Lead Opinion
delivered the opinion of the Court.
Thе Charter of the American National Red Cross authorizes the organization “to sue and be sued in courts of law and equity, State or Federal, within the jurisdiction of the United States.” 33 Stat. 600, as amended, 36 U. S. C. §2. In this case we consider whether that “sue and be sued” provision confers original jurisdiction on federal courts over all cases to which the Red Cross is a party, with the consequence that the organization is thereby authorized to remove from state to federal court any state-law action it is defending. We hold that the clause does confer such jurisdiction.
J — I
In 1988 respondents filed a state-law tort action in a court of the State of New Hampshire, alleging that one of respond
On interlocutory appeal, the United States Court of Appeals for the First Circuit reversed.
We granted certiorari,
H-1 H — 1
Since its founding in 1881 as part of an international effort to ameliorate soldiers’ wartime suffering, the American Red Cross has expanded its activities to include, among others, the civilian blood-supply services here at issue. The organization was reincorporated in 1893, and in 1900 received its first federal charter, which was revised in 1905. See American National Red Cross, Report of the Advisory Committee on Organization 4 (1946) (hereinafter Advisory Report), reprinted at App. to Brief for Appellants in No. 90-1873 (CAl), pp. 94, 101.
Its text, nevertheless, was left undisturbed for more than 20 years further, until its current form, authorizing the Red Cross “to sue and be sued in courts of law and equity, State or Federal, within the jurisdiction of the United States,” took shape with the addition of the term “State or Federal” to the 1905 language, as part of an overall revision of the organization’s charter and bylaws. See Act of May 8, 1947,
HH HH H-i
A
As indicated earlier, we do not face a clean slate. Beginning with Chief Justice Marshall’s opinion in 1809, we have had several occasions to consider whether the “sue and be sued” provision of a particular federal corporate charter conferred original federal jurisdiction over cases to which that corporation was a party, and our readings of those provisions not only represented our best efforts at divining congressional intent retrospectively, but have also placed Congress on prospective notice of the language necessary and sufficient to confer jurisdiction. See, e. g., United States v. Merriam,
In Deveaux, we considered whether original federal jurisdiction over suits by or against the first Bank of the United States was conferred by its charter. The language in pоint authorized the Bank “ ‘to sue and be sued, plead and be im-ple? -d, answer and be answered, defend and be defended, in /urts of record, or any other place whatsoever,’”
The same issue came to us again 15 years later in Osborn. By this time Congress had established the second Bank of the United States, by a charter that authorized it “to sue and be sued, plead and be impleaded, answer and be answered, defend and be defended, in all state courts having competent jurisdiction, and in any circuit court of the United States.” Act of Apr. 10, 1816, ch. 44, §7, 3 Stat. 266, 269. In its interpretation of this language, the Court, again speaking through Chief Justice Marshall, relied heavily on its Deveaux analysis, and especially on the contrast developed there between the first bank charter’s “sue and be sued” provision and its provision authorizing suits against bank officers. See Osborn,
With the basic rule thus established, our next occasion to consider the issue did not arise until Bankers Trust, nearly a century later. The federal charter considered in that case authorized a railroad corporation “to sue and be sued, plead and be impleaded, defend and be defended, in all courts of law and equity within the United States.” Act of Mar. 3, 1871, ch. 122, § 1, 16 Stat. 573, 574. Testing this language against that construed in Deveaux and Osborn, we concluded that it “d[id] not literally follow” its analogues considered in either of the earlier cases,
Last came D’Oench, Duhme, where we held that the FDIC’s charter granted original federal jurisdiction. That jurisdiction was not, we explained, “based on diversity of citizenship. Respondent, a federal corporation, brings this suit under an Act of Congress authorizing it to sue or be sued ‘in any court of law or equity, State or Federal.’ ”
B
These eases support the rule that a congressional charter’s “sue and be sued” provision may be read to confer federal court jurisdiction if, but only if, it specifically mentions the federal courts. In Deveaux, the Court found a “conclusive argument” against finding a jurisdictional grant in the “sue and be sued” clause in the fact that another provision of the same document authorized suits by and against bank officers “in any court of rеcord of the United States, or of [sic] either of them ....” See
Applying the rule thus established, in Bankers Trust we described the railroad charter’s “sue and be sued” provision, with its want of any reference to federal courts, and, holding it up against its analogues in Deveaux and Osborn, we found
The rule established in these cases makes it clear that the Red Cross Charter’s “sue and be sued” provision should be read to confer jurisdiction. In expressly authorizing the organization to sue and be sued in federal courts, using language resulting in a “sue and be sued” provision in all relevant respects identical to one on which we based a holding of federal jurisdiction just five years before, the provision extends beyond a mere grant of general corporate capacity to sue, and suffices to confer federal jurisdiction.
