Document: 505 U.S. 247 112 S.Ct. 2465 120 L.Ed.2d 201 AMERICAN NATIONAL RED CROSS, Petitioner,v.S.G. and A.E. No. 91-594. Argued March 3, 1992. Decided June 19, Syllabus In a state-court tort action, respondents alleged that one of them had contracted AIDS from transfusion contaminated blood supplied by petitioner American National Red Cross. The Cross removed the suit to Federal District Court, claiming federal jurisdiction based on, inter alia, provision in its charter authorizing it "to sue be sued courts law equity, State or Federal, within United States." court rejected respondents' motion remand case state court, holding conferred original jurisdiction. Court Appeals reversed. Held: charter's "sue sued" confers Pp. 250-265. (a) A congressional may read confer if, but only specifically mentions courts. must contain an express authorization, such as "in all . any circuit States," Osborn v. Bank States, 9 Wheat. 738, 818, 6 L.Ed. 204, " 'in Federal,' D'Oench, Duhme & Co. Deposit Ins. Corp., 315 447, 455-456, 62 676, 678-679, 86 956, rather than mere grant general corporate capacity sue, record, other place whatsoever,' States Deveaux, 5 Cranch 61, 85-86, 3 38, equity Bankers Trust Texas Pacific R. Co., 241 295, 304-305, 36 569, 570-571, 60 1010. has authorization thus should (b) Respondents' several arguments against this conclusion well-pleaded complaint rule bars removal; language charters enacted closely time 1947 amendment incorporating dispute show coherent drafting pattern casts doubt on intent over cases; was meant not jurisdiction, clarify Cross' where independent jurisdictional basis exists are unavailing. 257-263. (c) leaves well Article III's limits. This consistently held "arising under" is broad enough authorize Congress actions involving federally chartered corporations. 264-265. 938 F.2d 1494 (CA1 1991), reversed remanded. SOUTER, J., delivered opinion which WHITE, BLACKMUN, STEVENS, THOMAS, JJ., joined. SCALIA, filed dissenting opinion, REHNQUIST, C.J., O'CONNOR KENNEDY, joined, post, p.265. Roy T. Englert, Jr., Washington, D.C., for petitioner. Ronald J. Mann, amicus curiae special leave Court. Gilbert Upton, Concord, N.H., respondents. Justice SOUTER 1 authorizes organization 33 Stat. 600, amended, U.S.C. § 2. we consider whether cases party, with consequence thereby authorized removal state-law action defending. We hold clause does 2 * 1988 New Hampshire, alleging during surgery, naming defendants surgeon manufacturer piece medical equipment used procedure. After discovering tainted blood, it, too, again moved consolidate two actions. Before decided motion, invoked statute, 28 1441, remove latter Hampshire. claimed both diversity parties charter, argued suits organization. see order May 24, 1990, reprinted at App. Pet. Cert. 18a-25a. On interlocutory appeal, First Circuit (1991). compared analogous provisions previously examined concluded relevant similar cognates construed 38 (1809), railroad 1010 (1916), neither did find distinguished 204 (1824), reached opposite result under second finding significant Bank's spoke particular already possessed also discounted Cross's reliance our 956 (1942), concluding "not[ed] incidentally" FDIC's charter. See F.2d, 1497-1499. found support location section "denominat[ing] standard powers," id., 1499, legislative history adding current language, different form contemporaneously amendment. 1499-1500. 4 granted certiorari, 502 ----, 632, 116 602 (1991), answer difficult recurring question.1 II Since founding 1881 part international effort ameliorate soldiers' wartime suffering, expanded activities include, among others, civilian blood-supply services here issue. reincorporated 1893, 1900 received first revised 1905. Cross, Report Advisory Committee Organization (1946) (hereinafter Report), Brief Appellants 90-1873 (CA1), pp. 94, 101. 1905 empowered Act Jan. 5, 1905, ch. 23, 2, 600. At would have significance modern counterpart, since day involvement corporation sufficient render purposes statutory question Removal Cases, 115 1, 14, 1113, 1119, 29 319 (1885). 