National Mutual Insurance v. Tidewater Transfer Co.
Opinion of the Court
announced the judgment of the Court and an opinion in which
This case calls up for review a holding that it is unconstitutional for Congress to open federal courts in the several states to action by a citizen of the District.of Columbia against a citizen of one of the states. The petitioner, as plaintiff, commenced in the United States District Court for Maryland an action for a money judgment on a claim arising out of an insurance contract. No cause of action under the laws or Constitution of the United States was pleaded, jurisdiction being predicated only upon an allegation of diverse citizenship. The diversity set forth was that plaintiff is a corporation created by District of Columbia law, while the defendant is a corporation chartered by Virginia, amenable to suit in Maryland by virtue of a license to do business there. The learned District Judge- concluded that, while this diversity met jurisdictional requirements under the Act of Congress,
The history oT the controversy begins with that of the Republic. In defining the. cases and controversies to which the judicial power of the United States could extend, the Constitution included those “between Citizens of different States.”
Before concentrating on detail, it may be well to place the general issue in a larger perspective. This constitutional issue affects only the mechanics of administering justice in our federation. It does not involve an extension or a denial of any fundamental right or immunity which goes to make up our freedoms. Those rights and freedoms do not include immunity from suit by a citizen of Columbia or exemption from process of the federal courts. Defendant concedes that it can presently be sued in some court of law, if not this one, and it grants that Congress may make it suable at plaintiff’s complaint in some, if not this, federal court. Defendant’s contention only amounts to this: that it cannot be made to answer this plaintiff in the particular court which Congress has decided is the just and convenient forum..
The considerations which bid us strictly to apply the Constitution to congressional enactments which invade fundamental freedoms or which reach for powers that would substantially disturb the balance between, the Union and its component states, are not present here. In mere mechanics of government and administration we
Our first inquiry is whether, under the third, or Judiciary, Article of the Constitution,
The latter sentence, to which much importance is attached, is somewhat ambiguous, because constitutional amendment as well as statutory revision is for legislative, not judicial, consideration. But the opinion as a whole leaves no doubt that the Court did not then regard the District as a state for diversity purposes.
.To now overrule this early decision of the Court on this point-and hold that the District of Columbia is a state would, as that opinion pointed out, give to the word “state” a meaning in the Article which sets up the judicial establishment quite different from that which it carries in those Articles which set up the political departments and in other Articles of the instrument. While the word is one which can contain many meanings, such inconsistency in a single instrument is to be implied only where the context clearly requires it. There is no evidence that the Founders, pressed by more general and immediate anxieties, thought of the special problems of the District of Columbia in connection with the judiciary. This is not strange, for the District was then only a contemplated entity. But. had they thought of it, there is nothing to indicate that it would have been referred to as a state and
Jn referring to the “States” in the fateful instrument which amalgamated them into the “United States,” the Founders obviously were not speaking of states in the abstract. They referred to those concrete organized societies which were thereby contributing to the federation by delegating somfe part of their sovereign powers and to those that-should later be organized and admitted to the partnership in the method prescribed. They obviously did not contemplate unorganized and dependent spaces as. states. The District of Columbia being nonexistent in any form, much less as a state, at the time of the compact, certainly was not taken into the Union of states by it, nor has it since been admitted as a new state is required to be admitted.
We therefore decline to overrule the opinion of Chief Justice Marshall, and we hold that the District of Columbia is not a state within Article III of the Constitution. In other words, cases between citizens of the District and those of the states were not included in the catalogue of controversies over which the Congress could give jurisdiction to the federal courts by virtue of Art. III.
This conclusion does not, however, determine that Congress lacks power under other provisions of the Constitution to enact this legislation. Congress, by the Act in question, sought not to challenge or disagree with the decision of Chief Justice Marshall that the District of Columbia is not a state for such purposes. It was careful to avoid conflict with that decision by basing the new legislation on powers that had not been relied upon by the First Congress in passing the Act of 1789.
The Judiciary Committee of the House of Representatives recommended the Act of April 20, 1940, as “a rea
However, it is contended that Congress may not combine this function, under Art. I, with those under Art. Ill, in district courts of the United States. Two objections are urged to this. One is that no jurisdiction other than specified in Art. Ill can be imposed on courts that exercise the judicial power of the United States thereunder. The other is that Art. I powers over the District of Columbia must be exercised solely within that geographic area.
Of course there are limits to the nature of duties which Congress may impose on the constitutional courts vested with the federal judicial power. The doctrine of separation of powers is fundamental in oiir system. It arises,
Unless we are to deny to Congress the same choice of means through which to- govern' the District of Columbia that we have held it to have in exercising other, legislative powers enumerated in the same Article, we cannot hold that Congress lacked the power it sought to exercise in the Act before us.
It is too late to hold that judicial functions incidental to Art. I powers of Congress cannot be conferred on
It is likewise too late to say that we should reach this result by overruling Chief Justice Marshall’s view, unless we are prepared also to overrule much more, including some of our own very recent utterances. Many powers of Congress other than its power to govern Columbia require for their intelligent and discriminating exercise determination of controversies of a justiciable character. In no instance has this Court yet held that jurisdiction of such cases could not be placed in the regular federal courts that Congress has been authorized to ordain and establish. We turn to some, analogous situations in which we have approved the very course that Congress has taken here.
Congress is given power by Art. I to pay debts of the United States. ( That involves as an incident the determination of disputed claims. We have held unanimously that congressional authority under Art. I, not the Art. Ill jurisdiction over suits to which the United States is a party, is the sole source of power to . establish the Court of Claims and of the judicial power which' that court exercises. Williams v. United States, 289 U. S. 553. In that decision we also noted that it is this same Art. I power that is conferred on district courts by the
Congress also is given power in Art. I to make uniform laws on the subject of' bankruptcies. That this, and not the judicial power under Art. Ill, is the source of our system of reorganizations and bankruptcy is obvious, Continental Bank v. Chicago, R. I. & P. R. Co., 294 U. S. 648. Not only may the district courts be required to handle these proceedings, but Congress may add to their jurisdiction cases between the trustee and others that, but for the bankruptcy powers, would be beyond their jurisdiction because of lack of diversity required under Art. III. Schumacher v. Beeler, 293 U. S. 367. In that case, Chief Justice Hughes for a unanimous court wrote that, by virtue of its Art. I authority over bankruptcies, the Congress could confer on the regular district courts jurisdiction of “all controversies at law and in equity, as distinguished from proceedings in bankruptcy, between trustees as such and adverse claimants” to the extent specified in § 23b oí the Bankruptcy Act as aménded. Such jurisdiction was there upheld in a plenary suit, in a district court, by which the trustee sought equitable relief rely
This assumption by the Court in the Beeler and Austrian cases, that the Congress had power to confer on the district courts júrisdiction of nondiversity suits involving only state law questions, made unnecessary any discussion of the source of the assumed power. In view of Congress’ plenary control over bankruptcies, the Court may have grounded such assumption on Art. I. Or it might have considered that the jurisdiction was based on Art. Ill, and statutes enacted pursuant to it, giving the district courts jurisdiction over suits arising under the Constitution and laws of the United States. Had the Court held such, a view, this latter might have commended itself as the most obvious answer. Consequently, silence in this respect, in the decision of each case, seems significant, particularly in contrast with repeated reference to Art. I power in the Beeler case, and sweeping language in the Austrian case that such jurisdiction existed despite lack of diversity “or other usual ground for federal jurisdiction.” Nevertheless, it is now asserted, in retrospect, that those cases did arise under the laws of the United States. No justification is offered for that conclusion and there is no effort to say just why or how the cases did so arise. This would indeed be difficult if we still adhere to the doctrine of Mr. Justice Holmes that “a suit arises under the law that creates the cause
But the matter does not rest on inference alone. Other decisions of this Court demonstrate conclusively that jurisdiction over the Beeler and Austrian suits was not and could not have been conferred under Art. Ill and statutes concerning suits arising under the laws of the United States. A most thoroughly-considered utterance of this Court on that subject was given by. Mr. Justice Cardozo, in Gully v. First National Bank, 299 U. S. 109, where he said, without dissent, “How and when a case arises ‘under the Constitution or laws of the United States’ has been much considered in the books. Some tests are well established. To bring a case within the statute, a right or immunity created by the Constitution or laws of the United States must be an element, and an essential one, of the plaintiff’s cause of action. . . . [Emphasis added. ] Thé right or immunity must be such that it will be supportéd if the Constitution or laws of the United States are given one construction or effect, and defeated if they receive another. ... A genuine and present controversy, not merely a possible or conjectural one, must exist with reference thereto . . . and the controversy must be disclosed upon the face of the complaint . . . 299 U. S. 109, 112-113. After reviewing-previous cases, Mr. Justice Cardozo referred to a then recent opinion by Mr. Justice Stone in which he said, for a unanimous court, that federal jurisdiction “may not be invoked where the right asserted is non-federal, merely because the plaintiff’s right to sue is derived from federal law, or because the property involved was obtained under federal statute. The federal nature of the right to.be established is decisive — not the source of the authority to establish it.” Puerto Rico v. Russell & Co., 288 U. S.
