Vonnegut Machinery Co. v. Toledo Machine & Tool Co.

263 F. 192, 1920 U.S. Dist. LEXIS 1245
CourtDistrict Court, N.D. Ohio
DecidedFebruary 7, 1920
DocketNo. 235
StatusPublished
Cited by2 cases

This text of 263 F. 192 (Vonnegut Machinery Co. v. Toledo Machine & Tool Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vonnegut Machinery Co. v. Toledo Machine & Tool Co., 263 F. 192, 1920 U.S. Dist. LEXIS 1245 (N.D. Ohio 1920).

Opinion

KILLITS, District Judge.

The complainant, an Indiana corporation, began this action by filing, January 16, a bill against the Toledo Machine & Tool Company, an Ohio corporation, known herein as the “defendant company,” and ten individual defendants, William Gable< and others, who, with John J. Quinlivan and two others, and the Central Labor Union of Toledo and Toledo Lodge No. 105, International Association of Machinists, additional defendants brought in by an amended bill of complaint, filed January 21, before answer, will be known as the “labor defendants.” On the coming in of the amended [194]*194bill, a motion--to the jurisdiction was filed, the-grounds being: . (1) Insufficient allegation of fact to state a valid cause of action in equity against either of the defendants; (2) want of jurisdiction in this court upon the facts as alleged, either of the subject-matter or of the parties; (3) because the bill is not filed in good faith; (4)- because the action is a result of collusion between complainant and the defendant the Toledo Machine & Tool Company; (5) because the amended bill “does not conform to come within the provisions of the statutes of the United States and of the equity rules governing proceedings” in federal courts. We are not advised by argument as to what' is meant by this fifth ground. We do not have in mind any situation to which such objection is pertinent. There is nothing apparent, or even suggestive, on the bill supporting either the third or fourth grounds. Counsel for the labor defendants fail to advise the court on these subjects. The motion should have been and has been overruled on grounds 3, 4, and 5, for want of sufficiency plainly apparent in each instance, when compared with the record.

[1] So far as the first two grounds are concerned, an analysis of the bill shows the same to be not well taken, although we will notice them briefly. Going to the first, the bill not only alleges the existence of jurisdictional amount in controversy, but it proceeds upon the familiar and well-established theory that a right of action exists between one party to a contract aiid those third parties who are utter strangers to the contract, and who are by their conduct interfering substantially with the execution thereof by the second party thereto. Angle v. Railway, 151 U. S. 1, 14 Sup. Ct. 240, 38 L. Ed. 55; Board of Trade v. Christie, 198 U. S. 236, 25 Sup. Ct. 637, 49 L. Ed. 1031; Mahon v. Guaranty Trust & Safe Deposit Co., 239 Fed. 266, 270, 152 C. C. A. 254; Annotations to L. R. A. 1917C, 777, and to 11 L. R. A. (N. S.) 202. This right of action exists against such third parties, even though there may be an adequate remedy at law in behalf of the first party to the contract against the second party for nonperformance. The first party should not be restricted to the inconvenience of the pursuit of a legal remedy against his contractor whose default is occasioned by third parties, strangers to the contract, who illegally obstruct its execution. Their wrongdoing may be the subject of equitable cognizance.

As to the second ground, so much thereof as relates to the sufficiency of fact to create jurisdiction in this court is answered by what we have already said touching the first ground, adding the suggestion that complainant is a nonresident of this district while all the defendants are residents herein. As we are left without advice by any argument from counsel of labor defendants as to what is the alleged vice of the amended complaint respecting parties, we can only surmise that it is thought that there is apparent upon the bill an- inconsistent alignment upon the assumption that the resident defendant the Toledo Machine & Tool Company should be aligned with the complainant, thus destroyingr our jurisdiction.

[2, 3] In this respect this case closely parallels that of Dail-Overland Co. v. Willys-Overland, Inc., et al., 263 Fed. 171, recently conclud[195]*195ed in this court. To the extent that the facts are analogous we apply our conclusions in that case. The authorities discussed in the opinion in that case (handed down December 27, 1919) on the subject of alignment of parties are applicable here, and there is no need to enlarge this memorandum by repeating that discussion. We cite the authorities: On the adequacy of relief at law, Walla Walla v. Walla Walla Water Co., 172 U. S. 1, 12, 19 Sup. Ct. 77, 43 L. Ed. 341, Kilbourn v. Sunderland, 130 U. S. 505, 514, 9 Sup. Ct. 594, 32 L. Ed. 1005, and Tylor v. Savage, 143 U. S. 79, 95, 12 Sup. Ct. 340, 36 L. Ed. 82, to which may be added Angle v. Chicago, St. P., M. & O. Ry. Co., 151 U. S. 1, 25, 14 Sup. Ct. 240, 38 L. Ed. 55. On necessity of the defendant company as a party, Brown v. Denver Omnibus & Cab Co., 254 Fed. 560, 166 C. C. A. 118. On the criteria which determine the question of alignment of the principals to the contract affected by the unlawful conduct of the stranger parties, Hamer v. New York Ry. Co., 244 U. S. 266, 37 Sup. Ct. 511, 61 L. Ed. 1125, City of Dawson v. Columbia Trust Co., 197 U. S. 178, 25 Sup. Ct. 420, 49 L. Ed. 113, Mahon v. Guaranty Trust & Security Co., 239 Fed. 266, 152 C. C. A. 254, and West v. United States, 258 Fed. 413,--C. C. A.--, which cases we distinguish from the instant case, as well as from the Overland Case, and Carroll v. Chesapeake & O. Agency Co., 124 Fed. 305, 312, 61 C. C. A. 49, Carter v. Fortney (C. C.) 170 Fed. 463, and Iron Molders’ Union v. Niles-Bement-Pond, 258 Fed. 413,-C. C. A.-. These authorities were considered in the Overland Case, and they are applied here.

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Bluebook (online)
263 F. 192, 1920 U.S. Dist. LEXIS 1245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vonnegut-machinery-co-v-toledo-machine-tool-co-ohnd-1920.