BAGLEY
v.
GENERAL FIRE EXTINGUISHER COMPANY

U.S. | 1909-02-23
No. 96
212 U.S. 477 Supreme Court of the United States (1909) Positive Treatment
Also reported at: 53 L. Ed. 605 · 29 S. Ct. 341 · 1909 U.S. LEXIS 1831 · SCDB 1908-095
Cited by 39 cases

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Synopsis

A building owner sued a fire sprinkler contractor for damages caused by defective sprinkler heads that melted on a hot day, seeking to recover amounts he paid in settlements to tenants who sued him. The Supreme Court dismissed the writ of error for lack of jurisdiction, holding that because the case rested entirely on diversity of citizenship and no constitutional question was properly raised in the complaint itself, the judgment of the Circuit Court of Appeals was final and unreviewable.


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Opinion of the Court
Mr. Justice Holmes

Mr. Justice Holmes delivered the opinion of the. court.

This is an action for damage caused by the melting on a hot day of fusible sprinkler heads in an automatic sprinkler put up in the plaintiffs building by the defendant for protection against fire. The complaint alleges, diversity of citizenship, . negligence on the part of the defendant, injury to goods of two tenants in the' building, suits by or in thé right of the tenants against the plaintiff, which the plaintiff notified the defendant .to. defend, the recovery of judgments, one of which was affirmed by the Supreme Court" of Michigan, Peerless Manufacturing Co. v. Bagley, 126 Michigan, 225, and payment of the same by the plaintiff,' who seeks to recover the sums paid, interest, and the costs of defense. The answer denies many of the material allegations, and relies'upon the terms of the written-contract under which the work wás done, alleging the same to have been performed and the :work accepted. -The contract required-the material to be first class, and all work specified to be done iñ a thorough and workmanlike manner, and in conformity with the Improved Risks Commission standard for automatic sprinkler installations. It also contained this clause: “It is explicitly understood and agreed that no obligations other than herein set forth and made a part of this proposal and acceptance shall be binding Upon either party.” The case was sent, to a-referee, and he found that the obligations of the agreement were fulfilled, that contrary to rulings asked by the plaintiff the Michigan judgment did not determine that the defendant was negligent, or bind it, and-that the defendant was entitled to judgment. Upon the referee’s findings the complaint was dismissed on the merits by the;Circuit Court, and the judgment was affirmed by the Circuit Court of Appeals. 150 Fed. Rep. 284.

The first question that arises is whether this court has.juris- ' diction, and upon that we are of opinion that the plaintiff’s argument fails. When the jurisdiction below depends entirely upon diversity of citizenship, the judgment of the Circuit Court of Appeals is final, by the. express terms of the Act of March 3, 1891, c. 517, § 6. 26 Stat. 826, 828. This, of course, is not denied, but it is said that this section does not exclude a resort to this court when the complaint also invokes the application of the Constitution of the United States. Spreckels Sugar Refining Co. v. McClain, 192 U. S. 397. It is urged that if an exception is made' to the universality of the words when the constitutional question is disclosed in the complaint, it is unreasonable not to extend it sufficiently to include cases where the same question is raised at the trial, as it was in the present instance, and where the matter might have been'brought at once from the Circuit Court to this court. Loeb v. Trustees of Columbia Township, 179 U. S. 472. But the difference is plain.. When the constitutional right is claimed in the complaint, the jurisdiction does not depend entirely upon diversity of citizenship, and the exception is not read into the words, but is expressed by the act.' When the question is raised at the trial for the first time the case cannot be taken up from the Circuit Court of Appeals without'a direct disregard of the words. Thé difference is pointed out in both of the cases to which we have referred. Walsh v. Columbus &c. Railroad Co., 176 U. S. 479; Spreckels Sugar Refining Co. v. McClain, 192 U. S. 397, 409, 410. See also Huguley Manufacturing Co. v. Galeton Cotton Mills, 184 U. S. 290, 295; American Sugar Refining Co. v. New Orleans, 181 U. S. 277, 282.