1925, however, restricted reach theory corporations owned more one-half capital stock. Feb. 13, 229, 12, 43 941; codified amended 1349.2 effect 1925 nonstock like unclear, see, e.g., C.H. 684 F.Supp. 1018, 1020-1022 (ED Mo.1987) (noting split authority 1349 applies corporations),3 enactment invested potential unknown it. 7 Its text, nevertheless, left undisturbed twenty years further, until form, took shape addition term "State Federal" overall revision organization's by-laws, 8, 1947, Pub.L. 80-47, 61 80, 81. It upon relies, no III A. 8 As indicated earlier, do face clean slate. Beginning Chief Marshall's 1809, occasions readings those represented best efforts divining retrospectively, placed prospective notice necessary Merriam, 263 179, 186, 44 69, 71, 68 240 (1923) (Congress presumed intend judicially settled meaning terms); Cannon University Chicago, 441 677, 696-698, 99 1946, 1957-1958, 560 (1979) (presuming knowledge interpretation similarly worded earlier statute). Those therefore require visitation care. considered point 'to sued, plead impleaded, answered, defend defended, Cranch, 85. written Marshall, reading normal 85-86. contrasted institution certain bank's officers record [sic] either them," described "expressly authoriz[ing] bringing courts," 86. "evince[d] congress, right imply union, unless expressed," ibid. 10 same issue came us 15 later Osborn. By established having competent Apr. 10, 1816, 44, 7, 266, 269. speaking through relied heavily Deveaux analysis, especially contrast developed there between bank officers, Osborn, Wheat., 818. Holding "could plainer explanation," ibid, conferring "a without mentioning Courts Union, give Courts," 11 With basic established, next occasion arise Trust, nearly century later. Mar. 1871, 122, 16 573, 574. Testing "d[id] literally follow" analogues cases, U.S., 304, S.Ct., 570, held, "the generality natural import" contained Thus, followed failure litigation expressly 570-571. 12 Last Duhme, That not, explained, "based citizenship. Respondent, corporation, brings Federal.' 678-679 (citation footnote omitted). perfectly true, stressed argument, accompanying quoted comment another providing '[a]ll civil nature common Corporation shall party deemed laws States: Provided, receiver involves rights obligations depositors, creditors, stockholders States,' n. 2.4 raise rest terms clause. Quite contrary, footnote's treatment naturally expressed subordinate importance quoted. While banks's FDIC might lose benefit deemer settle conclusively, case.5 B 13 These "conclusive argument" fact document them. ." contrasting these plainly intended indicate degree specificity required grant.6 certainly how understood "express jurisdiction," provision, which, "without Union," ibid., merely [but not] ibid.7 sufficiently stated reference, remarking "[t]o infer [Deveaux ] words right, surely premises warrant," ibid.8 14 Applying want reference courts, and, up closer former.9 Finally, mentioned general, court. makes clear using resulting respects identical just five before, extends beyond suffices IV Respondents offer conclusion, none availing. 17 First, can make short work argument conferral nevertheless subject requirements "well-pleaded complaint" (that appear complaint) limiting 38-46. erroneously invoke outside realm i.e., 1331, separate grant, case, provision. Verlinden B.V. Central Nigeria, 461 480, 494, 103 1962, 1971, 76 81 (1983); 13B Wright, Miller Cooper, Practice Procedure 3566, 82-83 (2d ed. 1984); Chemerinsky Kramer, Defining Role Courts, 1990 B.Y.U.L.Rev. 67, 75, 17; applicability here. 18 claim argue 1948 Commodity Credit (CCC), Crop Insurance (FCIC), 1935 each includes explicit grants together demonstrate practice [Congress] created." 27. 