U.S. Supreme Court CLARK v. PAUL GRAY, INC., 306 U.S. 583 (1939)

[Page 306 U.S. 583, 590]

tice of this Court to receive affidavits for the purpose of establishing its own appellate jurisdiction under statutes prescribing that a specified amount in controversy is prerequisite to the appeal, Williamson v. Kincaid, 4 Dall. 20; Rush v. Parker, 5 Cranch 287; Roura v. Government of Philippine Islands, 218 U.S. 386, 31 S.Ct. 73; see Red River Cattle Co. v. Needham, 137 U.S. 632, 11 S.Ct. 208, that procedure is inapplicable here. Our review of the action of the district court in assuming jurisdiction is confined to the record before the district court. Henneford v. Northern Pacific Railway Co., 303 U.S. 17, 58 S.Ct. 415.

Proper practice requires that where each of several plaintiffs is bound to establish the jurisdictional amount with respect to his own claim, the suit should be dismissed as to those who fail to show that the requisite amount is involved. [Footnote 2] Otherwise an appellate court could be called on to sustain a decree in favor of a plaintiff who had not shown that the claim involved the jurisdictional amount, even though the suit were dismissed on the merits as to e other plaintiffs who had established the jurisdictional amount for themselves. Although it appears that such a result could not follow here, we think it better practice to dismiss the suit for want of the jurisdictional amount as to all appellees except Paul Gray, Inc. See Rich v. Lambert, 12 How. 347; Ex parte Baltimore & Ohio Railroad Co., 106 U.S. 5, 1 S.Ct. 35; Hassall v. Wilcox, 115 U.S. 598, 6 S.Ct. 189. Cf. Grosjean v. American Press Co., Inc., 297 U.S. 233, 56 S.Ct. 444.

[Page 306 U.S. 583, 600]

Interstate Busses Corp. v. Blodgett, supra, 276 U.S. page 251, 252, 48 S. Ct. page 231; Morf v. Bingaman, supra; Dixie Ohio Express Co. v. State Revenue Comm., supra; see Patapsco Guano Co. v. North Carolina, 171 U.S. 345, 354, 18 S.Ct. 862, 865; Territory of New Mexico ex rel. McLean & Co. v. Denver & Rio Grande R. Co., 203 U.S. 38, 55, 27 S.Ct. 1, 5; Interstate Transit, Inc., v. Lindsey, 283 U.S. 183, 186, 51 S.Ct. 380, 381. Appellees have failed to sustain the burden of proof that either of the fees is excessive for the purpose for which it is collected.

The trial court seems to have thought, as appellees argue, that unreasonableness of the fees was established by proof that the same fees are not imposed on other classes of traffic. But since, as we have seen, there is basis for the classification of the traffic, there is basis for a difference in fees charged the different classes. Hendrick v. Maryland, supra; Interstate Busses Corp. v. Blodgett, supra. Appellees have laid no foundation for any contention that there are not compensating differences in the traffic comparable to the difference in fees, or for impeaching the legislative judgment that those specified are fairly related to the traffic to which they are applied.

The cause will be reversed with instructions to the district court to dismiss the case as to appellee Paul Gray, Inc., on the merits, and to dismiss as to the other appellees for want of jurisdiction.

So ordered.

Mr. Justice BLACK is of the opinion that the case should be dismissed for want of jurisdiction as to all the appellees. Footnotes

Footnote 1 The suit was begun July 14, 1937, before the enactment of the amendment to 24 of the Judicial Code, 50 Stat. 738, 28 U.S.C.A. 41(1), providing that 'no district court shall have jurisdiction of any suit to enjoin, suspend, or restrain the assessment, levy, or collection of any tax imposed by or pursuant to the laws of any State where a plain, speedy, and efficient remedy may be had at law or in equity in the courts of such State.' Section 2 of the Act, 28 U.S.C.A. 41(1a) excludes from its operation suits begun in the district courts before its enactment.

Footnote 2 A different question is involved in the case of a creditor's bill to liquidate an insolvent corporation for the benefit of all creditors. There his claim must exceed the jurisdictional amount. Lion Bonding & Surety Co. v. Karatz, , 43 S.Ct. 480. But creditors whose claims are less may be made parties because of their interest in a fund brought within the jurisdiction of the court. Gibson v. Shufeldt, 122 U.S. 27, 7 S.Ct. 1066; Handley v. Stutz, 137 U.S. 366, 11 S.Ct. 117; National Bank of Commerce v. Allen, 8 Cir., 90 F. 545, 555, 556.