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Signal Properties, Inc. v. N. Bus Farha
482 F.2d 1136
5th Cir.
1973
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*1 PROPERTIES, INC., Plaintiff- SIGNAL Appellee, al., Defendants- Bus FARHA et

N. Appellants.

No. 72-3375. Appeals, States Court Fifth Circuit.

July 20, 1973.

Rehearing Aug. Denied Wichita, Kan., Sawatzky, J. Gerald Willatt, Houston, Tex., de-

Michael endants-appellants. f Bakke, Gallman, Otis O. Michael C. Tex., Houston, plaintiff-appellee. AINSWORTH, GODBOLD Before Judges. CLARK, Circuit PER CURIAM: Parha N. Bus December On holding title to record and other of land Galveston tract a certain brought Texas, County, an action Sig- against Kansas, Sedgwick County, seeking to recover nal Signal’s use the reasonable Signal pur- occupation land. third from a chased acquired party purportedly had who possession. adverse *2 dustries, (2d question F.2d here 361 857 Cir. is raised as No subject 1966); personal mat- Banco Nacional de Cuba v. Sab Kansas Court’s batino, (2d 1962), F.2d of this action. On Feb- 307 845 Cir. ter grounds, 398, ruary 1972, Signal trespass to on other 84 11, filed a rev’d 376 U.S. 923, (1964); try in the Dis- 11 L.Ed.2d 804 Albu title action United States S.Ct. querque for the District National Bank v. Na trict Court Southern Citizens Bank, (5th procured from that court an tional 212 F.2d 943 Texas and Cir. injunction prohibiting 1954); Summers, the Farhas from Purcell v. 126 F.2d (4th bringing pending Cir.), denied, court ac- Kansas 390 317 U.S. cert. injunction (1942). 640, 32, an to trial. Since such 63 L.Ed. 516 tion S.Ct. 87 ju- not in aid of the district court’s such title issues as are While risdiction, it was barred 28 U.S.C. § first determined the Kansas court and cannot stand. 2283 binding may parties become the Texas District action under may be, ar It well and we assume judicata doctrines res or collateral try guendo, trespass title this estoppel properly up by plea rem, if set in the proceeding or proceeding in a is an resolving court, latter the mere act of proceeding. quasi Reed v. See disputed those issues which are common Turner, (Tex.Civ.App. 489 S.W.2d 373 proceedings to both in Kansas will not Bryan, 1972); v. 210 S.W.2d 455 State disturb the Texas District Court’s con n.r.e.; (Tex.Civ.App.1948), writ refused possession structive or control of the McQuagge, 296 F.2d 50 Lefkowitz v. cf. land. An irreconcilable conflict between assumption, 1961). this (5th Cir. Under judiciaries the state and federal would acquired jurisdic court first the federal only sought arise both au exercise to the land. tion of the res—the thority dispose of the res. same See (The proceeding conceded is Moore, 1A Practice 0.222 J. Federal action.) personam an in fifí all to been have and 0.223. Thus, from ex are excluded other courts ercising jurisdiction would inter which enacted to Section 2283 was possession and the federal’s fere with injunctions limit federal of state court property. Miller v. control of the See litigation proceedings ordinary be 1970). Miller, (10th F.2d Cir. 423 145 litigants private to those situa tween quasi proceed In in rem or in rem two unseemly necessary tions to avoid con ings dispositive; factor could this be flict between state and federal courts. however, personam the Kansas in action It is entitled strict construction. any judgment or decree cannot result Ry. Atlantic Coast Line v. Brotherhood which the construc would interfere with Engineers, 281, of Locomotive 398 U.S. possession tive of the federal court. 1739, (1970); 90 S.Ct. 26 L.Ed.2d 234 Minerals, States, Leiter v. United adjudicate may properly A court 220, 287, 352 U.S. 77 S.Ct. 1 L.Ed.2d 267 rights in the (1957). It well settled that the stat any judg another court render prohibition ute’s cannot be evaded ment “not in conflict that court’s with addressing the order to the rath authority questions to decide within its er than to the state court. Atlantic jurisdiction and to make effective Ry. Coast Line v. Brotherhood of Loco property.” decisions its control of Engineers, supra. motive this in Since Klein, 276, United States v. 303 U.S. 58 junction does not come within 536, (1938). also S.Ct. L.Ed. 840 See 82 exceptions, specifically statute’s defined Allen, Markham 66 326 U.S. S.Ct. it must be vacated. The cause is re (1946); Lida 90 L.Ed. Princess manded to the district court for further Thompson, Thurn and Taxis v. proceedings not inconsistent herewith. L.Ed. 285 59 S.Ct. (1939); In- Vacated States v. Certified and remanded. Judge (dis- AINSWORTH, Circuit (1904). 48 L.Ed.

