal. As the corpo *384 ration derives all its rights from the law of Congress, a suit brought against it on account of its action arises under the Constitution or laws of the United States. Osborn v. Bank of the United States, 9 Wheat. 738, 817, 828; Pacific Railroad Removal Cases, 115 U. S. 1. See also act of incorporation of the Texas & Pacific Railroad Company, 16 Stat., p. 573, c. 122, March 3, 1871, giving the right to the,corporation (p. 574, § 1) to sue and be Sued in all the courts of law and equity within the United States.

The right to remove, under the statute, depends upon, whether thé suit could originally have been brought in the Circuit Court of the United States. Traction Company v. Mining Company, 196 U. S. 239, 245; Cochran &c. v. Montgomery County, 199 U. S. 260.

The question then is whether the United States Circuit Court, for the proper district (Northern District of Texas) would have had jurisdiction of a suit commenced in that district, by the plaintiffs against the railway company and the two individual defendant's. ■ A suit against the company would, as we have seen, be one arising under the Constitution or laws of the United-States, and as the individual defendants resided in the -State of Texas (the same State.,as the plaintiffs) the ground of jurisdiction of the Federal Court as to them must.be that by joining all as defendants in a joint- action for the same wrong done by all of them; the plaintiffs thereby made the suit against the individual defendants also one which arises under the Constitu-tion or laws of the United States. .

The plaintiffs themselves have made the act of which they complain a joint one, and, being one which arises under the Constitution and laws of the United States as to one of the defendants, it becomes so as to all, because it is joint. The Federal character permeates the whole cáse, including the individual defendants as well as the corporation; The case which plaintiffs make in their- petition in the suit must determine'the character of the cause of aytion. Alabama Great Southern Railway v . Thompson, 200 U. S. 206, 216. The acts of the indi *385 vidual defendants were not necessarily in and of themselves inherently of a Federal nature.

In Landers v. Felton, 73 Fed. Rep. 311, the question arose whether an action brought against the receiver of. a United States court, and others who were citizens of the same' Staté as that of the plaintiff, to establish a joint liability of all the defendants, was a suit arising undér the laws or Constitution of the United States. The court held that it was, saying:- “No separate liability could be asserted against the receiver;, except by virtue of the same laws. Therefore the joint liability of the defendants with the receiver arises under the laws ór Constitu-. tion of the United States. If the plaintiff wished to sue the other defendants without joining the receiver; he had his elec- , tion to do so, because the liability of joint tort feasors is also several. He might, therefore, have maintained his action against the resident defendants in a state court, without any possibility of removal to a Federal court. He elected, however, to join the-resident defendants with a person against whom he could establish no liability, in. the capacity in which he sues him, except by virtue of the laws of the United States. Therefore the joint cause of action which he asserts against all the defendants must find its sanction in the Federal statutes; Hence, the cause of action is removable. The state court was in error in denying the petition of the receiver, and the motion to remand'is overruled.”

In Lund v. Chicago &c. Railway Co., 78 Fed. Rep. 385, a suit was brought in the state court against that company, together with'1 the .Union Pacific Railway Company and its receivers. One was a state and the other a United States corporation. The-Union Pacific, by its receivers, filed a petition for removal of the cause, and a motion to remand was made, and it was urged that the cause was not removable because the state corporation was joined with the Union Pacific, and that as to the' state corporation no Federal law was involved, and it could not remove the cause to the Federal court. The court held the -defense was-not well taken; that the statute organizing the *386

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Bluebook (online)
212 U.S. 374, 29 S. Ct. 299, 53 L. Ed. 558, 1909 U.S. LEXIS 1820, Counsel Stack Legal Research, https://law.counselstack.com/opinion/matter-of-dunn-scotus-1909.