Document: 394 U.S. 332 89 S.Ct. 1053 22 L.Ed.2d 319 Margaret E. SNYDER, Petitioner,v.Charles HARRIS et al. The GAS SERVICE COMPANY, Petitioner, v. Otto R. COBURN, etc. Nos. 109, 117. Argued Jan. 21 and 22, 1969. Decided March 25, Rehearing Denied May 5, See 1025, 1622. No. 109: Charles Alan Seigel, St. Louis, Mo., for petitioner. James L. Zemelman, respondents. 117: Gerrit H. Wormhoudt, Wichita, Kan., Robert Martin, respondent. Mr. Justice BLACK delivered the opinion of Court. 1 Title 28 U.S.C. § 1332 grants jurisdiction to United States district courts suits between citizens different where 'the matter in controversy exceeds sum or value $10,000 * *.' issue presented by these two cases is whether separate distinct claims various claimants a class action may be added together provide jurisdictional amount controversy. 2 Each involves single plaintiff suing on behalf himself 'all others similarly situated.' In Mrs. Snyder, shareholder Missouri Fidelity Union Trust Life Insurance Company, brought suit against members company's board directors alleging that they had sold their shares stock an far excess its fair market value, this represented payment particular obtain complete control company, under law should properly distributed among all shareholders company not merely few them. was District Court Eastern Missouri, 268 F.Supp. 701, diversity citizenship being alleged as basis federal jurisdiction. Since petitioner's allegations showed she sought herself only $8,740 damages, respondent moved dismiss grounds did exceed $10,000. Petitioner contended, however, her claim aggregated with those other class, approximately 4,000 stock. If potential were aggregated, would $1,200,000. held could thus meet statutory test Appeals Eighth Circuit, following somewhat similar decision Fifth Circuit Alvarez Pan American Co., 375 F.2d 992, cert. denied, 389 827, 88 74, 19 82 (1967), affirmed, 390 204 (1968). 3 117, Coburn, resident Kansas, Kansas Gas Service corporation marketing natural gas Kansas. Jurisdiction predicated upon citizenship. complaint Company billed illegally collected city franchise tax from Coburn living outside limits. damages $7.81. Styling his action, relief 18,000 cuctomers cities. which been overcharged was, is, unknown, but aggregation any event overruled Company's motion failure satisfy and, interlocutory appeal, Tenth holding because 1966 amendment Rule 23 Federal Rules Civil Procedure relating actions, now purpose establishing cases. 831. We granted certiorari resolve conflict position Courts Circuits Circuit. 4 first congressional grant take fixed requirement at $500.1 1887 increased $2,000;2 1911 $3,000;3 1958 $10,000.4 5 traditional judicial interpretation statutes has beginning more plaintiffs cannot order requirement. Aggregation permitted (1) seeks aggregate own defendant (2) unite enforce title right have common undivided interest. It adoption effectuated change doctrine. Under old 23, actions divided into three categories came known 'true,' 'hybrid,' 'suprious.' True rights undivided; such permitted. Spurious hand, essence form permissive joinder parties allowed litigate simply involved questions fact. permitted: each show individual exceeded amount. replaced functional approach actions. new establishes guidelines appropriateness makes provision giving notice absent members, allows remove themselves litigation provides judgment will include who requested exclusion. changes changed doctrine well. court noted that' 'Because individuals constituting case bar are enither 'joint' nor 'common' before classified 'true' permitted.' 831, 833. held, result compelled abolished distinctions true spurious some it must Rule. disagree conclude, Appeal Circuits, amended about scope congressionally enacted courts. 6 never, now, based rule procedure. That rather Court's phrase 'matter controversy.' precluding substantially predates 1938 Procedure. said Troy bank G. A. Whitehead & Co.: 7 'When plaintiffs, having demands, convenience economy suit, essential demand requisite 222 39, 40, 32 9, 56 L.Ed. 81. 8 By 1916 able say Pinel Pinel, 240 594, 36 416, 60 817, 'settled doctrine' required Clark Paul Gray, Inc., 306 583, 59 744, 83 1001 (1939), doctrine, declared involving parties, applied then recently passed Rules. numerous individuals, partnerships, corporations joined bringing challenging validity California statute exacted fees $15 automobile driven State. Raising question sua sponte, fee payers 'where there no joint interest subject suit.' U.S., 588, S.Ct., 748. Nothing us argue since do ask out certain date, controversy' encompasses entire class. But equally join provisions 20, every bound judgment. And very kind doctrice originally enunciated. Bank 81 (1911); 817 (1916). fact judgments fromerly same effect certainly reason treat them differently purposes aggregation. 