Source: https://supreme.justia.com/cases/federal/us/225/111/
Timestamp: 2019-04-22 06:33:27+00:00

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Justia › US Law › US Case Law › US Supreme Court › Volume 225 › Bigelow v. Old Dominion Copper Mining & Smelting Co.
claiming that, under the full faith and credit clause of the Constitution of the United States, the judgment dismissing a suit based on the same cause of action against one alleged to be his joint tortfeasor was a bar to the suit, and that the Massachusetts courts were bound to give to the judgment the same effect as an estoppel as against subsequent suits on the same cause of action.
Although one of two joint tortfeasors may be individually interested in the result of a suit against the other, the result is merely that of precedent, and not of res judicata, and the courts of another state are not under obligation to follow the decision.
Assistance by one of two joint tortfeasors in the defense of a suit against the other, because of interest in the decision as a judicial precedent affecting a case pending against him in another state, does not create an estoppel as to the one so assisting in the defense.
Where the cause of action against joint tortfeasors is ex delicto and several as well as joint, one of the tortfeasors not sued is not a privy to one that is sued so that a judgment dismissing the case against the latter is a bar to another suit against the latter.
Where the remedy of the plaintiff in a suit against one of two joint tortfeasors depends upon the defendant's own culpability, failure to recover in a prior suit on the same facts against the other is not a bar.
When dealing with the estoppel of a judgment, privity denotes mutual or successive relationship to the same right of property, and while there is diversity of opinion as to whether the estoppel can be expanded so as to include joint tortfeasors not parties, the sounder reason, as well as weight of authority, is that failure to recover against one is not a bar to a suit or an individual cause of action against the other.
Where the jurisdiction of the Circuit Court of the United States depends entirely upon diversity of citizenship, that court administers the law of the state, and its judgment is entitled to the same sanction as would attach to a judgment of a court of that state, and is entitled in the courts of another state to the same faith and credit which would be given to a judgment of the court of the state in which the circuit court which rendered it was sitting.
Where a judgment of the court of another state is set up as a bar, the effect of that judgment in the courts of the state which rendered it is a question of fact to be determined by the court in which it is set up.
the same cause of action against the other joint tortfeasor, the court of another state may, without denying full faith and credit to such judgment, determine for itself under principles of general law whether or not such judgment is a bar to suits against the other tortfeasor.
Under § 1 of Art. IV of the Constitution and § 905, Rev.Stat., the judgment of a court of one state, when sued upon or pleaded in estoppel in the courts of another state, is put upon the plane of a domestic judgment in respect to conclusiveness of the facts adjudged; otherwise it would be reexaminable as only prima facie evidence of the matter adjudged, as is the case with foreign judgments.
The full faith and credit clause is to be construed in the light of the other provisions of the Constitution, none of which it was intended to modify or override.
The courts of one state are not required to regard a conclusive any judgment of the court of another state which had no jurisdiction of the subject or the parties, and the courts of the state in which the judgment is set up has the right to inquire whether the court rendering it had jurisdiction to pronounce a judgment which would conclude the parties themselves or those claiming that the judgment was effective as an estoppel.
The privity that exists between a stockholder and the corporation that makes a judgment against the corporation conclusive as against the stockholder does not exist as between joint tortfeasors. Hancock National Bank v. Farnum, 176 U. S. 640, distinguished.
The facts, which involve the question of whether the Massachusetts courts gave to a New York judgment pleaded as a bar in a Massachusetts suit the full faith and credit which is required by § 1 of Art. IV of the Constitution of the United States and § 905, Revised Statutes, are stated in the opinion.
The question upon which these cases have been brought to this Court is whether the Massachusetts court gave to a New York judgment pleaded as bar to a Massachusetts suit that full faith and credit required by the first section of Article IV of the Constitution of the United States, and § 905, Revised Statutes, enacted in pursuance thereof.
of New Jersey, filed two bills in an equity court of Massachusetts against the plaintiff in error, Albert S. Bigelow, to recover secret profits realized by him and an associate, one Lewisohn, as organizers or promoters of the Copper Company, in selling the mining property of another corporation, called the Baltimore Company, and certain neighboring properties, designated in the transcript, "outside properties."
