Lead Opinion
after stating the case, delivered the opinion of the court.’
This case raises the question whether a railway company, incorporated under the laws of a certain State, and having its principal offices within one district of such State, can be said to be an inhabitant of another district of ■ the same State, through which it operates its line of road and in which it maintains freight and ticket offices and depots.
We have no doubt of our authority under the act of February 25, 1889, to review the decision of the court below sustaining its jurisdiction over the case; and we have already held that the provision of the Texas statute which gives to a special appearance, made to challenge the court’s jurisdiction, the force and effect of a general appearance, so as to confer jurisdiction over the person of the defendant, is not binding upon the Federal ’ courts in that State. Southern Pacific Railway v. Denton,
By section 1 of the act of August 13, 1888, c. 866, 25 Stat. 433, revising the jurisdiction of the Circuit Courts, it is enacted that “ no civil suit shall be brought before either of said courts against any person by an\r 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;” and by Bev. Stat. § 740, “ when a State contains more than one district, every suit not of a local nature, in the Circuit or District Courts thereof, against a single defendant, inhabitant of such State, must be brought in the .district where he resides.” The above provision of the act of 1888 is manifestly a restriction upon the jurisdiction conferred by the act of March 8, 1875, c. 137, 18 Stat. 470, which contained a similar provision, but with' the additional privilege of bringing such suit within any district “in which he,” the defendant, “ shall be found at the time of serving such process or commencing such proceeding.”
In Shaw v. Quincy Mining Company,
In construing the acts of 1887 and 1888 it was held-that the}1- could not be considered as giving jurisdiction to a Circuit Court held in a State of which neither party was a citizen, and that “in the case of a corporation, the reasons are, to say the .least, quite as strong for holding that it can sue and be sued only in the State and district in which it has been incorporated, or in the State of which the other party is a citizen.” It was further hold that the domicil, the home, the habitat, the residence, the citizenship of a corporation, could only be in
In the Southern Pacific Company v. Denton,
In the Case of Hohorst,
Neither this case nor any other to which our attention has. been called makes any distinction between cases where citizens and aliens are plaintiffs, though in Ilohorstfs case, to prevent a manifest failure of justice, in the inability to sue any foreign corporation whatever, it was held that where an alien corporation was defendant, it might be sued in any district wherein it might be found. These cases must be regarded as establishing the doctrine that a domestic corporation is both a citizen and an inhabitant of the State in which it is incorporated ; but in none of them is there any intimation that, where a State is divided into two districts, á corporation shall be treated as an
We are, therefore, compelled to determine the question of the domicil of a corporation either by a resort to general principles of law, or to local statutes fixing such domicil. An individual is almost universally held to be an inhabitant of the place in which he dwells, and though he do business for a long time in another place, he will not be regarded as changing hiS'4o.micil so long as the animus revertendi continues. Thus in Jopp v. Wood, 34 Beavan, 88; S. C. 4 De G., J. & S. 616, it was held that a Scotchman engaged in business in India for twenty-five years did not thereby change his domicil. And in In re Capdevielle, 2 H. & C. 985, it was similarly held with regard to a Frenchman-who had resided and engaged in business in England for twenty-nine years. In the case of a corporation the question of inhabitancy must be determined, nót by the residence of .any particular officer, but by the principal offices of the corporation, where its books are kept and its corporate business is transacted, even though it may transact its most important business' in another place. It is’ but a corollary of the proposition laid down in the three cases above referred to, that if the corporation be created by the laws of a State in which there are two judicial districts, it should be considered an inhabitant of that district in which its general offices are situated, and in which its general business, as distinguished from its local business, is done.
If there were any doubt upon, this subject, it would be removed by reference to the following provisions of the Texas statutes upon the domicil of railway corporations:
“ Art. 4115. Every railroad corporation shall have and maintain & public office at some place upon the line of its road in this State. (Const. Art. 10, sec. 3; Act August 15, 1876.)
“4115a. Seo. 1. Every railroad or other corporation organized or doing business in this State under the laws or authority thereof, shall have and maintain a public office in the locality*505 where its principal business is carried on in this State for the transaction of its business, where transfers of stock shall be made, where the auditor, treasurer, general traffic manager, and.general superintendent of such roads, or where an agent of such corporation, duly authorized to adjust and settle all .claims against such corporation for damages, shall have their respective offices, and where shall be kept for the inspection of stockholders of such corporation books in which shall be recoi’ded:
“ 1st. The amount of capital stock subscribed;
“ 2d. The names of the owners of the stock, and the amounts owned by them respectively; . -. .