19 up. CCC irrelevant enquiry, exclusive, concurrent, 29, 1948, 704, 4, 1070. There every reason expect take great care use when wishes exclusive given longstanding requirement effect.10 employment explicitly CCC's raises suggestion laconic concurrent 20 Nor enactments argument. statutes were passed twelve apart employed verbally doctrinally distinct formulations. Compare Banking 1935, 614, 101, 49 684, 692 (providing "shall States") Aug. 440, 719 FCIC "may name district [that] hereby determine controversies regard amount controversy").11 differences semantic: depends 1331 while FCIC's functions independently 1331. substance belie judge ostensible behind 21 If, indeed, could plausibility, cost ignoring 1942 citing source 455, 678. If occurs odds significance, standing alone. event, handed down before indicates suffice Cannon, supra, 696-697, 1957-1958. was, entitled draw inference. C 22 look statute quite purpose they been exists. 23-27. thought clarification after passage generally end incorporation basis. 1349.12 But misconstrues somehow affecting corporation's own speaks then, correct motivated amendment, motivation cuts them, affected 23 well, extent points direction.13 Congress's prompted by, followed, recommendations private advisory committee H.R.Rep. 337, 80th Cong., 1st Sess., (1947) ("[The amendment] drafted made [the committee]. [They] incorporat[e] th[at] committee. ."); S.Rep. (1947), U.S.Code Cong.Serv. 1028, 1029 ("The present legislation incorporates, main, [A]dvisory committee"). recommended "[t]he reasoning instances powers respect questioned. However, view limited seems desirable clearly Charter." 35-36, 132-133. 24 Report's concern change, sue. Against this, "can" "power" latter, former. 25. fine phrasing, too overcome thrust recommendation. 25 final toward speculate explained attempt enter their 25-26, 29. turns citizens State, avail themselves 26 (quoting Walton Howard University, 683 826, 829 (DC 1987)). completely fail, explain address problem. Indeed, specifying open opposed status particularly ill-suited rectifying asserted party-based deficiency.14 Perhaps most obviously, violates ordinary sense used, some canons construction. simply cannot failing empower fact, combined justification courts' extremely doubtful simpliciter preamendment calls into play canon construction requiring change read, if possible, effect, Brewster Gage, 280 327, 50 115, 117, 74 457 (1930); 2A N. Singer, Sutherland Statutory Construction 46.06 (5th 1992), tugs hard amendment.15 V 27 Our long ago corporations, 823-828.16 reaffirmed breadth holding. 11-14, 1117-1119; re Dunn, 212 374, 383-384, 299, 301-302, 53 558 (1909); 305-306, 571; Puerto Rico Russell 288 476, 485, 450, 77 903 (1933); Verlinden, 492, 1970. loathe repudiate rule, rely, cf. Pennsylvania Union Gas 491 34-35, 109 2273, 2298-2299, 105 (1989) (SCALIA, concurring part), gives contemplate overruling VI judgment reversed, remanded proceedings consistent opinion. power real personal estate"; adopt seal"; ordain establish bylaws regulations"; "do acts things promote [its] purposes."1 item list Ibid. presence amidst less confirms what suggest: establishes juridical person lawsuit Cross—despite corporation—does share Government's immunity suit. Cf. Fed.Rule Civ.Proc. 17(b) determined organized"); Thompson Corporations 3161, p. 975 (3d 1927) sued] practically act"); Loeffler Frank, 486 549, 554-557, 108 1965, 1968-1970, 100 549 (1988) ("sue waives sovereign immunity). nothing suggests anything regulating way implies federal-court jurisdiction; places footing person, who elsewhere grounds getting his Words illogical means normally way. Moreover, extraordinary new subject-matter "federal courts" 30 apparently believes, ante, 256, functionally equivalent specific reasonably recipient grant. so, applying intuition requires random butchering text much reasonable assume recipient. so appear, example, third-party International Trade, 1583, Claims Rule 14(a) (Mar. 15, 1991). textual basis, legal except intuition, saying proceed though 31 distinguish treat differently courts; both. parallel even further undermines allowing establishing appropriate law. Such serious constitutional questions, Brown Gerdes, 321 178, 188, 64 487, 88 659 (1944) (Frankfurter, concurring); Howlett Rose, 496 356, 372, 110 2430, 332 (1990); Herb Pitcairn, 324 120-121, 65 459, 460-461, 89 789 (1945); Minneapolis St. Louis Bombolis, 211, 222-223, 595, 598-599, 961 (1916); Sandalow, Henry Mississippi Adequate Ground: Proposals Revised Doctrine, 1965 S.Ct.Rev. 187, 207, 84. fairly create construe creating either. Edward DeBartolo Corp. NLRB, 463 147, 157, 2926, 2932, 535 NLRB Catholic Bishop 440 490, 500-501, 1313, 1318-1319, 59 533 (1979). 