>
Respondents offer several arguments against this conclusion, none of which we find availing.
First, we can make short work of respondents’ argument that the charter’s conferral of federal jurisdiction is nevertheless subject to the requirements of the “well-pleaded complaint” rule (that the federal question must appear on the face of a well-pleaded complaint) limiting the removal of cases from state to federal court. See Brief for Respondents 38-46. Respondents erroneously invoke that rule outside the realm of statutory “arising under” jurisdiction, i. e., jurisdiction based on 28 U. S. C. § 1831, tо jurisdiction based on a separate and independent jurisdictional grant, in this ease, the Red Cross Charter’s “sue and be sued” provision. The “well-pleaded complaint” rule applies only to statutory “arising under” eases, see Verlinden B. V. v. Central Bank of Nigeria,
B
Respondents also claim that language used in congressional charters enacted closely in time to the 1947 amendment easts doubt on congressional intent thereby to confer federal jurisdiction over cases involving the Red Cross. Respondents argue that the 1948 amendment to the charter of the Commodity Credit Corporation (CCC), the 1947 amendment to the charter of the Federal Crop Insurance Corporation (FCIC), and the 1935 amendment to the FDIC’s charter, each of which includes explicit grants of federal jurisdiction, together demonstrate “a practice of using clear and explicit language to confer federal jurisdiction over corрorations [Congress] had created.” Brief for Respondents 27.
The argument does not hold up. The CCC amendment is irrelevant to this enquiry, as it conferred exclusive, rather than concurrent, federal jurisdiction. See Act of June 29,
Nor do the other two enactments support respondents’ argument. The statutes were passed 12 years apart and employed verbally and doctrinally distinct formulations. Compare Banking Act of 1935, ch. 614, § 101, 49 Stat. 684, 692 (providing that suits involving FDIC “shall be deemed to arise under the laws of the United States”), with Act of Aug. 1,1947, eh. 440, § 7, 61 Stat. 719 (providing that FCIC “may sue and be sued in its corporate name in any court of record of a State having general jurisdiction, or in any United States district court, and [that] jurisdiction is hereby conferred upon such district court to determine such controversies without regard to the amount in controversy”).
If, indeed, respondents’ argument could claim any plausibility, it would have to be at the cost of ignoring the 1942 D’Oench, Duhme opinion citing the FDIC charter’s “sue and be sued” provision as the source of federal jurisdiction in that case. See
C
Respondents would have us look behind the statute to find quite a different purpose when they argue that the 1947 amendment may have been meant not to confer jurisdiction, but to clarify the Red Cross’s capacity to sue in federal courts where an independent jurisdictional basis exists. See Brief for Respondents 23-27. The suggestion is that Congress may have thought such a clarification necessary after passage of the 1925 statute generally bringing an end to federal incorporation as a jurisdictional basis. See 28 U. S. C. § 1349.
The legislative history of the 1947 amendment cuts against them, as well, to the extent it points in any direction.
In a final look toward the text, respondents speculate that the 1947 amendment can be explained as an attempt to clarify the Red Cross’s capacity to enter the federal courts under their diversity jurisdiction. See Brief for Respondents 25-26, 29. The argument turns on the theory that federally chartered corporations are not citizens of any particular State, and thus may not avail themselves of diversity jurisdiction. See id., at 26 (quoting Walton v. Howard University,
Our holding leaves the jurisdiction of the federal courts well within Article Ill’s limits. As long ago as Osborn, this Court held that Article Ill’s “arising under” jurisdiction is broad enough to authorize Congress to confer federal-court jurisdiction over actions involving federally chartered corporations. See
VI
The judgment of the Court of Appeals is reversed, and the case is remanded for proceedings consistent with this opinion.