Neither the Austrian nor the Beeler case meets these tests,, required before a case can be said to arise under the laws of the United States, any more than does the case before us. Austrian, as trustee, sued in equity for an accounting based on a charge that affairs of a state-created corporation had been conducted by the officers in violation of state law. Beeler, as trustee, sued on a contention that a levy on property by an Ohio sheriff was void under state law. Both controversies, like the one before-
Neither the Beeler nor the Austrian case was one arising under the laws of the United States within the clear language of recent holdings by this Court. Unless we are to deny the jurisdiction in such cases which has-consistently been upheld, we must rely on the Art. I powers of the Congress. We have been cited to no holding that such jurisdiction cannot spring from that Article. Under Art. I the Congress has given the district courts not only jurisdiction over cases arising under the bankruptcy law but also judicial power over nondiversity cases which do not arise under that or any other federal law. And this Court has upheld the latter grant.
Consequently, we can deny validity to this present Act of Congress, only by saying that the power over the District' given by Art. I is' somehow less ample than that over bankruptcy given by the same Article. If Congress could require this district court to decide this very case if it were brought by a trustee, it is hard to see why it may not require its decision for a solvent claimant when done in pursuance of other Art. I powers.
We therefore hold that Congress may exert its power to govern the District of Columbia by imposing the judicial function of adjudicating justiciable controversies on the regular federal courts
The argument that congressional powers over the District are not to be exercised outside of its territorial limits also is pressed upon us. But this same contention has long been held by this Court to be untenable. In Cohens
We could not of course countenance any exercise of this plenary power either within or without the District if it were such as to draw into congressional control subjects over which there has been no delegation of power to the Federal Government. But, as we have pointed out, the power to make this defendant suable by a District citizen is not claimed to be outside of federal competence. If Congress has power to bring the defendant from his home all the way to a forum within the District, there seems little basis for denying it power to require him to meet the plaintiff part way in another forum. The practical issue here is whether, if defendant is to be suable at all by District citizens, he must be compelled to come to the courts of the District of Columbia or perhaps to a special statutory court sitting outside of it, or whether Congress may authorize the regular federal courts to entertain the suit. We see no justification for holding that Congress in accomplishing an end admittedly within its power is restricted to those means which are most cumbersome and burdensome to a defendant. Since it may provide the District citizen with a federal forum in which to sue the citizens of one of the states, it is hard to imagine a fairer or less prejudiced one than the regular federal courts sitting in the defendant’s own state. To vest the jurisdiction in them rather than in courts sitting in the District of Columbia would seem less harsh to defendants and more .consistent with the principles of venue that prevail in our system
.The Act before us, as we see it, is not a resort by Congress to these means to reach forbidden ends. Rather, Congress is reaching permissible ends by a choice of means which certainly are not expressly forbidden by the Constitution. No good reason is advanced for the Court to deny them by implication. In no matter should we pay more deference to the opinions of Congress than in its choice of instrumentalities to perform a function that is within its power.
The judgment is
Reversed.
Act of April 2.0, 1940, e. 117, 54 Stat. 143. For terms of the statute see note 10.
No opinion was filed by the District Court, which in dismissing the complaint for lack of jurisdiction relied upon its former decision and opinion in Feely v. Sidney S. Schupper Interstate Hauling System, Inc., 72 F. Supp. 663.
The Act had been upheld in Winkler v. Daniels, 43 F. Supp. 265; Glaeser v. Acacia Mutual Life Association, 55 F. Supp. 925; and in Duze v. Woolley, 72 F. Supp. 422 (with respect to Hawaii). It
The Act had been held invalid by the Court of Appeals for the Fourth Circuit in the instant case, 165 F. 2d 531, with Judge Parker dissenting; and by the Court of Appeals for the Seventh Circuit in Central States Co-operatives v. Watson Bros. Transportation Co., 165 F. 2d 392, with Judge Evans dissenting.
333 U. S. 860.
U. S. Const. Art. Ill, § 2, cl. 1.
§ 11 of the Act of Sept. 24,1789, c. 20,1 Stat. 73,78.
Hepburn & Dundas v. Ellzey, 2 Cranch 445.
The effect of the Act was to amend 28 U. S. C. (1946 ed.) § 41 (1) so that it read in pertinent part: “The district courts shall have original jurisdiction as follows: ... Of all suits of a civil nature, at common law or in equity . . . where the matter in controversy exceeds, exclusive of interest and costs, the sum or value of $3,000, and . . . (b) Is between citizens of different States, or citizens of the District of Columbia, the Territory of Hawaii,"or Alaska, and any State or Territory . . . .”
Act of June 25,1948,62 Stat. 869.
28 U. S. C. 5J332.
McCulloch v. Maryland, 4 Wheat. 316, 407.
U.S. Const. Art. III, §2, cl. 1.
See note 8.
Hepburn & Dundas v. Ellzey, 2 Crunch 445, 453.
H. R. Rep. No. 1756,-76th Cong.', 3d Sess.,. p. 3. The Senate Judiciary Committee’s report consists only of a1 recommendation that the bill (H. R. 8822) be passed. Senate Report No. 1399,76th Cong., 3d Sess. Passage in each House was without discussion. 86 Cong. Rec., Pt. 3, p. 3015; 86 Cong. Ree., Pt. 4, p. 4286.
U. S. Const. Art. I, § 8, cl. 17.
U.S. Const. Art. I, §8, cl. 18.
Act of March 3,1887, c. 359,24 Stat. 505.
This concurrent jurisdiction of the district courts has frequently been referred to in opinions of this Court with no indication that it presented any constitutional problem with respect to the jurisdiction of either the district courts or this Court. See, for example, Pope v. United States, 323 U. S. 1; United States v. Sherwood, 312 U. S. 584; United States v. Shaw, 309 U. S. 495; Williams v. United States, 289 U. S. 553; Nassau Smelting Works v. United States, 266 U. S. 101; United States v. Pfitsch, 256 U. S. 547; Tempel v. United States, 248 U. S. 121; United States v. Greathouse, 166 U. S. 601; United States v. Jones, 131 U. S. 1. The legislative basis for the grant of jurisdiction to the district courts is delineated in Bates Mfg. Co. v. United States, 303 U. S. 567.
The suggestion here that claims against the United States, adjudicated by the Court of Claims and by the district courts solely by virtue of the waiver of sovereign immunity and the jurisdiction granted iinder the Tucker Act, may be cases arising “under the laws of the United States” is both erroneous and self-defeating. The unanimous decision in the Williams case, 289 U. S. 553, holds clearly to the contrary, stating, at 289 U. S. 577, that controversies to which the United States may by statute be made a party defendant “lie wholly outside the scope of the judicial power vested by Art. Ill . . . .” And see Monaco v. Mississippi, 292 U. S. 313, 321. Moreover, the Tucker Act simply opens those courts to plaintiffs already possessed, of a cause of action. If that is sufficient to make the case one arising under the laws of the United States, the same is true of this suit and all others like it. No one urges that view of the present statute, nor could they. See note 23 and text.
The books are replete with authority on this poin.t. For example, in Shoshone Mining Co. v. Rutter, 177 U. S. 505, it was said, at p. 507: “The suit must, in part at least, arise out of a controversy between-the parties in regard to the operation and effect of the Constitution or laws upon the facts involved. . . .” And at p. 513: “. . . the mere fact that a suit is an adverse suit authorized by, the statutes of Congress is not in and of itself sufficient to vest jurisdiction in the Federal courts.” And again at p. 507 it is considered “well settled that a suit to enforce a right which takes its origin in the laws of • the United States is not necessarily one arising under the Constitution or laws of the United States . . . .” In Bankers Casualty Co. v. Minneapolis, St. P. & S. S. M. R. Co., 192 U. S. 371, at p. 384: “. . . suits though involving the Constitution or laws of the United States are not suits arising under the Constitution or laws where they do not turn on a controversy between the parties in regard to the operation of the Constitution or laws, on the facts. . . .” And at p. 385: “We repeat that the rule is settled that a case does not arise under the Constitution' or laws of the United States unless it appears from plaintiff’s own statement, in •the outset, that some title, right, privilege or immunity on which recovery depends will be defeated by one construction of the Constitution or laws of the United States, or sustained by the opposite construction.” In Louisville & Nashville R. Co. v. Mottley, 211 U. S. 149, 152, allegations designed to establish that the case arises under the Constitution are said to be insufficient if they do not show that “the suit, that is, the plaintiff’s original cause of-action,” does so arise.
N.o question has been raised here as to the source of this Court’s appellate jurisdiction over such cases. Nor do we see how that issue could be raised without challenging our past and present exercise of jurisdiction over cases adjudicated in the district courts and in the Court of Claims, solely under the Tucker Act, see Pope v. United States, 323 U. S. 1, 13-14, and see notes 21, 22; and under the Federal Tort Claims Act, see Brooks v. United States, ante, p. 49.
Chief Justice Marshall, in McCulloch v. Maryland, 4 Wheat. 316, 420-421, said: “The result of the most careful-and attentive consideration bestowed upon this [the ‘necessary and proper’] clause is, that if it does not enlarge, it cannot be .construed to restrain the powers of Congress, or to impair the right of the legislature to exercise its best judgment in the selection of measures to carry into execution the constitutional powers of the government. . . . We admit, as all must admit, that the powers of the government are limited, and that its limits are not to be transcended. But we think the sound construction of the constitution must allow to the national legislature that discretion, with respect to the means by.which the powers it confers are" to be carried into execution, which will enable that body to perform the high duties assigned to it, in the manner most beneficial to the people. Let the end be legitimate, let it be within the scope of the constitution, and all means which are appropriate, which are plainly adapted to that fend, which are not prohibited, but consist with the letter and spirit of the constitution, are constitutional.”
