Texas & Pacific Railway Co. v. Cody

166 U.S. 606, 17 S. Ct. 703, 41 L. Ed. 1132, 1897 U.S. LEXIS 2052
CourtSupreme Court of the United States
DecidedApril 19, 1897
Docket246
StatusPublished
Cited by89 cases

This text of 166 U.S. 606 (Texas & Pacific Railway Co. v. Cody) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Texas & Pacific Railway Co. v. Cody, 166 U.S. 606, 17 S. Ct. 703, 41 L. Ed. 1132, 1897 U.S. LEXIS 2052 (1897).

Opinion

Mr. Chief Justice Fuller,

after stating the case as above, delivered the opinion of the court.

The railway company raises a preliminary question of jurisdiction. Plaintiff below described himself in his petition as a resident of Tarrant County, Texas, and alleged the Texas and Pacific Eailway Company to be “ a private corporation, created and existing under the laws of the State of Texas,” and that “ the defendant owns and operates a line of railway *608 extending into and running through said Tarrant County, and into and through the city of Fort "Worth, Tarrant County, Texas, and has for the purpose of conducting and carrying on its business in the management and operation of said line of railway an office and agency, and an agent and representative, in the city of Fort Worth, in said Tarrant County, upon whom citation may be served in this case, the name of the said agent being J. T. Clements.”

The defendant company filed its petition for removal in due time, which, in addition to other necessary averments, stated that at the commencement of this suit plaintiff was then and still is a citizen and resident of the State of Texas, and that your petitioner was then and still is a corporation organized under and by virtue of certain acts of Congress of the United States, to wit: an act entitled ‘ An act to incorporate the Texas and Pacific Railway Company and to aid in the construction of its road and other purposes,’ approved March 3, 1871; and an act supplementary thereto approved March 2, 1872; and that this is a suit arising under the laws of the United States within the meaning of the 2d section of an act of March 3, 1875, as amended by the acts of March 3, 1887, and August 13, 1888.”

Bond was tendered and approved and the case removed accordingly. There is no controversy over the fact that the defendant corporation owed its existence to acts of Congress, and was entitled to remove the cause as one arising under the laws of the United States in accordance with the decision of this court in Pacific Railroad Removal cases, 115 U. S. 1; but the railway company expresses apprehension lest we may hold that jurisdiction was not- maintainable within the rule laid down in Tennessee v. Union & Planters' Bank, 152 U. S. 454, and other cases, because plaintiff below did not allege that defendant was a Federal corporation, but rather the contrary.

The rule thus referred to, and reiterated in Chappell v. Waterworth, 155 U. S. 102; Postal Tel. Cable Co. v. Alabama, 155 U. S. 482; and Oregon Short Line &c. Railway v. Skottowe, 162 U. S. 490, is that under the acts of March 3, 1887, c. 373, and August 13, 1888, c. 866, a case not depending on the citi *609 zenslnp of the parties, nor otherwise specially provided for, cannot be removed from a state court into the Circuit Court of the United States, as one arising under the Constitution, laws or treaties of the U nited 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.

By the acts of Congress of 1887 and 1888, the jurisdiction of the Circuit Court on removal by defendant (and defendants alone can remove) is limited to such suits as might have been originally brought in that court; and it is essential if the jurisdiction is invoked on the ground that the cause of action arises under the Constitution, laws or treaties of the United States that this should be asserted. If recovery directly depends upon a right claimed under the Constitution, laws or treaties, plaintiff’s statement of his case must necessarily disclose the fact, and if the action is brought in the state court, defendant can remove it. If, however, plaintiff asserts no such right, and defendant puts his defence- on the possession of such right, or its denial to plaintiff, though essential to his recovery, then defendant is remitted to his writ of error from this court to the state court to test the Federal questions thus raiséd.

It is obvious that in the instance of diverse citizenship a different question is presented. Plaintiff may'run his own risk in respect of the cause of action on which he proceeds, but he cannot cut off defendant’s constitutional right .as' a citizen of a different State than the plaintiff, to choose a Federal forum, by omitting to aver, or mistakenly, or falsely, stating, the citizenship of the parties.

And this must be so also as to Federal railroad corporations. It was held in the Pacific Railroad Removal cases that as all the faculties and capacities possessed by such corporations were derived from their acts of incorporation by Congress, all their doings arose out of those laws, and, therefore, suits by and against them were “ suits arising under the laws of the United States.” Conceding this, the principle applicable to diverse citizenship may reasonably be applied to them.

*610 If in this case plaintiff had simply described defendant by its name, without more, there would seem to be no question that, as the corporation was judicially known to be a Federal, corporation, defendant would be entitled to remove the case on proper allegations in its petition; and .we think this necessarily follows, where, by some mistake, or otherwise, the defendant is erroneously stated to be created under state laws. Here defendant was described as “a private corporation, created and existing under the laws of the State of Texas,” and this was repeated in an amended petition, filed in the Circuit Court; but no motion to remand was made, nor was the propriety of the removal questioned in any way. Possibly the pleader did not intend to deny the Federal character of the company, but whether so or not, no issue was or could be made as to the source of its corporate existence.

Oregon Short Line &c. Railway v. Skottowe, 162 U. S. 490, is in harmony with these views. That was an action brought in a court of the State of Oregon to recover for personal injuries alleged to have been caused, in ■ Oregon, by the negligence of the defendant company. Á petition for removal was filed and denied, and this denial was approved by the Supreme Court of Oregon. Defendant was described in the complaint as a corporation duly organized, existing and doing business in the State of Oregon.”' In the removal petition the defendant was alleged to be a consolidated company, composed of several railway corporations severally organized and-created under the laws, of the Territories of Utah and Wyoming and of the State of Nevada, and under an act of Congress, approved August 2, 1882, c. 372, 22 Stat.

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Cite This Page — Counsel Stack

Bluebook (online)
166 U.S. 606, 17 S. Ct. 703, 41 L. Ed. 1132, 1897 U.S. LEXIS 2052, Counsel Stack Legal Research, https://law.counselstack.com/opinion/texas-pacific-railway-co-v-cody-scotus-1897.