Raymond Foxgord, Individually and as Trustee of the Foxgord Trust, Cecilia Foxgord v. Baron Herbert HischemoellerRaymond Foxgord, Individually and as Trustee of the Foxgord Trust, Cecilia Foxgord v. Baron Herbert Hischemoeller
Lead Opinion
In this fraud and breach of guaranty action, defendant-appellant Baron Herbert Hischemoeller (hereinafter Hischemoeller) appeals from the district court’s judgment against him for damages in favor of plaintiffs-appellees Raymond Foxgord, an individual and as trustee of the Foxgord Trust, and his wife, Cecilia Foxgord (hereinafter the Foxgords) following a bench trial. This case presents a novel issue. Does a district court have exclusive subject matter jurisdiction in an action against the honorary consul general of another country under
PERTINENT FACTS
On Sеptember 16, 1980, the Foxgords agreed to loan $500,000 to codefendants Henry Perdón and his corporation, Transamerica Minerals, Inc. (hereinafter TM), to purchase gypsum claims in Arizona and Utah. In return, TM gave the Foxgords a promissory note for $675,000, payable in one year with monthly interest payments of $11,250, and a $250,000 “consulting agreement” payable at $10,000 per month for twenty-five months. Hischemoeller and his corporation HISMOCO, Inc., Perdón and codefendant Arthur Webb agreed tо guaranty TM’s promissory note to the Foxgords. Perdón and TM thereafter defaulted on the promissory note and consulting agreement.
The Foxgords instituted this action in federal court against Perdón, Webb, His
ANALYSIS
SUBJECT MATTER JURISDICTION
Hischemoeller contends the district court did not have subject matter jurisdiction over this case. Jurisdiction was predicated on
Our objective when interpreting a federal statute “is to ascertain the intent of Congress and to give effect to legislative will.” United States v. Taylor,
The existence of subject matter jurisdiction presents a question of law reviewed de novo by the court of appeals. Peter Starr Production Co. v. Twin Continental Films, Inc.,
A. Plain Meaning of 28 U.S.C. § Í351(l)
Our initial inquiry in interpreting
It is a maxim of statutory construction that unless otherwise defined, words should be given their ordinary, common meaning. Perrin v. United States,
Similarly, the words “consul” and “honorary consul” are not synonymous in the international community. The international community distinguishes among a carеer consul, an honorary consul who is not a citizen of the appointing country, and an honorary consul who is a citizen of the appointing country. A career consul (also
Honorary consuls (also called cónsules electi, consuls marchands, non-career consuls, unsalaried consuls, and trading or merchant consuls) on the other hand, are permitted to engage in gainful employment in addition to their consular duties. Consular Law, supra, at 14; Harvard Law School, Legal Position and Function of Consuls, in Research in International Law art. 26, at 354, comment (1932). Honorary consuls are selected locally from residents of the receiving state, whether they are nationals or permanent residents of the receiving, appointing, or a third state. Consular Law, supra, at 14.
On the whole, the functional privileges and immunities of honorary consuls are more restrictive than those of career consuls. Within the rank of honorary consul, those who are citizens or permanent residents of the receiving state are entitled to even fewer privileges and immunities than an honorary consul who is a citizen of the appointing country. L. Lee, Vienna Convention on Consular Relations 163 (1966) (hereinafter Lee). For example, the principie of inviolability of consular premises is substituted by mere protection thereof “against any intrusion or damage” for honorary consuls who are not citizens or permanent residents of the receiving state. Consular Convention, supra, Art. 59.
Honorary consuls who are nationals or permanent residents of the receiving state, such as Hischemoeller, possess very few privileges and immunities. See Consular Convention, supra, art. 71(1); Lee, supra, at 163. For example, they enjoy only “immunity from jurisdiction and personal inviolability in respect of official acts performed in the exercise of their functions____” Consular Convention, supra, art. 71(1).