It would not be profitable to review the numerous cases in which, during the consideration of other problems, this Court has made statements concerning the nature and extent of Congress’ power to legislate for the District of Columbia and its control over the jurisdiction of both constitutional and legislative courts. The issue now presented squarely for decision was not' decided in any of them. We adhere to Chief Justice Marshall’s admonition in Cohens v. Virginia, 6 Wheat. 264, 399, that such expressions “ought not to control the judgment in a subsequent suit when the very point is presented for decision,”
Concurring Opinion
with whom
I join in the Court’s judgment. But I strongly dissent from the reasons assigned to support it in the opinion of Mr. Justice Jackson.
While giving lip service to the venerable decision in Hepburn & Dundas v. Ellzey, 2 Cranch 445, and purporting to distinguish it, that opinion ignores nearly a century and a half of subsequent consistent construction.
What is far worse and more important, the manner in which this reversal would be made, if adhered to by a majority of the Court, would entangle every district court of the United States for the first time in all of the contradictions, complexities and subtleties which have
In my opinion it would be better to continue following what I conceive to be the original error of the Hepburn decision and its progeny than thus to ensnarl the general. system of federal courts. Jurisdictional and doctrinal troubles enough we have concerning them without adding others by ruling now that they have the Origin and jurisdiction of “legislative” courts in addition to that of “constitutional” courts created under Article III, with which alone they heretofore have been held endowed.
Moreover, however this case may be decided, there is ño real escape from deciding what the word “State” as used in Article III, § 2 of the Constitution means. For if it is a limitation on Congress’ power as to courts created under that Article, it is hard to see how it becomes no limitation when Congress decides to cast it off under some other Article,, even one relating to its authority over the District of Columbia. If this may be done in the name of practical convenience and dual authority, or bécause Congress might find some other constitutional way to make citizens of the District suable elsewhere .or to bring here for suit citizens from any part of the country, then what is a limitation imposed on the federal courts generally is none when Congress decides to disregard it by purporting to act under some other authorization.
The Constitution is not so self-contradictory. Nor are its limitations to be so easily evaded. The very essence of- the problem is whether the Constitution meant to. cut out from the diversity jurisdiction of courts created under Article III suits brought by or agaiñst citizens of the
I.
Prior to enactment of the 1940 statute today considered, federal courts of the District of Columbia were the only federal courts which had jurisdiction to try nonfederal civil actions between citizens of the District and citizens of the several states. The doors of federal courts in every state, open to suits between parties of diverse state citizenship by virtue of Article III, § 2 (as implemented by continuous congressional enactment), were closed to citizens of the District of Columbia. The 1940 statute was Congress’ first express attempt to remedy the inequality which has obtained ever since Chief Justice Marshall, in Hepburn & Dundas v. Ellzey, supra, construed the first Judiciary Act to exclude citizens of the District of Columbia. Marshall’s construction of the 1789 statute was founded on his conclusion that the comparable language of the diversity clause in Article III, § 2 — “Citizens of different, States” — did not embrace citizens of the District.
Marshall’s view of the 1789 Act, iterated in his later dictum, New Orleans v. Winter, 1 Wheat. 91, 94; cf. Sere v. Pitot, 6 Cranch 332, 336, has been consistently adhered to in judicial interpretation of later congressional grants of jurisdiction.
From this reasoning I dissent. For I think that the. Article III courts in the several states cannot be vested, by virtue of other provisions of the Constitution, , with powers specifically denied them by the terms of Article III. If we accept the elementary doctrine that the words of Article III are not self-exercising grants of jurisdiction to the inferior federal courts,
To circumvent the limits of Article III, it is said, after finding a contrary and overriding intent in Article I, that Article III district courts in the several states can also be vested with jurisdiction springing from Article I. The only express holding which conceivably could lend comfort to this doctrine of dual jurisdiction is this Court’s conclusion in O’Donoghue v. United States, 289 U. S. 516, that certain courts of the District of Columbia, theretofore deemed legislative courts created under Article I,
“. . . Congiess derives from the District clause distinct powers in respect of the constitutional courts of the District which Congress does not possess in respect of such courts outside the District.”8
The limits of the O’Donoghue decision are only underscored by the dissenting view of Chief Justice Hughes and Justices Van Devanter and Cardozo that all District of Columbia courts are solely the creatures of Article I:
“As the courts of the District do not rest for their creation on § 1 of Article III, their creation is not subject to any of the limitations of that provision. Nor would those limitations, if considered to be applicable, be susceptible of division so that some might be deemed obligatory and others might be ignored.” 289 U. S. at 552.
Comfort is sought to be drawn, however, from this Court’s rationale in Williams v. United States, 289 U. S. 553, which, in sanctioning salary reductions for judges of the Court óf Claims, held that that court did not derive its jurisdiction from Article III. That conclusion stemmed in part from the proposition that suits against the United States are not “Controversies to which the United States shall be a Party,” within the meaning of Article III,- § 2. Hence, it is said, the permissible inference is that the long-established concurrent jurisdiction of district courts over claims against the United States
But, in any event, to rely on Williams as dispositive of the present case is to rely on a bending reed: Williams and O’Donoghue were companion cases, argued together and decided together; and the opinions were written by the same Justice. Accordingly, what was said in one must be read in the light of what was said in the other. O’Donoghue, as has been observed, expressly rejected the proposition today announced — that Congress can vest in constitutional courts outside the District of Columbia jurisdiction derived from the District clause of Article I.
But O’Donoghue wrent further, and in so doing undermined any implication in Williams that Article III courts outside the District could be vested with any form of non-Article III jurisdiction, when it pointed out that no courts of the District of Columbia could be granted “administrative and other jurisdiction,” if, “in creating and defining the jurisdiction of the courts of the District, Congress were limited to Art. Ill, as it is in dealing with the other federal courts . . . .” 289 U. S. at 546. Moreover, the Justices who dissented from the O’Donoghue rationale of dual jurisdiction expressed no disagreement with the Williams opinion. In these circumstances, cer
Nor is there merit in the view that the bankruptcy jurisdiction of district courts does not stem from Article III. Of course it is true that Article I is the source of congressional power over bankruptcy, as it is the source of congressional power over interstate commerce, taxa? tion, the coining of money, and other powers confided by the states to the exclusive exercise of the national legislature. But, as Mr. Justice Frankfurter’s opinion makes clear, federal court adjudication of disputes arising pursuant to bankruptcy and other legislation is conventional federal-question jurisdiction. And no case cited in any of today’s opinions remotely suggests the contrary.
Furthermore, no. case cited supports the view that jurisdiction over' a suit to collect estate assets under § 23. (b) of the Bankruptcy Act, brought by the trustee in a district court with the “consent” of the defendant, is a departure from the general rule and is derived from Article I alone. To be sure, although this Court indicated a contrary view in the early case of Lovell v. Newman & Son, 227 U. S. 412, 426, Chief Justice Hughes’ opinion in Schumacher v. Beeler, 293 U. S. 367, made it perfectly clear that district courts can, with the consént of the proposed defendant, -entertain trustee suits under. § 23 (b) which the bankrupt, but for the Bankruptcy Act, could not have prosecuted in a federal court absent diversity or some independent federal question “arising, under.. . . the Laws of the United States.” ■ The opinion, stated:
“Conflicting views have been held of the meaning of the provision for consent in 123(b). In one view, the provision relates merely to venue, that is, only to a consent to the 'local jurisdiction.’ . . .*612 The opposing view was set forth by the court below in Toledo Fence & Post Co. v. Lyons, 290 Fed. 637, 645, and that decision was followed in the instant case. ... It proceeds upon the ground that the Congress had power to permit suits by trustees in bankruptcy in the federal courts against adverse claimants, regardless of diversity of citizenship, and that by § 23 (b) the Congress intended that the federal courts should have that jurisdiction in cases where the defendant gave consent,' and, without that consent, in cases which fell within the stated exceptions.
“We think that the latter view is the correct one.” 293 U. S. at 371.
Chief Justice Hughes’ opinion does not intimate that this “consent jurisdiction” arises solely from Article I. Quite the contrary, the opinion by Judge Denison outlining the “view” which the Chief Justice described as “the correct one” expressly stated that such suits are a segment of the district court’s federal-question jurisdiction:
“The trustee must allege and prove that valid proceedings were taken under the Bankruptcy Act, leading to a valid adjudication, whereby title passed, and that by valid proceedings under the act he was chosen as trustee. If the proof fails in any of these particulars, the suit fails. The suit is one step in the collection of assets in the execution of the Bankruptcy Act. That such a case would be one 'arising under the laws of the United States’ we think is the result of well-settled principles. It will be observed that under the constitutional limitations of the federal judicial power (article 3, sec. 2), and with exceptions not to this question important, Congress has no power to confer jurisdiction on the inferior federal courts excepting as to suits which do so arise; and every decision which upholds the right to sue in the*613 federal court by one who merely acquires title through the operation of a federal law is therefore, by necessary implication, a holding that such a suit ‘arises under’ federal laws.” Toledo Fence & Post Co. v. Lyons, 290 F. 637, 641; and cf. Beeler v. Schumacher, 71 F. 2d 831, 833.
There seems no reason therefore to suppose that this Court, in holding “correct” the view that district courts have jurisdiction over a trustee suit which could not have been brought by the bankrupt, rejected the explicit Article III basis of that jurisdiction.
