State v. Port Royal & Augusta Ry. Co.

45 S.C. 413
CourtSupreme Court of South Carolina
DecidedNovember 23, 1895
StatusPublished

This text of 45 S.C. 413 (State v. Port Royal & Augusta Ry. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Port Royal & Augusta Ry. Co., 45 S.C. 413 (S.C. 1895).

Opinion

The opinion of the Court was delivered by

Mr. Justice Gary.

This is the third appeal in the above entitled cases, heard at the last term of this Court, and is from an order of his Honor, Judge Aldrich, made at chambers on the 3d day of February, 1894, allowing the receiver to issue $50,000 of receiver’s certificates, which' were made by said order a first lien on all the property and assets of the Port Royal and Augusta Railway Company. A copy of the order which was afterwards granted by his Honor, Judge Aldrich, and from which the defendants have, appealed to this Court, was served upon the attorneys of the respective parties to the above entitled actions, when the notice of motion for said order was served upon them.. His Honor, Judge Aldrich, precedes said order with the following statement: “On reading and filing the petition of John H. Averill, receiver of the Port Royal and Augusta Railway Company, and it appearing to the Court that a copy of this order has been served upon the counsel for the several parties to the above entitled actions, it is ordered, adjudged and decreed,” etc.

1 [433]*4332 [431]*431First exception: The first exception complains of error on the part of the Circuit Judge in not holding “that the cause had been removed to the United States Circuit Court, and that the Court of Common Pleas for Beaufort County, nor any Judge thereof, had any further jurisdiction to make any order therein.” All the grounds, except that of diverse citizenship, for removal of these causes [432]*432into the Circuit Court of the United States, are presented by the petition for removal and not by the complaint. The questions presented by this exception have, therefore, under the recent rulings of the United States Supreme Court, been made more easy of solution. The reasons for the change in the rulings by that Court are stated by Mr. Justice Gray in the case of Tennessee v. Union & Planters' Bank, 14 Sup. Ct., 654, as follows: “Bven under the act of 1875, the jurisdiction of the Circuit Court of the United States could not be sustained over a suit originally brought in that Court, upon the ground that the suit was one arising under the Constitution, laws or treaties of the United States, unless that appeared in the plaintiff’s statement of his own claim. * * * The same rule applies more comprehensively to the acts of 1887 and 1888. In section 1, as thereby amended, the words giving original cognizance to the Circuit Courts of the United States in this class of cases are the same as in the act of 1875 (except that the jurisdictional amount is fixed at $2,000), aud it is, therefore, essential to their jurisdiction, that the plaintiff’s declaration, or bill,'should show that he asserts a right under the Constitution or laws of the United States. But the corresponding clause in section 2 allows removal from a State Court to be made only by defendants, and of suits ‘of which the Circuit Courts of the United States are given original jurisdiction by the preceding section;’ thus limiting the jurisdiction of a Circuit Court of the United States on removal by the defendant, under this section, to such suits as might have beeu brought in that Court by the plaintiff under the first section — 24 Stat., 553; 25 Stat., 434. The change is in accordance with the general policy of these acts, manifest upon their face, and often recognized by this Court to contract the jurisdiction of the Circuit Courts of the United States. Smith v. Lyon, 133 U. S., 315—320, 10 Sup. Ct., 303; In re Pennsylvania Co., 137 U. S., 451-454, 11 Sup. Ct., 141; Fisk v. Henarie, 142 U. S., 459—467, 12 Sup. Ct., 207; Shaw v. Mining Co., 145 U. S., 444-449, 12 Sup. Ct., 935; Gerling [433]*433v. Railroad Co., 151 U. S., 673-687, 14 Sup. Ct., 533.” The rule.now prevailing is thus stated by Mr. Justice Gray, in Chappell v. Waterworth, 15 Sup. Ct., 34: “The question of removal is governed by the decision of this Court at last term in Tennessee v. Bank of Commerce, 152 U. S., 454, 14 Sup. Ct., 654, by which, upon full consideration, it was adjudged that under the acts of March 3, 1887, c. 373 (24 Stat., 552), and August 13, 1888, c. 866 (25 Stat., 433), a case (not depending on the citizenship of the parties nor otherwise specially provided for) cannot be removed from a State Court into a Circuit Court of the United States unless that appears' by the plaintiff’s statement of his own claim, and that if it does not so appear, the want cannot be supplied by any statement in the petition for removal or in the subsequent pleadings.” This principle was affirmed in the cases of Postal Tel. Cable Co. v. Alabama, 15 Sup. Ct., 192, and Land Co. v. Brown, Id., 357. In addition to the authorities cited by his Honor, Judge Aldrich, to support his conclusion in the case of the State of South Carolina against the Port Royal and Augusta Railway Company, that the case should not be removed, on the ground of diverse citizenship, to the Circuit Court of the United States, we quote the following from the case of Postal Tel. Cable Co. v. Alabama, 155 U. S., 487, 15 Sup. Ct., 192: “The grounds upon which the present suit was removed from a Court of the State of Alabama into the Circuit Court of the United States were that the controversy therein arose under the Constitution and laws of the United States, and that it was wholly between citizens of different States. But the suit was one brought by the State to recover taxes and penalties imposed by its own laws, the jurisdiction over which belongs to its own tribunals, except so far as Congress, in order to secure the supremacy of the national Constitution and laws, has provided for a removal into the Courts of the United States. Wisconsin v. Pelican Ins. Co., 127 U. S., 265-290; Huntington v. Attrill, 146 U. S., 657-672. And the complaint by which the suit was begun did not mention the [434]*434Constitution or any law of the United States, or claim any right under either. A State is not a citizen, and, under the judiciary acts of the United States, it is well settled that a suit between a State and a citizen or corporation of another State is not between citizens of different States; and that the Circuit Court of the United States has no jurisdiction of it unless it arises under the Constitution, laws or treaties of the United States. Ames v. Kansas, 111 U. S., 440; Stone v. South Carolina, 117 U. S., 430; Germania Ins. Co. v. Wisconsin, 119 U. S., 473.” The reasoning and authority cited by the Circuit Judge in the other case herein mentioned, to wit: Henry B. King et al. v. the Port Royal and Augusta Railway Co. et al., sustained his conclusion also, that said case should not be removed to the Circuit Court of the United States on the ground of diverse citizenship. So much of the decrees of his Honor, Judge Aldrich, in the above stated cases as relates to the question of removal to the Circuit Courts of the United States, should be set out in the report of these cases. The first exception is overruled.

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Bluebook (online)
45 S.C. 413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-port-royal-augusta-ry-co-sc-1895.