The difference in treatment of honorary consuls who are citizens of the receiving state and other consuls under the Consular Convention is consistent with our conclusion that the ordinary, common meaning of the term “consul” as used in
During oral argument, the Foxgords claimed for the first time that the Supreme Court’s decision in In re Baiz,
B. Legislative History of
We next determine if the legislative history of
We are mindful of the principle that where a statute is clear on its face, it is not necessary to look to its legislative history to discern its meaning and scope. Tennessee Valley Authority v. Hill,
The Supreme Court has instructed that “[u]nless exceptional circumstances dictate otherwise, ‘[w]hen we find the terms of a statute unambiguous, judicial inquiry is complete.’ Rubin v. United States,
1. The Statute
The first Congress codified the constitutional grant of federal jurisdiction over consuls in section 9 of the Judiciary Act of 1789, which states in pertinent part: “[T]he district courts ... shall also have jurisdiction exclusively of the courts of the several States, of all suits against consuls or viceconsuls____” Act of September 24, 1789, ch. 20, § 9, 1 Stat. 73, 76-77. The sparse legislative history of section 9, the precursor to
Section 9 of the Judiciary Act on this subject was carried into the Revised Statutes (enacted June 22, 1874) as section 711(8) without any substantial change. Section 711(8) provided that “all suits or proceedings against ambassadors, or other public ministers, or their domestics, or domestic servants, or against consuls or vice consuls” shall be exclusive of the state courts.
By the Act of February 18, 1875,18 Stat. 316, 318, section 711(8) was repealed, so that by the existing law, there was “no statutory provision which, in terms, makes the jurisdiction of the courts of the United States exclusive of the State courts in suits against consuls or vice-consuls.” Bors v. Preston,
In Iasigi, the district court offered a possible explanation why Congress repealed the statute which gave federal courts exclusive jurisdiction of civil cases against consuls:
There is a manifest propriety, amounting sometimes to a practical necessity in order to avoid international complications, that the prosecution, punishment or pardon of consuls which would necessarily materially affect their personal attention to their consular duties, should be within the control of the federal courts and of the federal government to which the consuls are accredited and which alone is responsiblе to foreign powers for the treatment of their representatives. While imprisonment for debt continued, the same considerations, though in a less degree, applied to civil suits. But since imprisonment for debt has been abolished, the grounds for exclusive federal jurisdiction in civil suits against consuls exist in but small degree, if at all; while in all criminal cases, all the original considerations of policy and propriety remain unchanged.
In 1978, Congress amended
There is nothing in the legislative history of
2. The Constitution
Since many of the Framers of the Constitution were members of the first Congress which enacted section 9 of the Judiciary Act of 1789, Ames v. Kansas,
Reports of the Constitutional Convention of 1787 disclose that the content of this constitutional provision remained unchanged from its introduction on May 29, 1787 until the members of the Convention signed the charter on September 17, 1787. G. Schulz, Creation of the Federal Judiciary: A Review of the Debates in the Federal and State Constitutional Conventions; and Other Papers, S. Doc. No. 91, 75th Cong., 1st Sess. 2, 25, 34-35 (1937). In the debates in the state conventions on the ratification of the Constitution, it was noted that “very little objection will be offered to this clause; on the contrary, it will be allowed proper and unexceptionable.” 2 The Debates in the Several State
During the debates in the state conventions, the reason often mentioned for permitting federal courts to exercise exclusive jurisdiction in cases involving ambassadors, other public ministers and consuls was to “perpetuate harmony between us and foreign powers.” 3 Debates, supra, at 570, 571 (statement of Gov. Randolph, Va.). “This can only be done by giving the federal judiciary exclusive jurisdiction. Controversies affecting the interest of the United States ought to be determined by their own judiciary, and not be left to partial, local tribunals.” Id. at 532 (statement of James Madison, Va.). During the debate in Virginia, James Madison explained that it is necessary for federal courts to possess exclusive jurisdiction over these cases — and cases involving treaties, maritime, and admiralty — to secure uniformity of decision and because “our intercourse with foreign nations will be affected by decisions of this kind....” Id.
