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Rehearing Denied Oct. 11, 1943. See 320 U.S. --, 64 S.Ct. 27, 88 L.Ed. --. [319 U.S. 448, 449] Mr. Marston Allen, of Cincinnati, Ohio, for petitioner.
Mr. Cedric W. Porter, of Boston, Mass., for respondent.
Mr. Justice DOUGLAS delivered the opinion of the Court.
It was held in Lambert Run Coal Co. v. Baltimore & Ohio R. Co.,
Petitioner is a resident of Ohio; respondent is a Massachusetts corporation. Respondent brought an action at law against petitioner in the Superior Court of Massachusetts for breach of a contract. Petitioner was personally served when he happened to be in Boston. [319 U.S. 448, 450] Petitioner appeared specially and caused the action to be removed to the federal District Court in Massachusetts, petitioner being a non-resident of Massachusetts and there being diversity of citizenship and the requisite jurisdictional amount. Judicial Code 28, 28 U.S.C. 71, 28 U. S.C.A. 71. Petitioner thereupon entered a general appearance1-he answered, interposing several defenses including res judicata; he also filed a counterclaim. He then moved for a summary judgment. Shortly before that motion came on to be heard respondent moved to amend its declaration by adding a complaint for treble damages under 4 of the Clayton Act. 2 38 Stat. 731, 15 U.S.C. 15, 15 U.S.C.A. 15. The District Court granted petitioner's motion for summary judgment. 41 F.Supp. 461. But it denied respondent's motion to amend, being of the view that it had no jurisdiction to allow the amendment. 42 F.Supp. 938. In reaching that result the District Court expressed doubts that the venue requirements of 4 of the Clayton Act were satisfied. But it expressly declined to rest on that basis and placed its decision solely on the Lambert Co. line of cases. On appeal the Circuit Court of Appeals sustained the ruling of the District Court on the motion for summary judgment but disagreed with its view on the motion to amend. 131 F.2d 190. The case is here on a petition for a writ of certiorari which we granted because of the importance of the problem and [319 U.S. 448, 451] the contrariety of views which had developed concerning it. 3
The Lambert Co. case and those which preceded4 and followed it merely held that defects in the jurisdiction of the state court either as respects the subject matter or the parties5 were not cured by removal but could thereafter be challenged in the federal court. We see no reason in precedent or policy for extending that rule so as to bar amendments to the complaint, otherwise proper, merely because they could not have been made if the action had remained in the state court.
6
If the federal court has jurisdiction of the removed cause and if the amendment to the complaint could have been made had the suit originated in the federal court, the fact that the federal court acquired jurisdiction by removal does not deprive it of power to allow the amendment. Though this suit as instituted involved only questions of local law, it could have been brought in the federal court by reason of diversity of citizenship.
7
The rule of Erie Railroad Co. v. Tompkins,
[319
U.S. 448, 452]
It is said, however, that the amendment in question may not be made since the cause of action authorized by 4 of the Clayton Act may be brought only in a District
[319
U.S. 448, 453]
Court in the district 'in which the defendant resides or is found or has an agent.' 15 U.S.C. 15, 15 U.S.C.A. 15. That requirement relates to venue. But venue involves no more and no less than a personal privilege which 'may be lost by failure to assert it seasonably, by formal submission in a cause, or by submission through conduct.' Neirbo Co. v. Bethlehem Shipbuilding Corp.,
But we need not rest on that narrow ground. Petitioner was personally served in the state court action. After the removal of the cause he entered a general appearance and defended on the merits. He also filed a counterclaim in the action. He thus invoked the jurisdiction of the federal court and submitted to it. Merchants' Heat & L. Co. v. Clow & Sons,
AFFIRMED.
Mr. Justice FRANKFURTER, dissenting.