9 Any purport definition clearly command '(t)hese rules shall construed extend limit Sibbach Wilson rulemaking authority limited inability court, rule, restrict conferred statute.' 312 1, 10, 61 422, 425, 85 479 (1941). consistently interpreted Congress conferring can reached aggregating claims. 10 For reasons set above, we think unmistakably clear urged, overrule established hold regardless argued determination 'separate distinct' troublesome breeds uncertainty needless litigation, small prevent important litigated both factors, argued, tend undercut attempt Judicial Conference promulgate efficient modernized procedures. whatever merit contentions, sufficient justify our abandonment language stood than century half. 11 linguistically possible, course, interpret including through device. But, Judiciary Act 1789 placed access classes cases, i cluding initial $500 series increases have, pointed finally amount-in-controversy section re-enacted 'matter-in-controversy' without background encompassing This uniform least 1832 Oliver Alexander, Pet. 143, 349. There doubt hazards pitfalls assuming re-enactment always freezes existing involved. Here, settled 'amount implicitly taken account relevant committees determining, 1958, extent raised. quite if probable, chose increase proposed $7,500 $15,000 workload estimates relied aggregated. Where prior half face language, perhaps entirely realistic designate resulting 'judgemade formula.' 12 To late date run counter steadily increasing years check, degree, rising caseload courts, especially regard courts' inescapably well liberal proversions 20 18. allow practically happen action. seriously expansion most noticeable current one member diverse class' opponent, nondiverse named even though State nothing fear trying lawsuit Supreme Tribe Ben-Hur Cauble, 255 356, 41 338, 65 673 (1921). transfer local controvesies exclusively state law. Healy Ratta, 292 263, 54 700, 78 1248 (1934), successively raising determined lesser amounts left dealt said: 13 'The policy calls strict construction. Due rightful independence governments, actuate requires scrupulously confine precise limits defined.' 270, 703. 14 Finally, unless principles overturned, advantages inhere resort forms. disadvantageous resu ts overemphasized, think, lower developed largely workable standards determining when common, therefore entitled aggregable. Moreover, while device serves useful function across range legal questions, applies almost controversies A large part matters brought, way otherwise, Suits issues often appropriately tried underlying us, example, law, respectively. litigating already filed court. residents contend service charges authorized bring procedures patterned former 23. compelling overturn add burdens overloaded system. Nor overlook pemitted go assured doing so none either expand contract present need Constitution specifically vests power Congress, 15 109 Affirmed. 16 17 117 Reversed. 18 FORTAS, whom DOUGLAS joins, dissenting. today refuses conform judge-made formula computing refusal undermine generally welcomed long-needed reform deferal procedure.1 Its impact also 1331, general provision, specific jurisdiction.2 artificial, awkward, unworkable 'joint,' 'common,' 'several' 'spurious' terminate re-established procedural Litigants, lawyers, continue ensnared complexities coplaintiffs less amount, usually precisely morass avoid. give wider discretion type litigation. metaphysics conceptual analysis 'character enforced' pragmatic, might maintained carefully provided safeguards avoid unfairness.3 24 amemdment formulated care committee recommended pursuant 331.4 accepted promulgated Court5 acquiescence, became land July 1966. 2072 (1964 ed., Supp. III). Now Court, my stand analysis, defeats like here insists up n perpetuation profession hoped become curiosities past. 25 led unfortunate insistence regarding method embodied unaffected subsequent immune re-examination impermissible None premises correct. I. 26 Act, included courts—notably citizenship6 later-established consider questions7—a stated money. never expanded explained bare words successive statutes. Over detailed complex requirements met.8 27 Among proposition multiple reach E.g., 147, 349 (1832). Applying principle property concepts, specialized asserted make interests, however fact, theory 'several,' e.g., (1916), permissible claimed interests right. Texas Pacific Co. Gentry, 163 353, 1104, 186 (1896); Shields Thomas, How. 3, 93 (1855). much later application actions,9 rest decisions, Congress. body decisional reevaluation after fundamental structure made continuing wholly anomalous.10 29 majority half-heartedly suggests re-evaluation re-enacting time somehow expressed intent freeze once statute. As frankly acknowledges, 'hazards involved.' 