Uphoff v. Chicago, St. L. & N. O. R. Co.

5 F. 545
CourtU.S. Circuit Court for the District of Kentucky
DecidedJuly 15, 1880
StatusPublished
Cited by2 cases

This text of 5 F. 545 (Uphoff v. Chicago, St. L. & N. O. R. Co.) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Uphoff v. Chicago, St. L. & N. O. R. Co., 5 F. 545 (circtdky 1880).

Opinion

Hammond, D. J.,

(sitting by designation.) The plaintiff sued the defendant corporation in the court of common pleas of Hickman county, Kentucky, for negligently killing her husband. The defendant removed the cause into this court, alleging in its petition that the plaintiff is a citizen of Kentucky and the defendant “a citizen” of Louisiana. The plaintiff has filed here a response to said petition admitting that the plaintiff is a citizen of Kentucky, but averring that “while it may he true the defendant was and is a citizen of the state of Louisiana, yet it is also true that the defendant is a corporation and citizen of the state of Kentucky, duly incorporated and made such citizen by an act of the general assembly of the commonwealth of Kentucky, approved .March 11, 1878, with power as such corporation and citizen to sue and he sued and contract in the state of Kentucky.” The motion of the plaintiff is now made to remand the cause to the state court for want of jurisdiction. It is to he observed that the response to the petition for removal admits that the defendant corporation is “a citizen” of Louisiana, but avers [546]*546that it is also “a citizen” of Kentucky, and alleges its incorporation 'hy that state, while, on the other hand, the petition for removal does not aver that the defendant corporation was incorporated by the laws of Louisiana, but simply that it was and is “a citizen” of that state, nor does it otherwise appear by the pleadings that the defendant corporation was chartered by the laws of Louisiana.

Whether the case falls within the principle of the case of the Lafayette Ins. Co. v. French, 18 How. 404, or that of the Covington Draw-bridge Co. v. Shepherd, 20 How. 227, 1 need not stop to inquire, because no objection is taken to the defective averment, and the case having been submitted without reference to it in the briefs of counsel, it is, I presume, intentionally .waived.

The facts, then, are that, by the laws of Louisiana and Mississippi, a railroad company was chartered and operating a line of road from New Orleans to Jackson, Mississippi, and another corporation, under the laws of Mississippi and Tennessee, was operating a line of road from Jackson, Mississippi, to Jackson, Tennessee, and thence on to the southern •line of Kentucky. By an act of the general assembly of Kentucky, approved March 18, 1872, c. 585, entitled “An act to authorize the Mississippi Central Railroad Company to extend their road into and through the state of Kentucky, ” the said corporation was “declared a body politic and corporate,” etc., and authorized to construct and operate its road through Kentucky to the Ohio river, or some convenient point on the Mississippi river. In November, 1877, the two corporations before mentioned were, by appropriate legislation in Louisiana, Mississippi, and Tennessee, consolidated into one; and by an act approved March 11, 1878, c. 395, the general assembly of Kentucky ratified the former act and the consolidation, and chartered the new consolidated company in Kentucky.

In the case of Blackburn v. Selma R. Co., in the western district of Tennessee, (MSS. December 20, 1879,) where the question was whether the legislation of Tennessee in regard to a corporation chartered by Mississippi and Alabama merely [547]*547authorized a non-resident corporation to do business in that state, or created a Tennessee corporation, I had occasion to examine the cases, and found that it has been held that it is a question of legislative intention to be deduced from a proper construction of the statutes. If the effect of the legislation be to license a foreign corporation to do business in the state, it does not become a corporation of that state, but is suable there as any other non-resident “found within the district” would be, under the acts of congress regulating jurisdiction. But if the effect be to create a corporation by adopting one chartered in another state, its status is the same as if it had been originally and solely incorporated by the state adopting it. Railroad Co. v. Harris, 12 Wall. 65; Railroad Co. v. Wheeler, 1 Black, 286; Railway Co. v. Whitton, 13 Wall. 270; Muller v. Dows, 94 U. S. 444; Ex parte Schollenberger, 96 U. S. 369; Railroad v. Vance, Id. 450; Williams v. Railroad Co. 3 Dill. 267; Wilson Co. v. Hunter, 11 Chi. Leg. News, 207.

I should think the first of the Kentucky statutes above referred to had no other effect than to authorize the Missis-, sippi Central Bailroad Company to do business in Kentucky, were it not that the second act seems designed to remove any possible doubt on the subject by making it distinctly a Kentucky corporation. It is clearly a case of the adoption by Kentucky of the consolidated corporation as its own, and it must be held to be a Kentucky corporation, at least for all purposes of jurisdiction. Does the fact that the corporation has an original existence in Louisiana affect the question of jurisdiction so that a suit against it may be removed into this court? Although the law of corporations abounds in fictions,—the chief of which is that it is “a person,”—the supreme court has persistently denied that it can be “a citizen” in the sense of the constitution, and has created another fiction, that, within the purview of the law regulating the jurisdiction of the federal courts, all the incorporators must conclusively be presumed to be citizens of the state creating the corporation, and has held that this presumption shall not be averred against to oust the jurisdiction. Hence, while we may know' that this adoption by Kentucky of a non-resident [548]*548éorporation composed of citizens of another state has the effect to create a corporation not composed of citizens of Kentucky-, we must.conclusively presume that they are. Railroad v. Letson, 2 How. 497; Marshall v. Railroad, 16 How. 314; Muller v. Dows, supra.

This fiction has been repeatedly resorted to in support of the jurisdiction of the federal courts, and must, necessarily, be as efficacious to defeat it in a case like this. The fact that these presumptive citizens of Kentncky are, by like presumption, at the same time citizens of Tennessee, Mississippi, and Louisiana, by reason of charters granted in those states, cannot alter .the principle. The plaintiff here is a citizen'of Kentucky, and the defendants (a corporation) are, by this conclusive presumption, citizens of the same state, and, therefore, the conditions required by the constitution to give us jurisdiction do not exist. Neither can the fact that these incorporators, owning, charters in several states, haye authority of law to conduct their business as a single or consolidated corporation change this result. In each state, by operation of this presumption, they are conclusively held to be citizens of that state, and of that state alone. This seems to me to be the principle that underlies the question, and to be conclusive against the jurisdiction.

It is said, i,n the case of the Bank of Augusta v. Earle, 13 Peters, 519, that a corporation can have no legal existence out of the bounds of the sovereignty by which it is created. It exists only in contemplation of law and by force of the law, and where that law ceases to operate the corporation can have no existence.

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Bluebook (online)
5 F. 545, Counsel Stack Legal Research, https://law.counselstack.com/opinion/uphoff-v-chicago-st-l-n-o-r-co-circtdky-1880.