Petri v. Commercial Nat. Bank of Chicago

142 U.S. 644, 12 S. Ct. 325, 35 L. Ed. 1144, 1892 U.S. LEXIS 1998
CourtSupreme Court of the United States
DecidedJanuary 18, 1892
Docket1071
StatusPublished
Cited by64 cases

This text of 142 U.S. 644 (Petri v. Commercial Nat. Bank of Chicago) 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
Petri v. Commercial Nat. Bank of Chicago, 142 U.S. 644, 12 S. Ct. 325, 35 L. Ed. 1144, 1892 U.S. LEXIS 1998 (1892).

Opinion

Mr. Chief Justice Fuller,

after stating the case, delivered the opinion of the court.

The question is whether a national bank located in one State may bring suit against a citizen of another State in the Circuit Court of the United States for the district wherein the defendant resides, by reason alone of diverse citizenship.

National banks are empowered to sue and be sued, complain and defend, in any court of law and equity as fully as natural persons. Rev. Stat. § 5136. The first national banking act, that of February 25, 1863, 12 Stat. c. 58, 665, 681, provided in § 59 that suits by and against banks organized thereunder might be brought in any “ circuit, district or territorial court of the United States held within the district in which such association may be established; ” and by the act of June 3, 1864, c. 106, § 57, 13 Stat. 99, 116, there was added to this or in any State, county or municipal court in the county or city in which said association is located, having jurisdiction in similar cases.” Both these provisions were carried into § 5198 of the Revised Statutes, by the amendatory act of February 18, 1875, c. 80, 18 Stat. 316, 320.

*648 Following section 11 of the Judiciary Act, the first subdivision of § 629, Bevised Statutes, conferred jurisdiction on the Circuit Courts of all suits of a civil nature at common law. or in, equity, where the matter in dispute, exclusive of costs, exceeded the sum or value of five hundred dollars and the suit was between a citizen of the State where it was brought and a citizen of another State; and by subdivision ten jurisdiction was given “ of all suits by or against any banking association established in the district for which thé court is held, under any law providing for national banking associations.”

Under section one of the act of March 3, 1875, determining the jurisdiction of Circuit Courts of the United States and regulating the removal of causes from state courts, 18 Stat. 470, the Circuit Courts had original cognizance of suits arising under the Constitution, laAvs or treaties of the United States, as well as of those in AArhich there were controversies between citizens of different States, and by section tAvo, jurisdiction by removal in like cases was conferred.

Suits by or against national banks might therefore be brought or removed upon the ground of diverse citizenship, or of subject matter, since as they were created by Congress, and could acquire no right, make no contract and bring no suit, which Avas not authorized by a law of the United States, a suit by or against them was necessarily a suit arising under the laws of the United States. Osborn v. Bank of the United States, 9 Wheat. 738, 823; Leather Manufacturers’ Bank v. Cooper, 120 U. S. 778, 781; Pacific Railroad Removal Cases, 115 U. S. 1. And of course national banks as well as state banks and individuals might bring or remove suits otherwise arising under the Constitution, laws or treaties of the United States. By the proviso to the 4th section of the act of Congress of July 12, 1882, c. 290, entitled “An act to enable national banking associations to extend their corporate existence, and for other purposes,” it was provided: “ That the jurisdiction for suits hereafter brought., by or against any association established under any law providing for national bank-' ing associations, except suits between them and. the United States, or its officers and agents, shall be the same as, and not *649 other than, the jurisdiction for suits by or against banks not organized under any law of the United States which do or might do banking business where such national banking associations may be doing business when such suits may be begun: and all laws and parts of laws of the United States inconsistent with this proviso be, and the same are hereby, repealed.” 22 Stat. 162,163. Hence the jurisdiction of the Circuit Courts over suits by or against national banks could no longer be asserted on the ground of their Federal origin, as they were placed in the same category with banks not organized under the laws of the United States. Leather Manufacturers' Bank v. Cooper, 120 U. S. 778, 781; Whittemore v. Amoskeag National Bank, 134 U. S. 527, 530.

So far as the mere source of its incorporation rendered suits to which a national bank might be a party, cognizable by the Circuit Courts, that was taken away, but the jurisdiction which those courts might exercise in such suits when arising between citizens of different States or under the Constitution or laws of the United States, except in that respect, remained unchanged.

The fourth section of the act of Congress of March 3, 1887, 24 Stat. 552, c. 373, as corrected by the act of August 13,1888, 25 Stat. 433, c. 866, is as follows:

“ Sec. 4. That all national banking associations established under the laws of the United States shall,, for the purposes of all actions by or against them, real, personal or mixed, and all suits in equity, be deemed citizens of the States in which they are respectively located; and in such cases the Circuit and District Courts shall not have jurisdiction other than such as they would have in cases between individual citizens of the same State.

“ The provisions of this section shall not be held to affect the jurisdiction of the courts of the United States in cases commenced by the United States or by direction of any officer thereof, or cases for winding up the affairs of any such bank.” 25 Stat. 436.

In view of the language of the second clause of the first branch of this section, it is contended that the Federal courts *650 cannot exercise- the same jurisdiction in respect of national banks, by reason of diverse citizenship, as they possess in controversies between individual citizens of different States.

The rule that every clause in a statute should have effect, and one portion should not be placed in antágonism to another, is well settled; and it is also held that it is the duty of the court to ascertain the meaning of the legislature from the words used and the subject matter to which the statute relates,' and to restrain its operation within narrower limits than its words import, if the court is satisfied that the literal meaning of its language would extend to cases which the legislature never intended to include in it.’ Brewer’s Lessee v. Blougher, 14 Pet. 178; Market Co. v. Hoffman, 101 U. S. 112, 115.

The act of 1887 largely superseded the previous legislation relating- to the jurisdiction in general of the Circuit Courts.

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Bluebook (online)
142 U.S. 644, 12 S. Ct. 325, 35 L. Ed. 1144, 1892 U.S. LEXIS 1998, Counsel Stack Legal Research, https://law.counselstack.com/opinion/petri-v-commercial-nat-bank-of-chicago-scotus-1892.