“6th. The names and places of residence of each of its officers; provided, that a railroad corporation shall be required to keep such office at some place on the line of its road in this State.”
“ Net. 4116. All meetings of stockholders and directors of such corporation shall be held at such public office, and all transfers of stock in such corporation shall be made at such office, and the general business of such corporation shall be .transacted at such office.”
“ Akt. 4118. Every railroad corporation may change at its pleasure its public office by publishing a notice of such change in some newspaper published on the line of its road, if any-there be, and if not, then in some newspaper in the State, and having a. general circulation in the State, for four successive weeks prior to such change.
“Akt. 4119. Every railroad corporation shall, also, as soon as it has in .the first instance established its public office, give notice of such establishment by a like publication, as required in the preceding article.
“ART. 4120. The public office of á railroad corporation shall be considered the domicil of such corporation.” (2 Say les’ Texas Civil Statutes, articles 4115, 4116, 4118', 4120.)
Language stronger than that used, in the last article could scarcely have been-chosen to express the idea that a railway corporation should be considered an inhabitant of the place in which its public office is located, and of no other. It is true
This court having held, in the cases heretofore referred to, that a' corporation cannot be considered an inhabitant of any State in' which it is not incorporated, by reason of the fact that it does business, or in the case of a railroad, that it runs its road through such State, it would.seem inconsistent to hold that it is. an inhabitant of a district by reason of the same facts, unless the distinction between citizenship and inhabi-tancy is to be wholly abolished. As said by Mr. Justice Story in Picquet v. Swan, alienage or citizenship is one thing, and inhabitancy quite another. In the Constitution and laws of the United States citizenship is affirmed of a State, or of the' United States; inhabitancy may be affirmed either of the United States, a State, or a-subordinate locality. Nor in our view does it make any difference that the plaintiff is an alien instead of a citizen. The provision that no civil suit shall be brought'against any person in any other district than that whereof he is an inhabitant, is of universal application, except,that, if the plaintiff be also a citizen, he may bring, it in his .own district, if he can obtain service upon the defendant in that district. The purpose of this is, that-the plaintiff .may have the same advantage of litigation in his own district that, the defendant has. An alien, however, is assumed not to re
On the contrary, both the decision and the reasoning in that case were carefully limited to a suit brought by-a citizen against an.alien. At the conclusion of the discussion of that question, the point decided was stated to be “ that the provision of the existing statute, which prohibits suit to be brought against, any person £ in any other district than that whereof he is an inhabitant,’ is inapplicable to an alien or a foreign corporation sued here, and especially in a suit for the infringement of a patent right;.and that, consequently, such a person or corporation may be sued by a citizen of a State of the Union in any district in which valid service can be made upon the defendant.” The provision in terms relates to defendants only; and the reasoning that it could not include -an alien defendant, because he was not an inhabitant of any district in-the United States, has no application to a defendant citizen, who is confessedly and necessarily an inhabitant of some one of those districts.
Irrespective of any statute, such as that of Texas above referred to, the' rulings of the state courts generally favor the position that a corporation' can only be considered as resident in the jurisdiction'in' which its principal offices are located, though it may run á railway and have local agents in other jurisdictions. Thus in Thorn v. Central Railroad Company, 2 Dutcher, (26 N. J. Law,) 121, 123, it was held.that in a suit brought against a railroad corporation the venue should be laid in the county where its principal office was located, that being considered its place of residence within the meaning of the statutes. ■ In that case the corporation ran its railway and exercised its franchises both in Essex County and Somerset County,-but its principal office was in the former, while the suit was brought in the latter j.and upon a motion to change
In-the case of the Connecticut & Passumpsic Rivers Railroad Co. v. Cooper, 30 Vermont, 476, it was declared that, where a corporation is not located by the terms of its charter, its residence and location are regarded as being in the place where it keeps its principal office and does its corporate business. The fact that the railway ran through another county was regarded as unimportant and not constituting a residence of the corporation. In the case of the Western Transportation Company v. Scheu, 19 N. Y. 408, a corporation organized to navigate the lakes was declared to have its domicil, for the purposes of taxation, in the' city or town in which the principal office for managing the affairs of the company was located, as evidenced by its certificate of organization, although it had an office elsewhere, employing the services of twenty times as many agents, and where a much larger proportion of its inoneys was received and disbursed, and where its principal officers resided during the business season. See also Pelton v. Transportation Co.,
The judgment of the court below must, therefore, be
Reversed, and the case remanded for further proceedings in conformity to this opinion.