30 While sometimes signify adoption, view appropriate Girouard States, 328 61, 69—70, 66 826, 830, 90 1084 (1946): 31 "It require persuasive circumstances enveloping Congressional silence debar re-examining doctrines.' best treacherous find alone controlling inaction consistent desire leave problem fluid cases.'11 case, 'very circumstances' indicating doctrines, obvious fiction mainfest intention adopt perpetuate technical designated facilitate administration 33 hearings reports $3,000 $10,000—which fastens adopting re-enactment—include word whole determine issue, reference cases.12 speculates 'possible, probable,' 'implicitly' took doctrines decided raise higher attribute thoughts highly matter, seems me reasonable assume aware developing amendments. 34 I meaningful sense light conditions dollar required. II. 35 Whatever pre-1966 status year permits effected subsidiary harmonized Procedure, according statutorily defined process, supersede laws Thus, statute—as not—they conflicted New version availability depended enforced.'13 actually appeared judgment.14 context heavily dependent categorization perpetuates Rule, defects, anomalous eccentric. 37 Scholarly professional criticism interest' classification scheme vigorous distinguished.15 found confusing unhelpful making practical decisions. Not difficult,16 dividing group isolate not.17 proposing Advisory Committee summed experience saying: 38 'In practice terms etc., used proved obscure uncertain.' 39 F.R.D. 98. response demonstrated inappropriateness categorization, dealing fundamentally amended, effective focus shifts abstract character explicit suitability resolution lightly; full factors specified However, terms, longer necessary relevance proper. area operation statute, states many resolved 40 placing civil Once economic stakes indicated includes 23(c)(3). broadening 'controversy' combined illustrated facts proceed, would, wrongfully $7.81 taxes Coburn. which, due process,18 determine—authoritatively precedent—the people allegedly represent.19 hard understand why are, categories, means regarded instead thousands dollars overcharges past development concerning requirement, properly, responded substantive law.20 Now, confronted meaning arising changes. petrified forms products of, to, another time. vitiate significant intended accomplished determinative maintainability just obsolete conceptualism irrel vant. sense, continued adherence conflicts improper III. 42 Permitting does involve violation principle, inherent procedure promulgation Rules, jurisdictions. subject-matter jurisdiction, practices frequently necessarily affect occasions exercised difference what hear authoritatively judgment.21 ancillary influenced 'jurisdiction' broader sense.22 Indeed, resolving side.23 Similarly, creation action—one meeting class-wide resolution, although subject-matter-jurisdiction statutes, referring applied. Making calculating responsive extension recognition framework operate 43 larger well, fulfill contradict adhere boundaries number instances, heard great areas Article III jurisdiction—federal citizenship—any $10,000.' Just wrong exercise theirs, refuse erred granting it. 44 redefining has, nominally legally alike once, claim, proceeding asserting personally all. When accordance painstaking demands theory, thing stake, controversy,' total, combined, happens obey, violate, impose ancient artificial fragment respect commanded ready hear. 45 reasons, measure otherwise proper monetary Section 1789, Stat. 78. 1887, 52. 1911, 24, 1091. 72 415. On reception, see, Kaplan, Continuing Work Committee: Amendments (I), Harv.L.Rev. 380—386 (1967); Cohn, Geo.L.J. 1204, 1213—1214 (1966); Note, Proposed 23: Class Actions Reclassified, 51 Va.L.Rev. 629, 630—636 (1965). W. Barron Holtzoff, Practice 561 n. 15.1 (C. Wright ed. 1968 Pocket Part) (hereinafter cited Holtzoff). Even commentators critical apparent breadth abolition Ford, History Development Old Amended ABA Antitrust L.J. 254, 257—258 (1966). says broadly, 'A Ante, 341. vitally case—an governmental federal, violates constitutional limits—the task demonstrating existence instances significantly complicated 1331 available. sure, statutor types No ultimately within special provisions. seeking establish public officials suggested opinions Hague CIO, 307 496, 954, 1423 (1939). 