Skinner v. Barr

Not specified
Decided Circuit Court, E. D. Pennsylvania
Disposition
reversed
full scope · unanimous
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Court
Circuit Court, E. D. Pennsylvania
Decided
Judge
DALLAM, Circuit Judge
Posture
Verdict directed for plaintiff subject to reserved question of jurisdiction
Plaintiff (1)
Robert W. Skinner
Alexander Mimpson. Jr.
v.
Defendant (1)
George W. Barr
Henry Ilndd
Other parties: George W. Price — Maker of promissory notes, Catharine J. Knapp — Payee of promissory notes

Overview

Judgment for defendant, notwithstanding the verdict, because the court lacks jurisdiction under the Act of August 13, 1888.

Case summary

Skinner v. Barr involved a suit by Robert W. Skinner, a New Jersey citizen, against George W. Barr, a Pennsylvania citizen, on promissory notes. The notes were made by George W. Price (PA) payable to Catharine J. Knapp (PA), indorsed by Barr (PA), and then transferred by Knapp to Skinner. At trial, the court directed a verdict for Skinner but reserved the question of jurisdiction. The defendant moved for judgment notwithstanding the verdict, arguing the federal court lacked jurisdiction under the Act of August 13, 1888. The court held that under the statute, federal courts lack jurisdiction over suits by assignees on promissory notes unless the assignor could have maintained the suit in federal court. Since Knapp (the assignor) and Barr were both Pennsylvania citizens, Knapp could not have sued in federal court, and therefore Skinner (the assignee) could not either. The court interpreted the statute to deny jurisdiction to assignees regardless of whether the note was payable to bearer, with the bearer clause only limiting suits by subsequent holders. Judgment was entered for the defendant.

Abstract

A plaintiff assignee sued on promissory notes indorsed by the defendant in federal court based on diversity of citizenship. The court directed a verdict for the plaintiff but reserved jurisdiction, ultimately granting judgment for the defendant because the assignor and defendant were citizens of the same state, preventing the assignor from suing in federal court under the relevant statute. The statute was interpreted to deny jurisdiction to assignees unless the assignor could have maintained the suit, regardless of the note's bearer status.

Opinion of the court

Majority
opinion
DALLAM, Circuit Judge
  • Act of August 13, 1888 denies federal jurisdiction for suits by assignees on promissory notes unless assignor could have sued in federal court
  • The 'payable to bearer' clause only limits 'any subsequent holder' and does not affect the general rule for assignees
  • Following Parker v. Ormsby interpretation that the 1888 act restores 1789 act provisions with additional restrictions

Jurisdiction

challenged
Statutory basis
Act of August 13, 1888 (25 Stat. 434)
Subject matter
Diversity jurisdiction over suits on promissory notes
Jurisdictional holding
Court lacks jurisdiction because the assignor (Knapp) could not have sued in federal court due to lack of diverse citizenship with defendant
Jurisdictional facts
  • Plaintiff is a citizen of New Jersey
  • Defendant is a citizen of Pennsylvania
  • Notes were made by a Pennsylvania citizen, payable to a Pennsylvania citizen, and indorsed by a Pennsylvania citizen

Procedural posture

Posture at trial
Verdict directed for plaintiff subject to reserved question of jurisdiction
Posture on appeal
Motion for judgment non obstante veredicto (notwithstanding the verdict)
Preserved issues
  • Jurisdiction under Act of August 13, 1888

Legal categories

Business

Case record

Full case name
SKINNER v. BARR
Docket number
Not specified
Court
Circuit Court, E. D. Pennsylvania
Trial court
Circuit Court, E. D. Pennsylvania
Trial court judge
DALLAS, Circuit Judge
Decided
Opinion author
DALLAM, Circuit Judge
Opinion type
published
Precedential status
precedential
Judges on panel
DALLAM, Circuit Judge

Issues & holdings

1
Issues raised
1
reversed
2
Holdings
Standard of review

de novo

Disposition rationale

Court lacks jurisdiction under Act of August 13, 1888 because the assignor (Knapp) could not have sued in federal court due to lack of diverse citizenship with defendant

Preservation

Issue preserved for review

Holdings of the court

Jurisdiction over suit by assignee on promissory note
Federal court lacks jurisdiction in an action upon a promissory note by an indorsee against a remote indorser, notwithstanding diverse citizenship exists between them, unless the person from whom the indorsee derives title could have maintained an action on the same note against the same defendant
Act of August 13, 1888 denies jurisdiction to federal courts for suits on promissory notes in favor of any assignee unless the suit could have been prosecuted in such court if no assignment had been made; this restores provisions of the 1789 act with additional restrictions
unanimousbinding precedent
Construction of 'if such instrument be made payable to bearer, and be not made by any corporation' clause
The words 'if such instrument be made payable to bearer, and be not made by any corporation' restrain the effect of the words 'any subsequent holder,' and have no restraining effect upon the general denial to federal courts of cognizance of suits on promissory notes in favor of an assignee
The clause limits only 'any subsequent holder' and does not affect the general rule that assignees cannot sue in federal court unless their assignor could have
unanimousbinding precedent