Congress has power, of course, to authorize a suit arising under federal law to be brought in any of the federal district courts. Robertson v. Labor Board,
The respondent, a Massachusetts corporation, brought an action for breach of contract in the Superior Court of Essex County, Massachusetts, against the petitioner, a resident of Ohio, by serving him personally while at a hotel in Boston. Since there was the requisite diversity of citizenship and jurisdictional amount, the petitioner appeared specially in the state court, removed the cause to the federal district court in Massachusetts, filed an answer and a counterclaim for damages, and moved for summary judgment under Rule 56(b) of the Federal Rules of Civil Procedure, 28 U.S.C.A. following section 723c. Thereafter, on the day before the hearing on this motion, the respondent moved to amend its complaint by adding a cause of action for treble damages under 4 of the Clayton Act. At that time the petitioner was no longer present in Massachusetts. The district court granted the petitioner's motion for summary judgment, and denied the respondent leave to amend its complaint. The reasons for the court's action appear in its opinion:
As in Camp v. Gress,
In vacating the judgment of the district court, the Circuit Court of Appeals stated: 'The fact that in all probability the plaintiff in the case at bar could not bring a separate action under the anti-trust laws against the defendant in the district court sitting in Massachusetts because the defendant could avoid the service of process upon him by remaining outside of the district cannot [319 U.S. 448, 458] affect the jurisdiction of the court to allow the amendment. This is only a fact to be considered by the district court in exercising its discretionary power to allow or disallow the amendment. Since the court below did not exercise its discretionary power but ruled that it lacked jurisdiction to allow the amendment we must remand to that court for further proceedings.' 131 F.2d 190, 194, 195. The Circuit Court of Appeals plainly did not regard the petitioner as having waived his objection to the 'jurisdiction' or venue of the district court in Massachusetts. It placed its reversal of the district court on another ground, the correctness of which I shall consider later.
Nor can the petition for certiorari, read in its entirety, be construed as an abandonment of the petitioner's objection to the venue of the Massachusetts district court. True enough, the 'only question presented' is stated to be 'whether a plaintiff may amend his complaint in a removed action so as to state a new and independent cause of action against the defendant which is outside the State Court's jurisdiction.' But the text of the petition makes it clear that the petitioner's 'jurisdictional' objections included the claim that venue was not properly laid in the Massachusetts district court. On pages 16 and 17, for example, he states:
I quite agree with the Court that venue is a privilege that may be waived, that it 'may be lost by failure to assert it seasonably'. Neirbo Co. v. Bethlehem Corp.,
The Court relies upon Rules 15 and 18 of the Federal Rules of Civil Procedure, which establish liberal rules for the joinder of causes of action. But these Rules do not dispense with the requirements of venue. Rule 82 explicitly provides that 'These rules shall not be construed to extend or limit the jurisdiction of the district courts of the United States or the venue of actions therein.' Because causes of action could be joined, if properly brought, does not prove that they are properly brought. A liberal rule regarding joinder of actions does not eliminate the problems of suability created by the various venue provisions. The removal statute itself does not [319 U.S. 448, 460] impliedly repeal the multitudinous venue restrictions imposed by Congress. And certainly Rules 15 and 15 did not do so, especially since Rule 82 contains a specific disavowal of such implications.
The provision of the removal statute that once a suit is removed, the district court shall 'proceed therein as if the suit had been originally commenced in said district court', 38 of the Judicial Code, 28 U.S.C. 81, 28 U.S.C.A. 81, in no wise extends the jurisdiction or venue of the district court after removal. The provision means only that when a suit is removed to the federal courts, it shall be disposed of in the manner in which business is conducted there. The requirement of federal law that there be a unanimous verdict of the jury, for example, applies even to suits removed from a state court where a majority of eight can render a verdict. See Minneapolis & St. Louis R.R. v. Bombolis,
Joinder is permissible only if the causes of action are properly in court, that is, if the requirements of venue as well as jurisdiction are satisfied. If these requirements are not met, an order of court directing joinder cannot dispense with them. The respondent here sought to add a cause of action for treble damages under 4 of the Clayton Act-a cause of action over which the district court in Massachusetts could have venue only if the petitioner resided in Massachusetts, or was found there either in person or through an accredited agent. But at the time of the proposed amendment to the complaint seek-
[319
U.S. 448, 461]
ing to add this claim, the petitioner was not a resident of Massachusetts nor can he be said to have been 'found' there in any legitimate sense of the word. His only contact with Massachusetts was the fact that he was a defendant in an action for breach of contract brought in a Massachusetts state court and properly removed to the federal district court there. If the respondent had instituted a separate suit in Massachusetts against the petitioner under the anti-trust laws, neither the state court, Blumenstock Bros. v. Curtis Pub. Co.,
I know of no case which has construed the requirement of 'found', as applied to a natural person, to mean anything less than actual physical presence. The Neirbo case is obviously without relevance here. The problem there was that of fitting a fictive personality into legal categories designed for natural persons. A corporation is never 'found' anywhere except metaphorically. In recognition of this fact the Neirbo case held that when a corporation assents to the conditions governing the doing of business within a state, it is as much 'found' there for purposes of federal law as for those of state law. But in the case of a natural person, he can be 'found' not metaphorically but physically. And when a person is not actually physically present in a place, he is not, 'so to speak', 'found' there except in the world of Alice in Wonderland.
