State ex rel. Wilcox v. Curtis

35 Conn. 374
CourtSupreme Court of Connecticut
DecidedSeptember 15, 1868
StatusPublished
Cited by9 cases

This text of 35 Conn. 374 (State ex rel. Wilcox v. Curtis) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Wilcox v. Curtis, 35 Conn. 374 (Colo. 1868).

Opinion

Butler J.

The power to create a corporation is an attribute of sovereignty ; and the government of the United States created the corporation in question, in the exercise of that independent and supreme sovereign power which the people delegated to it by the constitution. It is therefore the creature of that sovereignty, and amenable to, and controllable by it, and by none other.

An information in the nature of a Quo Warranto against a \ corporation lies only at the instance and in the name of the ) sovereign power which created it. (5 Wheaton, 291.) The original writ so lay against any person who usurped any franchis-e or liberty against the King, or for misuser or non-user .of franchises or privileges granted by him. The information in the nature of a Quo Warranto, authon'zed by the statute of the 9th of Aune, at the relation of any person against any other person usurping, intruding into, or unlawfully holding any franchise or office in any corporation, is but an extension and simplification of the ancient writ, and is grantable only where that would lie. In England it lies in the name of the [379]*379sovereign against those who usurp such franchises, because such usurpation is in derogation of the rights of the crown. In this country it lies in the name of the government, against those who usurp such franchises, because grantable or granted by the commonwealth.

“The state or commonwealth,” says Mr. Angelí in his work on corporations, “ stands in the place of the king and has succeeded to all the prerogatives and franchises proper to a republican government. "With us therefore to assume a power which cannot be exercised without a grant from the sovereign authority, or to intrude into the office of a private corporation, contrary to the provisions of the statute which creates it, is, in a large sense, to invade the sovereign prerogative and to assume or violate a sovereign franchise. ” And the cases cited fully sustain his positions. Upon the same principles the information can lie only in the name of the United States, and in the federal courts, against those who invade a franchise grantable or granted by the national government.

As then the corporation in question is the creature of federal sovereignty, and in respect to its internal organization, operation, and continual existence, is amenable to and controllable by that sovereignty alone ; and as the writ in question is properly grantable by that sovereignly alone whose franchise has been invaded and violated,, it would seem upon principle too clear for argument, (if there be nothing more in the case,) that the relator has erred in invoking the interference of another u'ninvaded an dun violated sovereignty, and the court below have erred in assuming jurisdiction and granting the writ.

Such is the obvious prima facie character of the case before us. But the plaintiff insists that there is no error, and makes several claims, founded upon the conflex character of sovereignty as it exists in this country, divided between the national and state governments.

1. He insists in the first place that this institution is amenable to state sovereignty, because it is located and its officers [380]*380discharge their duties and perform their functions within this, state. This claim is groundless.

It is indeed true, in the language of the Supreme Court of the United States, (2 Howard, 555,) that “ a corporation created by a state, to perform its functions under the authority of that state, and only suable there, though it may have members out of the state, is a person, though an artificial one, inhabiting and belonging to. that state, and therefore entitled — for the purpose of sueing and being sued — tobe deemed a citizen of the state. ” But this is not such a corporation. It was not created by us; it does not perform its functions under our authority; and it is the creature of and controllable by another and superior sovereignty. That other sovereignty is exercised over the whole country irrespective of state lines or state authority. It places its officers and agents and instruments wherever its necessities or its interests require, and necessarily within the limits of the states. With those officers, and agents, and instruments, in the exercise of their functions, state authority can in no way interfere. The national banks are its instruments, by which it performs its functions in establishing a national currency; on that fact their constitutionality is placed, and in the exercise of the powers conferred upon them they are as independent of state control as the army, or navy, or the officers of the sub-treasury and custom-house, or any other instrumentality by which the functions of the federal government are performed. No other view is compatible with the principles of our own jurisprudence, or those recognized and declared by the Supreme Court of the United States in numerous cases, and particularly in the exhaustive opinion of Chief Justice Marshall in M' Culloch v. Maryland, 4 Wheaton, 316.

1. The relator insists in the second place, that the superior court has jurisdiction of the offense set forth in the information, because the judicial power of the federal and state governments is exercised concurrently by the courts of either, unless congress has conferred exclusive jurisdiction, in respect to the subject-matter, on the federal courts, and no such ex-[381]*381elusive jurisdiction, has. been conferred in relation to this. This claim is equally unfounded?!

It is undoubtedly true that the state courts retain jurisdiction over some matters, to which, by the constitution and laws of the United States, jurisdiction is given to the federal government and courts, and in respect to which jurisdiction appertained to and was exercised by the state courts pri- or to the adoption of that constitution. 'On that subject the rule seems to be, that the state courts retain the jurisdiction which they had before that event, except where it was taken away by an exclusive constitutional grant of jurisdiction to the federal government; or congress have made the jurisdiction exclusive in the federal courts ; or the exercise of the jurisdiction is repugnant to, and incompatible with such exercise by those courts, j

But the cases where such concurrent jurisdiction can be entertained by the courts of the states are few. Most of those where such jurisdiction has been sustained by the Supreme Court of the United States, and all to which we have been particularly inferred, were cases of a criminal character, where the act was an offense against both sovereignties, and punished by a law of the state. Here there could be no jurisdiction anterior to the adoption of the constitution. Nor has there been any invasion of the sovereignty of this state or violation of its laws, or any offense which the state is called upon to redress in its own behalf. It is a clear principle that where there has been no offense there can be no judicial jurisdiction ; and equally clear that a state has no authority to enforce a national law in behalf of the national government.

And this is one of that class of cases where jurisdiction in the state court is utterly incompatible with the necessary jurisdiction of the national government. The corporation in question being the creature and instrument of that government must necessarily be subject to that alone.

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Bluebook (online)
35 Conn. 374, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-wilcox-v-curtis-conn-1868.