Dissenting Opinion
dissenting.
I cannot concur in the opinion and judgment of the court in this case. The jurisdictional averments set out in the petition are that the plaintiff below was a citizen of the State of Chihuahua, in the-Republic of Mexico, and that the defendant was a corporation duly organized under the laws of the State of Texas, and was a citizen thereof, with its railway, on which its cars were run and operated, extending from the city of Houston to the city óf El Paso, in that State. These aver-ments brought the case directly within the fifth class 'of civil suits described in the first section of the 'acts of March 3, 1887, c. 373, 21 Stat. 552; and August 13, 1888, c. 866, 25 Stat. 433, of “a controversy between citizens of a State and foreign States, citizens, or subjects,” the matter in dispute being in excess of $2000, exclusive of interest and costs.
The defendant appeared specially and interposed the following plea in abatement: •
“That, nevertheless, while it admits- that the defendant operates a line of railroad through the county where this suit is pending, and maintains a ticket and freight office'and depot, and has' an agent on whom process, under the law of Texas, 'may be served there, the said defendant, is not an inhabitant of the judicial district in which the suit is pending; that it'is a corporation duly incorporated and existing under the laws of Texas, having its principal office, habitat, and domicil in the city of Houston, Harris County, Texas, and beyond and not within this judicial district, but within the Eastern District of Texas.”
This presents the question whether the fact that the defendant’s principal office is located at Houston in the Eastern District of Texas prevents the railway company from being sued by an alien in the United States Circuit Court for the» Western District of that State, held at El Paso, the western terminus of the railroad. The opinion of the court answers this question affirmatively, upon the ground that- the location of the company’s principal office fixes the domicil or residence
This conclusion is rested upon the doctrine announced in Shaw v. Quincy Mining Co.,
The present casé is clearly distinguishable from these authorities in two respects: first, that the defendant corporation is. a citizen of the State of Texas in which it is sued; and, second, that the parties to the controversy are not citizens of different States of the Union, as was the case in those decisions. In other words, Shaw v. Quincy Mining Co.,
Neither the plea in abatement nor the opinion of the court question the fact that the railway company was and is a citizen of the State of Texas, for purposes of Federal jurisdiction at the suit of an alien, but the opinion, in effect, if not in express terms, restricts and confines that citizenship to the-county or place in which the principal office, of the company' is located. There are. two serious objections to this conclusion of the court. First, there is no warrant for giving the railway company a domicil or residence confined to.one of its termini in the State of its creation ; and, second, the present case is not controlled by that provision of the Judiciary Acts of 1887 and 1888, which provide that “ where the jurisdiction is
In respect to the first objection : While the statute of Texas, Art. 4120, referred to in the opinion, provides that the principal office of a railway company shall be considered the domicil of such corporation, it-is also provided by article'1198, ' subdivision 21', that suits against any private corporation may; be commenced in any county where the cause of action arose, or in which such corporation has an agent or represéntative, and that “ suits against a railroad corporation may also be brought in any county through or into which its railroad' extends.”
In St. Louis & San Francisco Railway v. Traweek,
In Bristol v. Chicago and Aurora Railroad, 15 Illinois, 436, 437, it was held that “ the residence of a corporation, if it can be said, to have a residence, is necessarily where it .exercises corporate functions. It dwells in the place where its business is done. It is located where its franchises are-exercised. It is present where it is engaged in the prosecution of the corporate enterprise. This corporation has a legal residence in a¡ny county in which it operates the road or exercises corporate powers and privileges. In legal contemplation, it resides in the counties through which its road passes, and in which it ' transacts its business.”
The same principle was announced in Slavens v. South Pacific Railroad, 51 Missouri, 308, 310, where it was held that “ a residence of a railroad corporation is in any county through which its line, of road passes, and. in which it has an agent upon whom.process can be served.”
In Davis v. Central Railroad and Banking Co., 17 Georgia, 323, the same question was presented in a somewhat different form. The constitution of Georgia provided that “ the inferior courts shall have also concurrent jurisdiction -in all civil cases, excepting cases respecting titles to lands, which shall be tried in the county where the defendant resides.” By an act passed in 1854, railroad companies of the State were subject to suit in the counties in which injuries to stock, etc., may have been committed. The plaintiff in that case, undér this act of 1854, sued the railroad company in the county in which the injury was committed, and the railroad' company filed a plea to the jurisdiction, on the ground that the corporation had its principal office and residence in a different county, and was.not, therefore, under the constitution, suable in any other county. But, after a full consideration of the question, the Supreme Court of Georgia held that the railroad company was a resident of every county-through which its'line of railroad extended.