Failing the foregoing argument, it is contended that the jurisdiction of the Circuit Court did not depend entirely on the diverse citizenship of the parties. In other words, it is contended that the complaint sufficiently invoked Art. IV, § 1, of the Constitution' by alleging the Michigan judgment, and the fact that in those cases it was averred and adjudged that one of the sprinkler” heads was negligently and improperly, made of such material as to fuse' at too low a temperature, and that the' sprinkler and pipes were negligently and improperly eiected and placed. But in the complaint there is no intimation, direct' or indirect, of a reliance upon the Constitution. On the contrary , instead of simply setting forth the defendant’s contract, the suits, notice to the defendant to defend, and the judgments, and thus at least implying that for some reason those judgments were supposéd to establish the defendant’s liability, it is most elaborately alleged, seemingly as issuable-matter,, that the de- - fendant was negligent in its work and did not do what it had agieed to perform. The judgments seem on the face of the complaint to be referred to primarily, if hot solely, as fixing the amount of the plaintiff’s claim. See further Provident Savings Life Assurance Co. v. Ford, 114 U. S. 635; Pope v. Louisville, New Albany & Chicago Ry. Co., 173 U. S. 573, 580.

But if. the .plaintiff had set forth in so many words that he ' came into court relying upon full faith and credit being given to the Michigan judgment under the Constitution, still, on the face of the complaint, it would have been obvious that the Constitution was not the basis of his claim, as it is.obvio.us, on reading the opinion of the Circuit Court of Appeals, that full faith and credit to'the Michigan judgment has not been denied. The'defendant was no party to that 'judgment, and there is' nothing in the Constitution to give it any' force as against strangers. If the judgment binds the defendant it is not by its own operation, eyen with the Constitution behind' it, but by an estoppel arising out of the defendant’s contract with the plaintiff and the notice to defend. The ground of decision in-both courts bglow .was that there was no such estoppel, the duty and responsibility of the defendant-being limited.by the words that we have quoted from the contract, excluding any obligation other than those set forth. The decision, in other words, turned wholly on the construction of the contract as excluding a liability over in the event that happened. Even if wrong, it did not deiiy the Michigan judgments their full effect, but denied the preliminary relation between the defendant and the party to them, without which the defendant remained a stranger to them, in spite of the notice to defend. .

- Writ of error dismissed.


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Citator

Cited By (18 total)

  • Am. Bonding Co. v. Coastal Metal Sales, Inc., 679 So. 2d 1250 (Fla. 2d DCA 1996)
    …5); Ariz. Rev.Stat. Ann. § 20-612 (1990). Second, Arizona may have had jurisdiction over the assets of the insurance company, but it did not have jurisdiction over Coastal Metal when it entered its order. See Bagley v. General Fire Extinguisher Co., 212 U.S. 477, 29 S.Ct. 341, 53 L.Ed. 605 (1909). If this Florida action proceeded to judgment, it is probable that Arizona would be obligated to give it full faith and credit, although it might choose to give it such low priority in the insolvency proceeding as…
  • …ered. But this court held that full faith and credit was not denied by a determination of the power of one partner to so enter the appearance of a non-resident partner and held that no such power existed. In Bagley v. General Fire Extinguisher Co., 212 U. S. 477, 480, the facts were these: A tenant recovered judgment against his landlord resulting from the melting of sprinkler heads in an automatic sprinkler put up in plaintiff’s building by the defendant. The plaintiff gave the defendant notice to defend,…
  • Fall v. Eastin, 215 U.S. 1 (U.S. 1909)
    …igation imposed by equity upon a. purchaser with notice. The ground of decision below was that there was no such obligation. The decision, even if wrong, did not deny to the Washington decree its full effect. Bagley v. General Fire Extinguisher Co., 212 U. S. 477, 480.…

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