The two sales were for distinct considerations. The bills alleged that, when these sales were made, the Copper Company was under the absolute control of the two promoters, Bigelow and Lewisohn, and that they divided the profits between them. The fundamental facts in each case were the same. The two cases were heard together in the state courts, and are now heard as if one case, though upon separate writs and distinct records.
Demurrers were interposed and overruled. The allegations of the bills are fully shown in 188 Mass. 315, where one of the cases was considered on demurrer. Answers were then filed and a great mass of evidence taken. Upon a full hearing, the allegations of the respective bills were held to be sustained by the proofs, and final decrees were rendered for the plaintiff in sums aggregating $2,178,673.33. The decrees were affirmed in the Supreme Judicial Court.
as such, made the sales to it while under their entire control, and that they had realized fraudulent profits. Demurrers were interposed in the New York cases, which were sustained, and the bills dismissed. These judgments were affirmed in the Circuit Court of Appeals for the Second Circuit. The judgment in one of these cases, that relating to the sale of "outside properties," was brought to this Court by certiorari and affirmed, the opinion being by MR. JUSTICE HOLMES, 210 U. S. 210 U.S. 206, where the facts of the case are stated.
The final decree in one of the New York cases was pleaded in a supplemental answer in the pending Massachusetts cases as a bar to the suits against Bigelow. The Massachusetts court adjudged that Bigelow was neither a party nor a privy to the New York suits, and was therefore not protected by the judgment therein.
To conclude Bigelow by the New York judgment, it must appear that he was either a party or a privy. That he was not a party to the record is conceded. He had no legal right to defend or control the proceedings, nor to appeal from the decree. He was therefore a stranger, and was not concluded by that judgment as a party thereto. That he was indirectly interested in the result because the question there litigated was one which might affect his own liability as a judicial precedent in a subsequent suit against him upon the same cause of action is true, but the effect of a judgment against Lewisohn as a precedent is not that of res judicata, and the Massachusetts court was under no obligation to follow the decision as a mere judicial precedent. Nor would assistance in the defense of the suit, because of interest in the decision as a judicial precedent which might influence the decision in his own case, create an estoppel as to Bigelow. Stryker v. Goodnow, 123 U. S. 527. Also Rumford Chemical Works v. Hygienic Chemical Co., 215 U. S. 156.
But it is said that, if Bigelow was not in every sense a party, he was privy to Lewisohn, who was, and that the estoppel in the adverse judgment in the suit against Lewisohn protected Bigelow as well.
But would that judgment, if it had been for the plaintiff in that case, have bound Bigelow in a subsequent suit by the same plaintiff upon the same facts? If not, upon what principle may he claim the advantage of it as a bar to the present suit? The cause of action was one arising ex delicto. It was several as well as joint. The right of action against both might have been extinguished by a settlement with one, or by a judgment against one and satisfaction. But the claim has come in substance to this: that, although the plaintiff had a remedy against Lewisohn and Bigelow severally or jointly, a failure to recover in an action against one is a bar to his action against the other, the facts being the same, although there has been no satisfaction for the injury done. The only basis upon which such a result can be asserted is that Bigelow would have been bound by the judgment if it had been adverse to Lewisohn, and may therefore shelter himself behind it, since it was favorable to his joint wrongdoer.
It is a principle of general elementary law that the estoppel of a judgment must be mutual. Railroad Co. v. National Bank, 102 U. S. 14; Keokuk & W. Railroad v. Missouri, 152 U. S. 301; Freeman on Judgements § 159; 1 Greenleaf on Evidence, 13th ed., § 524. The mutuality of estoppel by judgment is fully recognized in both the New York and Massachusetts decisions: Atlantic Dock Co. v. New York, 53 N.Y. 64; Brigham v. Fayerweather, 140 Mass. 411, 415; Nelson v. Brown, 144 N.Y. 384.
same plaintiff. See Portland Gold Mining Co. v. Stratton's Independence, 158 F. 63, where the cases are collected. The unilateral character of the estoppel of an adjudication in such cases is justified by the injustice which would result in allowing a recovery against a defendant for conduct of another when that other has been exonerated in a direct suit. The cases in which it has been enforced are cases where the relation between the defendants in the two suits has been that of principal and agent, master and servant, or indemnitor and indemnitee.