It is so ordered.
Notes
Although more than 40 District Court cases have considered this issue, no result clearly predominates. Compare Pet. for Cert. 10, n. 4 (listing cases finding jurisdictional grant in Red Cross Charter’s “sue and be sued” provisiоn), with id., at 11, n. 5 (listing cases reaching opposite conclusion). Reflecting this confusion, the only other Court of Appeals to consider this issue decided differently from the First Circuit. See Kaiser v. Memorial Blood Center of Minneapolis, Inc.,
Congress had previously overruled much of Pacific Railroad Removal Cases,
We do not address this question, as we hold that the “sue and be sued” provision of the Red Cross’s Charter suffices to confer federal jurisdiction independently of the organization’s federal incorporation.
The “sue and be sued” language was originally enacted in the statute creating the FDIC, see Banking Act of 1933, ch, 89, §8,48 Stat. 162, 172, and was reenacted in the 1935 amendments to that statute, see Banking Act of 1936, ch. 614, § 101, 49 Stat, 684, 692. The 1935 amendments also enacted for the first time the deemer provision we quoted in footnote 2 of our opinion in D’Oench, Duhme & Co. v. FDIC,
Respondents argue that the parties in D’Oench, Duhme did not litigate the jurisdictional issue. See Brief for Respondents 18-22. But the parties’ failure to challenge jurisdiction is irrelevant to the force of оur holding on that issue. See, e. g., FW/PBS, Inc. v. Dallas,
The dissent reads Deveaux as distinguishing between these two provisions not on this basis, but rather on the ground that the provision authorizing suits against bank officers allowed the bringing of a particular cause of action. See post, at 270. That reading might be possible if Chief Justice Marshall had not nipped it in the bud. He did not explain the difference between the jurisdictional significance of the two clauses in question by saying that jurisdiction may be granted only in provisions referring to courts in which causes of action could be brought. He explained it simply by inferring, from the drafting contrasts, “the opinion of congress that the right to sue does not imply the right to sue in the courts of the union unless it be expressed.” Deveaux,
The dissent accuses us of repeating what it announces as Chief Justice Marshall’s misunderstanding, in Osborn, of his own previous opinion in Deveaux. See post, at 271. We are honored.
Contrary to respondents’ argument, our cases do not support a requirement that federal jurisdiction under a “sue and be sued” clause requires mention of the specific federal court on which it is conferred. D’Oench, Duhme, of course, bars any such reading. Nor would Osborn v. Bank of United States,
The dissent is playful in manufacturing a conflict between our synthesis of the cases and the opinion in Bankers Trust Co. v. Texas and Pacific R. Co.,
See Claflin v. Houseman,
Respondents do not repeat the Court of Appeals’s argument that the original language of the FCIC charter tracked in all relevant respects that in the Red Cross’s post-1947 charter, and that Congress’s later amendment of the FCIC charter to make jurisdiction more explicit thus implicitly suggests that Congress considered that language insufficient to confer jurisdiction. See
See Act of Feb. 13, 1925, eh. 229, §12, 43 Stat. 941 (currently codified at 28 U. S. C. § 1349). The exception, for federally chartered corporations over one-half owned by the United States, is irrelevant to our enquiry. See n. 3, supra.
The only debate on the 1947 amendment to the charter’s “sue and be sued” provision occurred at a Senate Committee hearing. See Hearings on S. 691 before the Senate Committee on Foreign Relations, 80th Cong., 1st Sess., 10 (1947). The only two relevant comments, both made by Senator George, appear to be mutually contradictory on the matter at issue here. At one point Senator George said: “I think the purpose of the bill is very clear, and that is to give the jurisdiction in State courts and Federal courts, and I think we had better leave it there,” ibid. Later, however, he stated: “I think there might be some question about the right of a Federal corporation to be sued in a State court. I thought that was, and I still think it is, the purpose of this provision,” id., at 11.