1343 officials, see Pierson Ray, 386 547, 87 1213, 288 Monroe Pape, 365 167, 473, 492 (1961), help purely Wheeldin Wheeler, 373 647, 650 2, 1441, 1444, 605 (1963). Friedenthal, Limitations Jurisdiction, Stan.L.Rev. 213, 216—218 (1959). reads: 'Rule '(a) Prerequisites Action. One sue sued representative impracticable, (3) defenses typical (4) fairly adequately protect '(b) Maintainable. An prerequisites subdivision (a) satisfied, addition: '(1) prosecution create risk '(A) inconsistent varying adjudications incompatible conduct party opposing '(B) dispositive impair impede ability interests; '(2) acted refused act applicable thereby final injunctive corresponding declaratory whole; '(3) finds predominate over affecting os superior available methods adjudication pertinent findings include: (A) individually defense actions; (B) nature alrea y commenced class; (C) desirability undesirability concentrating ligigation forum; (D) difficulties likely encountered management '(c) Determination Order Whether Action Main- tained; Notice; Judgment; Conducted Partially Actions. soon practicable commencement maintained. conditional, altered merits. (b)(3), direct circumstances, identified effort. advise exclude him he requests date; judgment, favorable not, request exclusion; exclusion may, desires, enter appearance counsel. (b)(1) (b)(2), describe specify (c)(2) directed, exclusion, '(4) issues, subclasses subclass treated accordingly. '(d) Orders Conduct applies, orders: course proceedings prescribing measures undue repetition complication presentation evidence argument; requiring, protection given manner step opportunity representation adequate, intervene defenses, come action; imposing intervenors; requiring pleadings eliminate therefrom persons, proceed accordingly; (5) matters. orders 16, desirable '(e) Dismissal Compromise. dismissed compromised approval dismissal compromise directs. (As Feb. 28, 1966, eff. 1966.)' 1965 Conf. Proceedings Rep. 52—53. supra, 357—358. 383 1031 1332. 1331. Other providing 1335 (interpleader); 1346 (claims States); 1445 (removal carriers). J. Moore, 0.90—0.99; Holtzoff 24; Ilsen Sardell, Monetary Minimum Jurisdiction: I, John's L.Rev. (1954), Id., II, p. 183 (1955); Jurisdictional Amount: Matter Controversy, 73 1369 (1960). (1939); Buck Gallagher, 95, 740, 1128 Thomson Gaskill, 315 442, 62 673, 86 951 (1942). context, Amount Requirement Joinder Parties Ind.L.J. 199 (1952). Helvering Reynolds, 313 428, 432, 971, 973, 1438 (1941); Legislative Adoption Prior Construction: Case Reenactment 1277 (1946). Francis Southern 333 445, 450, 68 611, 613, 92 798 (1948), difficulty 'in setting case' implied. dissent responded: '(I)f judges seem keep minds open helpful supervision serve public.' 453, 615. 'I venture suggestion shocking closest touch (the legislation involved), told 'silence' responsible trend quarter century. fields close liaison agencies matters, awareness administrative ground assumption (held adopted re-enactment) deliberately favored archaic doctrine.' 465—466, 621. Hearing H.R. 2516 4497, Subcommittee House Judiciary, 85th Cong., 1st Sess., ser. (1957); H.R.Rep.No.1706, 2d Sess. (1958); S.Rep.No.1830, (1958). 'secondary owner primary becomes it.' Stockholders' derivative group. They separately 23.1 addition. 23(a)(2), character, 'and object action,' 'hybrid' property. See, All Amer. Airways, Inc. Elderd, 209 247 (C.A.2d Cir. 1954). little preamendment consequences explicated detail 3A 23.08—23.14. Z. Chafee, Some Problems Equity 243—295 (1950); C. Wright, Handbook Law 269 (1963); Kalven Rosenfield, Contemporary Function Suit, U.Chi.L.Rev. 684 notable example Deckert Independence Shares Corp., 763 (D.C.E.D.Pa.), rev'd, 108 (C.A.3d 1939), 311 282, 229, 189 (1940), remand, 592 rev'd sub nom. Pennsylvania Insurances Liv s, Deckert, 123 979 1941). views discussed 15, 263—269. Fed.Rule Civ.Proc. Comm. 98—99. Hansberry Lee, 32, 42—43, 115, 118—119, (1940). elected right, extended 23(b)(3), installments installment contract, York Ins. Viglas, 297 672, 615, 80 971 (1936). if, equitable remedies put whole, accrued performance. Landers Frary Vischer Products 201 (C.A.7th 1953); Franklin Johnson, 157 653 (C.A.10th 1946); Davis Foundry Equip. 94 441, 115 A.L.R. 1486 1938). Developments Law, Declaratory Judgments—1941—1949, 787, 801—802 (1949). Mississippi Pub. Corp. Murphree, 326 438, 445 446, 242, 246. 185 (1946); 399—400. Cf. Provident Tradesmens Patterson, 102, 116—125, 733, 741—746, 936 19—20; Fraser, Ancillary Claims Courts, 27, 28. long existed original ousted intervenors adverse party. Stewart Dunham, 1163, 329 (1885); assertion Montgomery Ward Langer, 168 182 (C.A.8th 1948), 'spurious,' Amen lack, 234 1956), moot, 355 600, 530, 523

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