MacGinniss v. Boston & M. Consol. Copper & Silver Min. Co.
MacGinniss v. Boston & M. Consol. Copper & Silver Min. Co.
Opinion of the Court
after stating the case as above, delivered the' opinion of the court.
We think that the cause was improperly removed to the circuit court. Although the prayer of the complaint seeks relief expressed in varying form, as against the Amalgamated Copper Company, the cause of suit is substantially one. It is the question of the right of the Amalgamated Copper Company to control the property, business, and corporate stock of the Boston & Montana Company in the manner which is set forth in the bill. The appellant, as plaintiff in the suit, is interested in no corporation other than the Boston & Montana Company. He challenges the right of the Amalgamated Copper Company to interfere with the business affairs of his corporation and to take over its property. The illegality of this interference, as alleged in the bill, is predicated upon different grounds, but the sole aim and purpose of the suit is to dissolve the combination which has been formed between the two corporations, and to protect the interest of the appellant as a stockholder of the Boston & Montana Company. It is evident at a glance that the Boston & Montana Company is a necessary party to every phase of the controversy, unless it be that the relief prayed for in the fifth subdivision of the prayer presents matter in which it has no concern. It is true that in a portion of the- relief which is there sought the prayer goes further than the averments “of the bill, and asks that the Amalgamated Copper Company be debarred from doing business within the state of Montana. This prayer for relief does not create a separate controversy. The suit is not brought to dissolve the Amalgamated Copper Company or to enjoin it from doing business in- the state of Montana. Where the relief sought against one of several defendants is merely incidental to the principal purpose of the suit, the fact that such incidental relief pertains to one only of the defendants does not make it a separable .controversy so as to give him the right of removal. Safe-Deposit Co. v. Huntington, 117 U. S. 280, 6 Sup. Ct. 733, 29 L. Ed. 898; Graves v. Corbin, 132
It is suggested that the real controversy in this case is between the two corporations, and that the appellant is but a formal party, since the suit is one to enforce the right of the Boston & Montana Company. It is clear, however, from the allegations of the bill, that the Boston & Montana Company is not a party in the same interest with the appellant. If it be true that it has conspired with the Amalgamated Copper Company to do the illegal acts which are charged, both the corporations are antagonistic to the appellant, and both are necessary parties defendant to the suit. In a similar case the supreme court said':
“Grayson Is not suing for the Memphis & Charleston Company, but for himself. It is true a decree in his favor may be for the advantage of the Memphis & Charleston Company, but he does not represent the company in its corporate capacity, and has no authority to do so. As a stockholder he seeks protection from the illegal acts of his own company as well as the other.” Railroad Co. v. Grayson, 119 U. S. 240, 244, 7 Sup. Ct. 190, 30 L. Ed. 382.
Of similar import is Railroad Co. v. Mills, 113 U. S. 249, 5 Sup. Ct. 456, 28 L. Ed. 949.
The decree will be reversed, and the cause remanded to the circuit court, with instructions to remand the same to the state court, whence it was removed.
Reference
- Full Case Name
- MacGINNISS v. BOSTON & M. CONSOL. COPPER & SILVER MIN. CO.
- Cited By
- 8 cases
- Status
- Published
- Syllabus
- 1. Removal of Causes,—Separable Controversy—Suit by Stockholder. A suit in a state court by a stockholder of a domestic corporation, who is a citizen of the same state, against such corporation and a foreign corporation, the purpose of which is to enjoin the latter from obtaining and exercising control over the property, business, and corporate stock of the domestic corporation, does not involve a separate controversy between complainant and the foreign corporation, which gives the latter the right of removal., Such suit is necessarily based entirely upon the rights of complainant as a stockholder of the domestic corporation, and to every controversy between him and the foreign corporation involving such rights, the domestic corporation is a necessary party. 2. Same—Incidental Relief against One Defendant. ' Where the relief sought against one of several defendants is merely incidental to the principal purpose of the suit, the fact that such incidental relief pertains to one only of the defendants does not make it a separable controversy so as to give such defendant the right of removal. 8. Same—Prayer for Relief not Supported by Averments of Bill. In order to show the existence of a controversy, facts must be alleged which present a question.for the determination of the court, and a prayer, inter alia, for relief against one of several defendants, does not create a separate controversy with such defendant, where there are no averments in the bill upon which'such relief could be based. 4. Same—Arrangement of Parties—Suit by Stockholder. In a suit by a stockholder in a domestic corporation against such corporation and a foreign corporation to enjoin the latter from obtaining and exercising control over-the property and business of the former, which the bill alleges is about to be accomplished through an illegal conspiracy between the defendants, the domestic corporation is not a party in the same interest with complainant, and cannot be aligned with him for the purpose of giving the foreign corporation the right of removal on the ground of diversity of citizenship. , ¶ 1. Separable controversy as ground for removal of cause to federal court, see notes to Robbins v. Ellenbogen, 18 C. C. A, 86; Mecke v. Mineral Co., 35 C. C. A. 155.