Utah-Nevada Co. v. De Lamar

133 F. 113, 66 C.C.A. 179, 1904 U.S. App. LEXIS 4384
CourtCourt of Appeals for the Ninth Circuit
DecidedOctober 3, 1904
DocketNo. 1,067
StatusPublished
Cited by19 cases

This text of 133 F. 113 (Utah-Nevada Co. v. De Lamar) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Utah-Nevada Co. v. De Lamar, 133 F. 113, 66 C.C.A. 179, 1904 U.S. App. LEXIS 4384 (9th Cir. 1904).

Opinion

HAWLEY, District Judge

(after making the foregoing statement). The first question to he considered is whether or not the Circuit Court had jurisdiction to try, hear, and determine the case. The question of jurisdiction is divisible. There are two distinct grounds upon which the plaintiff in error relies: (1) That the court erred in exercising jurisdiction over said suit, because the suit is upon an assigned chose in action, and the record does not show that the assignor and the defendant are citizens of different states; (2) the court erred in denying plaintiff in error’s motion to remand said cause to the state court, because both parties were and are nonresidents, as shown by defendant’s petition for removal. There will naturally arise in the discussion of either of these points some questions that are common to both. We will first take up the question in so far as it relates to the citizenship of the assignor. It is contended by the defendant in error that this point cannot be considered by this court: (1) Because the motion in the Circuit Court to remand the case was made upon the sole ground that the United States court had no jurisdiction by reason of the fact that the action was commenced in the state court in a state of which neither the plaintiff nor the defendant was a citizen, resident or inhabitant ; (2) because this point was not raised in the court below; and (3) because it is not embodied in the assignments of error. These contentions cannot be sustained. The cases cited and relied upon by defendant have no application to the facts of this case. They apply solely to the class of cases which are brought under other provisions of the statute, in which certain actions may be brought in the district where the defendant resides. This character of actions does not touch the general jurisdiction of the court over such a cause between the parties, but, as was said in Construction Co. v. Gibney, 160 U. S. 217, 219, 16 Sup. Ct. 272, 40 L. Ed. 401, “affects only the proceedings taken to bring the defendant within such jurisdiction, and is a matter of personal privilege, which the defendant may insist upon or may waive, at his election; and the defendant’s right to object that an action within the general jurisdiction of the court is brought in the wrong district is waived by entering a general appearance without taking the objection.” There is a clear and well-settled distinction which exists between such cases and the one in hand, which does present the direct question of jurisdiction to the court, and cannot be waived. The books are full of cases where this distinction is made, and it is the duty of the court to always keep it constantly in mind. We are dealing in this case with a provision of the judiciary act which requires certain things, by which jurisdiction is conferred, to be affirmatively shown, and the consideration of such a question has no relation to the clause of the statute relating to the district in which suits may be brought. The question of the jurisdiction of the court in cases like the present one can be taken at any time pending the proceedings. It need not be presented by any assignment of error. It may be raised by the court of its own motion. Failure of the parties to raise the question, or consent to waive it, does not prevent the court from considering it. This court has twice so [117]*117decided. Craswell v. Belanger, 56 Fed. 529, 6 C. C. A. 1; German Savings & Loan Soc. v. Dormitzer, 116 Fed. 471, 53 C. C. A. 639. In Minnesota v. Northern Securities Co., 194 U. S. 48, 62, 24 Sup. Ct. 598, 48 L. Ed. 870, the court said:

“After the cause was argued here, the parties were invited to submit briefs upon the question whether the Circuit Court of the United States could take cognizance of the case upon removal from the state court. From the briefs filed in response to that invitation it appeared that both sides deemed the case a removable one, and insist that this court should consider the merits as disclosed by the pleadings and evidence. But consent of parties can never confer jurisdiction upon a federal court. If the record does not affirmatively show jurisdiction in the Circuit Court, we must, upon our own motion, so declare, and make such order as will prevent that court from exercising an authority not conferred upon it by statute. Mansfield, C. & L. M. Railway Co. v. Swan, 111 U. S. 379, 382, 4 Sup. Ct. 510, 28 L. Ed. 462; Robertson v. Cease, 97 U. S. 646, 24 L. Ed. 1057; King Bridge Co. v. Otoe County, 120 U. S. 225, 7 Sup. Ct. 552, 30 L. Ed. 623; Parker v. Ormsby, 141 U. S. 81, 11 Sup. Ct. 912, 35 L. Ed. 654; Mattingly v. Northwestern Va. R. R., 158 U. S. 53, 57, 15 Sup. Ct 725, 39 L. Ed. 894; Great Southern Fire Proof Hotel Co. v. Jones, 177 U. S. 449, 453, 20 Sup. Ct. 690, 44 L. Ed. 482; Continental National Bank v. Buford, 191 U. S. 119, 24 Sup. Ct. 54, 48 L. Ed. 119; Defiance Water Co. v. Defiance, 191 U. S. 184, 194, 24 Sup. Ct. 63, 48 L. Ed. 140.”

It is next claimed by the defendant that the record in this case shows that the defendant and plaintiff’s assignor (Blake) are citizens of different states. This contention is sought to be maintained upon the ground that the petition for removal sets forth the fact that the plaintiff is a corporation organized and existing under the laws of the state of Iowa, and is a citizen and resident of that state; that the original complaint in this action was verified by Isaac E. Blake, president of the plaintiff corporation. The argument of defendant is that those who use the corporate name and exercise the faculties of a corporation are conclusively presumed to be citizens of the state wherein the corporation is organized. Marshall v. Baltimore & Ohio R. R. Co., 16 How. 325, 328, 14 L. Ed. 953; St. Louis & San Francisco Ry. Co. v. James, 161 U. S. 545, 547, 16 Sup. Ct. 621, 40 L. Ed. 802, and Barrow S. S. Co. v. Kane, 170 U. S. 100, 106, 18 Sup. Ct. 526, 42 L. Ed. 964, are cited as sustaining these views. The question under consideration in those cases was not as to the citizenship of individuals, but was confined to the status of a corporation under the Constitution and laws of the United States relating to the jurisdiction of the Circuit Courts over controversies between citizens of different states. The language used in an opinion must be read and construed in connection with the facts of the case about which the court was speaking, and when so read it becomes apparent that they do not support the defendant’s contention. The particular grounds upon which this contention is based have been heretofore considered by this court, and decided adversely to the views advanced by the defendant.

In Hanchett v. Blair, 100 Fed. 817, 822, 41 C. C. A. 76, the whole subject was elaborately discussed. The difficulties which existed as to the status of corporations, and the reasons which controlled the decision of the Supreme Court in Railroad Co. v. Letson, 2 How, 497, 11 L. Ed. 353; Railroad Co. v. Wheeler, 1 Black, 286, 296, 17 L. Ed. 130, and Shaw v. Mining Co., 145 U. S. 444, 451, 12 Sup. Ct. 935, 36 L. Ed. 768, [118]*118to declare that, “where a corporation is created by the laws of a state, the legal presumption is that its members are citizens of the state in which alone the corporate body has a legal existence,” and “that a suit by or against a corporation in its corporate name must be presumed to be a suit by or against citizens of the state which created the corporate body, and that no averment or evidence to the contrary is admissible for the purpose of withdrawing the suit from the jurisdiction of a court of the United States,” were fully explained. The court said:

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Bluebook (online)
133 F. 113, 66 C.C.A. 179, 1904 U.S. App. LEXIS 4384, Counsel Stack Legal Research, https://law.counselstack.com/opinion/utah-nevada-co-v-de-lamar-ca9-1904.