Saginaw Gas-Light Co. v. City of Saginaw

28 F. 529, 1886 U.S. App. LEXIS 2310
CourtU.S. Circuit Court for the District of Eastern Michigan
DecidedSeptember 7, 1886
StatusPublished
Cited by15 cases

This text of 28 F. 529 (Saginaw Gas-Light Co. v. City of Saginaw) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Eastern Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saginaw Gas-Light Co. v. City of Saginaw, 28 F. 529, 1886 U.S. App. LEXIS 2310 (circtedmi 1886).

Opinion

Brown, J.

A preliminary objection to the jurisdiction of the court in this case demands our first consideration. That no jurisdiction [531]*531is acquired by reason of the citizenship of the parties is too clear for argument. The plaintiff and the city of Saginaw (the principal defendant) are citizens of the same state, and the fact that another party, viz., the Fort Wayne Jenney Electric Light Company, a citizen of Indiana, is also joined as defendant, is insufficient. Under the original judiciary act of 1789, which conferred upon the circuit courts jurisdiction of all suits “between a citizen of the state whore the suit is brought and a citizen of another state,” it was uniformly held that, if there were several co-plaintiffs, each plaintiff must bo competent to sue, and, if there were several co-defendants, each'defendant must be liable to be sued, in the federal court, or jurisdiction could not be entertained. While the designation of party “plaintiff” or “defendant” was in the singular number, it was intended to embrace all persons who were on one side, however numerous; so that each distinct interest must be represented by persons all of whom were entitled to sue, or were liable to be sued, in the federal court. Strawbridge v. Curtiss, 3 Cranch, 267; Coal Co. v. Blatchford, 11 Wall. 172.

In section 1 of the act of 1875 the phraseology is but slightly changed, and jurisdiction given of “controversies” “between citizens of different states;” but the construction of the act is the same, except that the court may examine the record, and rearrange the parties upon different sides of the actual “controversy” or the real matter in dispute. Pacific R. R. v. Ketchum, 101 U. S. 289, 297; Teal v. Walker, 10 Ch. Leg. News, 131.

The same language is used in first clause of the second section of the same act, providing for the removal of cases from state courts, and to this language a like construction has been given in a large number of cases. Removal Cases, 100 U. S. 457; Blake v. McKim, 103 U. S. 336; Shainwald v. Lewis, 108 U. S. 158; S. C. 2 Sup. Ct. Rep. 385; Hyde v. Ruble, 104 U. S. 407.

As there is no doubt that the parties in this cause are properly arranged upon the record, the jurisdiction must fail, unless it can be supported upon some other ground.

It is insisted, in this connection, that the suit is one “arisingunder the constitution or laws of the United States,” within the meaning of the act of 1875, and that, therefore, this court may take cognizance of the case independent of the citizenship of the parties. Granting the premises, plaintiff’s conclusion therefrom is undoubtedly correct. Its claim is that the resolution of the common council of the city of Saginaw adopted July 21, 1886, accepting the proposition of the electric light company, granting permission to that company to purchase a location, to erect buildings, and to put up a plant in said city, and contracting with the company to light the public streets'of the city with electric lights, is a practical repudiation of its contract with the plaintiff, and a violation of the constitutional provision that “no state shall pass any law impairing the obligations of contracts.” If [532]*532the decision of the case is dependent upon the proper construction of this clause of the constitution, there can be no doubt of our jurisdiction. Gold-washing Co.v. Keyes, 96 U. S. 199; Railroad Co. v. Mississippi, 102 U. S. 135, 141; Levy v. Shreveport, ante, 209.

But if- the case be not one of this class, — in other words, if the resolution of the common council in question be not a “state law,” within the meaning of this clause, — then we cannot be called upon to determine whether it impairs the obligation of plaintiff’s contract. To illustrate: If the plaintiff corporation had received its franchise directly from the state legislature, and the electric light company-had also received its franchise of July 21,1886, from the same body, there could be no question that the consonance of this action with the above clause of the constitution would be directly put in issue by this case. Suits arising upon conflicting legislative grants of this description are of frequent occurrence, and have been uniformly held to be cognizable in the federal courts. State Bank v. Knoop, 16 How. 369; Providence Bank v. Billings, 4 Pet. 561; Charles River Bridge v. Warren Bridge, 11 Pet. 420; Richmond, etc., R. Co. v. Louisa R. Co., 13 How. 81; New Jersey v. Wilson, 7 Cranch, 164; New Orleans Gas Co. v. Louisiana Light Co., 115 U. S. 650; S. C. 6 Sup. Ct. Rep. 252; Louisville Gas Co. v. Citizens’ Gas Co., 115 U. S. 683; S. C. 6 Ct. Rep. 265.

Upon the other hand, it is equally clear that if the city of Saginaw possessed no greater powers than those of any private corporation, its action in passing the resolution of July 21st would have amounted to nothing more than the breach of an ordinary contract with, the plaintiff, and would have involved no question of legislative power. -It is only where a party is acting under authority of a “state” that his action can be obnoxious to the clause in question, prohibiting “states” from impairing the obligations of contracts. In the absence of this clause, a state might enact laws which would have that effect. This is one of the attributes of complete sovereignty, and the power to do this has more than once been exercised by the imperial parliament of Great Britian, and by other sovereign bodies, — notably in the recent Irish land act; but no one will pretend it can be done by an individual, or a private corporation. Hence it is the act of a sovereign state upon which this clause is intended to operate. As to all other bodies or persons, the provision is unnecessary. Thus, we have no jurisdiction to inquire whether the political body which passed a particular statute was in fact a “state” legislature, within the meaning of this clause. Scott v. Jones, 5 How. 343. Nor to determine whether the law of a territorial legislature impairs the obligations of a contract. Miners’ Bank v. Iowa, 12 How. 1; Messenger v. Mason, 10 Wall. 507. Nor is the authority conferred by a state statute upon its supreme court to hear and determine cases the kind of authority referred to in the judiciary act, which gives the federal supreme court the right to review its decisions where is drawn in question the va[533]*533lidity of a statute, or an authority exercised under any state. Bethell v. Demaret, 10 Wall. 537.

As was said by Mr. Justice Miller in Railroad Co. v. Rock, 4 Wall. 177, 181: “It must be the constitution, or some law of the state, which impairs the obligation of a contract, or which is otherwise in conflict with the constitution of the United States..” See, also, Knox v. Exchange Bank, 12 Wall. 379; Tarver v. Keach, 15 Wall. 67.

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Bluebook (online)
28 F. 529, 1886 U.S. App. LEXIS 2310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saginaw-gas-light-co-v-city-of-saginaw-circtedmi-1886.