The principle upon which one may avail himself of the effect of a judgment adverse to the plaintiff in a former suit against the immediate actor is thus stated in New Orleans & N.E. R. Co. v. Jopes, 142 U. S. 18, 142 U. S. 24, 142 U. S. 27.
"It would seem on general principles that, if the party who actually causes the injury is free from all civil and criminal liability therefor, his employer must also be entitled to a like immunity. . . . If the immediate actor is free from responsibility because his act was lawful, can his employer, one taking no direct part in the transaction, be held responsible? . . . The question carries its own answer, and it may be generally affirmed that, if an act of an employee be lawful, and one which he is justified in doing, and which casts no personal responsibility upon him, no responsibility attaches to the employer therefor."
It is too evident to need argument that the remedy of this plaintiff does not depend upon the culpable conduct of Lewisohn, but upon Bigelow's own wrong, whether alone or in cooperation with Lewisohn. The liability of each was several as well as joint, and a failure to recover against one is no bar to a suit against the other upon the same facts. But a judgment not only estops those who are actually parties, but also such persons as were represented by those who were or claim under or in privity with them.
"is that they are identified with him in interest, and wherever this identity is found to exist, all are alike concluded. Hence, all privies, whether in estate, in blood, or in law, are estopped from litigating that which is conclusive upon him with whom they are in privity."
But it is said that the relationship of joint tortfeasors is such as to constitute privity, and that a judgment in a suit in favor of one upon the same identical cause of action is a bar to a suit by the same plaintiff against the other wrongdoer. Whether the estoppel of a judgment is to be confined to those who were actually parties or privies in estate or interest, or may be expanded so as to include joint tortfeasors not actually parties, is a question concerning which there is some diversity of opinion. But, as we shall later see, the sounder reason as well as the weight of authority is that the failure to recover against one of two joint tortfeasors is not a bar to a suit against the other upon the same facts.
Passing this for the time, we come to a consideration of the contention that, whatever the general law upon this subject, if such was the effect of such a judgment under the law of New York, it was the duty of the Massachusetts court under the full faith and credit clause to give it like effect in the present suit.
"This can hardly be regarded as an open question in this commonwealth. In Sprague v. Oakes, 19 Pick. 455, which was an action for trespass quare clausum fregit, it was said, respecting such a defense: 'The defendant was neither a party nor privy to that judgment, was not bound by it, nor could he take advantage of it.' This case has never been overruled or questioned, and must be regarded as stating the law of this commonwealth. There are other authorities to the same point. Lansing v.
v. Boston & Maine Railroad, 196 Mass. 575, 581; Pinkerton v. Randolph, 200 Mass. 24, 28. There is no right of contribution between joint wrongdoers, where they are in pari delicto with each other. Churchill v. Holt, 127 Mass. 165. They are equally culpable, and the wrong complained of results from their joint effort."
The cause of action was one arising ex delicto, and the liability of Lewisohn and Bigelow was several as well as joint. In many cases, this Court has held that a judgment without satisfaction against one of two joint trespassers is no bar to another action against the other for the same tort. The common law imposes upon each joint tortfeasor the burden of bearing the entire loss which he, in cooperation with another, has inflicted. The injured person may sue those who cooperated in the commission of the tort together, or he may sue them singly. He may recover against less than all if he sue them jointly, and may have a judgment for unequal sums against all who are joined in the suit. Or, if he sue one such wrongdoer and recover judgment, he is not estopped from suing another upon the same facts unless his first judgment has been fully satisfied. Lovejoy v. Murray, 3 Wall. 1; Sessions v. Johnson, 95 U. S. 347, 95 U. S. 348; The Beaconsfield, 158 U. S. 303. If Lewisohn and Bigelow were severally liable, and a judgment against one, without full satisfaction, was not a bar to a suit against the other, it is difficult to see why a failure to obtain a judgment against one should be an answer to a suit against the other, who was not a party to the first suit. That a failure to recover in one suit against one such tortfeasor is not a bar to a suit in the courts of another state against another, who was not a party to the first suit, seems to be supported by considerations of justice and the weight of authority.
effect of estoppel which attached to it in the courts of New York, or may it determine for itself, under principles of general law, whether the judgment was a bar to the suit against Bigelow?
