United States v. Waverly Club

22 F.2d 422, 1927 U.S. Dist. LEXIS 1562
CourtDistrict Court, S.D. New York
DecidedNovember 2, 1927
StatusPublished
Cited by6 cases

This text of 22 F.2d 422 (United States v. Waverly Club) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Waverly Club, 22 F.2d 422, 1927 U.S. Dist. LEXIS 1562 (S.D.N.Y. 1927).

Opinion

THACHER, District Judge

(after stating the facts as above). However much the interests of justice may appear to demand the denial of this motion, the power of the court to predicate jurisdiction upon the service which has been made is challenged, and unless that service was sufficient to give jurisdiction the motion must be granted.

In behalf of the government it is sought to sustain the court’s jurisdiction upon the theory that the suit is in rein against the premises; but this contention fails, because there has been no seizure of the res, and there can ho none until the facts alleged havo been litigated and the existence of a nuisance found. Security Bank v. California, 263 U. S. 282, 287, 44 S. Ct. 108, 68 L. Ed. 301, 31 A. L. R. 391; Cooper v. Reynolds, 10 Wall. 308, 19 L. Ed. 931; Pennoyer v. Neff, 95 U. S. 714, 24 L. Ed. 565. To proceed at all, the court must proceed in personam. There can be no doubt of the power of a court, when authorized by statute, to subject the person of a defendant to its jurisdiction without personal service of process upon him, if he he present and domiciled [424]*424within its territorial jurisdiction, provided the statutory method of substituted service is strictly followed, and is of such a character as to constitute due process of law.

There is no statute of the United States which authorizes the method of service here in question, and it was not authorized under rule 13 of the Equity Buies promulgated by the Supreme Court, which provides: “The service of all subpoenas shall be by delivering a copy thereof to the defendant personally, or by leaving a copy thereof at the dwelling house or usual place of abode of each defendant, with some adult person who is a member of or resident in the family.” This rule authorizes substituted service, but only at the defendant’s usual place of abode. In terms it appears to exclude all other methods of substituted service, but in practice it has two exceptions: First, where by statute a different mode of service is prescribed; and, second, where the bill is purely ancillary to another suit, at law or in equity, in which ease the subpoena may be served upon defendant’s counsel, under the rule in Dunn v. Clarke, 8 Pet. 1, 8 L. Ed. 845. See, also, Higgins v. Calif. Prune & Apricot Growers, 282 F. 550 (C. C. A. 2d). But these exceptions are more apparent than real, and do not indicate any power to depart from the rule when the process is upon an original bill, and the defendant has not appeared in court for any purpose connected with the subject-matter of the litigation, or authorized, expressly or impliedly, any other person to appear for him. The rule, in slightly varying form, has been in effect for more than 100 years¿ and yet. not a single instance of substituted personal service upon special order of the court has been called to my attention which has been upheld, except where the order was authorized either by special statute or under the rule in Dunn v. Clarke, supra.

The ease of Hyslop v. Hoppock, 12 Fed. Cas. 1141, No. 6,989, a decision of Blatehford, D. J., in this court is in point. There it was held, in a case quite similar to this, that in .the absence of any statute, or of any rule having the force of statute, the court had no power to direct substituted service of a subprana in equity. Decision was not rested upon the fact that the defendants were domiciled outside of the district, and it was held that, whether the defendants were inhabitants of the district or not, service could only be made pursuant to rule 13. By implication at least, the opinion in Central Ry. Signal Co. v. Jackson (D. C.) 254 F. 103, is to the effect that the only valid service upon a resident is that provided by rule 13, unless the suit be ancillary or there be statutory authority for some other form of service, and in United States v. American Bell Telephone Co. (C. C.) 29 F. 17, 32, it was said: “The court can acquire jurisdiction over parties in equity suits only by the service of process within the district in compliance with the requirements of this rule [equity rale 13] or by their voluntary appearance.”

Some reliance is placed upon a dictum of Morrow, District Judge, in Shainwald v. Davids (D. C.) 69 F. 701, to the effect that substituted service may be ample where the defendant is concealing himself within the district, in order to avoid personal service upon him, and upon the statement of Putnam, Circuit Judge, in Gregory v. Pike (C. C. A.) 79 F. 521: “Rules 11 to 16 relate principally to matters which may be done as of course with reference to the issue and service of process, and they may, therefore, be understood to have no universal application to proceedings under the special orders of the ChamceEor.” These general statements were not made with reference to the question at bar, which was not decided in either case. That there are few precedents indicates adherence to the rale. In a word, the practice here pursued was unprecedented in the federal courts, and the dictum of Holmes, J., in New York Trust Co. v. Eisner, 256 U. S. 345, 41 S. Ct. 506, 65 L. Ed. 963, 16 A. L. R. 660, that “a page of history is worth a volume of logic” is in point. In this connection it is significant to note that, in the preparation of the present equity rales the Supreme Court considered the English Chancery Rules. Mr. Justice Lurton visited England for the purpose of observing the operation of these rules in practice, and consulted the Lord Chancellor of England, who courteously responded in writing to the questions put to him by the learned justice. 226 U. S. 629.

At that time it was the English practice to serve the writ pursuant to special order for substituted service, if the defendant could not be found but was within the jurisdiction. Crane v. Juillon, (1876) 2 Ch. D. 220; Rafael v. Ongley, (1876) 34 L. T. 124; 23 Halsbury’s Laws of England (1912) § 207; Daniels Chancery Practice (8th Ed.) 279 (1914). See, also, Summary of English Chancery Practice, which accompanied report of the bar committee of the Circuit Court of Appeals for this circuit to the Supreme Court, with their recommendations regarding changes in the equity rales. Hop[425]*425kins, Federal Equity Rules (4th Ed.) 17. See, also, Watt v. Barnett, L. R. 3 Q. B. D. 183, 186, and Fry v. Moore, L. R. 1889, 23 Q. B. D. 395.

Having considered this practice under the English Chancery rules, the Supreme Court of the United States continued the old rule without material change, thns, I think, deliberately rejecting the English practice for substituted service of process. Under these circumstances, I do not think I may follow modem English precedents, which are not in conformity with the provisions of rule 13, although I am urged to do so because of the ruling of the Circuit Court of Appeals in this circuit in Individual Co. v. Union Co., 250 F. 625, 626, and of the Circuit Court of Appeals in the Sixth Circuit in Lindley v. Denver, 259 F. 83. In the latter ease, Denison, Circuit Judge, said:

“We do not think that the Supreme Court, in adopting the new rules in 1912, and in thus declining longer to retain the English chancery practice of 1842 as a standard, intended to abolish the whole body of federal equity practice which had grown up under the old rule 90, and had become the accepted practice in the Supreme and all inferior courts.

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Bluebook (online)
22 F.2d 422, 1927 U.S. Dist. LEXIS 1562, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-waverly-club-nysd-1927.