Court Opinion

ID: 9643044
Source: CourtListenerOpinion
Date Created: 2023-08-22 18:16:37.795177+00
Date Added: 2024-06-11T12:07:14.636518
License: Public Domain

MORTON, Circuit Judge.
I concur in the foregoing opinion except the disposition which is made of the defendants’ counterclaim. It does not seem to me just to reverse the judgment upon it and order a dismissal of it upon a defect in pleading which was not raised, so far as the record shows, in the court below nor called to the defendants’ attention there. It seems probable that the facts were such as to give jurisdiction, and that if the defect in pleading had been called to the defendants’ attention at the trial, it could have been cured by amendment. In my opinion, the decree on the counterclaim should be vacated, and the counterclaim should be returned to the District Court, with leave to plaintiff to amend the jurisdictional allegations, if so advised, and if such an amendment be made, for such further hearing on the question of jurisdiction as may be necessary.
On Motion to Vacate Decree and to Amend Record.
BINGHAM, Circuit Judge.
The defendants, counterclaimants, have filed a motion to vacate our decree of June 20, 1935, dismissing their counterclaim for want of jurisdiction, and to amend the same to show that the defendants are citizens and residents of Massachusetts and that the amount in controversy therein exceeds, exclusive of interest and costs, the sum or value of $3,000.
In support of this motion the defendants contend that, in this appellate court, they have the right to have such amendment' made by virtue of section 399, title 28 USCA (Judicial Code, § 274c; Act of March 3, 1915, c. 90, 38 Stat. 956), or, if not, this court in its discretion may allow such amendment.
Section 399 provides:
“§ 399. (Judicial Code, section 274c.) Amendments to show diverse citizenship. Where, in any suit brought in * •* * any district of the United States, the jurisdiction of the district court is based upon the diverse citizenship of the parties, and such diverse citizenship in fact existed at the time the suit was brought * * * though defectively alleged, either party may amend at any stage of the proceedings and in the appellate court upon such terms as the court may impose, so as to show on the record such diverse citizenship and jurisdiction, and thereupon such suit shall be proceeded with the same as though the diverse citizenship had been fully and correctly pleaded at the inception of the suit. * * ife »
Tn the counterclaim filed in this suit, the subject-matter of which is independent of and unrelated to that set up in the plaintiff’s bill, there were no allegations of any kind or description as to the defendants’ citizenship and residence or as to the amount involved, and there is no evidence in the record showing their citizenship and residence or the amount involved.
It thus appears that none of the facts essential to federal jurisdiction were even “defectively alleged” in the counterclaim, if, under the statute, they must be at least “defectively alleged” to authorize the defendants, as of right, to amend.
Then again the plaintiffs contend that section 399, 28 USCA (section 274c of the Judicial Code), only authorizes an amendment showing diversity of citizenship of the parties and not one showing that the amount involved exceeds, exclusive of interest and costs, $3,000.
In Northern Trust Co. v. Anderson (D. C.) 5 F. Supp. 390, 391, the court, in speaking of section 399, said:
“This section * * * is limited in the right which it gives for filing amendment to show diversity of citizenship, and it has nothing to do with a right of a party * * * to allege facts to create for the first time jurisdiction upon the court where it had not theretofore existed.”
The court also added that it was satisfied that the section “applies only to amendments to show diversity of citizenship where the face of the pleading did not clearly or fully so show”; that facts showing diversity of citizenship must have been at least “defectively alleged” to authorize an amendment under section 399.
But whatever may be the answer to these matters, we are of the opinion that, this court being an appellate court and without authority to receive evidence, and there being no evidence in the record showing the citizenship and residence of the defendants or the amount involved, the application to vacate our decree and to amend must be denied.
The motion is denied.