AMERICAN SUGAR REFINING COMPANY
v.
NEW ORLEANS
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American Sugar Refining Company challenged a New Orleans ordinance imposing a license tax, raising both a statutory defense and a constitutional objection to the tax. The Supreme Court held that the Circuit Court of Appeals erred in dismissing the case for lack of jurisdiction, ruling that when a Circuit Court's jurisdiction rests solely on diverse citizenship, the Court of Appeals must exercise appellate review even if constitutional questions arise during the proceedings, and reversed the dismissal to allow the case to proceed on the merits.
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Mil. Chief Justioe Fuller delivered the opinion of the court.
The jurisdiction of the Circuit Court rested on diverse citizenship, and not on any other ground, and had the Circuit Court of xlppeals gone on and decided the case, its decision would have been final, and our interposition could only have been invoked by certiorari.
This was so notwithstanding one of the defences was the unconstitutionality of the ordinance. Colorado Central Mining Co. v. Turck, 150 U. S. 138; Press Publishing Co. v. Monroe, 164 U. S. 105; Ex parte Jones, 164 U. S. 691. These, and many other cases to the same effect, related to the appellate jurisdiction of this court over the Court of Appeals under the sixth section of the Judiciary Act of March 3, 1891, but they necessarily involved consideration of our jurisdiction under the fifth section, and that of the Court, of Appeals under the sixth section. By the fifth section appeals or writs of error may be taken from the District or Circuit Courts direct to this court in any case that “ involves the construction or application of the Constitution of the United States;” “in which the constitutionality of any law of the United States, or the validity or construction of any treaty made under its authority, is drawn in question; ” “ in which the constitution or larv of a State is claimed to be in contravention of the Constitution of the United States.” Section six provides that the Circuit Courts of Appeals shall exercise appellate jurisdiction to review the final decisions of the District and Circuit Courts “ in all cases other than those provided for in the preceding section of this act, unless otherwise provided by law, and the judgments or decrees of the Circuit Courts of Appeals shall be final in all cases in which the jurisdiction is dependent entirely upon the opposite parties to the suit or controversy being aliens or citizens of the United States or citizens of different States.” The jurisdiction referred to is the jurisdiction of the Circuit Court, and as the judgment of the Court of Appeals is made final in all cases in which the jurisdiction of the Circuit Court attaches solely by reason of diverse citizenship, it follows that the Court of Appeals has power to review the judgment of the Circuit Court in every such case, notwithstanding constitutional questions may have arisen after the jurisdiction of the Circuit Court attached, by reason whereof the case became embraced by section five.
Thus it was held in Loeb v. Columbia Township Trustees, 179 U. S. 472, where the jurisdiction of the Circuit Court rested on diverse citizenship, but the state statute involved was claimed in defence to be in contravention of the Constitution of the United States, that a writ of error could be taken directly from this court to revise the judgment of the Circuit Court, although it was also ruled that the plaintiff might have carried the case to the Circuit Court of Appeals, and that if a final judgment were rendered by that court against, him, he could not thereafter have invoked the jurisdiction of this court directly on another writ of error to review the judgment of the Circuit Court.
The intention of the act in general was that the appellate jurisdiction should be distributed, and that there should not be two appeals, but in cases where the decisions of the Courts of Appeals are not made final it is provided that “ there shall be of right an appeal or writ of error or review of the case by the Supreme Court of the United States where the matter in controversy exceeds one thousand dollars besides costs.”
And the right to two appeals would exist in every case (the litigated matter having the requisite value,) where the jurisdiction of the Circuit Court rested solely on the ground that the suit arose under the Constitution, laws or treaties of the United States, if such cases could be carried to the Circuit • Court of Appeals, for their decisions would not come within the category of those made final.
As, however, a case so arises where it appears on the record, from plaintiff’s own statement, in legal and logical form, such as is required by good pleading, that the suit is one which does really and substantially involve a dispute or controversy as to a right which depends on the construction or application of the Constitution, or some law, or treaty of the United States, Gold Washing & Water Co. v. Keyes, 96 U. S. 199; Blackburn v. Portland Gold Mining Co., 175 U. S. 571; Western Union Telegraph Co. v. Ann Arbor Railroad Company, 178 U. S. 239; and as those cases fall strictly within the terms of section five, the appellate jurisdiction of this court in respect of them is exclusive.
