City of Norwalk v. Equitable Trust Co. of New York
City of Norwalk v. Equitable Trust Co. of New York
Opinion of the Court
The Ohio Electric Power Company was engaged in furnishing electricity to the residents of the city of Norwalk, Ohio-, for heating and lighting purposes. The city passed a.n ordinance March 23, 1926, directing the power company to remove its poles and wires from the city streets. Upon the refusal of the company to comply with the ordinance, the city caused quo warranto proceedings to be instituted against it in the Court of Appeals of Huron county, Ohio. The -power company answered alleging a perpetual right to use the streets under a grant from the state (Rev. St. Ohio 1880, § 3463, and section 3471a (as added by 84 Ohio Laws, p. 7), and, following the submission of the case on proofs, the court entered a decree of ouster.
The argument of counsel before us revolves about the so-nree and extent of the fight under which the power company' entered and has heretofore used the streets. The.appellee insists that it was derived from the state,
The District Court undoubtedly had jurisdiction of both the parties and subject-matter of this litigation. The relief sought was of the character that equity alone can grant, and in that sense there was equity jurisdiction. It does not follow, however, that it was within the legitimate scope of the powers of the court to enjoin all persons to whom notice of the order of injunction should come from taking any steps or action of any kind to cause the enforcement of the judgment of the state court. While it is true that the decree is broad enough in its terms to enjoin the city and its agents from forcibly removing the wires and poles without state warrant, we cannot regard it as-a whole as having any other effect or purpose than to stay the hand of the state court in carrying out its judgment of ouster. Thus defining it, its incidental effect upon the possible unauthorized action of city officials is too negligible to be given consideration in determining its character. Considering it, therefore, as effecting its purpose of staying proceedings in the state court, we inquire into its validity under the authorized practice in equity procedure.
Section 265 of the Judicial Code (28 USCA § 379) provides that “the writ of injunction shall not be granted by any court of the United States to stay proceedings in any court of a State, except in cases where such injunction may be authorized by any law relating to proceedings in bankruptcy.” This provision, as said in Wells Fargo & Co. v. Taylor, 254 U. S. 175, 183, 41 S. Ct. 93, 96, 65 L. Ed. 205, was “designed to- be in accord with, and not antagonistic to, our dual system of courts,” which means, it Seems to us, that, except as may he authorized by laws relating to proceedings in bankruptcy, the powers of federal courts to stay proceedings in a state court are no greater than those with which state courts are invested under the general-rules of the equity practice. In the opinion in the case just referred to the court points out three classes of eases in which a federal court is not prevented by the Code provision, supra, from issuing injunctions staying state court proceedings. This proceeding does not fall within any of the classes mentioned. In its objective analysis, it ia a suit by a mortgagee to- obtain a readjudication of the law and facts adjudicated by a state court of competent jurisdiction in a proceeding to which the mortgagor was a party. There is no claim that an injunction is necessary to protect the jurisdiction of the federal court properly acquired and still subsisting; that the decree of the state court is void for lack of jurisdiction; that the relief hen? sought should be granted because of fraud of mistake amounting to fraud in the state court proceeding; or that the appellee was"denied notice of the state court proceeding and an opportunity to be heard.
It is true that the courts have hold that the inhibitions of section 265 of the Judicial Code (28 USCA § 379) do not forbid the issuance of writs of injunction enjoining the enforcement of final judgments of state courts as distinguished from proceedings in such courts. Simon v. Southern Railway, supra; Essanay Film Co. v. Kane, 258 U. S. 358, 360, 42 S. Ct. 318, 66 L. Ed. 658. Plainly, though, this provision of the statute confers no authority on the courts, hut is a limitation; and we have been referred to no ease holding that a federal court is authorized, under its general equity power, to issue a writ of injunction to stay the enforcement of a judgment of a state court of competent jurisdiction in the absence of a showing that the judgment was void, or that it was based upon fraud or such accident or mistake as made its enforcement unconscionable. In all the eases it seems also to he held that it must be made to appear in connection with one of these conditions that there was also an absence of any fault or negligence of the party seeking the injunction. National Surety Co. v. State Bank, supra; Denton v. Baker (C. C. A.) 93 F. 46, 49; Brown v. County of Buena Vista, 95 U. S. 357, 159, 24 L. Ed. 422; Knox County v. Harshman, 133 U. S. 152, 154, 10 S. Ct. 257, 33 L. Ed. 586; Marshall v. Holmes, 141 U. S. 589, 596, 600, 12 S. Ct. 62, 35 L. Ed. 870. It would thus seem plain from the authorities that the mere presence of federal and equity jurisdiction is not enough to authorize a federal court of equity to inquire into supposed ■errors of law in the judgments and decrees of state courts. Old Colony Trust Co. v. Omaha, 230 U. S. 100, 122, 33 S. Ct. 967, 57 L. Ed. 14100, docs not hold otherwise. It was there decided that the trust company was not hound by a prior judgment rendered in a suit brought by its mortgagor against tho city, but was free to attack tho ordinance on which the judgment was based. Undoubtedly that was true, as it is in every case where equity grants relief against a final judgment. The question here is not whether the decree of the state court is an adjudication against the appellee, hut whether the facts shown justify the granting of tho relief sought. Whether there were sufficient facts for that purpose in the Old Colony Trust Co. Case does not appear from the opinion. We must assume tha.t there were; otherwise there would be no reason for the emphasis placed on such conditions in the other decisions to which we have referred.
None of tho conditions held to he essential to tho exercise by a federal court of its power to enjoin the enforcement of a judg
Error in the state court decree being the sole ground for the relief sought, and the record showing no circumstances justifying interference therewith, the injunction issued herein must be set aside, and the cause remanded, with directions to dismiss the bill.
HICKS, Circuit Judge, dissents.
Zanesville V. Zanesville T. & T. Co., 64 Ohio St. 67, 80, 81, 59 N. E. 781, 52 L. R. A. 150, 83 Am. St. Rep. 725; Farmer v. Telephone Co., 72 Ohio St. 526, 531, 532, 74 N. E. 1078; Telephone Co. v. Cincinnati, 73 Ohio St. 64, 81, 76 N. E. 392; Hardin-Wyandot Lighting Co. v. Upper Sandusky, 93 Ohio St. 428, 439, 113 N. E. 402; affirmed, Hardin-Wyandot Lighting Co. v. Upper Sandusky, 251 U. S. 173, 40 S. Ct. 104, 64 L. Ed. 210.
Reference
- Full Case Name
- CITY OF NORWALK, OHIO v. EQUITABLE TRUST CO. OF NEW YORK
- Status
- Published