Underground Electric Rys. Co. of London v. Owslet

176 F. 26
CourtCourt of Appeals for the Second Circuit
DecidedAugust 17, 1909
DocketNo. 294
StatusPublished
Cited by12 cases

This text of 176 F. 26 (Underground Electric Rys. Co. of London v. Owslet) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Underground Electric Rys. Co. of London v. Owslet, 176 F. 26 (2d Cir. 1909).

Opinions

NOYES, Circuit Judge

(after stating the facts as above). The question upon the surface of this case is whether the receivership orders were proper. The question undertying is whether the Circuit Court had power to make them. The latter is a jurisdictional question, and is duty raised upon the record. Under a recent decision of [29]*29the Supreme Court it is our duty to decide it. Boston, etc., R. Co. v. Gokey, 210 U. S. 155, 28 Sup. Ct. 657, 52 L. Ed. 1002.

The question of jurisdiction should first be considered. And this question in its essence is not whether the Circuit Court had power to grant all the relief prayed for, but whether it had power to afford any such relief. If the orders appealed from were within its jurisdiction and were proper, they must stand even if the court had no power to grant the other measures of relief sought. Strictly speaking, if the appointment of the receiver was within the jurisdiction of the court, it is not material just here whether it had power to proceed with the general administration of the estate. And yet the broad jurisdictional question has been fully presented. The determination of the basis of the power to appoint receivers, as well as its existence, may settle something in this intricate litigation. While, therefore, the result in either case will be the same, we think it of importance to ascertain — at the commencement of our examination — whether such power, if it exists, is to be found as a part of the general power of the Circuit Court to administer the estates of deceased persons or as a particular power for the protection of property pending litigation.

The inquiry is, then, whether the Circuit Courts of the United States, as courts of equity, have jurisdiction to administer the estates of decedents. The appellant contends that no such power exists, and lays especial stress upon the fact that the inquiry relates to federal courts. But this is not the fundamental objection. If the Circuit Courts are without power to entertain probate proceedings, it is not primarily because they are courts of the United States, but because the subject does not belong to general equity jurisdiction. No limitations attach to the purely equitable relief which these courts can grant when they have jurisdiction of the parties. They have the full equity jurisdiction formerly exercised by the English Courts of Chancery, and are not limited by the chancery system adopted by any state.

Now, as long ago as 1727 it was settled in England that a court of equity could not entertain jurisdiction of a bill to set aside a will or the probate thereof. So in the case of Broderick’s Will, 21 Wall. 503, 509, 22 L. Ed. 599, Mr. Justice Bradley said in a suit of that nature:

“As to the first point, it is undoubtedly the general rule, established both in England and this country, that a court of equity will not entertain jurisdiction of a bill to set aside a will or the probate thereof. The case of Ker-riek v. Bransby (decided by the House of Lords in 1727) 7 Brown’s Pari. Gas. 737. is considered as having definitely settled the question. Whatever may have been the original ground of this rule (perhaps something in the peculiar constitution of the English courts), the most satisfactory ground for its continued prevalence is that the Constitution of a succession to a deceased person's estate partakes in some degree of the nature of a proceeding in rem, in which all persons in the world who have any interest are deemed parties, and are concluded as upon res judicata by the decision of the court having jurisdiction.”

Similarly, in Ellis v. Davis, 109 U. S. 485, 494, 3 Sup. Ct. 327, 332, 27 L. Ed. 1006, which was a suit brought in the Circuit Court to set aside a will and annul probate, Air. Justice Matthews, following Broderick’s Will, supra, and denying the power of the court to grant the relief sought, said:

[30]*30“It is well settled tliat no suela jurisdiction belongs to tlie Cii’cuit Courts.of the United States as courts of equity, for courts of equity, as such, -by virtue of their general authority to enforce equitable rights and remedies, do not administer relief in such cases.” . .

In Farrell v. O’Brien, 199 U. S. 89, 116, 25 Sup. Ct. 727, 736, 50 L. Ed. 101, it was said that:

“The 'Circuit Courts of the United States had no jurisdiction to admit a will to probate or to entertain a pure probate proceeding.”

See, also, Garzot v. De Rubio, 209 U. S. 283, 28 Sup. Ct. 548, 52 L. Ed. 794. And in the very recent case of Goodrich v. Ferris (decided by the Supreme Court May 17, 1909) 214 U. S. 80, 29 Sup. Ct. 583, 53 L. Ed. 914, Mr. Justice White said:

“A- case involving the devolution and administration of the estate of a decedent (is) a subject peculiarly within state control.”

The principles underlying these decisions have a two-fold basis. In the first place, courts of equity cannot act in probate proceedings because the subject is statutory. In this country the laws of the several states determine the succession to the property of deceased persons intestate and provide for the probate and establishment of wills. Statutes confer upon various tribunals jurisdiction over probate proceedings. The courts in exercising the powers conferred exercise statutory, and not equitable, powers. In the second place, courts of equity will not entertain jurisdiction over probate proceedings'because they are in the nature of proceedings in rem. In the case last referred to (Goodrich v. Ferris), the Supreme Court also said:

' “It is elementary that a probate proceeding by which jurisdiction of a probate court is asserted over the estate of a decedent for the purpose of administering the same is in the nature of xaroceedings in rem, and is therefore on,e as to which all the world is charged with notice.”

It may be regarded then as settled that the Circuit Courts, because they are courts of equity and because the subject is not one of equity cognizance, have no jurisdiction of purely probate proceedings, such as relate to the probate of wills and distribution of estates. But this does not carry us far enough. While much of the relief which the bill of complaint asks for could only be granted in a strictly probate proceeding, it goes further. It prays the court (1) to appoint a receiver; (2) to sell the property of the decedent; (3) to ascertain and determine the indebtedness of the estate; (4) to set apart the widow’s dower right; and (5) to distribute the estate. Taking the bill as a whole, it must be regarded as asking the Circuit Court to undertake the general administration of the estate — to do something more than act in a purely probate proceeding.

The distinction between a strictly probate proceeding and one involving the general administration of an estate is pointed out in Martin v. Ellerbe’s Adm’r, 70 Ala. 339:

“The term ‘administration,’ in this respect, is of comprehensive. meaning. It includes more than the mere collection of the assets, the payment of debts and legacies, and distribution to the next of kin.

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Cite This Page — Counsel Stack

Bluebook (online)
176 F. 26, Counsel Stack Legal Research, https://law.counselstack.com/opinion/underground-electric-rys-co-of-london-v-owslet-ca2-1909.