At oral argument respondents carried the suggestion a further step by speculating that the 1947 amendment could be explained as an attempt to ensure the Red Cross's access to federal courts when diversity jurisdiction existed, due to concern, presumably present until our 1949 decision in National Mut. Ins. Co. v. Tidewater Transfer Co.,
Respondents complain that the Red Cross’s theory is of recent vintage, citing a 1951 case in which the Red Cross removed a suit against it from state to federal court based not on any independent jurisdictional grant implicit in the "sue and be sued” provision, but rather on party diversity. See Brief for Respondents 29 (citing Patterson v. American National Red Cross,
The dissent adopts and refines respondents’ argument, see Brief for Respondents 16, that the 1947 amendment’s parallel treatment of federal and state courts counsels against reading that amendment as conferring jurisdiction, see post, at 267-268. The short answer is that D’Oench, Duhme forecloses the argument, since the charter language we held to confer federal jurisdiction in that case made exactly the same parallel mention of federal and state courts. But going beyond that, the reference to state as well as federal courts presumably was included lest a mention of federal courts alone (in order to grant jurisdiction to them) be taken as motivated by an intent to confer exclusive federal jurisdiction. Moreover, the Red Cross Charter’s “sue and be sued” provision, like its counterparts
It is the dissent’s conclusion that the 1947 amendment was meant to “eliminatfe] the possibility that the language 'courts of law and equity within the jurisdiction of the United States' that was contained in the original charter might be read to limit the grant of capacity to sue in federal court,” post, at 275 (emphasis and citation omitted); that is difficult to justify. Such a motivation is nowhere even hinted at in the Advisory Report, the document both Houses of Congress acknowledged as the source for the amendment, see supra, at 261 (quoting congressional reports); indeed, the relevant part of the Advisory Report does not even mention state courts, see Advisory Report 35-36, reprinted at App. to Brief for Appellants in No. 90-1873, at 132-133. It is hardly a “reasonable construction,” post, at 275, of the amendment to view it as granting something the Advisory Report never requested. While thе dissent notes one of Senator George’s comments supporting its hypothesis, it ignores the other, which explicitly notes a federal jurisdiction-conferring motivation behind the amendment. See supra, at 261, n. 13.
Neither party reads the 1947 amendment to clarify the Red Cross’s capacity to sue in state courts, and, as there is no evidence of such an intent, we do not embrace that reading here.
Again, it should be pointed out that statutory jurisdiction in this case is not based on the Red Cross’s federal incorporation, but rather upon a specific statutory grant. In contrast, the constitutional question asks whether Article Ill’s provision for federal jurisdiction over cases “arising under federal law” is sufficiently broad to allow that grant.
Dissenting Opinion
dissenting.
The Court today concludes that whenever a statute granting a federally chartered corporation the “power to sue and be sued” specifically mentions the federal courts (as opposed to merely embracing them within general language), the law will be deemed not only to confer on the corporation the capacity to bring and suffer suit (which is all that the words say), but also to confer on federal district courts jurisdiction over any and all controversies to which that corporation is a party. This wonderland of linguistic confusion — in which words are sometimes read to mean only what they say and other times read also to mean what they do not say — is based on the erroneous premise that our eases in this area establish a “magic words” jurisprudence that departs from ordinary rules of English usage. In fact, our cases simply reflect the fact that the natural reading of some “sue and be sued” clauses is that they confer both capacity and jurisdiction. Since the natural reading of the Red Cross Charter is that it confers only capacity, I respectfully dissent.
I
Section 2 of the Red Cross Charter, 36 U. S. C. §2, sets forth the various powers of the corporation, such as the
It is beyond question that nothing in the language of this provision suggests that it has anything to do with regulating the jurisdiction of the federal courts. The grant of corрorate power to sue and be sued in no way implies a grant of federal-court jurisdiction; it merely places the corporation on the same footing as a natural person, who must look elsewhere to establish grounds for getting his ease into court. Words conferring authority upon a corporation are a most illogical means of conferring jurisdiction upon a court, and would not normally be understood that way. Moreover, it would be extraordinary to confer a new subject-matter jurisdiction upon “federal courts” in general, rather than upon a particular federal court or courts.
