Revett v. Clise
Opinion of the Court
The complainant, a citizen of the state of Colorado, brings this action against J. W. Clise and H. R. Clise, citizens of the state of Washington and of this district, William Nottingham and H. S. Wilkinson, citizens and residents of New York, the Globe Navigation Company, a corporation of the state of New Jersey; authorized to do business under the laws of the state of Washington, and doing business within this district, and the Globe Navigation Compány, Limited, a corporation of Washington, and charges the defendants Clise, Nottingham, and Wilkinson with entering into a conspiracy for the purpose of organizing the corporations named and securing the subscription of capital stock of the
The defendants Clise have filed separate answers. The defendants Nottingham and Wilkinson and Globe Navigation Company, appearing separately and specially for such purpose, object to the jurisdiction of the court on the ground that neither the complainant nor the defendants are residents or citizens of this district or of the state of Washington.
“Sec. 51. * * * No civil suit shall be brought in any District Court against any person by any original process or proceeding in any other district than that whereof he is an inhabitant; but where the jurisdiction is founded only on the fact that the action is between citizens of different states, suit shall be brought only in the district of the residence of either the plaintiff or the defendant.”
Section 50 provides:
“When there are several defendants in any suit at law or in equity, and one or more of them are neither inhabitants of nor found within the district in which the suit is brought, and do not voluntarily appear, the court may entertain jurisdiction, and proceed to > the trial and adjudication of the suit between the parties who are properly before it; but the judgment or decree rendered therein shall not conclude or. prejudice other parties not regularly served with process nor voluntarily appearing to answer; and nonjoinder of parties who are not inhabitants of nor found within the district, as aforesaid, shall not constitute matter of abatement or objection to the suit.”
Manifestly, it appears to me from the allegations of the complaint and the prayer for relief that the contention is not well taken. Paragraph 21 of the complaint reads as follows:
“That in order that complainant may have, receive, and enjoy the la .eii'i uf his judgment hereinbefore set forth, it is necessary that the Globe Navigation Company (of New Jersey) be required to pay, and that William Nottingham, H. S. Wilkinson, J. W. Clise, and H. R. Clise, the real owners of the capital stock and the real incorporators of Globe Navigation Company, organize! under the laws of New Jersey, be compelled to pay into this court a sufficient sum upon tlieir subscription so made by and in the name of E. P. Johnston and otherwise for the stock of the Globe Navigation Company, Limited, to satisfy such judgment, together with interest thereon and the costs and disbursements of this action.”
And the prayer reads :
“Wherefore complainant, prays that testimony be taken as to the facts iii regard to the cause above set forth and be returned to this court, and after due hearing, a final decree be entered in favor of the complainant as against the defendants herrín, and each and all of them, decreeing their true and full interest in this matter, and for the full amount of complainant's judgment, with interest and costs.”
I am of opinion that in no sense can the cause of action be said to belong to the exceptional cases referred to in section 8. It is not an action to establish a “claim to” real property in the district, or enforce a lien or remove a cloud upon the title to real or personal property. Ladew v. Tennessee Copper Co., supra. There is no property the subject of this suit. The action is bottomed on conspiracy, and the proceeding is in personam. Clearly complainant cannot proceed under section 8 of the act of 1875, and section 50 of the Judicial Code specifically fixes the legal status of the parties and the procedure which must be taken by this court.
The objections are sustained. An order may be accordingly entered.
Reference
- Full Case Name
- REVETT v. CLISE
- Cited By
- 2 cases
- Status
- Published
- Syllabus
- 1. Courts (§ 314*)—Federal Courts—Parties—Citizenship—Corporations. The citizenship of a corpora (ion, for the purpose of jurisdiction of federal courts, is in the state of its creation. LEd. Note.—For other cases, see Courts, Cent. Dig. § 860; Dec. Dig. § 314.*J 2. Courts (§ 272*) — Federal Courts — Jurisdiction — Citizenship ■— Residence. Complainant, a citizen of Colorado, sued C. and another, citizens of Washington, in the Western district of Washington and also joined N. and W.j citizens and residents of New York, the G. Navigation Company, a New Jersey corporation authorized 1o do business in Washington, and doing business within the district, and the G. Navigation Company, Limited, a Washington corporation, charging that the individual defendants had entered into a conspiracy to organize the corporations named and secure the subscription of capital stock by irresponsible third persons; that the individual defendants were the sole owners of all the stock of both corporations, but carried it on the books of the corporations in other names; that the stock of the corporations was unpaid; that the New Jersey corporation purchased certain steamships and chartered them to the Washington corporation, in order to relieve the New Jersey corporation from all liability for their operation; that the New Jersey corporation never engaged in the transportation business, but both corporations maintained the same ofiice and were represented by the same person; that complainant secured a judgment for breach of a transportation contract against the Washington corporation, but that this corporation had no assets, and about the time of the rendition of the judgment transferred all of its assets to the New Jersey corporation; and that, in order for complainant to enjoy the benefit of his judgment, it was necessary that the New Jersey corporation he required to imy the same—and prayed that the individual defendants be compelled to pay into court a sufficient sum on their subscriptions in the name of third persons for the stock of the Washington corporation to satisfy the judgment. Held, that N. and W., citizens and residents of New York, and the New Jersey corporation, could not be required to answer a demand for judgment in personam against them without their consent in the federal court sitting in Washington, even though they might be doing business within the district and have a general agent pursuant to the laws of Washington, under Judicial Code (Act March 3, 1911, c. 231) § 51, 36 Stat. 1101 (ü. S. Comp. St. Supp. 1911, p. 150), providing that no civil suit shall be brought in any District Court against any person in any other district than that whereof he is an inhabitant, but, where jurisdiction is founded on diversity of citizenship, suit shall be brought only in the district of the residence of either plaintiff or defendant. [Ed. Note.—For other cases, see Courts, Cent. Dig. § 811; Dec. Dig. § 272.*] 3. Courts (§ 269*)—Federal Courts—Jurisdiction—Claim to Property. Such cause of action was not to establish a claim to real property in the district, or to enforce a lien or remove a cloud on the title to real or personal property, and therefore was not maintainable in Washington under Act Cong. March 3, 1875, c. 137, § 8, 18 Stat. 472 (U. S. Comp. St. 1901, p. 513), providing that when, in any suit commenced in any Circuit Court of the United States to enforce any lien or equitable claim on or claim to, or to remove any incumbrance or claim or cloud on, the title to real or personal property within the district where the suit is brought, one or more of the defendants thereto shall not be inhabitants of or found within the district, or shall not voluntarily appear thereto, it shall be lawful for the court to direct the defendants to appear, etc. [Ed. Note.—For other cases, see Courts, Cent. Dig. § 809; Dec. Dig. § 269.*]