And neither reliance on Gully v. First National Bank, 299 U. S. 109; Puerto Rico v. Russell & Co., 288 U. S. 476, and related cases, nor the suggestion that “a suit arises under the law that creates the cause of action,” American Well Works v. Layne, 241 U. S. 257, 260, compels the conclusion that Congress could not and did not classify § 23 (b) suits to collect estate assets as federal-question cases arising under the Bankruptcy Act. As this Court has had occasion to observe, a “ ‘cause of action’ may mean one thing for one purpose and something different for another.” United States v. Memphis Cotton Oil Co., 288 U. S. 62, 67-68; and see Gully v. First National Bank, supra, at 117. Similarly, as students of federal jurisdiction have taken pains to point out, the “substantial identity of the words” in the constitutional and statutory grants of federal-question juris-' diction, “does not, of course, require, on that score alone, an identical interpretation.” Shulman and Jaegerman, Some Jurisdictional Limitations on Federal Procedure, 45 Yale L. J. 393, 405, n. 47 (1936). Confusion of the two is a natural, but not an insurmountable, hazard. The Gully and Puerto Rico cases were concerned with the general statutory grant to district courts of jurisdiction over federal questions; they were not concerned with the constitutional grant of jurisdiction, nor with the specific
It has never heretofore been doubted that the constitutional grant of power is broader than the general federal-question jurisdiction - which Congress has from time to time thought to confer on • district courts by statute. In one "of the federal land-grant cases relied on in Mr. Justice Jackson's opinion, this Court had occasion to make this distinction clear:
“By the Constitution (art. 3, sec. 2)’ the judicial power of-the United States extends ‘to all cases, in law and equity, arising under this Constitution, the laws of the United States’ and to controversies ‘between citizens of different -States.’ By article 4, s. 3, cl. 2, Congress is given ‘power to dispose of and make all needful rules and regulations respecting the territory or other property belonging to the United States.’ Under these clauses Congress might doubtless provide that any controversy of a judicial nature arising in or growing out of the disposal of the public lands should be litigated only in the . courts of the United States. The question, therefore, is not one of the power of Congress, but of its intent. It has so constructed the judicial system of the United States, that the great bulk of litigation respecting rights of property, although those rights may in their inception go back to some law of the United States, is in fact carried on in the courts of the several States.” Shoshone Mining Company v. Rutter, 177 U. S. 505, 506.
Indeed, were we to adopt the "view that the Gully rule is a test applicable to the constitutional phrase, we would effectively repudiate Chief Justice Marshall’s conclusion in Osborn v. Bank of the United States, 9 Wheat. 738, that Congress can allow a federally chartered coriporation to bring all its litigation into federal courts
In short, Congress has at no time conferred on federal district courts original jurisdiction over all federal questions, preferring to leave trial of many and perháps most such questions, to state adjudication, subject to the ultimate review of this Court. But exceptions to the congressional policy of limitation there have been, and one of these is the trustee suit under § 23 (b). 2 Moore, Federal Practice (2d ed., 1948) 1633.
Thus I see no warrant for gymnastic éxpansion of the jurisdiction of federal courts outside the District. At least as to these latter courts sitting in the states, I have thought it plain that Article III described and defined their “judicial Power,” and that where “power proposed to be conferred . ; . was not judicial power within the meaning of the Constitution . . . [it] was, therefore, unconstitutional, and could not lawfully be exercised by the courts.”
In view of the rationale adopted by Mr. Justice Jackson’s opinion, I do not understand the necessity for its examination of the limits of the diversity clause of Article III. That opinion has, however, made clear the •view that the diversity clause excludes citizens of the
II.
However, nothing but naked precedent, the great age of the Hepburn ruling, and the prestige of Marshall’s name, supports such a result. It is doubtful whether anyone could be found who now would write into the Constitution such an unjust and discriminatory exclusion of District citizens from the federal courts. ■ All of the reasons of justice, convenience, and practicality which have been set forth for allowing District citizens a furtive access to federal courts, point to the conclusion that they should enter freely and fully as other citizens and even aliens do.
Precedent of course is not lightly to be disregarded, even in the greater fluidity of decision which the process of constitutional adjudication concededly affords.
The Hepburn decision was made before time, through later decisions here, had destroyed its basic premise and at the beginning of Marshall’s judicial career, when he had hardly started upon his-great work, of expounding the Constitution. The very brevity of the opinion and its groundings, especially in their ambiguity, show that the. master hand which latér made his work immortal faltered.
This narrow and literal reading was grounded exclusively on three constitutional provisions: the requirements that members of the House of Representatives be chosen by the people of the several states; that the Senate shall be composed of two Sénátors from each state; and that each state “shall appoint, for the .election of the executive,” the specified number of electors; all, be it noted, provisions relating to the organization and struc- ‘ ture of the political departments of the government, not to the civil rights of citizens as such. Put to one side were other provisions advanced in argument as showing “that the term state is sometimes used in its more enlarged sense” on the ground that “they do not prove what was to be shown by them.” Ibid. But cf; 446^-448, 450.
Whether or not this answer was adequate at the time,
In construing the diversity clause we are faced with the apparent fact that the Framers gave no deliberate consideration one way or another to the diversity litigation of citizens of the District of Columbia. And indeed, since the District was not in existence when the
If exclusion of District citizens is not compelled by the language of the diversity clause, it likewise cannot be spelled out by inference from the historic purposes of that clause. We have, needless to say, no concern with the merits of diversity jurisdiction;
Marshall’s sole premise of decision in the Hepburn case has failed, under the stress of time _ancL.later decision, ¿s a test of constitutional construction. Key words like “state,” “citizen,” and “person” do not always and invariably mean the same thing.
Moreover, Marshall himself recognized the incongruity of the decision: “It is true that as citizens of the United-States, and of that particular district which is subject to the jurisdiction of congress, it is extraordinary that the courts of the United States, which , are open to aliens^ and to the citizens of every state in the union, should be closed upon them.” But, he added, “this is a subject for legislative not for judicial consideration.” 2 Cranch at 453.
With all this we may well agree, with one reservation. In spite of subsequent contrary interpretation and Mar-, shall’s own identification of the statutory word “state"” with the same word in the Constitution, we cannot be unreservedly sure that the last-quoted sentence referred to the process of constitutional amendment rather than
But I do not rest on this ambiguity, more especially in view of the later decisions clearly accepting the Hepburn decision as one of constitutional import. On the other hand, the later and general repudiation of the decision’s narrow and literal rule for construing the Constitution, in which Marshall’s own part was not small, has cut from beneath the Hepburn case its only grounding and with it, in my judgment, the anomaly in result which the ruling always has been. It is perhaps unnecessary to go so far in criticizing the decision as was done by a judge who long afterwards bowed to it.
III.
Pragmatically stated, perhaps, the problem is not of earth-shaking proportions. For, by present hypothesis, federal court disposition of diversity suits must be in accord with local law in all matters of substance. But symbolically the matter is of very considerable importance. Reasonable men may differ perhaps over whether or, more appropriately, to what extent citizens of the District should have political status and equality with their fellow citizens. But with reference to their civil rights, especially in such a matter as equal access to the federal courts, none now can be found to defend discrimination against them save strictly on the ground of precedent.
I cannot believe that the Framers intended to impose so purposeless and indefensible .a discrimination, although they may have been guilty of understandable oversight in not providing explicitly against it. Despite its great age and subsequent acceptance, I think the Hepburn decision was ill-considered and wrongly decided. Nothing hangs on it now except the continuance or removal of a gross and wholly anomalous inequality applied against a substantial group of American citizens, not in relation to their substantive rights, but in respect to the forums available for their determination. This Court has not
That course should be followed here. It should be followed directly, not deviously. Although I agree with the Court’s judgment, I think it overrules the Hepburn decision in, all practical effect. "With that I am in accord. But I am not in. accord with the proposed extension of “legislative'* jurisdiction under Article I for the first time to the federal district courts outside the District of Columbia organized pursuant to Article III, and the consequent impairment of the latter Article’s limitations upon judicial power; and I would dissent from such a holding even more strongly than I wuuld from a decision today reaffirming the Hepburn ruling. That extension, in my opinion, would be the most important part of today’s decision, were it accepted by a majority of the Court. It is a dangerous doctrine which would return to plague both the district courts and ourselves in the future, to whát extent it is impossible to say. The O’Donoghue and Williams decisions would then take on an importance they have never before had and were never, considered likely to attain.^
See notes 3 and 4 and text infra.
See text infra and authorities cited at notes 7-9.
Barney v. Baltimore, 6 Wall, 280; Hooe v. Jamieson, 166 U. S. 395; Hooe v. Werner, 166 U. S. 399.
Hooe v. Jamieson, 166 U. S. 395, 397; cf. Downes v. Bidwell, 182 U. S. 244, 270.