The Court apparently believes, see ante, at 256, n. 8, that the language of §2 is functionally equivalent to a specific reference to the district courts, since no other court could reasonably have been intended to be the recipient of the jurisdictional grant. Perhaps so, but applying that intuition requires such a random butchering of the text that it is much more reasonable to assume that no court was the intended recipient. The Red Cross is clearly granted the capacity to sue and be sued in all federal courts, so that it could appear, for example, as a party in a third-party action in the Court of International Trade, see 28 U. S. C. § 1583, and in an action before the United States Claims Court, see Claims Court Rule 14(a) (Mar. 15,1991). There is simply no textual basis, and no legal basis except legal intuition, for saying that it must in addition establish an independent basis of jurisdiction to proceed in those courts, though it does not in the district courts.
In fact, the language of this provision not only does not distinguish among federal courts, it also does not treat fed
I therefore conclude — indeed, I do not think it seriously contestable — that the natural reading of the “sue and be sued” clause of 36 U. S. C. § 2 confers upon the Red Cross only the capacity to “sue and be sued” in state and federal courts; it does not confer jurisdiction upon any court, state or federal.
II
I do not understand the Court to disagree with my analysis of the ordinary meaning of the statutory language. Its theory is that, regardless of ordinary meaning, our cases have created what might be termed a “phrase of art,” whereby a “sue and be sued” clause confers federal jurisdiction “if, but only if, it specifically mentions the federal courts.” Ante, at 255. Thus, while the uninitiated would consider the phrase “sue and be sued in any court in the United States” to mean the same thing as “sue and be sued
In Bank of the United States v. Deveaux,
Deveaux establishes not, as the Court claims, the weird principle that mention of the federal courts in a “sue and be sued” clause confers jurisdiction; but rather, the quite different (and quite reasonable) proposition that mention of the federal courts in a provision allowing a particular cause of action to be brought does so. The contrast between the “sue and be sued” clause and the provision authorizing certain suits against the directors lay, not in the mere substitution of one broad phrase for another, but in the fact that the latter provision, by authorizing particular actions to be brought in federal court, could not reasonably be read not to confer jurisdiction. A provision merely сonferring a general capacity to bring actions, however, cannot reasonably be read to confer jurisdiction.
In distinguishing Deveaux, Osborn noted, and apparently misunderstood as the Court today does, that case’s contrast between the “express grant of jurisdiction to the federal courts” over suits against directors and the “general words” of the “sue and be sued” clause, “which [did] not mention those courts.”
This reading of Deveaux and Osborn is confirmed by our later decision in Bankers Trust Co. v. Texas & Pacific R. Co.,
“Congress was not then concerned with the jurisdiction of courts but with the faculties and powers of the corporation which it was creating; and evidently all that was intended was to render this corporation capable of suing and being sued by its corporate name in any court of law or equity — Federal, state, or territorial — whose jurisdiction as otherwise competently defined was adequate to the occasion.” Id., at 303 (emphasis added).
The fourth and final case relied upon by the Court is D’Oench, Duhme & Co. v. FDIC,
"Respondent, a federal corporation, brings this suit under an Act of Congress authorizing it to sue or be sued ‘in any court of law or equity, State or Federal.’ Sec. 12 B, Federal Reserve Act; 12 U. S. C. §264(j).2
Id., at 455-456.
The Court relies heavily on this case, which it views as holding that a statute granting a corporation the power “ ‘to sue or be sued "in any court of law or equity, State or Federal’”” establishes jurisdiction in federal district courts. Ante, at 254-255. Even if the quoted language did say that,
I I — I b-i
Finally, the Court argues that a jurisdictional reading of the Red Cross Charter is required by the canon of construction that an amendment to a statute ordinarily should not be read as having no effect. Ante, at 263. The original “sue and be sued” clause in the Red Cross Charter did not contain the phrase “State or Federal,” and the Court argues that its reading — -which gives decisive weight to that addition— is therefore strongly to be preferred. Ibid. I do not agree. Even if it were the case that my reading of the clause rendered this phrase superfluous, I would consider that a small price to pay for adhering to the competing (and more important) canon that statutory language should be construed in accordance with its ordinary meaning. And it would seem particularly appropriate to run the risk of surplusage here, since the amendment in question was one of a number of
But in any event, a natural-meaning construction of the “sue and be sued” clause does not render the 1947 amendment superfluous. The addition of the words “State or Federal” eliminates the possibility that the language “courts of law and equity within the jurisdiction of the United States” that was contained in the original charter, see eh. 23, §2,33 Stat. 600 (emphasis added), might be read to limit the grant of capaсity to sue in federal court State courts are not within the “jurisdiction” of the United States unless “jurisdiction” is taken in the relatively rare sense of referring to territory rather than power. The addition of the words “State or Federal” removes this ambiguity.