32 I conclude—indeed, think seriously contestable—that federal. understand disagree my analysis language. that, regardless meaning, created termed "phrase art," whereby "if, 255. uninitiate phrase States" mean thing federal," believes (but former) shorthand federal, action." assumed cleverly crafted code enacting here, 251-252. view, cryptology attributes Rather, four prior implications clauses applications conventional rules 34 "made able capable whatsoever," 192, adjudicate brought Bank. Construing accordance (as conclude charter) gave would, law, cognisance cause, individuals." 85-86 (emphasis added). noted case) Act's undifferentiated mention compelled jurisdictional: "If equally sums however small be," statement immediately provided directors 194. said, "evinces expressed." clear, think, "expressed" directors-suit former happened "of For (italicized above) made. Reference universal operative scope record," hence objection (to presumably giving example) indiscriminately amounts. 35 claims, weird principle rather, (and reasonable) proposition cause so. lay, substitution another, bring actions, jurisdiction.2 fully subsequent decision capable, granting ), suggested And strongly confirmed "having simpliciter. mind one, well. "magic words" approach adopted today, "admit[ted] interpretation" "be explanation." 817. 37 distinguishing noted, misunderstood today does, case's Courts" "general clause, "which [did] Courts." Id., All logically follow announces today: will Court's talismanic "mention" inconsistent (like ) purport import. (1916). "plain" stating 574, 303, 570. Had stood noting did. absence 303-305, Instead, sought considering context. "Congress [a] [to jurisdiction] altogether these, import act [in ]," 571 Considered context listing powers, 39 then concerned faculties creating; evidently suing being state, territorial—whose otherwise competently defined adequate occasion." 570 40 paraphrasing spell key adopts belies notion code-book.3 41 fourth D'Oench (1942). certiorari nondiversity apply conflict-of-laws forum State. ultimately (because 456, 679), course setting forth presented, conceded, diversity: 42 "Respondent, Sec. 12B, Reserve Act; 264(j).2 subdivision provides: 'All States. .' relies views Ante, 254-255. Even say remarkable attribute passing conceded point. anyway, explaining single (rather than, bases explanation obiter ). says, "another statute," 254, continuation text. 264(j) (1940 ed.). predicated "aris[ing] Tr. Record O.T. 1941, 206, 3. thin reed abandonment rudimentary (followed cases) "natural terms, 571. 45 argues Charter ordinarily effect. 263. Federal," reading—which decisive weight addition—is preferred. agree. rendered superfluous, price pay adhering competing important) meaning. seem run risk surplusage number technical changes comprehensive revision. Ch. 50, (1947). 46 natural-meaning superfluous. eliminates possibility "courts 600 added), limit "jurisdiction" taken relatively rare referring territory power. removes ambiguity. 47 rejects ground "no evidence intent," 264, 15. assertion irrelevant: To satisfy invoked, old why Another wrong. notes 261, comments member Senator George's statement, hearings, confirm Hearings S. 591 Senate Foreign Relations, (1947).4 48 Because contains suggesting light unnecessary addressed Part affirm Appeals. Although issue, predominates. (listing provision) 11, reaching conclusion). Reflecting confusion, Circuit, Kaiser Memorial Blood Center Minneapolis, Inc., 90 (CA8 overruled (1885), withdrawing railroads solely railroad's incorporation, 28, 1915, 22, 803, 804, limitation purposes. question, incorporation. originally FDIC, 1933, 89, 162, 172, reenacted amendments 692. 