In explaining and defending the Constitution and in рarticular article III, section 2, to his home state of New York, Alexander Hamilton noted in The Federalist Papers that “[altjhough consuls have not in strictness a diplomatic character, yet as they are the public agents of the nations to which they belong, the same observation is in a great measure applicable to them,” i.e., that jurisdiction over consuls must exist in the federal courts to preserve the public peace and out of respect for the sovereigns whom they represent. The Fеderalist No. 81, at 548 (A. Hamilton) (J. Cooke ed. 1961) (emphasis added).
Significantly, Hamilton explains in The Federalist Papers that under article III, section 2, “[t]he judiciary authority of the union is to extend — [11] ... to all cases affecting ambassadors, other public ministers and consuls____ [who] belong to the fourth class of the enumerated cases, as they have an evident connection with the preservation of the national peace.” The Federalist No. 80, at 540 (A. Hamilton) (J. Cooke ed. 1961). Hamilton’s fourth class involves citizens of foreign states:
The fourth point rests on this plain proposition, that the peace of the WHOLE ought not to be left at the disposal of a PART. The union will undoubtedly be answerable to foreign powers for the conduct of its members. And the responsibility for an injury ought ever to be accompanied with the faculty of preventing it. As the denial or perversion of justice by the sentences of courts, as well as in any other manner, is with reason classed among the just causes of war, it will follow that the federаl judiciary ought to have cognizance of all causes in which the citizens of other countries are concerned.
Id. at 535-36 (capitalization in original, emphasis added). Hamilton also states that federal courts should possess jurisdiction over foreign citizens, even if the controversy involves only local, and not international, law:
A distinction may perhaps be imagined between cases arising upon treaties and the laws of nations, and those which may stand merely on the footing of the municipal law. The former kind may be supposed proper for the federal jurisdiction, the latter for that of the states. But it is at least problematical whether an unjust sentence against a foreigner, where the subject of controversy was wholly relative to the lex loci, would not, if unredressed, be an aggression upon his sovereign, as well as one which violated the stipulations in a treaty or the general laws of nations. And a still greater objection to the distinction would result from the immense difficulty, if not impossibility, of a practical discrimination between the cases of one complection and those of the other. So great a proportion of the cases in which foreigners are parties involve national questions, that it is by far most safe and most expedient to refer all those in which they are concerned to the national tribunals.
Id. at 536 (emphasis added).
We conclude from our review of the historical materials discussed above that sev
Second, the basis for exercising exclusive federal jurisdiction over consuls, i.e., out of respect for the sovereign the consul rеpresents, is far less compelling when the honorary consul is an American citizen, and the suit involves private actions.
Finally, the reasons for selecting federal courts over local courts — uniformity of treatment and decision and avoidance of local bias — are not present in private actions against honorary consuls. The necessity of uniformity of treatment and decision is only relevant when the honorary consul’s consular actions are challenged in a judicial proceeding. Similarly, because the honorary consul is an American citizen, the problem of local bias is greatly reduced, if not eliminated.
CONCLUSION
We conclude the use of the terms “consul or vice consul” in
Notes
. Article 43(1) does not apply to civil actions arising out of either a contract concluded by a consul in which he did not contract as an agent оf the appointing country or by a third party for damage arising from -an accident in the receiving state caused by a vehicle, vessel or aircraft. Consular Convention, supra, art. 43(2).
. Under
The application of
Concurrence Opinion
concurring:
I concur in all but pаrt B of the majority’s persuasive and exhaustively researched opinion. My sole concern regarding part B is that, once we have determined from the statute’s plain meaning that the statute does not refer to honorary consuls, examination of the statute’s legislative history should be unnecessary. “ ‘[W]hen we find the terms of a statute unambiguous,