United States Supreme Court Cases & Opinions

U.S. Supreme Court

Herrmann v. Edwards, 238 U.S. 107 (1915)

Herrmann v. Edwards

No. 222

Argued April 14, 1915

Decided June 14, 1915

238 U.S. 107

Syllabus

The rule that, in the absence of diversity of citizenship, jurisdiction of the district court over a suit depends upon whether there is a federal cause of action stated in the bill applies to suits against national banks and their directors.

Under the Act of August 13, 1888, the federal courts have not, in the absence of diverse citizenship, jurisdiction of a suit by a stockholder against directors of a national bank and the bank to compel the directors to reimburse the bank for wrongfully investing its funds, nor has the district court any jurisdiction of such a suit under paragraph 16 of § 24, Judicial Code.

The intention of Congress to make such a radical change in the rule

Page 238 U. S. 108

prevailing for many years as to confer jurisdiction on the federal courts of all suits by and against national banks will not be presumed in the absence of clear manifestation of such purpose.

The facts, which involve the jurisdiction of the district court of a suit against a national bank and its directors under the Act of August 13, 1888, and paragraph 16, § 24 of the Judicial Code, are stated in the opinion.

Page 238 U. S. 111