Merrimack River Savings Bank v. City of Clay Center

219 U.S. 527, 31 S. Ct. 295, 55 L. Ed. 320, 1911 U.S. LEXIS 1651
CourtSupreme Court of the United States
DecidedFebruary 20, 1911
Docket604
StatusPublished
Cited by81 cases

This text of 219 U.S. 527 (Merrimack River Savings Bank v. City of Clay Center) 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
Merrimack River Savings Bank v. City of Clay Center, 219 U.S. 527, 31 S. Ct. 295, 55 L. Ed. 320, 1911 U.S. LEXIS 1651 (1911).

Opinion

Mr. Justice Lurton

delivered the opinion of the court.

■ The Merrimack River Savings Bank filed a bill in equity in the Circuit Court of the United? States for the District of Kansas claiming to be a creditor of the . light and power company by bonds secured by mortgage upon its plant, property .and franchises, against the city of Clay Center, the Clay Center Light and Power Company and certain individuals, officials of said city. . The bill averred that the Clay .Center Light and Power Company was a corpóration owning and conducting a light and power plant at Clay Center under a perpetual franchise, authorizing it to place and maintain a line of poles and wires.upon the streets of that city; that the city, claiming that its franchise had expired; had, through its coun *533 cil, of which the individual defendants were members,' required said • company to remove its poles and wires from the public streets, and that the officials named as defendants were threatening to cut down its poles and destroy its wires thereon, and thus destroy all possibility of operating its plant, to the irreparable ruin of the security to which the complainant must look' for the payment of its bonds. A temporary injunction was issued to prevent the destruction of the lines of poles and wires as threatened. A demurrer to the bill for want of jurisdiction in the Circuit Court as a court of the United States was sustained and the bill dismissed. An appeal to this court was allowed and the injunction continued pending the appeal. Upon a hearing in this court .the appeal was dismissed without opinion.

The present petition alleges that after this court had made an order dismissing said appeal, but before any mandate had issued or could issue under the rules of this court, and pending the right of petitioners to file an application for a rehearing, since filed and now pending, certain of the defendants to said appeal, namely, George W. Hanna, O. L. Slade, W. D. Vincent, S. D. Tripp, and G. P. Randall, had, by force and violence, cut down many of the poles and destroyed much of the cable and wires stretched thereon, and had put the light and power company out of business and disabled it so that it could not exercise its franchise or carry on its operations. It is averred that the said defendants did thus destroy the subject-matter of the suit, knowing that this appeal was pending and that this court had not lost control over the controversy, and that no mandate had issued and could not issue under the rules. The petition concludes by praying that the individual defendants named be •cited and required to appear before this court and "show cause, if any they have, why they should not be proceeded against as for contempt of this court.” Such a *534 rule was made, and the defendants have appeared and made defense.

The respondents have moved to discharge the rule, because the petition fails to show that they have in any way violated any injunction, rule, order or mandate of this court. This is bottomed, first, upon the claim that the injunction which was continued pending the appeal to this court is the injunction of the Circuit Court, and that any violation is cognizable only in the Circuit Court, and second, upon the claim that if that be so, that the petition fails to show any facts which constitute a contempt of this court.

The plain purpose of the order continuing the injunction pending this appeal was to preserve the subject-matter of the litigation until the rights of the complainant could be heard and decided. It is well settled that the force and effect of a decree dismissing a bill and discharging an injunction is neither suspended nor annulled as a mere consequence of an appeal to this court, even if a supersedeas is allowed. Slaughter-House Cases, 10 Wall. 273, 297; Hovey v. McDonald, 109 U. S. 150, 161; Leonard v. Ozark Land Co., 115 U. S. 465; Knox County v. Harshman, 132 U. S. 14. That the Circuit Court, to the end that-the status quo might be preserved pending such appeal, had the power to continue an injunction in force by virtue of its inherent equity power is not doubtful. In Hovey v. McDonald, cited abr 'e, Mr. Justice Bradley for the court, referring to what had been said in the Slaughter-House Cases as to the effect of an appeal, said:

“It was not decided that the court below had no power, if the purposes of justice required it, to order a continuance of the status quo until a decision should be made by the appellate court, or until that court should order the contrary. This power undoubtedly exists, and Should always be exercised when any irremediable injury *535 may result from the effect of the decree as rendered; but it is a discretionary power, and its exercise or non-exercise is not an appealable matter. In recognition of this power and for the purpose of facilitating its proper exercise in certain cases, on appeals from the Circuit Courts, this court, by an additional rule of practice in equity, adopted in October term, 1878, declared that ‘When an appeal from a final decree, in an equity suit, granting Or dissolving an injunction, is allowed by a justice or judge who took part in the decision of the cause, he may, in his discretion, at the time of such allowance, make an order suspending or modifying the injunction during the pendency of the appeal upon such terms as to bond or otherwise as he may consider proper for the security of the rights of the opposite party.’ Rule 93.”

Obviously this may include a continuance of an injunction which would be otherwise vacated.

Plainly the effect of continuing the injunction operated to continue in the Circuit Court such jurisdiction over the subject-matter of the litigation and of the parties as to enable it to preserve the status quo pending the appeal, including power to take cognizance of a violation of its injunction.

It does not necessarily follow that disobedience of' such an injunction, intended only to preserve the status quo pending an appeal, may not be regarded as a contempt of the appellate jurisdiction of this court, which might be rendered nugatory by conduct calculated to remove the subject-matter of the appeal beyond its control, or by its destruction. This we need not decide, since irrespective of any such injunction actually issued the willful removal beyond the reach of the court of the subject-matter of the litigation or its destruction pending an appeal from a decree praying, among other things, an injunction to prevent such removal or destruction until the right shall be determined, is, in and of itself, a con *536 tempt of the appellate jurisdiction of this court. That such conduct may be a violation of the injunction below affords no reason why it is not also a contempt of this court.

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Bluebook (online)
219 U.S. 527, 31 S. Ct. 295, 55 L. Ed. 320, 1911 U.S. LEXIS 1651, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merrimack-river-savings-bank-v-city-of-clay-center-scotus-1911.