senting) : reason, For this respectfully I dissent. ignores majority long opinion The majority purposes assumes for standing rule law that federal court its decision that the federal district custody over obtains can in rem Texas had asserting litigants restrain *3 over the land at In issue. the Kansas any “claim, right, title” another court or agreed the that suit title property. to the same See Julian v. Co., 93, Accordingly, land an I am 114, Central Trust 193 U.S. was issue.2 24 sas, signed judge ap- Bonding Surety by 1. See the also Lion was and & v. Co. attorneys plaintiffs Karatz, by 89, 480, proved for and de- 262 43 S.Ct. (1923) the fac- L.Ed. fendants. The Order summarized 67 : 871 “The court legal acquired jurisdiction through follows: which first possession tual and issues as property vested, herein are: 6. The factual issues of the is while (a) Signal Properties, Inc., possession, power its it Has or holds with the to adversely pos- predecessors in interest hear and ail determine relat- controversies question ting a the 25 acres in for suf- right, It sessed thereto. the has while con- period comply tinuing prior of time to with jurisdiction, to ficient exercise its per- of Yernon’s Civil Stat- to Article 5509 determine for itself far how it will Texas, any under a deed utes of the State of mit possession other court to interfere with such period jurisdiction.” the from or for December deeds and through 31, 1964, majority opinion December 1971? The relies on Inc., Signal (b) or Klein, 276, 281, Has States 303 U.S. 58 predecessors a under recorded (1938), its held L.Ed. owing warranty paid proposition the taxes may deed and prop for the a that court they question be- erly adjudicate in before land rights property in in the delinquent period possession of a sufficient came of another court and ren comply any Article 5509 Ver- judgment with of time to der in “not conflict with the State Tex- of of authority non’s Civil Statutes as, questions that court’s to decide paid by or on jurisdiction such taxes or were within its and to make effec predecessors plaintiffs or their behalf of by tive such decisions its control of years property.” more thereof? for one or present case, the In the the Signal Properties, Inc., (c) its or Has being by Kansas court is the asked pos- adversely predecessors plaintiffs in interest question to decide within the question for a suf- in sessed the 25 acres of the Texas federal district comply court, namely, to with Article time ficient the “title to land in the question.” of the State Civil Statutes Thus, quotation of Vernon’s the and December apparently of Texas between 1922 2, Klein is in with the conflict by majority opinion. 1971? result reached the question completely (d) Is the land in Moreover, a review of the in Klein facts lands of the defend- other surrounded confirms that the case lends little or no support ant? majority opinion. the Klein In Signal Properties, (e) or Has the United States district held court predecessors in culti- interest money its for bondholders who not be could purposes agricultural and used for money vated who located but by were awarded the in the acres at least one-tenth of in a decree all favor of bondholders particular continuously question for a similarly plaintiffs situated to in the ten-year period prior to December years lawsuit. Several later a suit was so, during 1971, and, said time Pennsylvania the filed Escheator of in cultivating party in ad- actual the so a state obtain a decree of escheat. contemplated as thereof subsequent verse This state court did not suit Civil Stat- Vernon’s Article 5515 of controversy the involve same as was de the of Texas? utes of State court, cided the federal but predeces- plaintiffs formality necessary (f) per tlieir was a Are rather money to the land of title sors true owners fect the state’s the the claim to as they question, such owners and were transferee Klein, the bondholders. Unlike present time? the in the from 1964 instant matter the state presents Companies, Signal (g) court suit Kansas issues iden defendant Has (formerly Signal & tical to the suit in the Com- Texas Oil Gas occupied in- pany) district court. the acres and used period so, what If herein? volved the is reasonable in the and what Pretrial Order of time Conference occupation? Sedgwick County, Kan- use and of such District Court of value and fail following in the Kansas action ex- eeed reasons persuaded the thus, issuing action obtain the Texas judge for pressed the district damages occupancy for use and injunction: they had no title. This land to which in this Court “A. Both the action manifestly ineq- unfair and would be Sedge- in the District Court of plaintiffs uitable to here. Kansas, deter- County, involve wick actions, diversity “B. In Texas law is ownership of actual mination determining required applied to to be in Galveston located real located Texas. Texas land Although County, Texas. held courts have that real action for recov- suit is couched as an exclusively subject to the laws of ery and occu- use sovereignty territory it within whose land, pancy must inevita- Therefore, the Kansas is situated. present titleholder decide the ble [sic] no over court has awarding damages (which are before *4 an- res located within the control of rental), any. if That what is called other state. litigated proposed to in the Kansas be by open For the Kansas 'Court to deter- action, “C. admitted in Court as effectively possessory here, mine title would counsel for defendants and as re- with, deprive, this pretrial interfere not flected in the order entered jurisdiction. prevent its To Moreover, the of Kansas case. counsel they interference with Federal this this for admitted defense could suc- pos- essary by (h) Signal to sustain title adverse Has defendant Oil & Gas Company occupied session? used and tlie 25 acres (e) so, period limita- Are the Texas statutes of involved herein? If for what suspended re- tolled as to tions or of time and what is the reasonable occupation? the life the owner of maindermen until value of- use and (i) Signal Properties, dies? Has defendant estate occupied (f) limita- of Are the Texas statutes Inc. used and the in- 25 acres year so, period heirs fol- as to If tolled one volved herein? for what tions ¡g lowing es- when the death of the owner of time and the reasonable value wbat probated? occupation? tate is not of such use and by plaintiffs’ (j) (g) the predeces- barred claim Are Did defendants or their recognize ownership limita- being of Texas statutes Kansas or sors the as plaintiffs predecessors? ? their tions or plaintiffs’ (h) (k) plaintiffs predeces- is the effect of Did their What or ques- payment permit land of taxes the sors use of land defend- predecessors? ants or their tion? payment of any (i) (l) effect of is the What Did defendants or of them (for- by Signal Companies, Inc. plaintiffs give taxes merly Signal ever actual notice to or Company) ? alleged Gas predecessors Oil & ad- their of their payment of (j) possession? effect of is the What verse Properties, by Signal Inc.? legal taxes are: 7. The issues herein plaintiffs’ (k) un- pay barred implied claims (a) Are to Does an contract judicata? res of der the doctrine the owner reasonable to by Signal recording (l) Oil & occupation Did the land Texas for use and Company Butler any from defendants, the deed Gas of or of arise when the Signal Com- deed from occupy and the them, in panies, the use or land owned Signal plaintiffs predecessors to their under or plaintiffs their or to constitute notice this of the facts and circumstances pos- predecessors adverse claims of case? required (b) ? sesion Texas law to What is Company (m) Signal posses- acquire Oil & Gas Was adverse title to land plaintiffs duty or inform to under sion? predecessors undisputed the transaction with (c) their facts here- Under the they have Butler, intent and the there adverse possession? regarding requisite period adverse had time defendants predecessors? their or (d) prove clear Must defendants every satisfactory fact nec- and evidence disposition ever, that it would Court’s consideration be “inconceivable” case, preliminary injunction pending of this the same si- allow issues be multaneously in must issue.” state and federal courts juris- if the federal court had exclusive impracticali- should also consider We ty diction the res. at 155. 474 F.2d trying and inconvenience of title to I rules of Texas land in a Kansas court. would adhere to the law distant Supreme previously by enunciated statute, anti-injunction U.S.C. Court and our recent Fifth Circuit cas- (1970), presents no obstacle § es, and affirm the court deci- exception specific permits this case. A sion. in- a federal district court junction issue an stay proceedings in a state necessary in court where aid of fed- jurisdiction.