The statute of Texas, however, even if it gave to the defendant corporation in this case a residence confined to the locality of its principal office, does not control the question here presented.The opinion proceeds upon the theory that the question of jurisdiction depends upon the residence of the defendant corporation, and is controlled by the first section of the act of 1887, providing that “ where the jurisdiction is founded only on the fact that the action is between citizens of different States, suits shall be brought only in the district of the-residence of either the plaintiff or defendant.”
This, however, is a misapprehension of the statute. That clause of .the act relates alone to suits between citizens of different States of the Union, and has no application to a case
Thus in McCormick v. Walthers,
This construction, thus placed upon these clauses of the act, was recognized and reaffirmed in Shaw v. Quincy Mining Co.,
In' the recent case In re Hohorst,
Following the provision of the Constitution in reference to the extent of the judicial power of the Federal courts, the acts of 1881 and 18881 conferred-upon the Circuit Courts of the United'States original cognizance, concurrent with the courts ' of - the several States, .of all suits of a civil nature at common law or in equity, where the matter in dispute exceeds, exclusive-of interest and costs, the sum or value of $2000 in certain enumerated cases, the fifth class of such cases- being “a controversy between citizens of a State and foreign States, citizens,.or subjects.” This jurisdiction, based upon the alienagé of one party and the citizenship of the other, was not intended .to be restricted' by the subsequent provisions of the act above referred to. This is clearly announced in' the Ho/wrst case, which went so far as to declare that the subsequent provision of- the statute, providing that “ no civil suit shall be brought before either of said courts against any person by any original process or proceeding in any other district tháii that whereof he is an inhabitant,” had no application to a suit between a citizen and an alien.
It cannot be doubted that the first' section of the acts of 1887.and 1888, standing alone, gave jurisdiction to the Circuit Courts of a controversy between a citizen of. a State and- an alien, and that such jurisdiction may be exercised whether the Suit is by or against any alien in any .Circuit Court of the United States, sitting in any .district thereof, before which the defendant may be legally brought by service or process. Jurisdiction of the pending suit of an alien against the Texas railroad corporation cannot be restricted by the laws of Texas to the Circuit Court of the district in which the defendant’s principal office is located, unless the last Clause of section one, referring to suits between citizens of different States of the Union, is applicable to such a case. But, as already .shown, that clause is not applicable, because it has reference only to suits between citizens of different States of the Union.
If, as held in Hohorst's case, the clause that “ no civil suit shall be brought before either of said courts against any person by any original process or proceeding in any other district than that whereof he is an inhabitant,” has no application to controversies between a citizen and an alien, it is impossible to escape the conclusion that the plea in abatement in the present case presented no valid objection to the jurisdiction of the United States Circuit Court for the Western District of Texas; for the service upon the defendant in the county of EL Paso was a valid service, which brought the corporation before the court in a district of the State whereof it ivas a citizen, within the meaning of the Judiciary Acts; and, being a citizen of the State.in which suit was brought by the alien, the Circuit Court for the Western District acquired jurisdiction over the person of the defendant, just as effectually as jurisdiction was acquired over the foreign corporation in Hohorst's case at the suit of a citizen.
The opinion of the court attempts to distinguish this from Hohorst's case, on the ground that in the latter the suit was by a citizen against an alien, while here the suit is by an alien against a citizen. This is making a purely arbitrary distinction without any substantial difference. The provision of the Constitution and the laws enacted for carrying the grant of judicial power into effect makes no distinction as to the posi-. tion, whether as plaintiffs or defendants, which may be occupied ■ by either the citizen or the alien. The jurisdiction is given where the alien is a party on one side, of the controversy and a citizen of some one State of the Union is on the other side, without regard to which may be plaintiff or defendant. It. was never before held, or suggested that if the citizen was plaintiff and the alien defendant the jurisdiction would attach, but that if the. position of the parties was changed so that the alien-rvould be the plaintiff and the citizen the defendant, the jurisdiction would be defeated.
