INSURANCE COMPANY
v.
FRANCIS

U.S. | 1870-12-01
11 Wall. 210 Supreme Court of the United States (1870) Positive Treatment
Also reported at: 20 L. Ed. 77 · SCDB 1870-071 · 1870 U.S. LEXIS 1475
Cited by 21 cases

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Synopsis

An insurance company that was a New York corporation sought to remove a case from Mississippi state court to federal court, but the declaration failed to allege that any party was a citizen of Mississippi, which was required for removal jurisdiction under the 1867 removal statute. The Supreme Court reversed the District Court's judgment and remanded the case to state court, holding that a corporation's citizenship is determined solely by the state that created it, regardless of where it conducts business, and therefore the federal court lacked jurisdiction because the declaration did not show the requisite diversity of citizenship between a Mississippi citizen and a citizen of another state.


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Opinion of the Court
Mr. Justice DAVIS

Mr. Justice DAVIS delivered the opinion of the court.

The act of Congress of March 2, 1867, which allows a plaintiff’, under certain circumstances, to remove his cause from the State to the Federal court, authorizes the transfer only when one party is a citizen of the.State in which the suit is brought and the other party is a citizen of a different State. In this case, while it appears on the face of the declaration that the plaintiff' is a' citizen of Illinois, it does not appear that the defendant is a citizen of Mississippi. This being so, it is not necessary to notice the subsequent pleadings, because if the court can see, on the case made by the plaintiff’in his declaration, that the District Court acquired no jurisdiction over it, it is bound to reverse the judgment and direct the District Court to remand the cause to the State court in which it was instituted.† If the declaration had averred the citizenship of the parties to be as the law requires it, the jurisdiction of the District Court would have attached, and we would be required to look further into the record in order to ascertain whether the defendant had raised the question of jurisdiction in season to avail itself of the objection in this court.* The declaration avers that the plaintiff in error (the defendant, in the court below) is a corporation created by an act of the legislature of the State of New York, located in Aberdeen, Mississippi, and doing business there under the laws of the State. This, in legal effect, is an. averment that the defendant was a citizen of New York, because a corporation can have no legal existence outside of the sovereignty by which it was created.† Its place of residence is there, and can be nowhere else. Unlike a natural person, it cannot change its domicile at will, and, although .it may be permitted to transact business where its charter does not operate, it cannot on that account acquire a residence there. As, therefore, the declaration is, on its face, bad in not showing that one of the parties to the suit was a citizen of Mississippi, it follows that the transfer of the cause was not authorized by law, and that the District Court had no jurisdiction to try it. ^ Judgment oe the District Court reversed, and the cause remanded to that*eourt with instructions to transmit it to "the Circuit Court of Monroe County for further proceedings In coneormity to law and-justice. † Pollard & Pickett v. Dwight et al., 4 Cranch, 429. * De Sobry v. Nicholson, 3 Wallace, 423. † Ohio and Mississippi Railroad Co. v. Wheeler, 1 Black, 286; Louisville Railroad Co. v. Letson, 2 Howard, 497.


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Citator

Cited By

  • Shaw v. Quincy Mining Co., 145 U.S. 444 (U.S. 1892)
    …is there, and can be nowhere else. Unlike a natural person, it cannot change ’ its domicil at .will, and, although it may be permitted to transact business.where its charter does not operate, it cannot, on that account,- acquire a residence there.” 11 Wall. 210, 216. In Ex parte Schollenberger, 96 U. S. 369, 377, Chief Justice - Waite said: “A corporation cannot change its residence or itsv citizenship. It can have its legal home only at the place where it is located by or under the- authority of its char…
  • Consol. Rendering Co. v. The State of Vt., 207 U.S. 541 (U.S. 1908)

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