Levering Garrigues Co v. Morrin

Decision Date10 April 1933
Docket NumberNo. 423,423
Citation77 L.Ed. 1062,53 S.Ct. 549,289 U.S. 103
CourtU.S. Supreme Court
PartiesLEVERING & GARRIGUES CO. et al. v. MORRIN et al

Mr. Merritt Lane, of Newark, N.J., for petitioners.

Mr. Frank P. Walsh, of New York City, for respondents.

Mr. Justice SUTHERLAND delivered the opinion of the Court.

This is a suit brought by petitioners against respondents in the Federal District Court for the Southern District of New York to enjoin respondents from combining or conspiring to compel petitioners to employ, in their work of fabricating and erecting structural iron and steel, only members of a labor union, and to refrain from employing nonmembers; from conducting, inducing, or advising a boycott of petitioners; and from other enumerated acts. The bill invoked the jurisdiction of the federal court upon the ground of diversity of citizenship, and also upon the ground that acts complained of unlawfully interfered with interstate commerce and constituted a violation of the federal anti-trust acts. The case was sent to a referee, who, after a hearing, made a report and decision sustaining the charge of boycotting, but holding that the interference occasioned thereby was local in character and did not constitute an interference with interstate commerce. The report and decision were confirmed by the District Court, and the bill dismissed as to certain of the respondents, and an injunction issued against others, the particulars of which, in the view we take of the case, it is not necessary to state.

The Circuit Court of Appeals reversed the decree of the District Court holding that the allegations of the bill were insufficient to establish jurisdiction on the ground of diversity of citizenship, and that the case having failed on the federal question, the court was without power to consider the nonfederal question because it was asserted in an independent cause of action. While resting its decision upon these considerations, that court expressed the further view that the allegations of the bill in respect of the claim of federal jurisdiction under the anti-trust acts were probably so unsubstantial as to disclose, on the face of the bill, a lack of federal jurisdiction. The District Court was directed to dismiss the bill without prejudice for lack of jurisdiction unless amendments could be made to correct the defect in respect of diversity of citizenship. 61 F.(2d) 115. This court granted certiorari limited to the question of federal jurisdiction other than questions relating to diversity of citizenship, 287 U.S. 590, 53 S.Ct. 118, 77 L.Ed. —-.

The question of jurisdiction as thus limited is to be determined by the allegations of the bill, and not upon the facts as they may turn out, or by a decision of the merits. Mosher v. Phoenix, 287 U.S. 29, 30, 53 S.Ct. 67, 77 L.Ed. 148, and cases cited. Whether an objection that a bill or a complaint fails to state a case under a federal statute raises a question of jurisdiction or of merits is to be determined by the application of a well settled rule. If the bill or the complaint sets forth a substantial claim, a case is presented within the federal jurisdiction, however the court, upon consideration, may decide as to the legal sufficiency of the facts alleged to support the claim. But jurisdiction, as distinguished from merits, is wanting where the claim set forth in the pleading is plainly unsubstantial. The cases have stated the rule in a variety of ways, but all to that effect. See, for example, Mosher v. Phoenix, supra; Hull v. Burr, 234 U.S. 712, 720, 34 S.Ct. 892, 58 L.Ed. 1557; Western Union Tel. Co. v. Ann Arbor R. Co., 178 U.S. 239, 244, 20 S.Ct. 867, 44 L.Ed. 1052; Binderup v. Pathe Exchange, 263 U.S. 291, 305 et seq., 44 S.Ct. 96, 68 L.Ed. 308; South Covington Ry. Co. v. Newport, 259 U.S. 97, 99, 42 S.Ct. 418, 66 L.Ed. 842; Niles-Bement-Pond Co. v. Iron Moulders' Union, 254 U.S. 77, 82, 41 S.Ct. 39, 65 L.Ed. 145; Montana Catholic Missions v. Missoula County, 200 U.S. 118, 130, 26 S.Ct. 197, 50 L.Ed. 398; Newburyport Water Co. v. Newburyport, 193 U.S. 561, 576, 24 S.Ct. 553, 48 L.Ed. 795. And the federal question averred may be plainly unsubstantial either because obviously without merit, or 'because its unsoundness so clearly results from the previous decisions of this court as to foreclose the subject and leave no room for the inference that the questions sought to be raised can be the subject of con- troversy.' Hannis Distilling Co. v. Baltimore, 216 U.S. 285, 288, 30 S.Ct. 326, 327, 54 L.Ed. 482; McGilvra v. Ross, 215 U.S. 70, 76, 77, 80, 30 S.Ct. 27, 54 L.Ed. 95; Norton v. Whiteside, 239 U.S. 144, 153, 36 S.Ct. 97, 60 L.Ed. 186; Bianchi v. Morales, 262 U.S. 170, 43 S.Ct. 526, 67 L.Ed. 928; State of Kansas v. Bradley (C.C.) 26 F. 289, 290; Harris v. Rosenberger (C.C.A.) 145 F. 449, 452, 13 L.R.A.(N.S.) 762.

Passing, without inquiry, the first of these tests, a consideration of the decisions of this court rendered prior to the filing of the present bill demonstrates that the question is concluded by an application of the second test.

The prayer for relief primarily is based upon the averments that petitioners are engaged in fabricating and erecting structural iron and steel; that they are, and have been for a long time, operating in such business on the open shop method in relation to their employment of labor; that they have large contracts for the construction of work in the city of New York; that respondents are organizations of labor and officers and agents thereof; that by means and in ways which are set forth respondents have conspired, and are attempting, to compel petitioners and others to employ,...

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