So, too, if the position of the parties in this case were changed and the railroad company had sued the alien in the Circuit Court of the United States for the Western District of Texas, and had obtained personal service on him, no question could have been raised as' to the jurisdiction- of the court. The corporation having a localized existence and citizenship in the Western District of the State, is equally liable to the suit of an alien in that district. It cannot properly be held that the principle which applies to a suit against an alien does not apply to a suit by an alien.
The Judiciary Act, in declaring that Circuit Courts of the United States shall have original cognizance, concurrent with the courts of the several States, of all suits of a civil nature, at common ‘law or in equity, .between citizens of a State and foreign States, citizens, or subjects, when the matter in dispute exceeds, exclusive • of interest and costs, the sum of- $2000, means, as I understand its language, that the Circuit Courts of the United. States shall have the same jurisdiction as the state courts, otherwise it could not be concurrent. Now, the state court at El Paso would have had undoubted jurisdiction of the present suit, and although the United States Circuit Court, held at the same place, has concurrent (the same jurisdiction) over the subject-matter and.the- parties, the result of the court’s opinion is to deny the jurisdiction of the Federal court. Postmaster General v. Early,
It cannot be questioned that under the authorities of this court, commencing with Louisville, Cincinnati & Charleston Railroad v. Letson,
Corporations have-been gradually brought within the'provision which extends the judicial power to controversies “ between citizens, of different States.” The ground originally taken by the court was that the corporation’s citizenship depended upon, ar.d was determined by, the citizenship of the membei’s of the individual corporators, and while -that rule prevailed it was necessary to aver this citizenship of the members on the record.
Thus, as late as Ohio & Mississippi Railroad v. Wheeler,
In. the subsequent case of Muller v. Dows,
The laws of Texas, requiring a railroad corporation to have a principal office where its books shall be kept, can in no way affect the jurisdiction of the Federal-courts over such corporate body, founded as it is upon the conclusive presumption that the members of such corporation are citizens of the State which created the body corporate. Having a principal office does not restrict the citizenship of the corporation, or of its members, to the particular locality where such office' is kept. • Neither does it raise any presumption, prima facie:or.con-clusive, that the members of such corporation, citizens of the State, reside at that particular place.
The members of a corporation, created by a State, being .conclusively presumed to be citizens of the same State, so as to confer upon the. Federal courts the jurisdiction to entertain suits by or against the corporate body, upon what theory or. principle heretofore ever suggested can it be maintained that the -state citizenship' of the members of such corporation is to be confined or restricted to the locality of the principal office of the corporate body? There is no presumption that this citizenship, “united together in a corporate body, and acting under the authority conferred upon them for the more' convenient transaction of business, and consequently entitled.to maintain suits in the courts of the United States,'” has its separate, or aggregate, residence in the particular locality or place -where the corporate body keeps its principal office.
The opinion of the court, while compelled to recognize the presumption of the citizenship of the members of the corporate body, on which the jurisdiction of the court over the corpora-', tion rests/or upon which it depends, in effect confines that -citizenship to a particular locality within the State creating .the .corporation, when there is no presumption, either of fact or. law; that the citizenship composing'the corporate body is so restricted. In other words, the.- legal presumption -that' the members; of the corporation are citizens of the State under" which the corporate-body is created, is, by the opinion of- the court, restricted',’ so as to'give that citizenship a legal residence
But suppose the clause that “no civil suit shall be brought ■before either of said courts against any person by any original process or proceeding in any other district than that whereof he is an inhabitant,” can have no application to the suit of an alien against a citizen, or of a citizen against an alien, what is the meaning of the word “ inhabitant,” as used in that clause, of the act ? The word has, of course, a great variety of meanings, dependent upon the connection in which it is used. It is not used in- the Judiciary Acts of 1887 and 1888, or in any previous judiciary act, in a sense that was intended to limit and restrict the jurisdiction conferred by the previous clause of section one. Congress did not mean to' broadly confer . jurisdiction of a controversy between an alien and a citizen in the first clause of the act, and then in the subsequent clause restrict that jurisdiction by the word “ inhabitant,” so as to' limit such jurisdiction to the residence of the alien or of the ' citizen. - The meaning of the word, as used in the Judiciary Act, is to be taken in the sense of “ citizen ” or “ alien.” •
This was the meaning given to the word as it was used in .the eleventh section of the act of 1789. Thus in Picquet v. Swan,
In Shaw v. Quincy Mining Co.,
.If, as already shown, the latter clause of the first section of the act of 1887, declaring that “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,” has no '
The opinion, of the court, holding to the contrary, rests upon grounds which have no application to this case.
