McCarter v. American Newspaper Guild

177 A. 835, 118 N.J. Eq. 102
CourtNew Jersey Court of Chancery
DecidedMarch 5, 1935
StatusPublished
Cited by4 cases

This text of 177 A. 835 (McCarter v. American Newspaper Guild) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McCarter v. American Newspaper Guild, 177 A. 835, 118 N.J. Eq. 102 (N.J. Ct. App. 1935).

Opinion

The petition is filed by Heywood Broun, a non-resident defendant, and seeks the removal of the cause to the United States district court for the district of New Jersey upon the grounds (as stated in the brief) (1) that it is a suit over which the United States district court would have original jurisdiction under section 41 of title 28, United States Code, and in which there is a controversy wholly between citizens of different states; and (2) that it is a suit in which the United States district court would have original jurisdiction under section 41 and arises under the provisions of the constitution of the United States.

The bill may be considered as one to restrain unlawful acts arising out of a labor strike, although so far as the trustee-complainants are concerned there may be material points of difference between the present suit and those injunction suits usually arising out of labor controversies. There are sixty-three defendants named in the bill; sixty-one of them, including the petitioner, are individual defendants, and two, the American Newspaper Guild and Newark Newspaper Guild, are voluntary unincorporated associations. It appears from the petition and annexed pleadings that the only non-resident defendant is the petitioner Heywood Broun, but all of the other defendants have filed a "consent and joinder" to the petition. Upon the filing of the bill an order to show cause with preliminary restraint was issued and the present petition was filed with the court on the return day of the order to show cause. At the oral argument it was asserted by counsel for the petitioner that on presentation of this petition this court had no alternative but to advise an order *Page 104 transferring the cause to the federal court. This assertion was startling, to say the least, and finds no support in our decisions. The rule is to the contrary. Upon the filing of such a petition it is not only the right, but "a duty which this court cannot escape," to inspect the record and to determine whether or not such record upon its face shows that the cause is removable.National Docks Railway Co. v. Pennsylvania Railroad Co.,52 N.J. Eq. 58; affirmed, Ibid. 590; National Union Bank v. Dodge,42 N.J. Law 316; Vermeule v. Vermeule, 67 N.J. Law 219;Holcombe v. Ames, 87 N.J. Eq. 486; Smathers v. Leith, 92 N.J. Eq. 165; Bilecki v. Erie Railroad Co., 101 N.J. Law 17; Eckel v. Shell Products, Inc., 113 N.J. Eq. 498. This question is one for decision of the state trial court in the first instance.National Docks Railway Co. v. Pennsylvania Railroad Co.,supra; Noble v. Massachusetts Beneficial Association (C.C.N.Y., 1891), 48 Fed. Rep. 337; Springer v. Howes (C.C.N.C., 1895), 69 Fed. Rep. 849; State v. Mosman,231 Mo. 474; 133 S.W. Rep. 38. That court is at liberty to decide that the petition does not show a removable cause or is insufficient, upon its face, and for the purposes of the decision of that question all the allegations in the bill of complaint are to be considered and taken as confessed (National Docks Railway Co. v. Pennsylvania Railroad Co., supra; tit. 28 § 71 U.S.C.A.note 565), although no action of the state court can confer or take away the right to remove a cause to a federal court. Whether or not the state court makes an order for removal, the party seeking it may accomplish such removal by filing in the federal court a transcript of the proceedings in the state court and complying with the requirements of the statute. Clippinger v.Missouri Valley Life Insurance Co. (C.C. Ohio, 1876), Fed.Cas. 2901. But he does so at his peril. The mere filing of the transcript does not effect a prohibition of proceedings in this court; they may continue until it is judicially informed that its power over the cause has been suspended by operation of law.Eckel v. Shell Products, Inc., supra.

Upon the filing of a transcript in the federal court the *Page 105 question of removability may be there determined upon a motion to remand. The jurisdiction of that court depends upon compliance or non-compliance with the federal law and not upon the decision of the state court. Title 28, section 1, U.S.C.A. note 373, and cases.

But to justify the removal upon the grounds of a separable controversy and diverse citizenship there must be shown to be a controversy wholly between citizens of different states which can be fully determined as between them, and complete relief afforded as to the separate cause of action without the presence of the resident defendants. In deciding whether such a separable controversy exists, the cause of action alleged in the plaintiff's pleading must be accepted as the only criterion of the decision, and if it is there alleged that the cause of action is joint, and if it appears that some of the defendants are citizens of the same state with the plaintiff, it must be held that the suit is not removable. National Docks Railway Co. v.Pennsylvania Railroad Co., supra; Smathers v. Leith, supra;Holcombe v. Ames, supra.

As above noted, petitioner asserts two grounds for removal. The first is that this is a suit of which the United States district court would have original jurisdiction under section 41 and in which there is a controversy wholly between citizens of different states.

Bearing in mind that for the purpose of this application it is necessary to treat the allegations of the bill of complaint as confessed, this point may be disposed of by noting that the bill alleges, in effect, a conspiracy. It matters not whether the term "conspiracy" is used in the bill; what is important is that the allegations of the bill import a conspiracy. Jonas Glass Co. v.Glass Bottle Blowers Association, 72 N.J. Eq. 653; BaldwinLumber Co. v. Local No. 560, International Brotherhood, 91 N.J. Eq. 240; Lehigh Structural Steel Co. v. Atlantic Smelting andRefining Works, 92 N.J. Eq. 131; Gevas v. Greek RestaurantWorkers' Club, 99 N.J. Eq. 770; Duplex Printing Press Co. v.Deering, 254 U.S. 443. The fact is, however, that paragraph 25 of the bill alleges that "all the acts of the defendants are in pursuance of an illegal conspiracy." *Page 106

The law is settled that a suit brought against several defendants, some of whom are citizens of the same state with the plaintiff, charging them all as joint contractors or joint trespassers, cannot be removed into the United States court by those who are citizens of another state, although they allege that they are not jointly interested or liable with the other defendants, and that their controversy with the plaintiff is a separate one. Little v. Giles, 118 U.S. 596

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Bluebook (online)
177 A. 835, 118 N.J. Eq. 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccarter-v-american-newspaper-guild-njch-1935.