Peters v. Equitable Life Assurance Society

149 F. 290, 1906 U.S. App. LEXIS 5018
CourtU.S. Circuit Court for the District of Massachusetts
DecidedDecember 28, 1906
DocketNo. 381
StatusPublished
Cited by9 cases

This text of 149 F. 290 (Peters v. Equitable Life Assurance Society) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peters v. Equitable Life Assurance Society, 149 F. 290, 1906 U.S. App. LEXIS 5018 (circtdma 1906).

Opinion

LOWELL, Circuit Judge.

The complainant brought a bill in equity in the Supreme Judicial Court of Massachusetts against the defendant, alleging: That he held a so-called * ‘semi tontine” insurance policy in the latter. That he was entitled to a share in the accumulations of the tontine fund, for which the defendant refused to account, offering him only a part of that to which he was entitled. That the defendant agreed with the complainant to apportion the surplus equitably; to keep an accurate account of dividends accruing; to produce upon demand an account showing the complainant’s interest in the tontine dividend fund; to deal honestly with the dividends retained by the defendant ; to use due care in their investment; to expend them for proper purposes only; and to administer honestly and prudently the tontine fund and the general business of the corporation. That the defendant had failed to perform these obligations. Wherefore, the complainant prayed that the defendant be ordered to furnish an account; that the amount to which the complainant was fairly entitled might be ascertained by the court and decreed to him, together with his damages sustained by reason of the defendant’s violation of its obligation.

The defendant removed the cause to this court, and the complainant has filed a petition to remand it to the state court, basing himself upon Cates v. Allen, 149 U. S. 451, 13 Sup. Ct. 977, 37 L. Ed. 804. In order to deprive the defendant of the right which it has to remove a bill in equity to this court on the ground of diversity of citizenship, the complainant must show: (1) That he has no remedy in equity in this court; (2) that he has a remedy in equity in the state court; and (3) that the existence of his remedy in the state court is based upon a state statute, and not upon a view of the ordinary jurisdiction of a court of chancery different from that entertained by the federal court. That the complainant lias here no remedy in equity was decided by this court in Hunton v. Equitable Life Assur. Soc. (C. C.) 45 Fed. 661. That the complainant has a remedy in equity in the state court was decided by that court in Pierce v. Equitable Life Ins. Co., 145 Mass. 56, 12 N. E. 858,1 Am. St. Rep. 433. In each of these cases the policy was substantially like that now before this court, and the bill was substantially like this.

Notwithstanding that the state court would entertain jurisdiction in equity of the case presented by this bill, while this court deems the cause outside its jurisdiction in equity, yet the defendant contends that [292]*292the case should hot he remanded to the former court for the following reason: As was observed by this court in Mathews Slate Co. v. Mathews (C. C.) 148 Fed. 490:

“The complainant cannot resist removal merely because his bill is want-' ing in equity, and, would be dismissed by this court upon that ground. He is not allowed to take his chance in a state court in the hope that that court may take, a broader view of the general jurisdiction of a court of equity than does this court.”

The defendant contends that the difference between the decision of the state court in the Pierce Case and the decision of this court in the Hunton, Case, .depended, not upon an enlargement of the ordinary jurisdiction of a court'of chancery given' to the state court by the state statute, and thus not shared by thg federal court, but rather upon a different view of the allegations of the bill, as they invoked the ordinary jurisdiction of a court of chancery; in other words, the defendant contends that the. state court took jurisdiction, not because of the state statute, to be cited presently, but because the state courb conceived that the bill before it sufficiently invoked the ordinary jurisdiction of a court of chancery, while this court deemed a similar bill insufficient for that purpose.

In one sense, all the equitable jurisdiction of the Massachusetts courts rests upon statute. Originally these courts had no jurisdiction in equity, and this jurisdiction' has been created and extended from time to time by specifying particular matters, some of ordinary equitable jurisdiction, and others outside of it, which the Legislature intended to make cognizable by the state courts sitting in equity. Into which of these two classes does the subject-matter of this bill fall?

Rev. Laws Mass. c. 159, § 3, cl. 6, here relied oh by the complainant, reads as follows:

“The Supreme Judicial and the superior court shall have original and concurrent jurisdiction in equity of the f-ollowng cases * * * suits upon accounts, the nature of which is such that they cannot be conveniently and properly adjusted and settled in an action at law.”

This re-enacts Rev. St. 1836, c. 118, § 43, which reads as follows:

‘The action of account is hereby abolished; and when the nature of an account is such, that it cannot be conveniently and properly adjusted and settled in an action of assumpsit, it may be done upon a bill in equity, to be brought in the Supreme Judicial Court, and the said court shall hear and determine the cause, according to the course of proceedings in chancery, and' may award ah execution, in the common form, and such other process, as may be necessary or proper to carry into effect their final decree or judgment in the case.”

Of the last-mentioned section (referred to in their report as section 39) the commissioners to revise the statutes observed that they—

“have proposed to abolish the action [of account] altogether, supposing that in all common eases an action of assumpsit will furnish an adequate remedy. When á case is complicated, by having three or more parties with different interests, neither an action of account nor of assumpsit would afford a suitable remedy. In those and other complicated cases it is proposed to resort to- the chancery powers of the Supreme Court.”

In Bartlett v. Parks, 1 Cush. (Mass.) 82, 85, the Supreme Court of Massachusetts observed, referring to the Revised Statutes:

[293]*293“The language of the statute is comprehensive, and in terms gives this court jurisdiction in equity in all cases where an account is to be settled which cannot he conveniently settled in an action of assumpsit, whether in such cases an action of account would lie before the statute or not. And this construction of the statute would not give to the court a more ample jurisdiction than courts of equity have in England, where a bill for an account is sustained in many cases in which an action of account would not lie.”

And it is well settled in this court that complication of accounts is good reason for the exercise of equitable jurisdiction. Fenno v. Primrose (C. C.) 116 Fed. 49. The defendant contends, therefore, that complication of accounts is recognized alike by the federal courts and by those of Massachusetts to be a reason for the interposition of a court of equity, and that the statute cited, like some others,' gave to the state courts no more than a part of the ordinary jurisdiction of a' court of chancery. If this be true, the jurisdiction of this court Is as broad as is that of the state court, and the motion to remand must be denied.

On the oilier hand, St. Mass. 1857, p. 548, c.

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Bluebook (online)
149 F. 290, 1906 U.S. App. LEXIS 5018, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peters-v-equitable-life-assurance-society-circtdma-1906.