“Of all the Courts which the United States may, under their general powers, constitute, one only, the Supreme Court, possesses jurisdiction derived immediately from the constitution, and of which the legislative power cannot deprive it.” United States v. Hudson, 7 Cranch 32, 33. And see Justice Chase’s remarks in Turner v. Bank of North America, 4 Dall. 8, 10 n. 1. But cf. Martin v. Hunter’s Lessee, 1 Wheat. 304, 328-331. For recent reaffirmation of the prevailing view see Kline v. Burke Construction Co., 260 U. S. 226, 233-234. And see the comprehensive survey of congressional power over' the jurisdiction of federal courts prepared for the Judiciary Committee of the House of Representatives by Mr. Justice Frankfurter before his accession to this bench. F R. Rep. No. 669, 72d Cong., 1st Sess. 12-14
304 U. S. 64. If it were assumed that the Constitution requires the application of local law in traditional diversity suits (cf. id. at 77-80; Black & White Taxicab Co. v. Brown & Yellow Taxicab Co., 276 U. S. 518, dissenting opinion at 533; but cf. Cohen v. Industrial Loan Corp., post at 541, dissenting opinion at 557), it may be wondered whether that requirement would also govern the rationale of jurisdiction today advanced: Under this rationale, Congress might well find in Article I power, to authorize articulation of a body of federal substantive law for the decision of diversity cases involving citizens of the District of Columbia.
Federal Radio Commission v. General Electric Co., 281 U. S. 464; Postum Cereal Co. v. California Fig Nut Co., 272 U. S. 693; Keller v. Potomac Electric Co., 261 U. S. 428. Cf. Ex parte Bakelite Corp., 279 U. S. 438, 450; Federal Radio Commission v. Nelson Bros., 289 U. S. 266, 274-276; United States v. Jones, 336 U. S. 641, 652, n. 12.
O’Donoghue v. United States, 289 U. S. 516, 551. Cf. Pitts v. Peak, 60 App. D. C. 195, 197.
See Comments, 43 Yale L. J. 316, ,319' (1933).
Note by Chief Justice Taney inserted by order of the Court after the' opinion in United States v. Ferreira, 13 How. 40, 53, summarizing the Court’s conclusions in Haybum’s Case, 2 Dall. 409, and United States v. Yale Todd, decided without opinion by this Court on February 17/1794, and apparently unreported. .
Cf. Screws v. United States, 325 U. S. 91, 112-113. See the trenchant discussion by Mr. Justice Brandéis of the lesser impact of stare decisis in the realm of constitutional construction, Burnet v. Coronado Oil & Gas Co., 285 U. S. 393, 405-410 (dissenting opinion), and the views of Mr. Justice Frankfurter dissenting in Commissioner v. Estate of Church, 335 U. S. 632, 676-677. Instances in which this Court has overruled prior constitutional determinations are catalogued in Burnet v. Coronado Oil & Gas Co., supra at 407, n. 2, 409, n. 4, and in Helvering v. Griffiths, 318 U. S. 371, 401, n. 52; compare Mr. Justice Brandéis’ compilations in Burnet v. Coronado Oil & Gas Co., supra at 406, n. 1, and in .his dissenting opinion in Washington v. Dawson & Co., 264 U. S. 219, 238, n. 21. Chief Justice'Stone, speaking for the Court on the death of Mr. Justice Brandéis, took occasion to note the prime role played by the' latter in liberating the Court from mechanical adherence to- precedent where constitutional issues are at stake: “He never lost sight of the fact that the Constitution Is primarily a great charter of government, and often repeated Marshall,s words: ‘it is a constitution we are expounding’ ‘intended to endure for ages to come, and, consequently, to be adapted to the various crises
The Hepburn case was not the only one in those earlier years where the master touch was lacking; Cf. Bank of the United States v. Deveaux, 5 Cranch 61; Hope Insurance Co. v. Boardman, 5 Cranch 57; Maryland Insurance Co. v. Woods, 6 Cranch 29, 7 Cranch 402; McGovney, A Supreme Court Fiction, 56 Harv. L. Rev. 853, 863-885 (1943). See particularly the discussion at 876-883. By positing the capacity of a corporation to sue or be sued under the (iiversity clause on the citizenship of its shareholders, the •Deveaux decision opened the way for corporations ultimately' to be brought within the diversity jurisdiction, but only by the long and tortuous evolution of the law through the stages first of rebut-table and finally of conclusive presumption (now most) often contrary to the fact) that’ all the shareholders are citizens of the state of incorporation. See Louisville, C. & C. R. Co. v. Letson, 2 How. 497.
Counsel for the plaintiffs had made,-among others, two different,though closely related, arguments. One was that “state” as used in the diversity clause should be given what -Marshall characterized as “the signification attached to it by writers 'on the law of nations,” a political'entity in a broad and general sense. To this argument his answer was obviously appropriate. But in view of other constitutional provisions relied upon in the argument, 2 Cranch 446-448, 450, it seems-at least questionable that the answer met the other contention, namely, that “those territories which are under the exclu
The Court’s initial determination that District residents were entitled to a jury trial in criminal cases, Callan v. Wilson, 127 U. S. 540, rested in large measure on the more inclusive language of Article III, § 2: “The Trial of all Crimes, except in Cases of Impeachment, shall be by Jury; and such Trial shall be held in the State where the said Crimes shall have been committed; but when not committed within any State, the Trial shall be at such Place or Places as the Congress may by Law have directed.” The Court in the Callan case rejected the Government’s argument that Article III, § 2, permits Congress to dispense with a jury when the crime takes place in the District rather than in a state. But Article III does not seem to have been the sole basis of decision, for the Court said, 127 U. S. at 550: “In Reynolds v. United States, 98 U. S. 145, 154, it was taken for granted that the Sixth Amendment of the Constitution secured to the people of the Territories the right of trial by jury in criminal prosecutions; . . . We cannot think that the people of this District have, in that regard, less rights than those accorded to the people of the Territories of the United States.” See District of Columbia v. Clawans, 300 U. S. 617, 624; Capital Traction Co. v. Hof, 174 U. S. 1, 5; cf. Thompson v. Utah, 170 U. S. 343, 348-349.
But, though it be true that “The Sixth Amendment was not needed to require trial by jury in cases of crimes,” United States v. Wood, 299 U. S. 123, 142, nevertheless the recognized right of District residents to an “impartial jury" is conferred by the force of the Sixth Amendment. See Frazier v. United States, 335 U. S. 497, 498, 514. Nor is this distinction a mere form of words: In United States v. Wood, supra, at 142-143, Chief Justice Hughes, in weighing the impartiality of a District of Columbia jury, noted the Article III
Thus it has been uniformly assumed that in criminal prosecutions a resident of the District of Columbia is possessed of Sixth Amendment rights “to a speedy . . . trial,” United States v. McWilliams, 69 F. Supp. 812, affirmed 163 F. 2d 695; “to be informed of the nature and cause of the accusation,” cf. Johnson v. United States, 225 U. S. 405, 409, 411; “to be confronted with the witnesses against him,” Curtis v. Rives, 123 F. 2d 936, 937; Jordon v. Bondy, 114 F. 2d 599, 602, “to have compulsory process for obtaining witnesses in his favor,” ibid.; “and to have the Assistance of Counsel for his defence,” Noble v. Eicher, 143 F. 2d 1001; see Williams v. Huff, 142 F. 2d 91, 146 F. 2d 867.
See note 12 supra. Compare Louisville, C. & C. R. Co. v. Letson, 2 How. 497, with Bank of the United States v. Deveaux, 5 Cranch 61.
Paul v. Virginia, 8 Wall. 168, 177. It is to be noted, however, that Hamilton’s 80th Federalist expressly justified the grant of diversity jurisdiction as effectively implementing the guaranties of the privileges and immunities clause of Article IV.
Hague v. C. I. O., 307 U. S. 496, 514, cf. id. at 527; Grosjean v. American Press Co., 297 U. S. 233, 244; Orient Insurance Company v. Daggs, 172 U. S. 557, 561.
For contrasting views prior to Erie R. Co. v. Tompkins, 304 U. S. 64, compare Yntema, The Jurisdiction of the Federal Courts in Controversies between Citizens of Different States, 19 A. B. A. J. 71 (1933), and Yntema and Jaffin, Preliminary Analysis of Concurrent Jurisdiction,.79 U. Pa. L. Rev. 869 (1931), with Frankfurter, A Note on Diversity Jurisdiction — In Reply to Professor Yntema, 79 U. Pa. L. Rev. 1097 (1931), and Frankfurter, Distribution of Judicial Power between United States and State Courts, 13 Corn. L. Q. 499, 520-§30 (1928). For post-Fne analyses see Shulman, The Demise of Swift v. Tyson, 47 Yale L.'. J. 1336 (1938); Clark, State Law in the Federal Courts: The Brooding Omnipresence of Erie v. Tompkins, 55 Yale L. J. 267 (1946).
See note 18, and see also Friendly, The Historic Basis of Diversity Jurisdiction, 41 Harv. L. Rev, 483 (1928); Warren, New Light on the History of the Federal Judiciary Act of 1789, 37 Harv. L. Rev. 49, 81-90 (1923); Frank, Historical Bases of the Federal Judicial System, 13 Law & Contem. Prob. 3,22-28 (1948).
Cf. notes 14-17 supra and text.
The arguments for the defendant were two, one statutory, the other constitutional. They were stated as follows: “Even if the constitution of the United States authorises a more enlarged jurisdiction than the judiciary act of 1789 has given, yet the court can take no jurisdiction which is not given by the act. . . .
“This is not a case between citizens of different states, within the meaning of the constitution.” 2 Craneh at 449-450.
After noting that the Hepburn decision had been extended by New Orleans v. Winter, 1 Wheat. 91, to territories and their citizens, the opinion in Watson v. Brooks, 13 F. 540, stated at 543-544: “But it is very doubtful if this ruling would now be made if the question was one of first impression; and it is to be hoped it may yet be reviewed and overthrown.
