Woods Bros. Const. Co. v. Yankton County, SDWoods Bros. Const. Co. v. Yankton County, SD
This is an appeal from an order of the United States District Court of South Dakota of December 8,1930, vacating a judgment entered in said court March 22, 1929, in favor of appellant in the sum of $23,700 in an action brought by appellant against appellees to recover compensation for certain work in a bank protection project along the Missouri river in Yankton county, S. D. The contract under which the work was done and the liability to appellant incurred was entered into between appellant and the board of county commissioners of Yankton county, S. D., said commission proceeding by virtue of chapter 193, Laws of 1921, which enlarged and amended section 8458 of the Revised Code of South Dakota of 1919 relating to drainage districts by making the same applicable to river protection afforded by dikes, retards, etc. The vacated judgment was a compromise one entered at the trial upon an agreed statement of facts, which was adopted by the court. In compliance with the judgment the board was proceeding to arrange a time for hearings on equalization benefits under the state statutes when the Supreme Court of South Dakota on May 7, 1929, in another, though similar, action held that chapter 193, Laws of 1921, was unconstitutional because the title of said act did not conform to article 3, section 21, of the State Constitution, which provided that no law should embrace more than one subject which must be expressed in its title. Woods Bros. Const. Co. v. Board of Com’rs, 55 S. D. 161,
The reason the Supreme Court held chapter 193 of the Laws of 1921 unconstitutional was not because of lack of power in the Legislature to pass such an act, but because of the violation of the constitutional provision. The Supreme Court in its opinion said: “We do not believe any one would suppose that an act to amend section 8458 of the Revised Code, relating to drainage, would contain provisions authorizing the straightening of the Missouri river or the building of levees, dikes, or retards along the river, or that the amending of section 8458 would define the term drainage as including all of such works. We think the amendment is plainly unconstitutional, and that the county commissioners were without authority to let any such contract as that made the basis of this action, and that they cannot be compelled to approve the work or levy assessments to pay for it.”
The board of county commissioners thereupon filed a motion for a modification of the judgment-entered March 22, 1929, claiming that under the decision of the Supreme Court they had no authority to go ahead or carry out the judgment and mandate of the court. This was heard by the court on July 28,1930, and December 8, 1930, the judgment entered on March 22, 1929, was vacated and set aside and the action dismissed upon the merits. The action was before this court heretofore on appeal from a decision of the District Court on December 16, 1926, sustaining a demurrer as to Yankton county and dismissing the action as to it. Woods Bros. Const. Co., Inc., v. Yankton County, S. D. (C. C. A.)
The term at which the judgment was entered in favor of appellant for the $23,700 had expired a considerable time prior to the decision of the Supreme Court referred to, and the filing of the motion to vacate said judgment. The original judgment was entered in March, 1929. That term of court ended when the April term commenced on April 2, 1929. The motion to vacate was filed June 10, 1929. The order for judgment contains this reservation: “The court reserves full and complete jurisdiction of this cause and of all the parties thereto, for the purpose of making or entering any further orders or judgments that may be necessary for the protection of the plaintiff herein, and to compel the payment of its said judgment and to enforce performance of the same by the said Board of County Commissioners (and their successors in office), and other of
The requirements of the Code provisions as amended in 1921 had been complied with in letting the contract to appellant, the work was completed according to contract, the benefits were received by the district, and appellant has never been paid for its services.
Appellant’s claim is that the District Court had no right or power to vacate said judgment after the term at which it had been entered had expired.
Appellees’ contention is that the court had no jurisdiction to enter the original judgment, as under the subsequent deeree of the Supreme Court in Woods Bros. Constr. Co. v. Board of Commissioners, supra, there was no jurisdiction of the subject-matter in said court at the time of entry of the judgment as the contract for the work was based on an unconstitutional statute, therefore was ultra vires and void, therefore the judgment was a nullity, and the court had inherent power to expunge it from its records and dismiss the suit.
