Turner v. Farmers' Loan & Trust Co.

106 U.S. 552, 1 S. Ct. 519, 27 L. Ed. 273, 16 Otto 552, 1882 U.S. LEXIS 1578
CourtSupreme Court of the United States
DecidedJanuary 15, 1883
Docket120
StatusPublished
Cited by15 cases

This text of 106 U.S. 552 (Turner v. Farmers' Loan & Trust Co.) 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
Turner v. Farmers' Loan & Trust Co., 106 U.S. 552, 1 S. Ct. 519, 27 L. Ed. 273, 16 Otto 552, 1882 U.S. LEXIS 1578 (1883).

Opinion

Mr. Justice Harlan

delivered the opinion of the court.

This suit was commenced on the 21st of November, 1874, in the Circuit Court for De Witt County, Illinois, by Malcolm C. Turner, James Turner, and others, constituting the firm of Turner Brothers, against the Indianapolis, Bloomington, and Western Railway Company, the Farmers’ • Loan and Trust Company, and others. The complainants, suing in behalf of themselves and all other bondholders and creditors of the railway company, asked a decree for the foreclosure of several mortgages, covering as well its property and franchises as the roqd and franchises of the constituent companies, by whose consolidation it was created.

The Farmers’ Loan and Trust Company appeared- and answered. It also filed a cross-bill, making all necessary parties defendant thereto; and, as'tfustee in some of the mortgages creating prior liens upon the main line of the consolidated road, it prayed for a decree of foreclosure, a sale of the mortgaged property, and a proper distribution of the proceeds arising therefrom among the several classes of creditors of the railway company. Subsequently, on the 26th of April, 1876, it filed a petition, accompanied by a sufficient bond, for the removal of the suit into the Circuit Court -of the United States for the *553 Southern District of Illinois; and thereafter, it' is asserted, the State court proceeded no further. A transcript of the proceedings having been filed in the Circuit Court of the United States, a motion was there made to remand the cause, while the Farmers’ Loan and Trust Company moved that the court tak^' jurisdiction. By an order entered on the 19th of July, 1876, the fórmer motion was denied and the latter sustained.

On the 18th of July, 1877, a final decree was passed, ascertaining the amounts due and unpaid on the mortgages to the Farmers’ Loan and Trust Company. By that decree it was ordered and adjudged that the railway company, within twenty days thereafter, pay to the trustee. 16,234,625, the amount so ascertained, with interest from the date of the decree; that i" default of such payment the equity of all the defendants to tb cross-bill, in tbe mortgaged property, be forever barred ana foreclosed, and the property — which included all the rights, effects, and franchises of the consolidated company, and of its constituent companies, as to the main line of road — be sold as an entirety, the same being, in the opinion and judgment of the court, incapable of sale separately, or in division, without material injury to its value.

It was further decreed that the mortgaged property be sold without appraisement, and without reference, and not subject, to any law of Illinois or Indiana conferring the right of redemption from mortgage sales.

On the 8th of May, 1878, the original decree was amended by way of further direction for its execution.

The sale occurred on the 30th of October, 1878, was reported to court on the succeeding day, and on the 1st of November, 1878, exceptions thereto were filed by James Turner and the railway company. On the 23d of December, 1878, the exceptions were overruled, and an order entered confirming and approving the sale in all respects.

On the 3d of February, 1879, Turner and the railway company filed their joint petition, praying an appeal from the final order confirming the sale. The appeal was allowed, and the bond tendered was approved, not to operate as a supersedeas. Subsequently, the purchaser received a deed and took possession of the property under the direction of the court.

*554 It may be stated that a similar decree was entered in the Circuit Court of the United States for the District of Indiana, in a suit pending therein between, substantially, the same parties and relating to the same property. That suit “was commenced on the 18th of November,A874, in the Circuit Court for Montgomery County, Indiana, and thence, upon the petition of the Farmers’ Loan and Trust Company, removed into the Federal court.

■ Notwithstanding the record is very voluminous, it is believed that this statement is sufficient to indicate the grounds upon which this court rests its determination of the case.

The appellants have assigned numerous errors, the first and most important of which relates to the jurisdiction of the Circuit Court of the United States. Their contention is, that under the act of March 3, 1875, c. 137,' the State court could not have been deprived of jurisdiction to proceed, unless the petition for removal was filed “ before or at the term at which such cause could be first tried-and before the trial thereof;.” that the petition of the Farmers’ Loan and Trust Company was not so filed; consequently, it is insisted that the jurisdiction of the Federal court could not have attached. It is further argued that the pleadings disclose the fact that there was no such controversy in this suit, between citizens of different States, as would authorize its removal from the State court under the act just cited or that of March 2, 1867, c. 196, even if the latter is in force for any purpose.

Without admitting the soundness'of these propositions, we are of opinion that the questions of jurisdiction now raised cannot be determined upon an appeal merely from the order confirming the report of sale. Whether the suit was one which the Farmers’ Loan and Trust Company was entitled to have removed, that is, whether the Circuit Court of the United States could rightfully proceed after the petition for removal, accompanied by a sufficient bond, had been filed in the State court, was a question directly presented to that court for judicial determination upon the motion that the cause be remanded. The denial- of that motion constituted an adjudication by the Federal court that the facts existed which were necessary to give jurisdiction. And had the question not been thus for *555 mally presented, it vwas the dirty of the Circuit Court to dismiss or remand the isause, as justice might have required, at any time during its progress, when it appeared that the suit did not really or substantially involve a dispute or controversy properly within its jurisdiction. Williams v. Nottawa, 104 U. S. 209. Further, the final decree necessarily involved, and was itself, a judicial determination, as between the parties, that the suit was one of which that court might take cognizance. That decree, unmodified and ilnchallenged by any direct appeal therefrom, should, upon this, appeal only from the order confirming the sale, be deemed conclusive, between the parties and their privies, as to all matters in issue "and by it adjudicated, including the questions of jurisdiction now pressed upon our attention. Such, we think, must be the rule, especially under existing statutes regulating the jurisdiction of the courts of the United States.

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Bluebook (online)
106 U.S. 552, 1 S. Ct. 519, 27 L. Ed. 273, 16 Otto 552, 1882 U.S. LEXIS 1578, Counsel Stack Legal Research, https://law.counselstack.com/opinion/turner-v-farmers-loan-trust-co-scotus-1883.