Western Urn Manufacturing Company and Farmer Brothers Company v. American Pipe and Steel Corporation

284 F.2d 279, 109 U.S. App. D.C. 145, 1960 U.S. App. LEXIS 3637
CourtCourt of Appeals for the D.C. Circuit
DecidedOctober 6, 1960
Docket15573_1
StatusPublished
Cited by12 cases

This text of 284 F.2d 279 (Western Urn Manufacturing Company and Farmer Brothers Company v. American Pipe and Steel Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Western Urn Manufacturing Company and Farmer Brothers Company v. American Pipe and Steel Corporation, 284 F.2d 279, 109 U.S. App. D.C. 145, 1960 U.S. App. LEXIS 3637 (D.C. Cir. 1960).

Opinion

DANAHER, Circuit Judge.

The District Court ordered that appellants’ complaint be dismissed for want of jurisdiction and that a writ of attachment before judgment, with interrogatories, be quashed. Thereafter it denied appellants’ motion to vacate its order. This appeal followed.

Appellants and the appellee are nonresident corporations. Appellants’ complaint and the exhibits of record disclose that appellee had pending in the Court of Claims four actions against the Government, one of which appellee asserted had been filed “for the benefit of Western Urn Manufacturing Company.” Appel-lee by letter of June 4, 1959, proposed to compromise its claims against the Government and asked appellants to scale down their claim, pro rata, to conform to a final settlement figure. Appellee-further sought appellants’ agreement to extend the appellee’s note “until a settlement of the above claims is made,” promising to pay monthly interim interest at the rate of 6% with final payment of the principal “immediately that we received funds of the settlement.” Appellants, as requested, agreed in writing to the proposals of the appellee.

The Department of Justice and the ap-pellee negotiated a compromise settlement of $300,000 with an entry of judgment in the Court of Claims accordingly. Congress as of September 28, 1959, appropriated funds to satisfy the judgment. Alleging that appellants’ pro rata share of the compromise amounted to. $25,886.89 and that there had become due $17,451.17, with interest of $1,431 on the promissory note, appellants filed their complaint in the District Court to recover the total of $44,749.06. On the same day, October 16, 1959, the clerk of the District Court issued a writ of “Attachment before judgment” in the claimed amount, with notice to the appellee “as defendant” and to Albert H. Greene “as garnishee.” Personal service was. made on Greene at 4:15 P.M. that day. Interrogatories were likewise served on the garnishee Greene.

The latter, as “attorney far American Pipe and Steel Corporation, appearing-specially” and in his own name as garnishee, filed a motion to dismiss the action and to quash the attachment. It was alleged in the motion that none of' the corporate parties is a resident of *281 “or found” within the District of Columbia or is licensed to do business or is doing business within the District of Columbia. Greene moved for an extension of time to answer the written interrogatories “until seventy-two (72) hours after the court decides the question of jurisdiction.”

Also, an attachment before judgment naming as garnishee, National Savings and Trust Company, was later issued and served as of November 2, 1959. The bank as garnishee filed answers to the interrogatories revealing that at the time •of the service of the writ, it was not indebted to the appellee, had no credits of that company in its possession or charge but that earlier it had “participated in the negotiation of a U. S. Treasury check in the approximate amount of $209,-243.03 payable to American Pipe and Steel Corporation, and paid to or held for the account of Albert H. Greene, attorney in fact for said corporation.” 1

The points and authorities of the garnishee Greene, filed in support of his motion, indicate that he conceived the action as having been commenced in accordance with the provisions of 28 U.S.C. § 1391. As corollary to his misconception he argued “that in the courts of the United States attachment is but an incident to a suit and unless the suit can be maintained the attachment must fall.” For the latter proposition appellee relied upon Davis v. Ensign-Bickford Co., 8 Cir., 1944, 139 F.2d 624 and cases cited. There, at page 626 the court makes clear that “Jurisdiction can not be acquired by means of attachment. In the absence of an existing Men on property within the jurisdiction of the court a federal court must acquire jurisdiction over the person of a defendant before it is authorized to attach his property or garnish his creditors.” (Emphasis added.) Undoubtedly the position of the garnishee Greene thus asserted before the District Court, predicated the order of dismissal and the quashing of the writ. The Davis case was an original action in a federal District Court. Had the attachment been procured in a state court action, later removed to a federal court, a different rule would govern, for a valid state attachment would have been protected. Rorick v. Devon Syndicate, 1939, 307 U.S. 299, 59 S.Ct. 877, 83 L.Ed. 1303. Our local attachment provisions may be likened to those authorized in many of the states, entitled to the protection recognized in Rorick as conferring jurisdiction at least to the value of the res. We need not go into refinements, for our local law governs here.

This suit was not brought as a federal action, nor was jurisdiction asserted on diversity grounds. 2 Quite the contrary, the local jurisdiction of the District Court was invoked. Congress long since conferred local jurisdiction upon the courts of the District of Columbia, precisely as though they were courts of one of the states. Cf. National Mutual Ins. Co. of District of Columbia v. Tidewater Transfer Co., 1949, 337 U.S. 582, 590, 69 S.Ct. 1173, 93 L.Ed. 1556; Graham v. Brotherhood of Locomotive Firemen, 1949, 338 U.S. 232, 237, 70 S.Ct. 14, 94 L.Ed. 22. As to the power of Congress to legislate for the District of Columbia, see Neild v. District of Columbia, 1940, 71 App.D.C. 306, 310, 110 F.2d 246, 250.

Pursuant to such authority Congress has said:

“No action or suit shall be brought in the District Court of the United States for the District of Columbia by original process against any person who shall not be an inhabitant of, or found within, the District, except as otherwise special *282 ly provided.” (Emphasis added.) D.C.Code § 11-308 (1951).
Congress has specially provided that:
“In any action at law in the District Court of the United States for the District of Columbia or the municipal court of said District, for the recovery of * * * a debt, or damages for the breach of a contract, express or implied, if the plaintiff, his agent or attorney, either at the commencement of the action or pending the same, shall file an affidavit showing the grounds of his claim and setting forth that the plaintiff has a just right to recover what is claimed in his declaration * * * and also stating either, first, that the defendant is a foreign corporation or is not a resident of the District

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Bluebook (online)
284 F.2d 279, 109 U.S. App. D.C. 145, 1960 U.S. App. LEXIS 3637, Counsel Stack Legal Research, https://law.counselstack.com/opinion/western-urn-manufacturing-company-and-farmer-brothers-company-v-american-cadc-1960.