Error analysis

  • Trial court's assertion of jurisdiction over the case — procedural · error foundJurisdictional error is fundamental and not subject to harmless error analysis · not harmless

Statutory interpretation

1
Statute
Act of August 13, 1888 (25 Stat. 434)
Question
Whether the clause 'if such instrument be made payable to bearer, and be not made by any corporation' limits only 'any subsequent holder' or the entire preceding portion denying jurisdiction to assignees
Court's reading
The clause limits only 'any subsequent holder' and does not affect the general denial of jurisdiction to assignees
Canons applied
Plain meaningStatutory structure analysis

Standards of review

  • Statutory interpretation of Act of August 13, 1888 — de novo Construction of federal statute is a question of law reviewed de novo

Timeline

2
Events
336
Days, incident to ruling
—
Span
trial eventcited in opinion

Trial before Circuit Judge Dallas; plaintiff presented notes as evidence; defendant moved for nonsuit on jurisdictional grounds; motion overruled; defendant attempted to show defense but offer rejected; court directed verdict for plaintiff subject to reserved jurisdiction question

Outcome: Verdict directed for plaintiff subject to jurisdiction question

Established factual record and preserved jurisdictional issue for decision

Jurisdiction under Act of August 13, 1888
Robert W. Skinner · George W. Barr · DALLAS, Circuit Judge Circuit Court, E.D. Pennsylvania trial court
rulingcited in opinion

Court granted defendant's motion for judgment notwithstanding verdict, holding it lacked jurisdiction under Act of August 13, 1888

Outcome: Judgment for defendant

Final disposition based on statutory interpretation of jurisdictional statute

Jurisdiction under Act of August 13, 1888
DALLAM, Circuit Judge Circuit Court, E.D. Pennsylvania trial court

Facts & evidence

Incident

Location
Eastern District of Pennsylvania

Key facts

5 facts
  1. Promissory notes made by George W. Price (PA citizen) payable to Catharine J. Knapp (PA citizen)
  2. Notes indorsed by George W. Barr (PA citizen)
  3. Notes transferred by indorsement from Knapp to Robert W. Skinner (NJ citizen)
  4. Skinner sued Barr as remote indorser
  5. Defendant claimed lack of federal jurisdiction

Procedural history

5 steps
  1. Trial held before Circuit Judge Dallas
  2. Defendant moved for nonsuit on jurisdictional grounds - overruled
  3. Defendant attempted to show defense against original parties but failed due to lack of notice to plaintiff
  4. Court directed verdict for plaintiff subject to reserved jurisdiction question
  5. Defendant moved for judgment notwithstanding verdict based on jurisdiction

Evidence in the record

Testimonial
  • Plaintiff's evidence of the notes
  • Defendant's attempted evidence of defense against original parties (rejected)
Documentary
  • Promissory notes made by George W. Price payable to Catharine J. Knapp, indorsed by George W. Barr

Jury

Verdict
Directed verdict for plaintiff subject to reserved jurisdiction question
Verdict date
1896

Authorities

Cited authorities (3)

Parker v. Ormsby, 141 U.S. 81
followedprecedent
Interpreted Act of August 13, 1888 as restoring provisions of 1789 act with additional restrictions
Mullen v. Torrance, 9 Wheat. 537
followedprecedent
Under 1789 act, jurisdiction confined to actions between immediate indorsers and indorsees
Young v. Bryan, 6 Wheat. 146
explainedprecedent
Under 1789 act, indorsee could maintain action against indorser if diverse citizenship existed between them

Statutes

  • Act of August 13, 1888 (25 Stat. 434)
  • Act of 1789
  • Act of March 3, 1875

Standards & doctrines

  • De novo review of statutory interpretation
  • Jurisdictional limitations for assigned claims

Legal principles applied

  • Assignees cannot sue in federal court on promissory notes unless assignor could have maintained the suit
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Action type
reversed
Target
directed verdict for plaintiff
Appealed from
trial court's directed verdict
Context
Court granted defendant's motion for judgment notwithstanding verdict, holding it lacked jurisdiction under Act of August 13, 1888
Scope
full
Further instructions
Judgment entered for defendant
Disposition vote
unanimous
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