“By it, and upon a narrow and technical construction of the word ‘state,’ unsupported by any argument worthy of the able and distinguished judge who announced the opinion of the court, the large, and growing population of American citizens resident in the District of Columbia and the eight territories of the United States' are deprived of the privilege accorded to all other' American citizens, as
Dissenting Opinion
with whom
While I agree with the views expressed by Mr. Justice.. Frankfurter and Mr. Justice Rutledge which relate to the power of Congress under Art. I of the Constitution to vest federal district courts with jurisdiction over suits between citizens of States and the District qf Columbia, and with the views of Mr. Justice Frankfurter ánd Mr. Justice Jackson as to the,proper interpretation of the word “States” in the diversity clause of Art. Ill, I
I.
The question whether Congress has the power to extend the diversity jurisdiction of the federal district courts to citizens of the District of Columbia by virtue of its authority over the District under Art. I of the Constitution depends, in turn, upon whether the enumeration in Art. Ill of the cases to which the judicial power of the United States shall extend defines the outer limits of that power or is merely a listing of the types of jurisdiction with which Congress may invest federal courts without invoking any of the specific powers granted that body by other Articles of the Constitution. It has long been settled that inferior federal courts receive ho powers directly from the Constitution but only such authority as is vested in-them by the Congress. Turner v. Bank of North-America, 4 Dall. 8 (1799) ; McIntire v. Wood, 7 Cranch 504 (1813); Kendall v. United States, 12 Pet. 524 (1838); Cary v. Curtis, 3 How. 236 (1845).
The theory that § 2 of Art. Ill is merely a supplement to the powers specifically granted Congress by the Con
.“Of course there are limits to the nature of duties which Congress may impose on the constitutional courts vested with the federal judicial power . . . [but] this statute . . . does not authorize or require either the district courts or this Court to participate in any legislative, administrative, political or other nonjudicial function or to render any advisory opinion.” Ante, pp. 590-591.
But as my Brothers Frankfurter and Rutledge have pointed out, if Art. Ill contains merely a grant of power to Congress, there is no more reason to find any limitation in the fact that the judicial power extends only to cases and controversies than in the specific enumeration of the kinds of cases or controversies to which it shall extend. The fundamental error in this position, as I see it, is the failure to distinguish between two entirely different principles embodied in Art. Ill, as elsewhere in the Constitution, both of which were repeatedly adverted to in the Constitutional Convention and have since been followed by this Court without substantial, deviation.
The first of these principles is that the three branches of government established by the Constitution are of coordinate rank, and that none may encroach upon the powers and functions entrusted to the others by that instrument. This principle found expression in the requirement of Art. Ill that the judicial power shall extend only to cases and controversies. Of equal .importance, however, was the second principle, that the Constitution con; tains a grant of power by the states to the federal government, and that all powers not specifically granted were reserved to the states or to the people.
The first principle is not now under attack, but proper perspective in viewing the second requires some examination of its origin and history. The framers of the Constitution were presented with, and rejected, proposals which would have vested nonjudicial powers in the national judiciary. Charles Pinckney of South - Carolina proposed, for example, that “Each branch of the Legislature, as well as the Supreme Executive shall have au-" thority to require, the opinions of the supreme Judicial Court upon important questions of law, and upon solemn occasions.”
Clear as this principle is, however, it was attacked in this Court on precisely the same grounds now asserted to sustain the diversity jurisdiction here in question. In Keller v. Potomac Electric Co., 261 U. S. 428 (1923), where this Court had before it an Act under which the courts of the District of Columbia were given revisory power over rates set by the Public Utilities Commission
The second principle, that any powers not specifically granted to the national judiciary by Art. Ill were reserved to the states or the people, is here challenged. The reason such an attack is possible at this late date is, ironically enough, because of the implicit acceptance of that principle by the framers, by Congress, and by litigants ever since. Unlike the question of the relations between the branches of government, which first arose during Washington’s presidency and subsequently gave rise, in the cases previously adverted to, to frequent definition of the nature of cases and controversies, acceptance of the principle that Art. Ill contains a limitation on the power of the federal judiciary was so complete that the question did not often arise directly. Nevertheless, it is possible to demonstrate in a number of contexts the true intent of the framers.
First, the examination and rejection of various alternative proposals concerning the jurisdiction of the national judiciary by the Convention throws considerable light upon the compromise reached.
“Mr. Rutlidge hiavg. obtained a rule for reconsideration of the clause for establishing inferior tribunals under the national authority, now moved that that part of the clause . . . should be expunged: arguing that the State Tribunals might and ought to be left in all cases to decide in the first instance the right of appeal to the supreme national tribunal being sufficient to secure the national rights & uniformity of Judgmts: that it was making an unnecessary encroachment on the jurisdiction of the States, and creating unnecessary obstacles to their adoption of the new system.”9
The motion was carried and the clause establishing inferior federal tribunals excised from the draft Constitution. Madison, however, immediately moved “that the National Legislature be empowered to institute inferior tribunals,” urging that some provision for such courts was a necessity in a federal system. Madison’s notes then record the reaction of Pierce Butler of South Carolina to this proposal:
*633 “The people will not bear such innovations. The States will revolt at such encroachments. Supposing such an establishment to be useful, we must not venture on it. We must follow the example of Solon who gave the Athenians not the best Govt, he could devise; but the best they wd. receive.”10
On the other hand, some members of the Convention favored a wider federal jurisdiction than was ultimately authorized. The Connecticut delegation, led by Roger Sherman, proposed “That the legislature of the United States be authorised to institute one supreme tribunal, and such other tribunals as they may judge necessary for the purpose aforesaid, and ascertain their respective powers and jurisdictions.”
The judicial power was thus jealously guarded, by the states and unwillingly-granted to the national judiciary. Only when it could be demonstrated that a particular head of jurisdiction was acutely needed for the purposes of uniformity, and national harmony was it granted. In every state convention for ratification of the Constitution,' advocates and opponents of ratification considered in detail the kinds of cases and controversies to which the national judicial power was to extend. Each had to be justified.
That the federal judicial power was restricted to those classes of cases set forth in Art. Ill was clearly the opinion of those who had most to do with its drafting and acceptance. In the 80th Number of The Federalist, Hamilton listed the types of cases to which it was thought necessary that the judiciary authority of the nation should extend. All are found represented in Art. III.
*636 “The amount of the observations hitherto made on the authority of the judicial department is this: that it has been carefully restricted to those causes which are manifestly proper for the cognizance of the national judicature . . . P.511. (Emphasis added.)
while in No. 82, the following appears:
“The only outlines described [for inferior courts] are that they shall be ‘inferior to the Supreme Court,’ and that they shall not exceed the specified limits of. the federal judiciary.” P. 516. (Emphasis added.)
And Madison, in a letter to a correspondent who had contended that the common law had been incorporated by the Constitution as federal law, wrote:
“A characteristic peculiarity of the Govt, of the U. States is, that its powers consist of special grants taken from the general mass of power, whereas other Govts, possess the general mass with special exceptions only. . Such being the plan of the Constitution, it cannot well be supposed that the Body which framed it with so much deliberation, and with so manifest a purpose of specifying its objects, and defining its boundaries, would, if intending that the Common Law shd. be a part of the national code, have omitted to express or distinctly indicate the intention; when so many far inferior provisions are so carefully inserted, and such appears to have been the public view taken of the Instrument, whether we recur to the period of its ratification by the States, or to the federal practice under it.”17
“As regards all courts of the United States inferior to this tribunal, two things are necessary to create jurisdiction, whether original or appellate. The Constitution must have given to the court the capacity to take it, and an act of Congress must have supplied it. Their concurrence is necessary to vest it. It is the duty of Congress to act for that purpose up to the limits of the granted power. They may jail short oj it, but cannot exceed it.” (Emphasis added.)
And in a series of three cases decided between 1800 and 1809, the Court refused to give literal effect to § 11 of the Judiciary Act of 1789, which had extended the jurisdiction of Circuit Courts to suits where' “an alien is a. party,” because of the limitations imposed by Art. III. In Mossman v. Higginson, 4 Dall. 12, 14 (1800), it was decided that “as the legislative power of conferring jurisdiction on the federal Courts, is, in this respect, confined to suits between citizens and foreigners, we must so expound the terms of the law, as to meet the case, ‘where, indeed, an alien is one party,’ but a citizen is the other.” This construction of the statute was adhered to in Montalet v. Murray, 4 Cranch 46 (1807); and in Hodgson v. Bowerbank, 5 Cranch 303 (1809), where Chief Justice Marshall dismissed the contention that “The judiciary act gives jurisdiction to the circuit courts in all suits in which an alien is a party” with this admonition-: “Turn to the article of the constitution of the United States, for the statute cannot extend the jurisdiction beyond the limits of the constitution.”
“The Constitution has defined the limits of the judicial power of the United States, but has not prescribed how much of it shall be exercised by the Circuit Court ; consequently, the statute which does prescribe the limits of their jurisdiction, cannot be in conflict with the Constitution, unless it confers powers not enumerated therein.” (Emphasis added,)
The cases chiefly relied upon by those who contend that Art. Ill does not define the limits of the judicial power are O’Donoghue v. United States, 289 U. S. 516 (1933), and Williams v. United States, 289 U. S. 553 (1933), which concerned reductions in salary of judges of the District Court for the District of Columbia and the Court of Claims respectively. In these cases, this Court held that Art. Ill, § 1 of the Constitution forbade reduction of the salary of the former, who was found to be a judge of a “constitutional” (i. e., an inferior, court as used in Arts. I and III) court, but not of the latter, á judge of a “legislative” court.