The case therefore reduces itself to this: if the petitioner had not removed the action for breach of contract to the federal court, he could not possibly be compelled to defend a suit under the anti-trust laws brought against him in Massachusetts. His mere exercise of the right of removal given him by Congress has resulted in his being
[319
U.S. 448, 462]
made subject to suit in a place other than that specified by Congress in 4 of the Clayton Act. This is to add to the removal privilege a condition of hardship which Congress itself has not imposed for the simple reason that it runs counter both to the underlying assumption of diversity jurisdiction and to the historic rule that the 'jurisdiction of a District Court in personam has been limited to the district of which the defendant is an inhabitant or in which he can be found'. Robertson v. Labor Board,
The derivative nature of removal jurisdiction, see State of Minnesota v. United States,
Mr. Justice ROBERTS, Mr. Justice REED and Mr. Justice JACKSON join in this dissent.
[
Footnote 1
] See Western Loan & S. Co. v. Butte & B. Mining Co.,
[
Footnote 2
] That section provides: 'Any person who shall be injured in his business or property by reason of anything forbidden in the antitrust laws may sue therefor in any district court of the United States in the district in which the defendant resides or is found or has an agent, without respect to the amount in controversy, and shall recover threefold the damages by him sustained, and the cost of suit, including a reasonable attorney's fee.' That section derived from 7 of the Sherman Act, 15 U.S. C.A. 15 note. See Eastman Kodak Co. v. Southern Photo Materials Co.,
[ Footnote 3 ] See Noma Electric Corp. v. Polaroid Corp., D.C., 2 F.R.D. 454; Carroll v. Warner Bros. Pictures, Inc., D.C., 20 F.Supp. 405; Howe v. Atwood, D.C., 47 F.Supp. 979, 984. Cf. Newberry v. Central of Georgia Ry. Co., 5 Cir., 276 F. 337, 338.
[
Footnote 4
] See Goldey v. Morning News,
[
Footnote 5
] Wabash Western Ry. v. Brow,
[
Footnote 6
] It is clear that the Massachusetts state court did not have jurisdiction over the cause of action under the Anti Trust laws. See 15 U. S.C. 15, 15 U.S.C.A. 15, supra, note 2; Blumenstock Bros. v. Curtis Pub. Co.,
[
Footnote 7
] Suits based on diversity of citizenship may be brought 'only in the district of the residence of either the plaintiff or the defendant.' Judicial Code 51, 28 U.S.C. 112, 28 U.S.C.A. 112. Congress has not made the same requirement on removal. Thus an action between citizens of different states begun in a court of a state of which neither is a citizen may be removed to the federal court of the district in which the suit is pending. Lee v. Chesapeake & Ohio Ry. Co.,
[ Footnote 8 ] The 'only question' presented by the petition for writ of certiorari was 'whether a plaintiff may amend his complaint in a removed action so as to state a new and independent cause of action against the defendant which would be outside the State Court's jurisdiction.' That obviously is not a presentation of a question of venue of a federal district court under 4 of the Clayton Act; and it can hardly be expanded into one by an incidental discussion of venue in the brief.
[ Footnote 9 ] See note 7, supra.
[
Footnote 10
] See Adam v. Saenger,
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Citation: 319 U.S. 448
No. 707
Decided: June 01, 1943
Court: United States Supreme Court
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