74 F. 981 | U.S. Circuit Court for the District of Northern Iowa | 1896
In this action the plaintiff seeks to recover damages against the defendant railway company, under the provisions of the interstate commerce act, for alleged overcharges; and the question now before the court is that of the jurisdiction of this court, the defendant company being a corporation created under the laws of the state of Wisconsin, but operating many miles of railway within the Northern district of the state of Iowa. On behalf of the defendant it is contended that the provisions of the act of congress of 1887, as amended by the act of 1888, control the question of the place of bringing suits based upon section 9 of the interstate commerce act, and therefore such actions must be brought in the district of which the defendant is an inhabitant, which in the case of corporations must be in the state wherein they are incorporated, and within the district in such state (in case there is more than one district therein) wherein the corporation has its principal or corporate office, as was held by the supreme .court in Railway Co. v. Gonzales, 151 U. S. 496, 14 Sup. Ct. 401. In considering the question thus presented, we must hear in mind that the matter of the jurisdiction of a federal court embraces two propositions: First. Is the controversy one of federal cbgnizance, by reason of the subject-matter or by reason of the diverse citizenship or alienage of the litigants? Second. If so, is the particular court whose jurisdiction is invoked competent to entertain the suit?
In determining the first question, it is clear that in the ease now
Counsel have discussed the question whether, under the provisions of the interstate commerce act, the jurisdiction over actions for damages based upon section 8 of the act is exclusive in the courts of the United States. Upon this proposition I concur in the view maintained by counsel for the plaintiff, that the jurisdiction is exclusive in the federal courts, in that section 9 of the act provides the remedy for the liability created by section 8, and that remedy consists in the right of invoking the aid of the commission, or of seeking damages in a district or circuit court of the United States of competent jurisdiction. If it had been the intent of congress that persons seeking relief against the violations of the act named in section 8 should have the right to sue ,*f or damages instate as well as federal courts, then the declaration in section 9 would have been that the action for damages might be brought in any court of competent jurisdiction; but, instead of so enacting, the act declares that the remedy shall consist of a right to appeal to the commission, or to sue for damages in any district or circuit court of the United States of competent jurisdiction. Thus, we reach the vital point in this inquiry, and that is, what is meant by a “circuit' court of competent jurisdiction,” as these words are used in section 9 of the interstate commerce act. The use of these words in the section would seem to indicate that, in the view of congress, there are courts of the United States competent to take jurisdiction over each cause of action as it arises under the provisions of the act, and courts not competent to entertain jurisdiction. It is cleatf that such difference, in the right to entertain jurisdiction in a given case, does not grow out of any difference between the several circuit courts with respect to their jurisdiction over the subject-matter of the controversy. In this particular no distinction or. difference exists between the circuit courts in the several districts, and it is therefore clear beyond question that, in using the words “of competent jurisdiction” in the ninth section of the act, congress did not enact, assume, or imply that, as between the several circuit courts of the United States, there were
On behalf of plaintiff it is contended that, in the absence of all statutes, the general rule is that if the subject-matter of a controversy is within the jurisdiction of a court, and the defendant comes or is found within the territorial jurisdiction of the court, so that its process may be served upon Mm, and process in the given case is thus served upon the defendant, jurisdiction is thereby obtained. Granting this to be true, it is, nevertheless, also true that, by legislative enactment, the jurisdiction of both state, and federal courts is in many instances limited by provisions requiring specific actions to be brought only in named courts, or within certain counties or districts. A limitation as to the place of bringing suit in the courts of the United States has always existed, being-found in the judiciary act of 1789 and in all subsequent acts amenda-tory thereof. An examination of the act of 1789 shows that section 11 of that act is the one that created and defined the jurisdiction of the circuit courts both as to subject-matter and parties
Upon behalf of the plaintiff it is urged that the provisions of the acts of 1887-1888 in this regard are not applicable to this case, for the reason that the right of action herein involved arises out of the provisions of the interstate commerce act; that the jurisdiction of the court is dependent upon the latter act, and is not limited by the provisions of the acts of 1887-1888. In support of this view, it is contended that the acts of 1887-1888 are, by the express terms thereof, limited to actions whereof the state courts have concurrent jurisdiction with the federal courts, and that, as this case is one over which the federal jurisdiction is exclusive, it does not in any particular come within the provisions of the acts of 1887-1888. The original interstate commerce act was adopted February 4, 1887, and the act relative to the jurisdiction of the circuit court was approved March 3, 1887. It is well known that both these acts were under consideration, both in committee and before the houses of congress, for a long period, and it can hardly be presumed that it was the intent of congress to alter or amend the interstate commerce act by the judiciary act. Thus, under the provisions of the former act, there is no limit in the matter of amount upon the right of the federal courts to entertain jurisdiction in actions brought to recover damages for violations of the act; and it cannot be the fact that the limitation of $2,000 contained in
Upon behalf of the defendant it is claiméd that this change in the jurisdiction has been brought about by the adoption of the acts of 1887-1888; whereas on behalf of the plaintiff it is claimed that the acts of 1887-1888 do not affect the case, because the provisions of the first sections of these acts are limited to cases over which concurrent jurisdiction exists between the state and federal courts. In the absence of a controlling decision upon the question, I should greatly incline to the view that the provisions of the judiciary act in force at the time the suit is brought must control in determining the court of the United States which is competent to compel the defendant to submit to its jurisdiction. To my mind there is great force in the argument that the original judiciary act of 1789, and the subsequent acts amendatory thereof, were intended to prescribe the general rule upon the subject of the place of bringing suits cognizable in courts of the United States, and that the general rule therein prescribed should govern all civil cases, at law or in equity, except those touching which a special rule is prescribed by some other act of congress, or which, by reason of the subject-matter, are clearly excepted from the operation of the general rule; and, therefore, that the acts of 1887-1888, being in force when this suit was brought, must be resorted to in-determining whether this court is or is not competent to take jurisdiction of this case. The question then arises whether the
In the case at bar the right of action is created by a special act, to wit, the interstate commerce act, passed before the adoption of the judiciary act of 1887. The jurisdiction provided for in section 9 of the act is exclusive in the federal courts, and therefore the jurisdiction created and conferred by sections 8 and 9 of that act with regard to subject-matter and to the place of bringing suit