American Sugar Refining Company v. New Orleans/Opinion of the Court

by Melville Fuller

United States Supreme Court

181 U.S. 277

American Sugar Refining Company  v.  New Orleans

 Argued: and Submitted March 18, 1901. --- Decided: April 29, 1901

The jurisdiction of the circuit court rested on diverse citizenship, and not on any other ground, and had the circuit court of appeals gone on and decided the case, its decision would have been final, and our interposition could only have been invoked by certiorari.

This was so notwithstanding one of the defenses was the unconstitutionality of the ordinance. Colorado Cent. Consol. Min. Co. v. Turck, 150 U.S. 138, 37 L. ed. 1030, 14 Sup. Ct. Rep. 35; Press Pub. Co. v. Monroe, 164 U.S. 105, 41 L. ed. 367, 17 Sup. Ct. Rep. 40; Ex parte Jones, 164 U.S. 691, 41 L. ed. 601, 17 Sup. Ct. Rep. 222. These, and many other cases to the same effect, related to the appellate jurisdiction of this court over the court of appeals under the 6th section of the judiciary act of March 3, 1891, but they necessarily involved consideration of our jurisdiction under the 5th section, and that of the court of appeals under the 6th section. By the 5th section appeals or writs of error may be taken from the district or circuit courts direct to this court in any case that 'involves the construction or application of the Constitution of the United States;' 'in which the constitutionality of any law of the United States, or the validity or construction of any treaty made under its authority, is drawn in question;' 'in which the Constitution or law of a state is claimed to be in contravention of the Constitution of the United States.' Section 6 provides that the circuit courts of appeals shall exercise appellate jurisdiction to review the final decisions of the district and circuit courts 'in all cases other than those provided for in the preceding section of this act, unless otherwise provided by law, and the judgments or decrees of the circuit courts of appeals shall be final in all cases in which the jurisdiction is dependent entirely upon the opposite parties to the suit or controversy being aliens and citizens of the United States or citizens of different states.' The jurisdiction referred to is the jurisdiction of the circuit court, and as the judgment of the court of appeals is made final in all cases in which the jurisdiction of the circuit court attaches solely by reason of diverse citizenship, it follows that the court of appeals has power to review the judgment of the circuit court in every such case, notwithstanding constitutional questions may have arisen after the jurisdiction of the circuit court attached, by reason whereof the case became embraced by section 5.

Thus, it was held in Loeb v. Columbia Twp. 179 U.S. 472, 45 L. ed. --, 21 Sup. Ct. Rep. 174, where the jurisdiction of the circuit court rested on diverse citizenship, but the state statute involved was claimed in defense to be in contravention of the Constitution of the United States, that a writ of error could be taken directly from this court to revise the judgment of the circuit court, although it was also ruled that the plaintiff might have carried the case to the circuit court of appeals, and that, if a final judgment were rendered by that court against him, he could not thereafter have invoked the jurisdiction of this court directly on another writ of error to review the judgment of the circuit court.

The intention of the act in general was that the appellate jurisdiction should be distributed, and that there should not be two appeals, but in cases where the decisions of the courts of appeals are not made final it is provided that 'there shall be of right an appeal or writ of error or review of the case by the Supreme Court of the United States where the matter in controversy shall exceed one thousand dollars besides costs.' [§ 6.]

And the right to two appeals would exist in every case (the litigated matter having the requisite value), where the jurisdiction of the circuit court rested solely on the ground that the suit arose under the Constitution, laws, or treaties of the United States, if such cases could be carried to the circuit courts of appeals, for their decisions would not come within the category of those made final.

As, however, a case so arises where it appears on the record, from plaintiff's own statement, in legal and logical from, such as is required by good pleading, that the suit is one which does really and substantially involve a dispute or controversy as to a right which depends on the construction or application of the Constitution or some law or treaty of the United States (Little York Gold-Washing & Water Co. v. Keycs, 96 U.S. 199, 24 L. ed. 656; Blackburn v. Portland Gold Min. Co. 175 U.S. 571, 44 L. ed. 276, 20 Sup. Ct. Rep. 222; Western U. Teleg. Co. v. Ann Arbor R. Co. 178 U.S. 239, 44 L. ed. 1052, 20 Sup. Ct. Rep. 867); and as those cases fall strictly within the terms of section 5, the appellate jurisdiction of this court in respect of them is exclusive.

If plaintiff, by proper pleading, places the jurisdiction of the circuit court on diverse citizenship, and also an grounds independent of that,-a question expressly reserved in Colorado Cent. Consol. Min. Co. v. Turck, 150 U.S. 138, 37 L. ed. 1030, 14 Sup. Ct. Rep. 35,-and the case is taken to the court of appeals, propositions as to the latter grounds may be certified; or, if that course is not pursued and the case goes to judgment (and the power to certify assumes the power to decide) an appeal or writ of error would lie under the last clause of section 6, because the jurisdiction would not depend solely on diverse citizenship. Union P. R. Co. v. Harris, 158 U.S. 326, 39 L. ed. 1003, 15 Sup. Ct. Rep. 843.

In Carter v. Roberts, 177 U.S. 496. 44 L. ed. 861, 20 Sup. Ct. Rep. 713, we said: 'When cases arise which are controlled by the construction or application of the Constitution of the United States, a direct appeal lies to this court, and if such cases are carried to the circuit courts of appeals those courts may decline to take jurisdiction, or, where such construction or application is involved with other questions, may certify the constitutional question and afterwards proceed to judgment, or may decide the whole case in the first instance.' These observations perhaps need some qualification. Undoubtedly where the jurisdiction of the circuit court depends solely on diverse citizenship, and it turns out that the case involves the construction or application of the Constitution of the United States, or the constitutionality of a law of the United States, or the validity or construction of a treaty, is drawn in question, or the Constitution or law of a state is claimed to be in contravention of the Constitution of the United States, the circuit court of appeals may certify the constitutional or treaty question to this court, and proceed as thereupon advised, or may decide the whole case; but language should not have been used susceptible of the meaning that in cases where the jurisdiction below is invoked on the ground of diverse citizenship the circuit court of appeals might decline to take jurisdiction, or, in other words, might dismiss the appeal or writ of error for want of jurisdiction. The mere fact that in such a case one or more of the constitutional questions referred to in § 5 may have so arisen that a direct resort to this court might be had does not deprive the court of appeals of jurisdiction, or justify it in declining to exercise it.

In the case at bar the jurisdiction rested on diverse citizenship. Two defenses were interposed, one of which asserted exemption from the license tax, and the other denied the constitutionality of the legislation under which the tax was imposed. Both defenses were overruled, and judgment rendered for the plaintiff. The case was then carried on error to the circuit court of appeals, which gave judgment dismissing the writ of error for want of jurisdiction. In this we think the court erred, and that a certiorari should issue that its judgment to that effect may be revised. As the record is before us on the return to the rule hereinbefore entered, and full argument has been had, it will be unnecessary for another return to be made to the writ, or further argument to be submitted.

Writ of certiorari to issue; return to rule to stand as return to writ; judgment thereupon reversed and cause remanded with a direction to take jurisdiction and dispose of the cause.

Mr. Justice Gray concurred in the result.

Notes