The trial court held it had the right after the term had expired to vacate the judgment' primarily on the theory that the same was a nullity by virtue of the decision of the Supreme Court of South Dakota as to the uneon stitutionality of chapter 193, Laws of 1921, and secondly by virtue o'f the reservation hereinbefore set forth. Its views are made clear by the following quotations from its opinion 1 :
“It would therefore seem beyond controversy that this proceeding was founded upon a contract entered into under and by virtue of the provisions of this law that has since been held unconstitutional by the Supreme Court of South Dakota, and it further appears that this Court retained jurisdiction in the proceeding for the making of orders for the enforcement of judgment. * * *
“That this Court was without jurisdiction to try to determine any controversy between the parties hereto arising under said contract or under the pleadings in this action, because the Court had no jurisdiction of the subject-matter in the absence of a law under whieh the Board of County Commissioners could act.”
We are unable to agree with the conclusions of the trial court. It seems clear to us that
at the time
the judgment was entered jurisdiction existed in the federal court so to do. There was diversity of citizenship, the amount-in controversy was sufficient, a legal right was asserted by appellant, and denied by appellees. “Jurisdiction” has been defined in Reynolds v. Stockton,
In Flanders v. Coleman,
The judgment of March 22, 1929, was conclusive as to all issues raised by the pleadings, and those necessarily involved in the rights adjudicated thereunder. The validity of the 1921 amendment to the South Dakota Drainage Laws was raised by the pleadings and was necessarily involved in an adjudication that appellant had the right to recover. Both the county and the board of county commissioners pleaded that chapter 193 of the Laws of 1921 was .unconstitutional. The federal court had the power at that time to pass upon the validity of the South Dakota statutes under whieh the contract had been made. It was as competent in law to pass on the question as was the state court. Their constitutionality was an issue.
The Supreme Court of the state had not passed on the constitutionality of chapter 193 at the time judgment was entered. It had stood unchallenged on the statute books for approximately eight years. Surely the federal court was not called on to sit by and wait for a state court to determine its constitutionality before exercising its judgment thereon. In Burgess v. Seligman,
If an action had been brought in another state on the judgment' of March 22, 1929, could it have been contended in defense that there was no right in Yankton county to enter into the contract because of the-unconstitutionality of the statute? We think not.
That it was a judgment based upon an agreed statement of facts, or if it could be considered a consent judgment, does not lessen its force or effect. Of course, jurisdiction cannot be conferred by consent and there was no attempt here so to do. We quote from 34 Corpus Juris, p. 133, § 337,. as to a consent judgment: “But at the same time, as it has the sanction of the court, and is entered as its determination of the controversy, it has the same force and effect as any other judgment, and in the absence of fraud or mistake is valid and binding, as such, as between the parties thereto and their privies, and is not invalidated by a subsequent failure to perform a condition on which the consent was based, or by the fact that it obligates the parties to do that which they could not make a valid contract to do; and unless it is vacated or set aside in the manner provided for by law, it stands as a final disposition of the rights of the parties thereto.” Also section 338, p. 134:- “A judgment by consent or agreement operates as a waiver of all defects or irregularities in the process, pleadings, or other proceedings previous to the rendition of the judgment, except such as involve the jurisdiction of the court.” Pooler v. Hyne (C. C. A.)
The court had jurisdiction to enter the judgment. It found the facts to be as stipulated by the parties and adopted the same as its “findings of facts for the purpose of the final decision of the ease.” There has been no claim of fraud or clerical error or lack of consent in entering said judgment.
We face a situation therefore where a judgment entered by a federal court having complete jurisdiction is set aside by that court after the term at which it was entered, on the theory that a decision of the state Supreme Court holding invalid a statute, which is the basis of the suit, acts retroactively to defeat the federal court of jurisdiction. While the federal courts under the Conformity Statute, title 28, section 724, US CA, conform with certain exceptions to the practice, pleadings, and modes of procedure of state courts in like causes, yet the jurisdiction of the federal court is prescribed by the Constitution and acts of Congress and cannot be restricted or enlarged by the statutes of a state or decisions of state courts. In Hughes, Federal Procedure (2d Ed.) 412, it is said: “While the federal courts will follow the state practice as to the mere form of the judgment, their control over it from that time forward is regulated by the federal decisions and statutes, and not by the state practice. They may correct the record, after the term, in mere clerical errors, but in no other way. Under the federal practice and decisions a judgment cannot be set aside after the term during which it is rendered, though the statute may provide summary remedies by motion for the purpose of regulating judgments in its own courts.” Mexican Central Railway Co. v. Pinkney,
That there may be finality in judgments is essential to stability of rights and interests, and the general rule is that judgments and decrees at the close of the term at which they were rendered pass beyond the control of the court, and the court has no power then to destroy their legal effect unless proper steps are taken during the term to form the basis of a change thereafter. It is undoubtedly true that a court after the term may by proper order correct clerical and inadvertent errors. A much-quoted case on the subject is Bronson v. Schulten,
“In this country all courts have terms and vacations. The time of the commencement of every term, if there be half a dozen a year, is fixed by statute, and the end of it by the final adjournment of the court for that term. This is the ease with regard to all the courts of the United States, and if there be exceptions in the State courts, they are unimportant. It is a general rule of the law that all the judgments, decrees, or other orders of the courts, however conclusive in their character, are under the control of the court which pronounces them during the term at which they are rendered or entered of record, and they may then be set aside, vacated, modified, or annulled by that court.
