Mr. Clayton F. Jennings, of Lansing, Mich., for respondent Emery.
Mr. John M. Scott, of Fort Worth, Tex., for respondent Lydick.
Mr. Robert A. Adams, of Indianapolis, Ind., for respondent American United Life Ins. Co.
[Argument of Counsel from page 550 intentionally omitted]
Mr. Justice DOUGLAS delivered the opinion of the Court.
The question presented by this case is whether the United States District Court for the Southern District of Iowa had jurisdiction to determine a dispute between the Iowa receiver of American Life Insurance Co. on the one hand and the Michigan and Texas receivers on the other as respects the title to and the right to administer certain assets of the company in the possession of the Iowa receiver. The District Court held that it had jurisdiction over the controversy; and it made a determination of the issues on the merits. The Circuit Court of Appeals, one judge dissenting, reversed (117 F.2d 811) holding that in light of such cases as Lion Bonding & Surety Co. v. Karatz, 262 U.S. 77, 43 S.Ct. 480, 482, 67 L.Ed. 871, the suit in the District Court could not be maintained and that the bill should be dismissed 'for want of jurisdiction'. We granted the petition for certiorari because an application of the principles underlying United States v. Klein, 303 U.S. 276, 58 S.Ct. 536, 82 L.Ed. 840, and Commonwealth Trust Co. v. Bradford, 297 U.S. 613, 56 S.Ct. 600, 80 L.Ed. 920, which were disregarded by the court below, would probably lead to a different result. 314 U.S. 589, 62 S.Ct. 60, 86 L.Ed. --.
The Iowa receiver brought the suit pursuant to the authority and direction of the Iowa court. It is based upon diversity of citizenship, Judicial Code, § 24, 28 U.S.C. § 41, 28 U.S.C.A. § 41, and seeks to enforce against nonresident defendants, as authorized by § 57 of the Judicial Code, 28 U.S.C. § 118, 28 U.S.C.A. § 118, a 'legal or equitable lien upon or claim to' personal property within the district where the suit is brought and to remove an 'incumbrance or lien or cloud upon the title' to such property. The bill in substance alleged and the District Court found that the Iowa receiver was in possession of securities of a face amount in excess of $3,000,000; that those securities had been deposited with the Insurance Commissioner of Iowa, pursuant to statutes of Iowa and certain reinsurance agreements between American Life Insurance Co. and its Iowa predecessor, for protection of the policy holders of the latter company on its insolvency; that Iowa had title to those funds and the Iowa receiver had the sole and exclusive right to administer them. The District Court held that although the action was in rem it had not only jurisdiction over the subject matter but also over the defendants since they all answered and since two of them filed counterclaims asking that the securities in possession of the Iowa receiver be delivered to them and since the other asked for general equitable relief. Accordingly, it ordered, inter alia, that the Michigan and Texas receivers account for certain collections which they had made on the securities in the Iowa fund; that they deliver to the Iowa receiver certain records pertaining to those securities; that the Michigan receiver deliver to the Iowa receiver certain records pertaining to the policies protected by that fund; and that the Michigan and Texas receivers be enjoined from making collections on those securities and from interfering in any way with the Iowa receiver's administration of them.
We express no opinion on the merits of the controversy. Nor do we pass on the contention that Ladew v. Tennessee Copper Co., 218 U.S. 357, 31 S.Ct. 81, 54 L.Ed. 1069, prevents the entry of an in personam judgment in the circumstances of this case. For the sole question passed upon by the court below was the power and propriety of the action of the District Court in taking jurisdiction of the cause under § 57 of the Judicial Code.