"Full faith and credit shall be given in each state to the public acts, records, and judicial proceedings of every other state, and the Congress may by general laws prescribe the manner in which such acts, records, and proceedings shall be proved, and the effect thereof."
"The acts of the legislature of any state or territory, or of any country subject to the jurisdiction of the United States shall be authenticated by having the seals of such state, territory, or country affixed thereto. The records and judicial proceedings of the courts of any state or territory, or of any such country, shall be proved and admitted in any other court within the United States, by the attestation of the clerk, and the seal of the court annexed, if there be a seal, together with a certificate of the judge, chief justice, or presiding magistrate, that the said attestation is in due form. And the said records and judicial proceedings, so authenticated, shall have such faith and credit given to them in every court within the United States as they have by law or usage in the courts of the state from which they are taken."
"Judgments recovered in one state of the Union, when proved in the courts of another, differ from the judgments recovered in a foreign country in no other respect than that of not being reexaminable upon the merits, nor impeachable for fraud in obtaining them, if rendered by a court having jurisdiction of the cause and of the parties."
Citing Buckner v. Finley, 2 Pet. 592; M'Elmoyle v. Cohen, 13 Pet. 312, 38 U. S. 324; D'Arcy v. Ketchum, 11 How. 165, 52 U. S. 176; Christmas v. Russell, 5 Wall. 290, 72 U. S. 305; Thompson v. Whitman, 18 Wall. 457.
This requirement of full faith and credit is to be read and interpreted in the light of well established principles of justice, protected by other constitutional provisions which it was never intended to modify or override.
It is therefore well settled that the courts of one state are not required to regard as conclusive any judgment of the court of another state which had no jurisdiction of the subject or of the parties. D'Arcy v. Ketchum, 11 How. 165; Public Works v. Columbia College, 17 Wall. 521, 84 U. S. 528; Thompson v. Whitman, 18 Wall. 457; Hanley v. Donoghue, 116 U. S. 1, 116 U. S. 4; Huntington v. Attrill, 146 U. S. 657, 146 U. S. 685; Hall v. Lanning, 91 U. S. 160.
them by its own laws in their character of foreign judgments."
The general effect of a judgment of a court of one state, when relied upon as an estoppel in the courts of another state, is that which it has, by law or usage, in the courts of the state from which it comes. But the faith and credit to be accorded does not preclude an inquiry into the jurisdiction of the court which pronounced the judgment, or its right to bind the persons against whom the judgment is sought to be enforced.
"where the questions raised were not questions of jurisdiction. But where the jurisdiction of the court which rendered the judgment has been assailed, quite a different view has prevailed. Justice Story, who pronounced the judgment in Mills v. Duryee, in his commentary on the Constitution, after stating the general doctrine established by that case with regard to the conclusive effect of judgments of one state in every other state, adds:"
was whether a record finding of jurisdictional facts could be contradicted. The holding of the Court was that the jurisdiction could be assailed by evidence of facts contradicting those found to exist by the record pleaded as an estoppel. That case has since been accepted as determining that the binding effect of a judgment of one state, when pleaded as an estoppel in the courts of another, is open to challenge by assailing an officer's return of service, or the authority of one who assumed to accept service, or to enter an appearance, even though the judgment includes a finding of the facts necessary to confer jurisdiction. It would seem to follow that the Massachusetts court had the legal right to inquire not only whether Bigelow was a party to the New York judgment in the sense that he might have appeared and defended, or appealed from it, but whether the cause of action and the relation of Bigelow to it, or to the parties, was such that the New York court could pronounce a judgment which would bind him, or conclude the plaintiff from suing him upon the same facts. Knowles v. Logansport Gaslight Co., 19 Wall. 58; Cooper v. Newell, 173 U. S. 555, 173 U. S. 556.
or otherwise, of the want of due service. Whatever effect a constructive service may be allowed in the courts of the same government, it cannot be recognized as valid by the courts of any other government."
