Opinion · Supreme Court of the United States

Atchison, Topeka & Santa Fe Railway Co v. Wells

265 U.S. 101

Type
Opinion
Court
Supreme Court of the United States
Jurisdiction
Federal
Date
1924-05-12
Topic
general

How later courts describe this case

  • jurisdiction “interfered unreasonably with interstate commerce”

Citator

UpLaw has not yet analyzed Atchison, Topeka & Santa Fe Railway Co v. Wells. The absence of a flag is not a finding that it is good law.

Cited by
97 opinions

Headnotes

  1. Civil Procedure — Attachment and Garnishment — Interstate Commerce A railroad's rolling stock and traffic balances owing to it are not exempt from seizure by attachment or garnishment merely because the rolling stock is used, and the balances are derived, in interstate commerce. 265 U.S. at 103
  2. Constitutional Law — Commerce Clause A state statute, as construed and applied, that permits a citizen and resident of another state to prosecute in that state a cause of action arising elsewhere against a railroad corporation of another state engaged in interstate commerce—which neither owns nor operates a railroad in the forum state nor has consented to be sued there—is invalid because such a suit necessarily and unreasonably burdens interstate commerce. 265 U.S. at 103 (citing Davis v. Farmers Co-operative Co., 262 U.S. 312)
  3. Civil Procedure — Garnishment — Due Process Garnishment proceedings that seize a foreign railroad corporation's rolling stock and traffic credits for the purpose of compelling it to submit to the jurisdiction of a state court in a suit on a cause of action arising elsewhere unreasonably interfere with interstate commerce, and the judgments entered thereon by constructive service are void. 265 U.S. at 103
  4. Civil Procedure — Collateral Attack on Void Judgments A foreign corporation against which void judgments were entered may seek relief from their enforcement by an injunction in a federal court without first asserting its rights in the courts of the state that rendered them. 265 U.S. at 103
  5. Civil Procedure — Jurisdiction — Garnishee's Conduct A foreign corporation's right not to be subjected to suit in a state where it has neither consented to be sued nor conducted railroad operations cannot be affected by any act or omission of a garnishee; the invalidity of the garnishment depends on the unreasonable interference with interstate commerce, not on the garnishee's conduct. 265 U.S. at 103
ATCHISON RY. CO.v. WELLS,265 U.S. 101(1924)
44 S.Ct. 469
ATCHISON, TOPEKA SANTA FE RAILWAY COMPANYv. WELLS ET AL.
CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE FIFTH CIRCUIT.
No. 232.
Argued April 23, 1924.
Decided May 12, 1924.
1. The rolling stock of a railroad, and traffic balances owing it, are not exempt from attachment or garnishment merely because the former are used, and the latter derived, in interstate commerce. P. 103. 2. A state statute permitting a citizen and resident of another State to prosecute a cause of action which arose elsewhere, against a railroad corporation of another State, which is engaged in interstate commerce and neither owns nor operates a railroad, nor has consented to be sued, in the State where the action is brought, is so far, invalid.Davisv.Farmers Co-operative Co.,262 U.S. 312.Id. 3. Judgments obtained by garnishment and constructive service, against a foreign railroad corporation and a local railroad corporation, as garnishee, on such a cause of action,heldvoid as an unreasonable interference with interstate commerce, and their enforcement subject to be enjoined in a suit by the foreign corporation in a federal court against the judgment creditor and his attorney.Id. 285 F. 369, reversed.Page 102
CERTIORARI to a decree of the Circuit Court of Appeals
affirming a decree of the District Court, which dismissed a bill
to enjoin the enforcement of judgments.
Mr. A.H. Culwell, with whomMr. J.W. TerryandMr.Gardiner Lathropwere on the brief, for petitioner.Mr. George E. Wallace, for respondents, submitted.
MR. JUSTICE BRANDEIS delivered the opinion of the Court.
Wells, a citizen and resident of Colorado employed by the Atchison, Topeka Santa Fe Railway Company, was injured while performing his duties in New Mexico. He sued the company in a state court of Texas, but could not make personal service upon it within that State.1Wells procured from the same court a writ of garnishment to a Texas railroad company whose line connected with the Santa Fe; which had in its possession Santa Fe rolling stock; and which owed to it large sums on traffic balances. Thereafter, constructive service was made upon the Santa Fe, by serving one of its officers in Kansas and by publication in a Texas newspaper. The Santa Fe did not appear in the action; and judgment in the sum of $4,000 and costs was entered against it by default. Objection by the garnishee to the jurisdiction having been overruled, a judgment was entered that Wells recover from it this sum with interest and costs, in satisfaction of his judgment against the Santa Fe. To enjoin the enforcement of these judgments, suit was brought by the Santa Fe in the federal court for western Texas against Wells. who had meanwhile become a resident of that State, and his counsel. The case was heard on agreed facts; and a decree dismissing the bill was affirmed by the United States Circuit Court of Appeals for the Fifth Circuit.Page 103285 F. 369. It is here on writ of certiorari under § 240 of the Judicial Code.261 U.S. 612.

The rolling stock held by the garnishee was then being used in interstate commerce and the amount due on traffic balances arose out of transactions in such commerce. These facts did not render the property immune from seizure by attachment or garnishment.Davisv.Cleveland, Cincinnati, Chicago St. Louis Ry. Co.,217 U.S. 157. But the writ of garnishment is void because of the purpose for which it was invoked. The Santa Fe is a Kansas corporation. It had not been admitted to Texas as a foreign corporation. It had not consented to be sued there. It did not own or operate any line of railroad within the State; and had no agent there. The Texas statutes concerning garnishment were construed and applied in the Wells suit so as to permit a citizen and resident of another State to prosecute in Texas a cause of action which arose elsewhere against a railroad corporation of another State, which is engaged in interstate commerce, which neither owns nor operates a railroad in Texas, and which has not consented to be sued there. For the reasons stated inDavisv.Farmers Co-operative Co.,262 U.S. 312(decided since the entry of the judgment here under review) such a suit necessarily and unreasonably burdens interstate commerce; and the statute as construed and applied is invalid.

Relief against the void judgments entered was properly sought by the Santa Fe in the federal court.Simonv.Southern Ry.Co.,236 U.S. 115;Wells Fargo Co. v.Taylor,254 U.S. 175. SeeEssanay Film Co. v.Kane,258 U.S. 358,360. The garnishment was void because seizure of the rolling stock and credits for the purpose of compelling the Santa Fe to submit to the jurisdiction of the court in the Wells suit interfered unreasonably with interstate commerce. The Santa Fe was not obliged to assert its rights in the courts of Texas. CompareFirestonePage 104Tire Rubber Co. v.Marlboro Cotton Mills, 282 F. 811, 814. Nor could its right not to be sued there be affected by anything which the garnishee did or omitted to do. Moreover, the garnishee's objection to the jurisdiction (on grounds later upheld by this Court in theFarmers Co-operative Co. Case) had been overruled by the state court. We have no occasion, therefore, to consider further the scope or the provisions of the statutes concerning garnishment.Reversed.
  1. Page 102 SeeAtchison, T. S.F. Ry. Co. v.Weeks, 254 F. 513. ↩