678, litigate 18-22. parties' challenge force FW/PBS, Inc. Dallas, 493 215, 231, 596, 607, 107 603 (1990) (federal obligation examine jurisdiction); Ex parte Bollman, 100, 554 (1807) (Marshall, C.J.) (giving controlling previous raised issue). dissent reads allowed ----. possible Marshall nipped bud. He difference causes brought. inferring, contrasts, congress union accuses repeating misunderstanding, 271. honored. Contrary conferred. course, reading. specification books. When chartered, sets shared overlapping See, E. Surrency, History (1987). framers wished provide set specify trial need longer exists, chosen drafters early resolve problem resolving very today. larger particular. 817-818. narrower ground, believed required. strong unnecessary. playful manufacturing conflict synthesis 272. quotes implied 'capable equity—Federal, territorial whose occasion,' 272 omitted) 570). concludes "[t]hat code-book," 273. attempts (i.e., including ones) itself second-order interpretation, "interpretation methodology illegitimate, originating dissent's whimsy. Like predecessors, construing paraphrase. Claflin Houseman, 93 130, 136, 833 (1876) ("[O]ur [has] [concurrent court] excluded incompatibility exercise arising case"); Charles Dowd Box Courtney, 368 502, 508, 82 519, 523, 483 (1962) (Claflin's "has remained unmodified years"). repeat Appeals's tracked post-1947 implicitly insufficient 1494, 1500 note adequately rebuts Petitioner 42-43. 941 (currently 1349). exception, federally-chartered supra. debate occurred hearing, Sess. comments, George, mutually contradictory matter George said: "I bill better there," Later, he stated: about still is, provision," 11. oral carried step speculating ensure access existed, due concern, 1949 Mutual Tidewater Transfer 337 582, 69 1173, 1556 (1949), constitutionality 1940 Columbia-chartered state-chartered Oral Arg. 30-31. speculation, sound, prove much. hedging resorting cover exactly maintains following complain recent vintage, 1951 implicit diversity. (citing Patterson 101 655 (SD Fla.1951)). forty year-old base petition advances adds attack interpretation. refines 16, amendment's counsels 267-268. forecloses going included lest alone (in them) counterparts feared word "Federal" misread inclusion "State." "eliminate[ 'courts States' court," 275 omitted); justify. nowhere hinted Report, houses acknowledged 261 reports); 90-1873, hardly "reasonable construction," 275, something never requested. supporting hypothesis, ignores other, jurisdiction-conferring 13. Neither intent, embrace Again, pointed out contrast, asks law" allow whom THE CHIEF JUSTICE, O'CONNOR, KENNEDY join, dissenting. whenever "power embracing language), suffer (which say), party. wonderland linguistic confusion—in sometimes times say—is erroneous premise area jurisprudence departs English usage. reflect capacity, respectfully dissent. Section Charter, various provides entirety: "The 'The Cross', perpetual succession, States; estate advisable dispose same, accept gifts, devises, bequests hereinafter forth; seal alter destroy pleasure; use, carrying designated, emblem badge, Greek red cross white treaties Geneva, August twenty-second, eighteen hundred sixty-four July twenty-seventh, nineteen twenty-nine, nations acceding thereto; regulations America thereof, carry sections 6, title said organization; designated matters relief treaties. treaties, delivery brassard individuals neutralized war military authority." Deveaux's analysis. 255, 6. true: simple expressed" obviously call, cryptograph, discern plain protest, 257, 9, interpretive applied 's paraphrase frank confession relation principles discerning language—i.e., purported area. stated, response foreign covered there." Rather obvious) imprecision "give draws far likely flatly contradicting himself few minutes

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