See also the thorough discussion of this question in Haddock v. Haddock, 201 U. S. 562, 201 U. S. 567, 201 U. S. 573.
"It is sufficient for the disposition of this case that the judgment is not evidence of any personal liability of Withers outside of New York. It was rendered in that state without service of process upon him or his appearance in the action. Personal judgments thus rendered have no operation out of the limits of the state where rendered. Their effects are merely local. Out of the state, they are nullities, not binding upon the nonresident defendant nor establishing any claim against him. Such is the settled law of this country, asserted in repeated adjudications of this Court and of the state courts."
"The judgment in New York, it is true, is a joint judgment against all the partners, against those summoned by publication as well as those who were served with process or appeared, but this joint character cannot affect the question of its validity as respects those not served. The clause of the federal Constitution which requires full faith and credit to be given in each state to the records and judicial proceedings of every other state applies to the records and proceedings of courts only so far as they have jurisdiction. Wherever they want jurisdiction, the records are not entitled to credit."
enter the appearance of certain nonresidents who were not and could not be notified. In the action upon this joint judgment, one of the defendants claimed the right to deny the jurisdiction of the New York court to pronounce a judgment against him upon the ground that he had not been summoned, had not personally appeared, and was not concluded by an appearance entered for him by his copartners, the firm having theretofore been dissolved. The case was distinguishable from D'Arcy v. Ketchum and Public Works v. Columbia College because the partners actually served assumed authority to enter the appearance of the nonresidents who were not served. The debt sued upon was a partnership debt. The contention was that the relation of partnership conferred upon partners, even after dissolution, the right to appear for their copartners in a suit against the firm. As a question of general law, this Court held that, although the judgment was valid under the laws and usage of New York, at the common law, no such right existed after dissolution, and that the requirement of full faith and credit did not compel the courts of another state to give effect to the judgment as against the nonresident member of the firm who had not been served.
From these cases, it is clear that the conclusive effect of a judgment in personam which is to be recognized when questioned in the courts of another state depends upon whether it is the judgment of a court which had jurisdiction over the person of the defendant sought to be bound. The estoppel here insisted upon is grounded not upon actual notice or appearance, but upon a theory as to the relation between joint tortfeasors under the laws of New York. If the Massachusetts court was of opinion that, under the general law, that relationship was not such as to make Bigelow a party by either privity or representation, it was under no obligation to treat the New York judgment as a bar to the suit in which it was pleaded.
The binding effect of the judgment sued upon in Hall v. Lanning, cited above, turned upon the implied power of one member of a dissolved firm to enter the appearance of his nonresident partners in a suit upon a joint debt. Under the decisions of the New York courts, such a judgment bound the members whose appearance was so entered. But this Court held that full faith and credit was not denied by a determination of the power of one partner to so enter the appearance of a nonresident partner, and held that no such power existed.
it did not deny the Michigan judgments their full effect, but denied the preliminary relation between the defendant and the party to them, without which the defendant remained a stranger to them, in spite of the notice to defend."
as any debtor, whether by judgment or otherwise, set off against a claim or judgment, but in other respects it is an adjudication binding him. He is so far a part of the corporation that he is represented by it in the action against it."
There is no parallel between the relation of joint tortfeasors and that of a stockholder to his corporation. In the latter case, the stockholder, by the organic law of his corporation, is a member and represented by it so long as it keeps within its corporate powers. In the other instance, one wrongdoer, when sued, does not represent those not sued, although they had cooperated in the wrong and were both liable.
MR. JUSTICE HUGHES took no part in the hearing or consideration of these cases.

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