“But it is a rule equally well established, that after the term has ended all final judgments and decrees of the court pass beyond its control, unless steps be taken during that term, by motion or otherwise, to set aside, modify, or correct them; and if errors exist, they can only be corrected by such proceedingby a writ of error or appeal as may be allowed in a court which, by law, can review the decision.”
And on page 417 of
“The question relates to the power of the courts and not to the mode of procedure. It is whether there exists in the court the authority to set aside, vacate, and modify its final judgments after the term at which they were rendered; and this authority can neither be conferred upon nor withheld from the courts of the United States by the statutes of a State or the practice of its courts.”
In Morgan’s Louisiana & T. R. & S. S. Co. v. Texas Cent. Ry. Co. (C. C.)
In United States v. Mayer,
In Re Metropolitan Trust Co.,
There are exceptions to the rule that a court cannot vacate a judgment after the term expires, etc., one of which is that where
upon its face
it is apparent that the judgment is a nullity the court may vacate it at any time. The oft-quoted case of People v. Greene,
There are other exceptions to the general rule based upon the statutes and decisions of the various states and a number of these are cited by appellees. There is no federal statute on the subject, and statutes and decisions of the state courts, as we have before pointed out, cannot take away authority from the federal courts.
Counsel for both appellant and appellees refer with approval to Cyclopedia of Federal Procedure, § 1095, and quote therefrom. At page 202 thereof the author says: “Another corrective power of the court which survives the term at which a deeree was entered is
Appellees assume this judgment was a nullity and hence could be vacated after the term. This is merely reasoning in a circle.
International Harvester Co. of America v. Commonwealth of Kentucky,
The strongest ease in favor of appellees’ position is Metzger Motor Car Co. v. Parrott,
The vacation of the judgment here after the term was not for any reason recognized by the federal courts as an exception to the general rule. The vacation primarily was because the court was held to have had no jurisdiction over the subject-matter, and secondly because the power to vacate was held by the court to exist because of the reservation in the order for judgment, which we have heretofore set out.
Passing the doubtful question as to whether a court by such a reservation could determine its own powers after the term had ended and enlarge its authority conferred by statute, we are satisfied that the reservation reserves no power the court did not already possess. It certainly had power to enforce its own judgment. Without such power the judgment would amount to nothing. The reservation relates to nothing else. It was for the benefit of the plaintiff, to assist in collecting its judgment. The rale is stated in 34 Corpus Juris, p¡ 219, § 449, as follows: ■“An attempted reservation in the judgment itself of power to amend 'or 'vacate it at a' subsequent term does not-enlarge or extend the authority which the court otherwise has in
The judgment being a valid and final one as far as the District Court was concerned, appellees’ remedy if any was by appeal, and not by attempting to set aside the judgment after the term had expired. United States v. Mayer,
Appellant argues that regardless of the statute held unconstitutional by the state Supreme Court the county is liable and is obligated to pay for the work under the general drainage laws of South Dakota. We do not feel called upon to enter into this rather interesting field, as we are satisfied there was jurisdiction in the court to enter the original judgment, that the same was a final judgment, and that there was no power in the court to set it aside after the term had expired. The order of the trial court entered December 8, 1930, setting aside the judgment of March 22, 1929, is reversed, , and the case is remanded with instructions to restore the original judgment of March 22, 1929, to the place it occupied before the erroneous order setting it aside.
Reversed and remanded.
Notes
Oral opinion.