Minnesota Co. v. St. Paul Co.

69 U.S. 609, 17 L. Ed. 886, 2 Wall. 609, 1864 U.S. LEXIS 456
Supreme Court of the United States·Decided March 10, 1865·Published·Cited by 105 cases

Opinions

Mr. Justice MILLER

delivered the opinion of the court.

The first question raised by the demurrer relates to juris diction.

[634] . For tbe purposes of this question we are to take the facts set up by the bill [his Honor had stated the main ones] and demurred to, as true, and consider whether they make a case for the jurisdiction of the Circuit Court of the District of "Wisconsin, which’ has become successor of the District Court in that district.

The present suit grows immediately out of and is a necessity which arises from the suri, by Bronson, Soutter, and Knapp, to foreclose the Land Grant mortgage; under the decree in which suit the Western Division of the La Crosse and Milwaukie Road was sold, and also a.ll the rolling stock of the company belonging to both divisions, to the Mil-waukie and St. Paul Railway Company. • The present suit is really a continuation of that one. The rights of the parties depend upon the construction which is placed upon the acts of the court in it; and the present bill is necessary in order to have a declaration of what was intended by the orders and decrees made in that suit, and to enforce the' rights which were established by it.

The road and rolling stock, which are the subject-matter of this controversy, were placed in the hands of a receiver in the progress of that suit; and he was in possession of the rolling stock when, by an order of the District Court, made June 12, 1863, in that suit, and a' similar order of the same date, in another suit, it was all delivered to the Milwaukie and St. Paul Railway Company.

At the last term of this court,* we decided that, by the act creating the’ Circuit Court for the District of Wisconsin, the District Court lost its power to make such orders, and that they were void. The consequence of this ruling is, that in contemplation of law, this property is still in the hands of the receiver of the court. If in the hands of the receiver of the Circuit Court, nothing can be plainer than that any litigation for its possession must take,place in that court, Without regard to the citizenship of the parties. If it has been taken illegally from the custody of the receiver, it is [635] eqi ally clear tbat the court has not lost thereby the jurisdiction over'the property, or the right to determine where it shall go; so far as that right is-involved in that suit. This is' the very object of this bill, and it is rendered all the more, necessary by that which the court has dope, as well as - that which it has failed to do. In the case of Randall v. Howard;* these principles are fully stated as applicable to a proceeding in a State court, and are given as reasons why the Federal court would not interfere; although the parties had the right, so far as citizenship could give it, to litigate in the courts of the United States.

, It is objected that the present bill is called a supplemental bill, and is brought by a defendant in the original suit, which is said to he a violation of the rules of equity pleading; an& that the subject-matter, and the new parties made by the bill,-are not such ás can properly be brought before the court by that class of hills.

But we think that the question is not whether the proceeding is supplemental and ancillary or is independent and original, in the sense -of the rules of equity pleading; but whether-it is supplemental and ancillary or is to.be considered entirely new and original, in the sense which this, court has sanctioned with reference to the line which divides the jurisdiction of the Federal courts from that of the State courts. No one, for instance,'would hesitate to say that, according to the English chancery practice, a bill to enjoin, a judgment at law, is an original bill' in the chancery sense of the word. Yet this court has decided many times, that when a bill is tiled in the Circuit Court, to enjoin a judgment of that court, it is not to be considered as an original bill, but as a continuation of the proceeding at law; so much so, that the court will proceed in the injunction suit without' actual service of subpoena on the defendant, and though he be a citizen of another State, if he were a party to the judgment at law. The case before us is analogous. An unjust advantage has been obtained by one party over - another by [636] a perversion and abuse of the orders of the court, and the party injured comes now to the same court to have this; abuse corrected, and to carry into effect the real intention and decree of the court, and that while the property which is the subject of contest is still within the control of the court and subject to its order.

It is objected that Pratt and White and the Milwaukie and St. Paul Railway Company -were not parties to that suit, and cannot therefore be compelled to yield their right to litigate with a citizen of Wisconsin in the courts of that State.

- Pratt and White are mere nominal parties, who were the agents and attorneys of the corporators composing the Mil-waukie and St. Paul Railway Company, and purchased the property at the marshal’s sale for them. They and the company may both be considered as purchasers at that sale; and it'is in their character of purchasers, and on account of the possession which they obtained on petition of the company, and the rights they claim under that purchase, that they are now brought before the court. If the court has jurisdiction of the matters growing out of that sale, and order of possession, as we have already shown that it has, then it has jurisdiction to that extent of these parties without regard to their citizenship, It would, indeed, be very strange if these parties can come into court by a petition,, and get possession of that which was the subject of litigation, and then when the wrong they have done by that proceeding is to be corrected, they shall be permitted to escape by denying that they were parties to the suit. In the case of Blossom v. The Milwaukie and Chicago Railroad Company* this matter was fully discussed, and it was there held, that a purchaser or bidder at a master’s sale, subjected himself quoad hoc to the jurisdiction of the court, and became so far a party to the suit by the mere act of making a bid, that he could appeal from any subsequent order of the court affecting his interest.

[637] The objection to tbe jurisdiction must therefore be overruled.

We next proceed to inquire whether the bill makes a case calling for relief

This involves the consideration of the mortgage of complainants in the original suit, and of. several order,s and decrees of the District Court, all of which are the subject of conflicting constructions by the parties and their counsel.

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Minnesota Co. v. St. Paul Co., 69 U.S. 609, 17 L. Ed. 886, 2 Wall. 609, 1864 U.S. LEXIS 456 (1865).

69 U.S. 609 (Minnesota Co. v. St. Paul Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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