Two separate but related points concerning the O’Donoghue case should be emphasized. The first is that since
In view of this express limitation, the O’Donoghue case lends no support to the Act now in question. To extend its applicability beyond the courts of the District is warranted neither by the language nor the reasoning of that case. The Court in no way diminished the authority of American Insurance Co. v. Canter, 1 Pet. 511 (1828), which had held that the courts of Florida Territory were legislative courts not created pursuant to Art. Ill and incapable of receiving the judicial power set out therein. Since territorial courts cannot be invested with Art. Ill power, the strict dichotomy between legislative and constitutional courts still exists — except in the District of Columbia.' It is not enough to refer to. the breadth of congressional power over the District; that such power is national in character rather than merely local. The power of Congress over the territories is- equally broad, yet territorial courts cannot be invested with Art. Ill power under the O’Donoghue case. And some -of the very statements now relied upon as indicating the scope of Congress’ power over the District
. Except in the District of Columbia, therefore, American Insurance Co. v. Canter, supra, and a long line of cases in the same vein
What has been said does not mean, of course, that legislative courts cannot exercise jurisdiction over questions of the same nature as those enumerated in Art. Ill, § 2. It was clearly contemplated by the framers that state courts should have federal question jurisdiction concurrent with that exercised by inferior federal courts, yet they are not constitutional courts nor do they exercise the judicial power of Art. III. The legislative courts created by Congress also can and do decide questions arising under the Constitution and laws of the United States (and, in the case of territorial courts, other types of jurisdiction enumerated in Art. Ill, § 2 as well), but that jurisdiction is not, and cannot be, “a part of that judicial power which is defined in the 3d article of the Constitution.” These courts are “incapable of receiving it.” American Insurance Co. v. Canter, supra at 546; Reynolds v. United States, supra at 154.
“The appellate power is not limited by the terms of the third article to any particular courts. The words are, ‘the judicial power (which includes appellate power) shall extend to all .cases/ &c., and ‘in all other cases before mentioned the supreme court shall-have appellate jurisdiction.’ It is the case, then, and not the court, that gives the - jurisdiction. If the judicial power extends to -the case, it will be in vain to search in the letter of the constitution for any qualification a's to the tribunal where it depends.” Martin v. Hunter’s Lessee, 1 Wheat. 304, 338 (1816).
There is. no^anomaly, therefore, in the fact that legislative courts, as well as constitutional courts, exercise federal question jurisdiction, and that they sometimes exercise concurrent jurisdiction over the same matters. That does not make the former constitutional courts, American Insurance Co. v. Canter, supra; Ex parte Bakelite Corp., supra. Still less does it make the latter legislative courts, which is the effect of the statute now being considered. It is one thing to say that legislative courts may exercise jurisdiction over some of the same matters that are within Art. Ill judicial.power. It is quite another thing to hold that constitutional courts may take cognizance of causes which are not within the scope of that power.
There is a certain surface appeal to the argument that, if Congress may create statutory courts to hear these cases, it should be able? to -adopt the less expensive and more practical expedient of vesting that jurisdiction
II.
There are numerous sections of the Constitution which are concerned solely with the mechanics of government and, of necessity, set rather arbitrary limits upon the exercise of power by the three branches of government. No doubt requirements of this kind have proven in the past, and may, in the future, prove unduly restrictive and undesirable. • Yet if a question concerning any one of them were before us, I do not suppose that any member of the Court would read into the Constitution the changes thought desirable in our day.
The only difference in respect of the most explicit of these limitations of power and' the limitation imposed by the word “State” in Art. Ill is that the meaning urged upon the Court is not expressly controverted by the language of the Constitution. That it was not the specific intent of the framers to extend diversity jurisdiction to suits between citizens of the District of Columbia and the States seems to be conceded. One well versed in that subject, writing for the Court within a few years of adoption of the Constitution, so held.
The question is, then, whether this is one of those sections of the Constitution to which time and experience were intended to give content, or a provision concerned solely with the mechanics of government. I think there can be little doubt but that it was the latter. That we
I hardly need add that I consider a finding of unconstitutionality of a statute a matter- of- grave concern. Nevertheless, Congress cannot do that which the Constitution specifically forbids. I think that it has attempted to do so here.
See also Sheldon v. Sill, 8 How. 441 (1850); Kline v. Burke Construction Co., 260 U. S. 226 (1922); Lauf v. E. G. Shinner & Co., 303 U. S. 323. (1938); Lockerty v. Phillips, 319 U. S. 182 (1943).
1. e., is an enumeration of cases to which Congress may extend the jurisdiction of the federal courts without invoking other of its powers under the-Ccjnstitution. '
This principle, implicit in the arguments at the Constitutional Convention, was made explicit in the 10th Amendment.
2 FarrancI, Records of the Federal Convention 341, hereinafter cited as Fárrand.
Id. at 430.
See Muskrat v. United States, 219 U. S. 346, 356 (1911).
2 Farrand 425.
The propriety- of considering the proposals and debates of' the Constitutional Convention was long ago considered by those most intimately concerned with its formulation. Washington, in his message to the House of Representatives refusing the demands' of that body for the papers relating to Jay’s treaty, stated: “If other proofs than these, and the plain letter of the Constitution itself, be necessary to ascertain the point under consideration, they may be found-
1 Farrand 124. See the argument of Luther Martin before the Maryland House of Representatives opposing ratification of the Constitution in 3 Farrand 156. See also 2 Elliot, Debates 408; 3 id. at 562 et seq.
This account, taken from Madison’s notes, is found in 1 Farrand 124-125.
3 Farrand 616.
1 Farrand at 22.
Id. at 231. The sense of the Convention at this point, was expressed in Yates’ Notes as follows: “Gov. Randolph observed the .difficulty in estáblishing the powers of the judiciary — the object however at present is to establish this principle, to wit, the security of foreigners where treaties are in their favor, and to preserve the harmony of states and that of the citizens thereof. This being once established, it will be the business of a sub-committee to detail it; and therefore moved to obliterate such parts of the resolve so as only to establish the principle, to wit, that the jurisdiction of the national judiciary shall extend to all cases of national revenue, impeachment of national officers, and questions which involve the national peace or harmony. Agreed to unanimously.”. 1 Farrand 238. . ' "
See, e. g., Madison’s defense of the Judiciary Article before the Virginia .Convention, 5 Writings of James Madison 216-225; 2 Elliot, Debates 109; id. at 409, where among the resolutions affecting Art. III was one which “Resolved, as the opinion of this committee, that the jurisdiction of the Supreme Court of the United States, or of any other court to be instituted by the Congress, ought not, in any case, to be increased, enlarged, or extended, by any fiction, collusion, or mere suggestion”; id. at 489-4Í94; 3 Elliot, Debates 517-584.
3 Elliot, Debates 565. And see Patrick Henry’s remarks, id. at 539-546.
The • cases' enumerated were the following: “1st, to lall those which arise out of the laws of the United States, passed in pursuance of their just and constitutional powers of legislation; 2d, to all those which concern the execution of the provisions expressly contained in the articles of Union; 3d, to all those in which the United States are a party; 4th, to all those which involve the peace of the Confederacy, whether they relate to the intercourse between the United States and foreign nations, or to that between the States themselves; 5th, to all those which originate on the high seas, and are of admiralty or maritime jurisdiction; and, lastly, to all those in which the State tribunals cannot be supposed to be impartial and unbiased.” P. 494.
9 Writings of James Madison 199-200. And see United States v. Hudson and Goodwin, 7 Cranch 32 (1812); Erie R. Co. v. Tompkins, 304 U. S. 64 (1938).
From Grether v. Wright, 75 F. 742 (1896).
See e. g., Benner v. Porter, 9 How. 235 (1850); Clinton v. Englebrecht. 13 Wall. 434 (1871); Reynolds v. United States, 98 U. S. 145 (1878); McAllister v. United States, 141 U. S. 174 (1891); United States v. Burroughs, 289 U. S. 159 (1933); Ex parte Bakelite Corp., 279 U.S. 438 (1929).
In Williams v. United States, 289 U. S. 553 (1933), the Court found that the Court of Claims had been created pursuant to the power of Congress under Art. I to pay the debts of the United States and had been ^iven powers and duties inconsistent with those of an Art. Ill court. The Court’s consideration of the question whether “Controversies to which the United States shall be a Party” in Art. Ill includes suits against the United States was therefore unnecessary to the decision, since an affirmative answer would not have converted the Court of Claims into a constitutional court. It is “incapable of receiving” the Art. Ill power. American Insurance Co. v. Canter, supra. Furthermore, the Court recognized inferentially that the Court of Claims does exercise jurisdiction over some
It is argued that because federal district courts exercise jurisdiction over claims against the United States concurrent with that of the Court of Claims, the former are exercising jurisdiction of non-Art. Ill nature. Whether or not the dictum in Williams v. United
Since any right of action against the United States is completely and wholly dependent upon whether an Act of Congress has authorized tlie suit, see United States v. Minnesota Mutual Investment Co., 271 U. S. 212, 217 (1926), a question arising under the laws of- the United States, as that phrase is used in Art. Ill, is clearly presented by any claim against the 'federal government. Since Congress has decreed that all such actions shall be brought in federal courts, the •question presented in Gully v. First National Bank, 299 U. S. 109 (1936), Puerto Rico v. Russell & Co., 288 U. S. 476. (1933): and related cases is not involved:-
Except', perhaps,, when Congress legislates for the Territories or the District tyf Columbia.
