Neher v. Harwood

128 F.2d 846, 158 A.L.R. 1116, 1942 U.S. App. LEXIS 3737
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 5, 1942
Docket10042
StatusPublished
Cited by31 cases

This text of 128 F.2d 846 (Neher v. Harwood) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Neher v. Harwood, 128 F.2d 846, 158 A.L.R. 1116, 1942 U.S. App. LEXIS 3737 (9th Cir. 1942).

Opinion

STEPHENS, Circuit Judge.

Appellant brought suit against the postmaster at La Verne, California (appellee), to enjoin him from carrying into effect á fraud order dated June 28, 1941, issued by the Postmaster General of the United States pursuant to the Postal Fraud Order Statute, 39 U.S.C.A. § 259, and after a noticed hearing in Washington, D. C., at which appellant did not appear but did file a brief in regard thereto after the taking of testimony.' Appellant by the bill sought to have the fraud order declared void for the following reasons : ,

(1) The findings of fact do not show violation o-f the -statute but do show the Postmaster General acted beyond hi's jurisdiction. , ...

(-2) Appellant was conducting a legitimate business, made no fraudulent misrepresentations and violated no statute.

(3) Practically the same as (1).

(4) ■ The fraud order constitutes a taking. of .appellant’s property and liberty without due process of law violating appellant’s constitutional rights.

(5) The fraud order- statute is unconstitutional.

The defendaht-appelle'e sought dismissal upon the ground that the relief asked could only be. decreed against the Postmaster General of the United States, who is not subject to the jurisdiction of the court.

The trial court granted the motion to-dismiss’ and also held that ‘no substantial constitutional question was involved. The court therefore did not call to his aid two other judges as provided by 28 U.S.C.A. §■ 380a.

This appeal is taken from the order of dismissal. Appellant has withdrawn all question Of the constitutionality of the Postal Fraud Order Statute itself, hence we need not consider that question.

*847 Is The Postmaster General an Indispensable Party?

While it is true that non-joinder of parties defendant is no longer a ground for dismissal of an action under Rule 21, Rules of Civil Procedure, 28 U.S.C.A. following section 723c, it is our opinion and we hold that this does not apply to.a situation where an indispensable party is not before the court. In such situation the only possible course for the Court to pursue is to dismiss. See Ernest v. Fleissner, D.C., 28 F.Supp. 326; Barr v. Rhodes, D.C., 35 F.Supp. 223; Paasche v. Atlas Powder Co., D.C., 31 F.Supp. 31. See, also, Moore’s Federal Practice, § 19.04, p. 2160.

In view of the fact that there is confusion in courts as to the necessity of joining superior officers when acts of subordinates are sought to be enjoined we have made a fairly thorough examination of the decisions and opinions upon the subject in an attempt to discover a principle which will largely reconcile them.

Apparently the Supreme Court first spoke upon the subject in Warner Valley Stock Company v. Smith, 165 U.S. 28, 17 S.Ct. 225, 41 L.Ed. 621, wherein suit was brought against subordinate officials in the Department of the Interior to restrain them from exercising authority over land which had been designated as swamp land by the Commissioner of the General Land Office. By such designation, confirmed by the Secretary of the Interior, the land was brought within the jurisdiction of the Department. The plaintiff was the purchaser of patents to the land which had been issued by the Secretary to the State of Oregon. The Court said (165 U.S. at pages 34, 35, 17 S.Ct. at page 228, 41 L.Ed. 621): “The purpose of the bill was to control the action of the secretary of the interior. The principal relief sought was agaiijst him, and the relief asked against the commissioner of the general land office was only incidental, and by way of restraining him from executing the orders of his official head. To maintain such a bill against the subordinate officer alone, without joining his superior, whose acts are alleged to have been unlawful, would be ■contrary to settled rules of equity pleading”.

In the last above cited case the designation of swamp land had been made pursuant to the Act of Congress of September 28, 1850, c. 84, 43 U.S.C.A. § 982 et seq., which act provided that in each state the whole of the “swamp and overflowed lands, made unfit thereby for cultivation, which shall remain unsold at the passage of this act, shall be, and the same-, are, hereby granted to said State”, and that it should be the duty of the Secretary of the Interior, as soon as might Be practicable, “to make out an accurate list and plats of the ■lands described as aforesaid, and transmit the same to' the governor of the State”, and, at his request", “cause a patent to be issued to the State therefor; and on that patent, the fee simple to said lands shall vest in said state, subject to the disposal of the legislature thereof”. The constitu- , tionality of this Act of Congress was not attacked, but on the contrary the complaint was as to certain acts done by the Secretary of the Interior thereunder; It was held that the action did not lie alone against the subordinate.'

After the decision in the Warner Valley Stock Co. case and before 1925, several cases reached the Supreme Court in which ,-acts of subordinate officers were enjoined despite the fact that their superiors were " not made parties to the actions. Without discussing the' doctrine that the superior is an indispensable party in such actions, the Court upheld the lower courts in these decisions. See American School of Magnetic Healing v. McAnnulty, 187 U.S. 94, 23 S.Ct. 33, 47 L.Ed. 90; Riverside Oil Co. v. Hitchcock, 190 U.S. 316, 23 S.Ct. 698, 47 L.Ed. 1074, and other cases cited in the “Argument for Appellant” preceding ..the opinion in Webster v. Fall, 266 U.S. 507, 508, 45 S.Ct. 148, 69 L.Ed. 411.

Also' before 1925 the case of Gnerich v. Rutter, 265 U.S. 388, 44 S.Ct. 532, 533, 68 L.Ed. 1068, reached the Supreme Court. There suit had been brought against a local prohibition director to enjoin him ' from giving effect to a restriction contained in the plaintiff’s permit to sell in"toxicating liquor. The permit involved • had been * issued by a subordinate under general regulations promulgated by the -Commissioner of Internal Revenue. In holding that the Commissioner of Internal Revenue was an indispensable party to the . action the Court pointed out that the Act •of Congress specifically provided that the Commissioner of Internal Revenue should have authority to issue permits and to prescribe the form thereof, and to designate and limit the acts that were to be .permitted. The Court then said, “The act .and the regulations make it plain, that the *848 prohibition commissioner and the.prohibition director are mere agents and subordinates of - the Commissioner of Internal Revenue.' They act under, his direction and perform such acts only as he commits to them -by the regulations. They are^ ■responsible to him and must abide by his direction. What they do is as if done by hitii. He is the public’s real representative ■ in the matter, and, if the., injunction were granted, his are the hands .which. would be tied.

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Bluebook (online)
128 F.2d 846, 158 A.L.R. 1116, 1942 U.S. App. LEXIS 3737, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neher-v-harwood-ca9-1942.