Parker v. Ormsby

141 U.S. 81, 11 S. Ct. 912, 35 L. Ed. 654, 1891 U.S. LEXIS 2500
CourtSupreme Court of the United States
DecidedMay 25, 1891
Docket1658
StatusPublished
Cited by41 cases

This text of 141 U.S. 81 (Parker v. Ormsby) 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
Parker v. Ormsby, 141 U.S. 81, 11 S. Ct. 912, 35 L. Ed. 654, 1891 U.S. LEXIS 2500 (1891).

Opinion

Me. Justice Hablan

delivered the opinion of the court.

■ By an act of Congress approved February 25th, 1889, it was provided that in all cases where a final judgment or decree shall be rendered in a Circuit Court of the United States in which there shall have been a question involving the jurisdiction of that court, the party against whom the judgment or decree is rendered shall be entitled to an appeal or writ of error to the Supreme Court of the United States to review the judgment or decree without reference to its ampunt; but in cases where the decree or judgment does not exceed the sum of fike thousand dollars, this court is not to review any question raised upon the record except such question of jurisdiction. 25 Stat. -693, c. 236.

This case comes here under that act. The question of the jurisdiction of the Circuit Court, in which this suit was brought, arises out of the following facts: C. M. Parker executed at Lincoln Nebraska, September 7th, 1886, his promissory note for $2000, payable on the 7th day of September, 1891, with semiannual interest from date at the rate of eight per cent per •annum, the interest coupons and the note being payable to "Walter J. Lamb or order, at the Lancaster County Bank, in Lincoln, Nebraska. It. was provided in the note that any interest coupon not paid when due should bear interest at the rate of eight per cent per annum from maturity; and if any interest remained unpaid for thirty days after it matured the holder could elect to consider the whole debt due and collectible at once; also, that in case an action was brought for the collection of the note, the maker-was to pay, ás attorneys fees, a sum equal to ten per cent of the amount due. The note and interest coupons were secured by a mortgage given by Parker sind wife upon real estate in the city of -Lincoln.

*83 Upon the back of the note and coupons were the following endorsements: “ Pay L.' L. Ormsby or order. Lancaster County Bank, Lincoln, Neb. F. O. Metcalf, cashier. Pay Lancaster County Bank or .order. I waive demand, notice, protest and notice of protest, and guarantee the payment of the within note. ~W. J. Lamb.”

The whole debt having become due by reason of default in meeting the interest, this suit was brought, December 13th, 1889, by Lucinda L. Ormsby against the appellants, Charles M. Parker and Emma Parker, his wife, and Martha L. Courtney, the relief sought being a decree for the sale of the mortgaged premises to pay the amount due, and for a personal judgment against Charles M. Parker for any deficiency remaining after the sale.

The bill avers that the plaintiff is a citizen of Illinois, and that the defendants are citizens of .Nebráska. It. contains, however, no averment as to the citizenship of Lamb, the original payee in the note and coupons as well as the mortgagee.

A decree was gendered finding due .the plaintiff the sum of $2520.80, the aggregate of the principal and interest of the note and coupons and costs,, including attorney’s fees. . The mortgaged premises were ordered to be sold to "raise that-sum..

Did the court below have jurisdiction of this case? If jurisdiction did not affirmatively appear, upon the record, it was error to have rendéred a decree, whether the question of jurisdiction,was raised or not in the court below. In the exercise of its power,, this court, of its own motion, must deny the jurisdiction of the courts of.the United States, in all cases-coming before it, upon writ of error or appeal, where such jurisdiction does not affirmatively appear in the record on which it is-called to-act. Mansfield &c. Railway Co. v. Swan, 111 U. S. 379, 382; King Bridge Co. v. Otoe County, 120 U. S. 225, 226; Cameron v. Hodges, 127 U. S. 322, 325.

The judiciary act of 1789 provided that the District and Circuit Courts of the United,States should not “have cognizance of any suit to recover the contents of any promissory note or other chose in action in favor of an assignee, unless a *84 suit might have been prosecuted in such court to recover the said contents if- no. assignment had been made, except in cases of foreign bills of exchange.” 1 Stat. 78, c. 20, § 11. The act of March 3, 1875, provided ..that no 'Circuit or District Court should “ have cognizance. of any suit founded, on contract in favor of an assignee, unless a suit might have been prosecuted in such court to recover thereon if no assignment had been made, except in cas.es of promissory notes negotiable by the law merchant and:bills of exchange.” 18: Stat. 470, c. 137, § 1. The provision in the act of March 3, 1887, determining the jurisdiction of the Circuit Courts of. the United States and for other purposes, as amended by. that of "August 13, 1888, is in these words: “ Nor shall any Circuit or District Court have cognizance of any suit, except upon foreign bills of exchange, to recover the contents of any promissory note or other chose in action in favor of any assignee, dr of 'any subsequent holder if such, instrument be payable to bearer and be not made by .any-corporation, unless such suit might have been, prosecuted’ in such court to recover the said contents if no assignment or transfer had been made.”. 25 Stat. 433, 434, c. 866, .§ 1.

It thus appears that the act of 1887, in respect to suits to .recover the contents of promissory notes .or other choses in action, differs from the act of 1789' only in the particular that the act of 1887 excludes, under certain circumstances, from th.e Cognizance of. the Circuit and District- Courts of the United States suits in favor “ of any subsequent holder, if such instrument be payable to bearer and be not .made by any corporation.” It is not necessary now to consider thé meaning of the words just quoted; for the present suit is by an assigned of a promissory note payable, not to bearer, but"to the order of- the payee: And we have only to inquire as to the circumstances ■under which the court below could take cognizance of a suit of that character. That inquiry is not difficult of solution.

It was settled by many decisions, under the act of 1789, that a Circuit Court of the United States had no jurisdiction of a ■suit brought against the maker by the assignee of a promissory note payable to order, unless it appeared, affirmatively, that it could have been maintained in that 'court in the name *85 of the original payee. Turner v. Bank of North America, 4 Dall. 8, 11; Montalet v. Murray, 4 Cranch, 46; Gibson v. Chew, 16 Pet. 315, 316; Coffee v. Planters’ Bank of Tennessee, 13 How. 183, 187; Morgan’s Executor v. Gay, 19 Wall. 81, 82. There were these recognized exceptions to that general rule in its application to promissory notes: 1.

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Bluebook (online)
141 U.S. 81, 11 S. Ct. 912, 35 L. Ed. 654, 1891 U.S. LEXIS 2500, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parker-v-ormsby-scotus-1891.