eral court’s Here dis-

trict court able to an in- should be issue pre-

junction in aid of its continuing court from

vent

multiplicitous proceedings, from render-

ing effectively a decision could

deprive the court of its in through principles ju- of res estoppel, dicata collateral O’Neal, O’NEAL and Leo Charles n rendering potentially a decision incon- *5 Appellants, federal sistent with a decision court. al., et RIVER TRIBE CHEYENNE SIOUX Appellees. ap- previously We summarized law Indemnity plicable to No. 73-1031. in Pacific this case Company Delivery Service, Inc., v. Acel Appeals, United States Court Cir., 1970, 952, 954, F.2d as fol- Eighth Circuit. lows: Submitted June 1973. language explicit 2283 is July 24, § Decided 1973. defining circumstances Rehearing Aug. Denied may stay pro-

ceedings court; however, in a state judicially

certain timeworn declared

exceptions Thus, it is said do exist. jurisdiction

that over the where the quasi rem,

proceedings is in rem having state or federal court “[T]he custody has exclusive proceed.” Donovan v. City Dallas, 1579, 1582, 12 L.Ed.2d 409

(1964). Cir., 1973, Zink, also See Jett v. issues, F.2d identical where

concerning validity agreement of an parties’ an oil

to define the interests in

field, pending were both state declined

federal court in Alabama. We enjoin court suit because state

the federal court’s personam, said, was in but we how-

case

Case Details

Case Name: Signal Properties, Inc. v. N. Bus Farha
Court Name: Court of Appeals for the Fifth Circuit
Date Published: Aug 14, 1973
Citation: 482 F.2d 1136
Docket Number: 72-3375
Court Abbreviation: 5th Cir.
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