Schuman v. Little Bay Const. Corp.

Decision Date20 March 1953
PartiesSCHUMAN v. LITTLE BAY CONST. CORP. et al.
CourtU.S. District Court — Southern District of New York

Archibald Palmer, New York City, for plaintiff.

Amen, Gans, Weisman & Butler, New York City, for defendant Arnold C. Stream, Herman L. Weisman, New York City, of counsel.

McGOHEY, District Judge.

The defendant Stream moves to dismiss the complaint on several grounds of which one is that the court lacks jurisdiction because parties are all citizens of New York and the suit presents no question arising under the Constitution or laws of the United States. That ground, if established, is sufficient to dispose of the motion.

The complaint, which is long, verbose and confused, appears to set up two causes of action. In the first, the plaintiff, a stockholder of Clearview Gardens First Corporation, purports to assert a claim on behalf of that corporation arising from certain alleged conduct of some of the defendants which it is claimed resulted in loss and damage to the corporation. The second cause of action appears to be a spurious class action in which the plaintiff, for himself and all other stockholders, seeks to annul each separate contract between each member of the "class" and the defendant Clearview Associates, Inc. The contracts are independent of each other and in none does the amount exceed $1,200; in most instances it is either $1,000 or $800.

The complaint, which is partly printed and partly typed, was filed January 5, 1953. Except for the typed portion, the complaint is substantially the same one previously dismissed in December, 1952 in an identical suit in the state court. There, of course, it was not claimed that the suit involved "a federal question." After that dismissal plaintiff's counsel merely replaced the first page of the old complaint with a typewritten sheet so as to plead federal jurisdiction arising under the "Federal" (sic) Housing Act of 1950, 12 U.S.C.A. § 1702 et seq., and more than $3,000 as the amount involved.

It is conceded that all the parties are citizens of New York. Federal jurisdiction is rested on the allegation that "this case arises under a Federal Statute, to wit, The Housing Act of 1950 as amended." The theory apparently is that this court has jurisdiction because the alleged acts of mismanagement and breaches of fiduciary duty are also breaches of the National Housing Act of 1950 and that, in order to determine the defendants' liabilities, the court will necessarily have to interpret ...

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3 cases
  • Zahn v. International Paper Company 8212 888
    • United States
    • U.S. Supreme Court
    • 17 Diciembre 1973
    ...Eastern Airways, 127 F.Supp. 521 (N.D.Cal.1954); Goldberg v. Whittier Corp., 111 F.Supp. 382 (E.D.Mich.1953); Schuman v. Little Bay Constr. Corp., 110 F.Supp. 903 (S.D.N.Y.1953); Giescke v. Denver Tramway Corp., 81 F.Supp. 957 (Del.1949); Koster v. Turchi, 79 F.Supp. 268 (E.D.Pa.) aff'd, 17......
  • Fitzgerald v. Pan American World Airways
    • United States
    • U.S. District Court — Southern District of New York
    • 8 Julio 1955
    ...City Southern Ry. Co., 2 Cir., 1936, 84 F.2d 411, certiorari denied 299 U.S. 607, 57 S.Ct. 233, 81 L.Ed. 448; Schuman v. Little Bay Const. Corp., D.C.S.D.N.Y.1953, 110 F.Supp. 903; Gilvary v. Cuyahoga Valley Ry. Co., 292 U.S. 57, 54 S.Ct. 573, 78 L.Ed. The cases cited by the defendant susta......
  • Baker v. NORTHLAND MORTGAGE COMPANY
    • United States
    • U.S. District Court — Northern District of Illinois
    • 31 Julio 1972
    ...299 U.S. 109, 112, 57 S.Ct. 96, 81 L.Ed. 70 (1936); Russo v. Kirby, 453 F.2d 548, 551 (2d Cir. 1971); Schuman v. Little Bay Const. Corp., 110 F. Supp. 903, 904 (S.D.N.Y.1953). The case will be dismissed and judgment will be entered for It is so ordered. ...

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