In re Lehigh Min. & Manuf'g Co. No. ____

• Decision Date: 04 March 1895
• Citation: 156 U.S. 322,39 L.Ed. 438,15 S.Ct. 375
• Parties: In re LEHIGH MIN. & MANUF'G CO. No. ____
• Court: U.S. Supreme Court

156 U.S. 322

15 S.Ct. 375

39 L.Ed. 438

In re LEHIGH MIN. & MANUF'G CO.

No. ____.

March 4, 1895.

The Lehigh Mining & Manufacturing Company, alleging itself to be 'a corporation organized and existing under the laws of the state of Pennsylvania, and a citizen and resident of the said state of Pennsylvania,' brought its action of ejectment in the circuit court of the United States for the Western district of Virginia against J. J. Kelly, Jr., and others, tenants and lessees of Kelly, to recover the land described in the declaration. The defense pleaded not guilty, and also filed two pleas to the jurisdiction of the court. These pleas averred that, for 10 years prior to the commencement of the action in ejectment, the Virginia Coal & Iron Company, a corporation existing under the laws of Virginia and a citizen of Virginia, had been claiming title to the lands of the defendant Kelly described in the declaration; that, immediately preceding the commencement of the action, the Virginia Coal & Iron Company, its stockholders, officers, and members, organized, under the laws of the state of Pennsylvania, the Lehigh Mining & Manufacturing Company, to which the Virginia Company conveyed said land, in order to enable the Lehigh Company to institute suit in the circuit court, said Lehigh Company being simply another name for the Virginia Company, being composed of the same parties, and organized alone for the purpose of taking a conveyance of the land from the Virginia Company, and the Virginia Company making the conveyance, fraudulently and collusively, for the purpose of conferring jurisdiction on the circuit court. Issue was joined upon the pleas, and on the 30th day of May, 1894, was tried by the court, Hon. John Paul, district judge, holding the circuit court, presiding, upon an agreed statement of facts, which recited, among other things, that the Lehigh Company in the month of February, 1893, was organized under the laws of Pennsylvania by the individual stockholders and officers of the Virginia Company, a corporation organized and existing under the laws of Virginia and a citi- zen of that state, and that the land in controversy was conveyed by the Virginia Company to the Lehigh Company; 'that the purpose of organizing said Lehigh Mining & Manufacturing Company, and in making to it said conveyance, was to give to this court jurisdiction in this case; but that said conveyance passed to said Lehigh Mining & Manufacturing Company all of the right, title, and interest of said Virginia Coal & Iron Company in and to said land; and that, since said conveyance, said Virginia Coal & Iron Company has had no interest in said land, and has not and never has had any interest in this suit; and that it owns none of the stock of the Lehigh Mining & Manufacturing Company, and has no interest therein whatever.' The court, being of opinion that 'the organization by the individual stockholders and officers of a corporation existing under the laws of one state of a corporation under the laws of another state, for the express purpose of bringing a suit in the federal court to try the title to a tract of land claimed by the former corporation, and conveyed to the latter after its organization, and before suit brought, will not enable the grantee to maintain a suit in ejectment in such court'; that the suit did not really and substantially involve a dispute or controversy properly within the jurisdiction of the court; and that the plaintiff had been collusively made a party to it, for the purpose of making a case cognizable in the federal court, sustained the pleas and dismissed the action. 64 Fed. 401.

The judgment of the court was as follows:

'This day came again the parties by their attorneys, and on motion of the defendants to dismiss this suit, because instituted and prosecuted in fraud of the jurisdiction of the court, by consent of the parties the cause came on to be heard upon the two pleas in writing to the jurisdiction heretofore filed in the case, at the proper time, and general replication thereto, and the agreed statement of facts, signed by the attorneys and filed therein, the exceptions indorsed thereon; and the court having fully considered the said two pleas, the agreed statement of facts aforesaid, and the exception to a certain paragraph in the said agreed statement of facts, and argument of counsel, doth consider that the said exceptions are not well taken, and overrule the same. And the court further considers that the said pleas be, and they are hereby, sustained. And for reasons in writing filed herewith, as part of this order, the court doth further consider that it has no jurisdiction of this case, and that the said action of ejectment be, and the same...