DES MOINES NAVIGATION & R. CO. V. IOWA HOMESTEAD CO.
123 U.S. 552 (1887)
NATURE OF THE CASE: This was an action to recover taxes on a Writ of Error to the Supreme
Court of Iowa.
FACTS: The Iowa Homestead Co. (P), an Iowa corporation, sued the Des Moines Navigation
and Railway Co. (D), an Iowa corporation, and other defendants, all New York citizens, in
Iowa state court. This suit was brought for unpaid taxes. The New York defendants removed
the suit to federal court based on diversity. There was not complete diversity between the
parties because the two corporations, P and D were citizens of the same state. P did not
object and contested the matter in federal court without any objection to federal
jurisdiction. On appeal, the case in fact went all the way to the Supreme Court. P lost and
then sued again in Iowa state court against D claiming that the federal verdict was null and
void as there was no complete diversity of citizenship. Iowa courts agreed with P in that
that the federal court jurisdiction was improper and therefore the judgment was not binding.
The case went back to the U.S. Supreme Court.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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