Katz, Federal Legislative Courts, 43 Harv. L. Rev. 894, 916-917.
Concurring in Part
with whom
No provisions of the Constitution,, barring only those that draw on arithmetic, as in prescribing the qualifying age for a President and members of a Congress or the length of their tenure of office, are more explicit and specific than those pertaining to courts established under Article III.' “The judicial power” which is “vested” in these tribunals and the .safeguards under which their judges function are enumerated with particularity. Their tenure and compensation, the controversies which may. be brought before them, and the distribution of original and appellate-Jurisdiction among these tribunals are defined and circumscribed, not left at large by vague and elastic phrasing.’ The precision which characterizes these portions of Article III is in striking contrast to the imprecision of so many other provisions of the Constitution dealing with other very vital aspects of government. This was not due to chance or ineptitude on the part of the Framers. The differences in subject-matter account for the drastic differences in treatment. Great concepts like “Commerce . . . among the several States,” “due process of law,” “liberty,” “property” were purposely left to gather meaning from experience. For they relate to the whole domain of social and economic fact, and the statesmen who founded this Nation knew too well that only a stagnant society remains unchanged. But when
There was deep distrust of a federal judicial system, as against the State judiciaries, in the Constitutional Convention. This distrust was reflected in the evolution of Article III.
According to Article III, only “judicial power” can be “vested” in the courts established under it. At least this limitation, which has been the law of the land since 1792, Hayburn’s Case, 2 Dall. 409, is not yet called into question. And so the President could not today elicit this Court’s views on ticklish problems of international law any more than Washington was able to'd.o in 1793. See the exchange between Secretary of'State Jefferson and Chief Justice Jay in 3 Johnston, Correspondence and
But if courts established under Article III can exercise wider jurisdiction than that defined and confined by Article III, and if they are available to effectuate the various substantive powers of Congress, such as the power to legislate for the District of Columbia, what justification is there for interpreting Article III as imposing one restriction in the exercise of those other powers of the Congress — the restriction tp the exercise of “judicial power" — yet not interpreting it as imposing the restrictions that are most explicit, namely, the particularization of the “cases" to which “the judicial Power shall extend”?
It is conceded that the claim for which access is sought in the District' Court for Maryland, one of the courts established under Article III, is not included among the “cases” to which the judicial power can be made to extend. But if the precise enumeration of cases as to which Article III authorized Congress to grant jurisdiction to the United States District Courts does not preclude Congress from vesting these courts with authority which Article III disallows, by what rule of reason is. Congress to be precluded from bringing to its aid the advisory opinions of this Court or of the Courts of Appeals? In the exercise of its constitutional power to regulate commerce, to establish uniform rules of naturalization, to raise and support armies, or to execute any of the other powers of Congress that are no less vital than its power to legislate for the District of Columbia, the Congress may be greatly in need of informed and disinterested legal advice. If Congress may grant to the United States District Courts authority to act in situations in which Article III denies it, why may not this Court respond to calls upon it by Congress if confronted with the conscientious belief of Congress.that such a call is made under the Necessary-and Proper'Clause in order tp deal wisely and effectively with some substantive con
Courts set up under Article III to exercise the judicial power of the United States do so either because of the nature of the subject-matter or because of the special position of the parties. So far as the subject-matter is concerned, it extends to cases arising under the “Constitution, the Laws of the United States, and Treaties,” as well as “to all Cases of admiralty and maritime Jurisdiction.” Article I, § 8, is an enumeration of the subjects in relation to which the Constitution authorizes Congress to make laws. Its eighteen divisions of legislative power are the sources of federal rights and sanctions. Laws enacted under them are “the Laws of the United States,” to which the “judicial power,” granted by Article III, extends. Laws affecting revenue, war, commerce, immigration, naturalization, bankruptcy, and trip rest, as well as the vast range of laws authorized by tK& “Necessary- and-Proper” Clause, are the generating sources of “all Cases, in Law and Equity, arising under . .\., the Laws of the United States,” and therefore\cognizable by the courts established under Article III. Congress, can authorize the making of contracts; it can therefore authorize suit thereon in any district court. Congress can establish post offices; it can therefore authorize suits against the United States for the negligent killing of a child by a post-office truck.
We are here concerned with the power of the federal courts to adjudicate merely because of the citizenship of the parties. Power to adjudicate between citizens of different states, merely because they are citizens of different states,- has no relation to any substantive rights created by Congress. When the sole source of the right to be enforced is the law of a State, the right to resort to a federal court is restricted to “Citizens of different States.” The right to enforce such State-created obligations derives its sole strength from Article III. No other provision of the Constitution lends support. But for Article III, the judicial enforcement of rights which only a State, not the United States, creates would be confined to State courts. It is Article III and nothing outside it that authorizes Congress to treat federal courts as “only another court of the State,” Guaranty Trust Co. v. York, 326 U. S. 99, 108, and Article III allows it to do so only when the parties are citizens of different “States.” If Congress, in its law-making power over the District of Columbia, created some right for the inhabitants of the District, it could choose to provide for the enforcement of that right in any court of the United States, because the case would be one arising under “the Laws of the United States.” But here the controversy is one arising not under the laws of the United States but under the laws of Maryland. By the command of the Constitution, this Maryland-created right can be enforced in a federal court only if the controversy is between “Citizens of different States” in relation to the State in which the federal court is sitting.
.The. diversity jurisdiction of the federal courts was probably the most tenuously founded and most unwill
But in any event, the dislocation of the Constitutional scheme for the establishment of the federal judiciary and the distribution of jurisdiction among its tribunals so carefully formulated in Article III is too heavy a price to pay for whatever advantage there may be to a citizen of the District, natural or artificial, to go .to a federal court in a particular State instead of to the State court in suing a citizen of that State. Nor is it merely a dislocation for the purpose of accomplishing a result of trivial importance in the practical affairs of life. The process
To find a source for “the judicial Power,” therefore, which may be exercised by courts established under Article III of the Constitution outside that Article would be to disregard the distribution of powers made by the Constitution.
The Framers, in making provision in regard to “States,” meant the States which sent them as delegates to the Philadelphia Convention and the States which were to be admitted later. It was not contemplated that the district which was to become the. seat of government could ever become a State. Marshall had no mean share in securing adoption of the Constitution and took special interest in the Judiciary Article. He merely gave expression to the common understanding- — the best test of the meaning of words — when he rejected summarily the notion that the Citizens of the District are. included among Citizens of “States.”
It is suggested that other provisions of the Constitution relating to “States” apply to the District. If the mere repetition of an inaccuracy begets truth, then that statement is true, not otherwise. Decisions concerned with the District involving trial by jury in criminal and civil cases, full faith and credit for its proceedings, and the power to tax residents, rest on provisions in the Constitution not- limited to “States.” There may be a decision in which the source of rights or obligations affecting the District of Columbia derives from a legal right relating solely to “States” or a duty to which only “States” must be obedient. I know of no such case.
A substantial majority of the Court agrees that ..each of the two grounds urged in support of the attempt by Congress to extend diversity jurisdiction to casps involving citizens of the District of Columbia must be rejected— but not the same majority. And so, conflicting minorities in combination bring' to pass a result — paradoxical as ,it may appear — which differing majorities of the Court find insupportable.
The story of the scope of jurisdiction of the federal courts devised by Article III is easily traceable through the admirable index in Farrand, The Records of the Federal Convention (Rev. ed., 1937) ; the data are assembled in Prescott, Drafting the Federal Constitution, ch. 17 (1941); see also Friendly, The Historic Basis of Diversity Jurisdiction, 41 Harv. L. Rev. 483 (1928).
See for example, Hearings and S. Rep. No. 626, on S. 3151, 70th Cong., 1st Sess. (1928); S. Rep. No. 691, on S. 4357, 71st Cong., 2d Sess. (1930); S. 937, S. 939, H. R. 10594, H. R. 11508, S. Rep. No. 530 and S. Rep. No. 701, 72d Cong., 1st Sess. (1932); Hearings on S. 466, 79th Cong., 1st Sess. (1945). Earlier attacks on diversity jurisdiction are summarized in Frankfurter and Landis, The Business of the Supreme Court, 90 et seq., 136 et seq. (1928).
Reliance on Williams v. Austrian, 331 U. S. 642, 657, seems singularly inapposite.' When a petition for bankruptcy is filed, there may be outstanding claims by the bankrupt against debtors and by creditors against the bankrupt. Of course Congress has power to determine whether all such claims — those for, and those against, the bankrupt estate — should be enforced through the federal courts. That a particular claim dissociated from the fact of bankruptcy would have to be brought in a State court for want of any ground of federal jurisdiction is irrelevant. This is so because'in the exercise of its power to "pass uniform laws on the subject of bankruptcies” Congress may deem it desirable that the federal courts be utilized for all the claims that pertain to the bankrupt, estate whether in the federal court in which the bankruptcy proceeding is pending or in a more convenient federal court. The congeries of controversies thus brought into being by reason of bankruptcy may be lodged in the federal courts because they‘arise under “the Laws of the United States,” to wit, laws concerning the “subject of bankruptcies.” It is a matter of congressional policy whether there must be a concourse of all claims affecting the bankrupt’s estate in the federal court in which the bankruptcy proceeding is pending or whether auxiliary suits be pursued in other federal courts.
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