Sanfeliz v. Bank of Nova Scotia

74 F.2d 338, 1934 U.S. App. LEXIS 3955
Court of Appeals for the First Circuit·Decided December 19, 1934·No. Nos. 2854, 2855·Published·Cited by 4 cases

Opinion

BINGHAM, Circuit Judge.

These are appeals by the plaintiff from judgments of the federal District Court for Puerto Rico of May 24, 1932, in actions at law broug-ht by her against the defendant. In the first action (No. 2854) judgment was entered for the defendant, and in the. second (No. 2855) the judgment was in favor of the plaintiff for $238.04.

These actions were originally brought in the District Court for San Juan, and, on the first day on which the defendant was required to plead, it presented a petition and bond in each action for its removal to the federal District Court, and orders of removal were made and the cases transferred. Thereafter the plaintiff filed motions to remand, which were' denied.

The ground of objection here relied on as to the removal of the causes and the denial of the motions to remand is that both parties are aliens, the plaintiff being a citizen of Spain and domiciled there, and the defendant a corporation organized and existing under the laws of the Dominion of Canada, having its principal office in the city of Halifax, Dominion of Canada. The removal was sought and obtained in each action on the ground of diversity of citizenship and that the matter in controversy, exclusive of interest and costs, exceeded $3,-000. And, inasmuch as section 41, title 28 USCA, conferring jurisdiction on the District Courts of the United States, has been held not to give jurisdiction over a controversy between aliens — that at least one of the parties must be a citizen of the United States [Doidge v. Cunard S. S. Co. (C. C. A.) 19 F.(2d) 500, 502; Jackson v. Twentyman, 2 Pet. 136, 7 L. Ed. 374] — it is contended that the same rule must be applied to section 863, title 48 USCA, conferring jurisdiction on the federal District Court for Puerto Rico. But this plainly is not so. The courts of the United States áre those Congress is authorized to establish under article 3, § 1, of the Constitution of the United States, and by section 2 of that article, the judicial power which Congress is authorized to confer on them is “not extended to private suits, in which an alien is a party, unless a citizen be the adverse party” (cases supra); whereas the federal District Court for Puerto Rico is not a court of the United States, but a legislative court created under article 4, § 3, cl. 2 of the Constitution (O’Donoghue v. United States, 289 U. S. 516, 535, 537, 53 S. Ct. 740, 77 L. Ed. 1356), and the judicial power which Congress may confer upon it is not thus limited.

On March 2, 1901, Congress, in conferring jurisdiction on the District Court for Puerto Rico, provided (31 Stat. 953, c. 812, § 3) as follows:

[339]*339“See. 3. That the jurisdiction of the district court of the United States for Porto Rico in civil cases shall, in addition to that conferred by the Act of April twelfth, nineteen hundred, extend to and embrace controvei’sies where the parties, or either of them, are citizens of the United States, or citizens or subjects of a foreign State or States, wherein the matter in dispute exceeds, exclusive of interest or costs, the sum or value of one thousand dollars.”

And the Supreme Court, in May, 1906, construing this provision of law in Ortega v. Lara, 202 U. S. 339, 26 S. Ct. 707, 708, 50 L. Ed. 1055 — a ease where both plaintiff and defendant were subjects of the King of Spain —held that “the jurisdiction of the district court, when the parties on both sides were the subjects of the King of Spain, has several times been sustained by this court, and we do not feel required in this case to make any other ruling.”

The present statute (section 863, title 48, USCA), relating to the jurisdiction of the federal District Court for Puerto Eico, provides:

“Said district court shall have jurisdiction of all controversies where all of the parties on either side of the controversy are citizens or subjects of a foreign State or States, or citizens of a State, Territory, or District of the United States not domiciled in Porto Rico, wherein the matter in dispute exceeds, exclusive of interest or eost, the sum or value of $3,000.”

In construing this statute the courts have held that the phrase “not domiciled in Porto Rico” qualifies the words “citizens or subjects of a foreign State or States” as well as the words “citizens of a State, Territory, or District of the United States.” Porto Rico Ry., Light & Power Co. v. Mor, 253 U. S. 345, 40 S. Ct. 516, 64 L. Ed. 944; Id. (C. C. A.) 266 F. 516; Vere v. Bianchi (C. C. A.) 266 F. 367; Diez v. Green (C. C. A.) 266 F. 890. It is true that this act placed limitations upon the jurisdiction of the District Court for Puerto Rico not contained in the prior one: (1) It increased the requisite amount from one thousand to three thousand dollars, and (2) provided that the parties, on one side of the controversy at least, must be either aliens not domiciled in Puerto Rico, or citizens of a state, territory, or district of the United States not domiciled in Puerto Rico. It did not restrict its jurisdiction over a controversy between aliens, if the alien representing one side of the controversy was not domiciled in Puerto Rico.

For the reasons above given, the removals were proper and the District Court did not err in denying the motions to remand.

In the District Court the cases were tried before the court, a jury having been waived in writing. It does not appear that either party during the trial and before final submission of the eases presented requests for special findings or requests for rulings or, at the conclusion of the evidence, moved for judgment in her or its favor. The court, however, filed special findings of fact and rulings of law, and at the same time entered the judgments appealed from. After learning that the findings had been made and judgments entered, the plaintiff sought to challenge the sufficiency of the evidence to support the findings of fact and to except to them and the conclusions of law.

In jury waived cases, especially in localities where counsel are not likely to be informed as to what they must do to save their client’s rights, it is customary for the court to inform them of what they must do and to afford them every reasonable opportunity to that end; for otherwise, by waiving trial by jury and submitting the matter to the, court under the statutes regulating such procedure, tlioir rights are more likely than not to be sacrificed and the trial result in a snare and delusion. If, at the close of the evidence and arguments, the case is not finally submitted but only for the court to make a tentative report of his findings of fact and rulings of law and counsel are afforded an opportunity to examine the same and save their exceptions, every reasonable opportunity to preserve the rights of the parties would be had. This having been done, the submission could be made final, and then the findings, rulings, and exceptions would be had in the course of the trial and before final submission of the case and, on being included in a bill of exceptions, as in the case of a trial by jury, would properly save the questions for review.

While what has been said cannot aid the plaintiff in these cases, it may in the future be of aid and save to litigants their right to a review of meritorious questions which they may desire to have re-examined.

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Sanfeliz v. Bank of Nova Scotia, 74 F.2d 338, 1934 U.S. App. LEXIS 3955 (1st Cir. 1934).

74 F.2d 338 (Sanfeliz v. Bank of Nova Scotia) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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