If plaintiff, by proper pleading, places the jurisdiction of the Circuit Court on diverse citizenship, and also on grounds independent of that, a question expressly reserved in Colorado Central Mining Co. v. Turck, 150 U. S. 138, and the case is taken to the Court of Appeals, propositions as to the latter grounds may be certified, or, if that course is not pursued and the case goes to judgment, (and the power to certify assumes the power-to decide,) an appeal or writ of error would lie under the last clause of section six, because the jurisdiction would not depend solely on diverse citizenship. Union Pacific Railway Company v. Harris, 158 U. S. 326.
In Carter v. Roberts, 177 U. S. 496, we said: “When cases arise which are controlled by the construction or application of the Constitution of the United States, a direct appeal lies to this court, and if such cases are carried to the 'Circuit Courts of Appeals, those courts may decline to take jurisdiction, or where such construction or application is involved with other questions, may certify the constitutional question and afterwards proceed to judgment, or may decide the'whole case in the first instance.” These observations perhaps need some qualification. Undoubtedly where the jurisdiction of the Circuit Court depends solely on diverse citizenship and it turns out that the case involves the construction or application of the Constitution of the United States; or the constitutionality of a law of the United States or the validity or construction of a treaty is drawn in question ; or the constitution or law of a. State is claimed to be in contravention of the Constitution of the United States; the Circuit Court of Appeals may certify the constitutional or treaty question to this court, and proceed as thereupon advised; or may decide the whole case; but language should not have been used susceptible of the meaning that in cases where the jurisdiction below is invoked on the ground of diverse citizenship the Circuit Court of Appeals might decline to take jurisdiction, or, in other words, might dismiss the appeal or writ of error for want of jurisdiction. The mere fact that in suchm case one or more of the constitutional questions referred to in section five may have so arisen that a direct resort to this court might be had does not deprive the Court of Appeals of jurisdiction or justify it in declining to exercise it. '
In the case at bar, the jurisdiction rested on diverse citizenship. Two defences were interposed, one of which asserted exemption from the license tax, and the other denied the constitutionality of .the legislation under which thetax was imposed. Both defences were overruled, and judgment rendered for the plaintiff. The ease was then carried on error to the Circuit Court of Appeals, which gave judgment dismissing the writ of error for want of jurisdiction. In this we think the court erred, and that a certiorari should issue that its judgment to that effect may be revised. . As the record is before us on the return to the rule hereinbefore entered, and full argument has been had, it will be unnecessary for another return to be made to the writ, or further argument-to be submitted.
Writ of certiorari to issue / return to rule to stand as return to writ; judgment thereupon reversed and cause remanded with a di/reetion to tahe jurisdiction and dispose of the cause.
MR. Justice Gray concurred in the result.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By (30 total)
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Ex parte Republic of Peru, 318 U.S. 578 (U.S. 1943)…s Court has been given effect in a variety of situations even though Congress did not adequately express such purpose. See, for instance, McLish v. Roff, 141 U. S. 661; Robinson v. Caldwell, 165 U. S. 359; American Sugar Refining Co. v. New Orleans, 181 U. S. 277; American Security Co. v. District of Columbia, 224 U. S. 491; Inter-Island Steam Navigation Co. v. Ward, 242 U. S. 1. Finally, it is urged that practice since the Judiciary Act of 1925 sanctions the present assumption of jurisdiction. Cases like E…
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Farrell v. O'Brien, 199 U.S. 89 (U.S. 1905)
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Fid. Mut. Life Ass'n v. Mettler, 185 U.S. 308 (U.S. 1902)…as seasonably drawn in question by defendant below as being in contravention of the Constitution of th'e United States, we think the case comes within Loeb v. Columbia Township Trustees, 179 U. S. 472; American Sugar Refining Company v. New Orleans, 181 U. S. 277, and that the writ of error may be maintained. The motion to dismiss is, therefore, overruled. Four propositions are-relied on as grounds of reversal, which we will consider in the reverse order in which they are stated in the brief for plaintiff i…
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Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Gold-Washing & Water Co. v. Keyes, 96 U.S. 199 (U.S. 1877)
- Loeb v. Columbia Twp. Trs., 179 U.S. 472 (U.S. 1900)
- W. Union Tel. Co. v. Ann Arbor R.R. Co., 178 U.S. 239 (U.S. 1900)
- Blackburn v. Portland Gold Mining Co., 175 U.S. 571 (U.S. 1900)
- Colo. Cent. Consol. Mining Co. v. Turck, 150 U.S. 138 (U.S. 1893)
- Carter v. Roberts, 177 U.S. 496 (U.S. 1900)
- Press Publ'g Co. v. Monroe, 164 U.S. 105 (U.S. 1896)
- Union Pac. Ry. Co. v. Harris, 158 U.S. 326 (U.S. 1895)
- Ex parte Jones, 164 U.S. 691 (U.S. 1897)