Standish v. Gold Creek Mining Co.

92 F.2d 662, 1937 U.S. App. LEXIS 4668
CourtCourt of Appeals for the Ninth Circuit
DecidedOctober 26, 1937
DocketNo. 8485
StatusPublished
Cited by8 cases

This text of 92 F.2d 662 (Standish v. Gold Creek Mining Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Standish v. Gold Creek Mining Co., 92 F.2d 662, 1937 U.S. App. LEXIS 4668 (9th Cir. 1937).

Opinion

DENMAN, Circuit Judge.

An able petition for rehearing points out that dictum in our opinion may be construed to assert that, if a suit be filed in a division or district other than that in which the defendant resides, the filing confers on the court no jurisdiction of the subject matter. The petition does not alter our decision, but the matters discussed are of sufficient importance to warrant clarification. The opinion is amended to read as follows:

. This is an appeal by the plaintiff from a judgment dismissing an action at law for want of jurisdiction over the person of the defendant.

Plaintiff Standish, a citizen of Illinois, brought an action against Gold Creek Mining Company, a corporation of Montana, having its principal place of business at Deer Lodge, Powell county, in that state. The complaint included a count for the reasonable value of services rendered, amounting to more than $10,000, and one upon an account stated in the sum of $17,376.68.

Defendant then entered what was denominated a “special appearance,” moving the court to quash, vacate, and set aside the service of summons by reason of lack of jurisdiction over the person of the defendant. The ground assigned was that the district of Montana is, by rule of court, divided into several divisions; that this action was filed in the Butte division, whereas defendant is a resident of the Helena division, and that the court, in an action brought in one division, has no jurisdiction over a single defendant residing in the other. With the motion to quash, there was filed an affidavit of counsel stating that defendant had a good defense on the merits. There was no motion to dismiss the action.

The court granted the motion to quash the service. On its own motion, it then ordered a dismissal of the action, without prejudice to recommencing it in the Helena division of the court, the residence of the defendant. Judgment was entered on the order. Plaintiff appeals, assigning as error (1) the dismissal of the action, (2) the quashing of the service.

In the absence of a motion to dismiss, the court erred in dismissing the action. Even if the divisions of the district were deemed created, the court had jurisdiction of the action itself, and the right to oust it was a personal privilege which defendant could waive by appearance. Camp v. Gress, 250 U.S. 308, 311, 39 S.Ct. 478, 63 L.Ed. 997; Ex parte Schollenberger, 96 U.S. 369, 378, 24 L.Ed. 853.

The remaining question is whether the court obtained jurisdiction in personam [663]*663over the defendant by the service on him. This question is dependent on the right of the District Court of Montana to divide the state into divisions within the meaning of section 53 of the Judicial Code (March 3, 1911, 36 Stat. 1101, 28 U.S.C.A. § 114) providing in part: “When a district contains more than one division, every suit not of a local nature against a single defendant must be brought in the division where he resides.”

The District Court rule purporting to create the division is: “Rule 9-2. The district of Montana is hereby divided into the Butte, Helena, Great Falls, Missoula and Billings Divisions. The Butte Division is composed of the territory in the counties of Silver Bow, Madison, Beaverhead and Deer Lodge. The Helena Division is composed of the territory in the counties of Lewis & Clark, Broadwater, Meagher, Gal-latin, Park, Jefferson and Powell. * * * ”

Obviously, if the District Court was empowered to enact rule 9-2, and if the congressional statute refers to divisions such as those created by that rule, then the court below was correct in granting the motion to quash the service and denying itself jurisdiction over the person of the defendant. If, on the other hand, it had no power to create such divisions, the action could be brought and the defendant served at any place in the district.

The rule-making power of the district courts flows from Rev.St. § 918 (28 U.S.C.A. § 731): “The district courts may, from time to time, and in any manner not inconsistent with any law of the United States, or with any rule prescribed by the Supreme Court * * * malje rules and orders directing the returning of writs and processes, the filing of pleadings, the taking of rules, the entering and making up of judgments by default, and other matters in vacation, and otherwise regulate their own practice as may be necessary or convenient for the advancement of justice and the prevention of delays in proceedings.”

The statute says nothing about jurisdiction either over the person or the action. It authorizes the courts to make rules of practice governing the method by which jurisdiction shall be exercised. Yet rule 9-2 limits, what would otherwise, be district-wide right to a jurisdiction in person-am in all cases, to those brought in the division of defendant’s residence, and likewise gives to the defendant the right to oust the court of jurisdiction of the suit itself, if brought anywhere save in the confined area.

It is fundamental that a rule of court cannot enlarge or restrict jurisdiction given by a statute. In Venner v. Great Northern Ry., 209 U.S. 24, 33, 34, 35, 28 S.Ct. 328, 330, 52 L.Ed. 666, plaintiff brought a suit in equity against a corporation of which he was a shareholder. His complaint did not allege that at the time the wrongs complained of were committed plaintiff was a shareholder. Equity Rule 94 of the Supreme Court required such an allegation in a suit such as the one brought. The contention was made that the failure so to allege defeated the jurisdiction of the federal court. In reply the Supreme Court said: “It has already been shown that the plaintiff * * * did not bring this case within the terms of the 94th rule in equity. * * * It is argued that a compliance with that rule is essential to the jurisdiction, and that a controversy of the general nature contemplated by the rule is beyond the jurisdiction of ,the circuit court. * * * But this argument overlooks the purpose and nature of the rule. * * * If a controversy of this general nature is brought in the circuit court and the necessary diversity of citizenship exists, but, upon the pleadings or the proof, it appears that the plaintiff has not shown a case within * * * the rule of court * * * the bill should be dismissed for want of equity, and not for want of jurisdiction. * * * The jurisdiction of the circuit court is prescribed by laws enacted by Congress in pursuance of the Constitution, and this court by its rules has no power to increase or diminish the jurisdiction thus created.” (Italics supplied.)

What is true of Supreme Court rules applies a fortiori to those created by the District Court. And there is ample direct authority to the effect that a District Court cannot enlarge or restrict its jurisdiction by rules. Washington-Southern Nav. Co. v. Baltimore & Phila. S. S. Co., 263 U.S. 629, 635, 44 S.Ct. 220, 222, 68 L.Ed. 480; Clymer v. U. S. (C.C.A.10) 38 F.(2d) 581, 582; Woodbury v. Andrew Jergens Co. (C.C.A.2) 61 F.(2d) 736, 738.

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Bluebook (online)
92 F.2d 662, 1937 U.S. App. LEXIS 4668, Counsel Stack Legal Research, https://law.counselstack.com/opinion/standish-v-gold-creek-mining-co-ca9-1937.