The Court rejects this argument on the ground that there is “no evidence of such an intent.” Ante, at 264, n. 15. The best answer to that assertion is that it is irrelevant: To satisfy the canon the Court has invoked, it is enough that there be a reasonable construction of the old and amended statutes that would explain why the amendment is not superfluous. Another answer to the assertion is that it is wrong. As the Court notes elsewhere in its opinion, ante, at 261, n. 13, one of the only comments made by a Member of Congress on this amendment was Senator George’s statement, during the hearings, that the purpose of the provision was to confirm the Red Cross’ capacity to sue in state court. See Hearings on S. 591 before the Senate Committee on Foreign Relations, 80th Cong., 1st Sess., 11 (1947).
Because the Red Cross Charter contains no language suggesting a grant of jurisdiction, I conclude that it grants only the capаcity to “sue or be sued” in a state or federal court of appropriate jurisdiction. In light of this conclusion, I find it unnecessary to reach the constitutional question addressed in Part V of the Court’s opinion. I would affirm the judgment of the Court of Appeals.
Section 2, as amended, provides in its entirety:
“The name of this corporation shall be ‘The American National Red Cross’, and by that name it shall have perpetual succession, with the power to sue and be sued in courts of law and equity, State or Federal, within the jurisdiction of the United States; to have and to hold such real and personal estate as shall be deemed advisable and to dispose of the same, to accept gifts, devises, and bequests of real and personal estate for the purposes of this corporation hereinafter set forth; to adopt a seal and the same to alter and destroy at pleasure; and to have the right to have and to use, in carrying out its purposes hereinafter designated, as an emblem and badge, a Greek red cross on a white ground, as the same has been describеd in the treaties of Geneva, August twenty-second, eighteen hundred and sixty-four and July twenty-seventh, nineteen hundred and twenty-nine, and adopted by the several nations acceding thereto; to ordain and establish bylaws and regulations not inconsistent with the laws of the United States of America or any State thereof, and generally to do all such acts and things as may be necessary to carry into effect the provisions of sections 1, 2 to 6, 8, and 9 of this title and promote the purposes of said organization; and the corporation created is designated as the organization which is authorized to act in matters of relief under said treaties. In accordance with the said treaties, the delivery of the brassard allowed for individuals neutralized in time of war shall be left to military authority.” 36U.S.C. §2.
The Court believes that Deveaux’s statement that “the right to sue does not imply the right to sue in the courts of the union unless it be expressed,” Bank of United States v. Deveaux, 5 Cranch 61, 86 (1809) (emphasis added), is somehow inconsistent with my analysis. Ante, at
"2That subdivision of the Act further provides: ‘All suits of a civil nature at common law or in equity to which the Corporation shall be a party shall be deemed to arise under the laws of the United States....’”
The Court’s protest, ante, at 267, n. 9, that its interpretive rule should not be applied to Bankers Trust’s paraphrase of the railroad charter at issue in that case is a frank confession that that rule has no relation to ordinary principles for discerning meaning in the English language — i. e., it has no relation to the very principles that we have consistently purported to apply in this area.
The Court points out that Senator George also stated, in response to a question whether foreign courts should be covered by the amendment, that the purpose of the bill was “‘to give the jurisdiction in State courts and Federal courts, and I think we had better leave it there.’” Ante, at 261, n. 13. Rather than concluding (as seems obvious) that Senator George was speaking with imprecision in using the phrase “give the jurisdiction,” the Court draws the far less likely conclusion that Senator George was flatly contradicting himself in what he said only a few minutes later. Ibid.
