TEXAS TRANSPORTATION CO.
v.
SEELIGSON

U.S. | 1887-05-27
122 U.S. 519 Supreme Court of the United States (1887) Caution
Also reported at: 30 L. Ed. 1150 · 7 S. Ct. 1261 · 1887 U.S. LEXIS 2132 · SCDB 1886-302
Cited by 18 cases

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Synopsis

A Texas citizen sued a Texas corporation and its officers in state court to account for company affairs and set aside certain corporate obligations. After a New York citizen (C. P. Huntington) was added as a defendant and removed the case to federal court on diversity jurisdiction grounds, the plaintiff later dismissed the suit against Huntington and moved to remand the case back to state court. The Supreme Court affirmed the remand, holding that once Huntington was dismissed, the remaining dispute between a Texas citizen and Texas defendants no longer presented the diversity of citizenship necessary to support federal jurisdiction, and the Circuit Court properly remanded the suit under the removal statute.


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Opinion of the Court
Mr. Chief Justice Waite

Mr. Chief Justice Waite delivered'the opinion of the court.

This is an appeal under § 5 of the act of March 3, 1875, c. 137, 18 Stat. 470, from an order of the Circuit Court remanding a suit which had been removed from a state court. The suit was begun December 18, 1883, in the Circuit Court of Harris County, Texas, by Henry Seeligson,' a citizen of that state, and the owner of twenty shares of the capital stock of the Texas Transportation Company, a Texas corporation,' against that company, and A.

C. Hutchinson, Charles . Fowler, E.

W. Cave, and L. Megget, its directors and principal officers, for an account of the affairs of the company; and to annul and set aside' a note of the company for $335,000 to Charles Morgan, together with a .deed of trust given for its security. Hutchinson is a citizen of Louisiana, bvú all the rest of the defendants are citizens'of Texas. On the 9th of February, 1884, a supplemental petition .was filed in the suit' alleging that C.

P. Huntington had become the owner of the note given to Morgan, and bringing him in as a defendant. Citation was served on him March 13, 1884, and, on the 31st of the same month, he, being a citizen of New York, presented his petition for the removal of the suit to the Circuit Court of the United States 'for the Eastern District of Texas, on the ground “that there is.a controversy in said suitwhich is wholly between citizens of different states, and which can be fully determined as between them, to why a controversy between said Seeligson, plaintiff, and your petitioner, and a controversy between your petitioner, on one side, and in which the interests of the said Seeligson, the Texas Transportation Company, and the other defendants, officers of said company, are on the other side.” Upon this petition an order of removal was made, and the suit entered in the Circuit Court on the 16th of October, 1884, when the defendants' appeared, and, on the 1st of December, filed a joint and several demurrer to the bill. On the 5th of January, 1885, this demurrer was sustained as to Huntington, but-overruled as to the rest of the defendants. The bill was then amended, and afterwards, on the'9th .of March, it was ordered that the “ complainant do recast and amend his bill so as to conform to the equity rules of the Supreme Court, and that, in so amending and recasting his pleadings* he have leave to bring in two or more bills, as Counsel may advise, so as to save to'complainant all the causes of action contained in his original bill,” and that, “if this order is not complied with by the rule day in May next, the complainant’s bill shall stand dismissed with costs.” On the 2d of May, Seeligson. made a motion to remand the suit, and this being overruled, on the éth of May he filed an amended bill, to which the defendants demurred June 1. This demurrer was set down for argument on the first Monday in November. Other motions were filed by the defendants, but, before any Of them were disposed of, Seeligson, on the 19th of November, dismissed the suit as to Huntington, and at once moved to remand. This motion was granted January 9, 1886, *and from that order this appeal was taken.

As the suit could only have been removed because of the alleged separate cause of action against Huntington, it was right to remand it as soon as the discontinuance was entered as to him. The express provision of § 5 of the act of 1875, is, that if “ it shall appear to the satisfaction of said Circuit Court at any time after such suit has been . . . removed thereto that such suit does not really and substantially involve a dispute or controversy properly within the jurisdiction of said Circuit Court, . . . the said Circuit Court shall proceed no. further therein, but shall dismiss the suit or remand it to the court from which it was. removed, as justice may require.” The court was not required to keep the suit after the discontinuance, simply because it might have been removed when Huntington was a party. As soon as he was, out of the case, it did appear that “ the suit did-not really and substantially involve a dispute or controversy properly within ” its jurisdiction.

The order to remcmd is affirmed.


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Citator

Cited By

  • …of parties by substitution or by intervention does not oust the jurisdiction: Phelps v. Oaks, 117 U. S. 236; Hardenbergh v. Ray, 151 U. S. 112; Wichita R. & Light Co. v. Public Utilities Comm’n, 260 U. S. 48. Texas Transportation Co. v. Seeligson, 122 U. S. 519; Torrence v. Shedd, 144 U. S. 527; Iowa Homestead Co. v. Des Moines N. & R. Co., 8 Fed. 97; Bane v. Keefer, 66 Fed. 610; Youtsey v. Hoffman, 108 Fed. 699; Cassidy v. Atlanta & C. A. L. Ry. Co., 109 Fed. 673; Sklarsky v. Great Atlantic & P. Tea. Co.,…
  • Torrence v. Shedd, 144 U.S. 527 (U.S. 1892)
    …within the jurisdiction of the Circuit Court, and should therefore have been remanded to the state court, under section 5 of the act of March 3, 1875, c. 137. 18 Stat. 472; Robinson v. Anderson, 121 U. S. 522; Texas Transportation Co. v. Seeligson, 122 U. S. 519; Graves v. Corbin, 132 U. S. 571, 590. But it is unnecessar3r to dwell upon that view of the case, because, for the reasons above stated, the original removal on the petition of the appellant was wrongful; and therefore the judgment must be reverse…
  • Emp'rs Reinsurance Corp. v. Bryant, 299 U.S. 374 (U.S. 1937)
    …ican Automatic Loom Co., 198 U. S. 477; Mechanical Appliance Co. v. Castleman, 215 U. S. 437; Merriam Co. v. Saalfield, 241 U. S. 22; Stewart v. Ramsay, 242 U. S. 128. Pollard v. Dwight, 4 Cranch 421, 428-429; Texas Transportation Co. v. Seeligson, 122 U. S. 519, 522; Cates v. Allen, 149 U. S. 451, 460-461; Pond v. Sibley, 7 Fed. 129, 138; Gombert v. Lyon, 80 Fed. 305; Peters v. Equitable Life Assurance Society, 149 Fed. 290, 294.…

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