1. In a reorganization proceeding under Ch. X of the Bankruptcy
Act, the bankruptcy court has exclusive jurisdiction to determine
the amount which shall be allowed out of the bankrupt estate for
services of attorneys who, by authority of the bankruptcy court,
represented the bankrupt estate in litigation in a state court. P.
321 U. S.
180.
2. The petition for reorganization in this case having been
approved subsequently to the effective date of Ch. X, the result is
unaffected
Page 321 U. S. 179
by the fact that the petition was filed and the main suit in the
State court litigation was instituted prior to that date. P.
321 U. S.
184.
3. Nor is the result affected by the fact that the litigation in
the state court was within the exclusive jurisdiction of that
court. P.
321 U. S.
185.
4. It does not appear here that the State has imposed conditions
for entry into its courts which are inconsistent with the authority
of the bankruptcy court. P.
321
U.S. 186.
5. Assuming that the state court could decline jurisdiction of
the suits to enforce claims of the bankrupt estate, it could not
take jurisdiction of them but fail to apply the federal rule
governing the compensation of those who are employed by the
bankruptcy court and who represent it in the state tribunal. P.
321 U.S. 186.
290 N.Y. 468, 49 N.E.2d 718, affirmed.
Certiorari, 320 U.S. 722, to review the reversal of an order of
the lower state Courts which fixed the amounts of fees and liens
for services rendered by the plaintiffs as attorneys for a bankrupt
estate.
See also 290 N.Y. 868, 50 N.E.2d 249.
MR. JUSTICE DOUGLAS delivered the opinion of the Court.
The question in this case is whether the New York court or the
federal bankruptcy court has the power to fix the fees of
petitioners who, as attorneys, represented the bankruptcy estate in
litigation in the state courts. The
Page 321 U. S. 180
New York Court of Appeals held that that jurisdiction rested
exclusively in the bankruptcy court. 290 N.Y. 468, 49 N.E.2d 718.
The case is here on a petition for writ of certiorari which we
granted because of the importance of the problem under the
Bankruptcy Act.
In January, 1939, a petition for reorganization of Reynolds
Investing Co., Inc. was approved under Ch. X of the Bankruptcy Act.
52 Stat. 883, 11 U.S.C. § 501
et seq. In August,
1938, while the petition was pending but before its approval, the
bankruptcy court authorized the debtor to commence an action in the
New York courts to enforce and collect certain claims which the
debtor had against its former officers and directors.
See
Gerdes v. Reynolds, 28 N.Y.S.2d 622. It also authorized
retention of petitioners as counsel in the suit. After the approval
of the petition, the respondent trustees were authorized to
prosecute the action and to be substituted as plaintiffs. That was
done, and other actions were instituted by the trustees under order
of the bankruptcy court with petitioners as counsel. In 1941,
before final judgments were obtained in any of the suits, the
trustees discontinued petitioners' services. Thereafter,
petitioners, pursuant to a stipulation [
Footnote 1] which reserved respondents' right to question
the jurisdiction of the state court, instituted this suit in that
court to fix and enforce their liens on the actions under §
475 of the New York Judiciary Law, Consol.Laws N.Y. c. 30.
[
Footnote 2] Respondents'
objection to the jurisdiction
Page 321 U. S. 181
of the state court was overruled, the value of petitioners'
services determined, and the liens fixed. Those orders were
affirmed by the Appellate Division (264 App.Div. 852, 36 N.Y.S.2d
420), but reversed by the Court of Appeals. And, as we read the
opinion of that court, the basis of its decision was that
"exclusive jurisdiction" to fix these fees was in the bankruptcy
court (290 N.Y. 472, 473, 475, 49 N.E.2d 719, 720), not that New
York, as a matter of local law or policy, would not undertake to
fix them because of the special circumstances of this case.
We agree with the Court of Appeals that the power to determine
the amount of these fees rests exclusively in the bankruptcy
court.
Sec. 77B, like § 77 of the Bankruptcy Act, [
Footnote 3] had as one of its purposes the
establishment of more effective control over reorganization fees
and expenses (
Dickinson Industrial Site, Inc. v. Cowan,
309 U. S. 382,
309 U. S. 388;
Callaghan v. Reconstruction Finance Corp., 297 U.
S. 464,
297 U. S. 469)
in recognition of the effect which a depletion of the cash
resources of the estate may have on both the fairness and
feasibility of the plan of reorganization.
United States v.
Chicago, Milwaukee, St. P. & P. R. Co., 282 U.
S. 311,
282 U. S.
333-340 (dissenting opinion). And Ch. X of the Chandler
Act, which took the place of § 77B, set up even more
comprehensive supervision over compensation and allowances (H.Rep.
No.
Page 321 U. S. 182
1409, 75th Cong., 1st Sess., pp. 45, 46) and provided a
centralized control over all administration expenses, of which
lawyers' fees are a part.
Watkins v. Sedberry,
261 U. S. 571.
Sec. 241 gives the judge authority to fix "reasonable compensation
for services rendered" by various persons, including attorneys for
the trustees. Allowances may be made only after hearing and upon
notice to specified persons and groups of persons. § 247.
Where the reorganization supersedes a prior proceeding in either
the federal or state court, the bankruptcy court is the one which
is authorized to allow the "reasonable costs and expenses incurred"
in the prior proceeding. § 258. In all cases, persons who seek
compensation for services or reimbursement for expenses are held to
fiduciary standards. § 249;
Woods v. City National Bank
& Trust Co., 312 U. S. 262,
312 U. S.
267-269. And § 250 contains special appeal
provisions governing orders granting or denying allowances.
Dickinson Industrial Site, Inc. v. Cowan, supra. Moreover,
a plan of reorganization must provide "for the payment of all costs
and expenses of administration and other allowances which may be
approved or made by the judge." § 216(3). In addition, the
plan must provide, in furtherance of the purpose of the Act to
protect the security holders against previous acts of mismanagement
and to preserve all assets of the estate (S.Rep. No.1916, 75th
Cong., 3d Sess., p. 22; H.Rep. No. 1409,
supra, pp.
42-44), for retention and enforcement by the trustee of all claims
of the debtor or the estate not settled or adjusted in the plan.
§ 216(13). Finally, § 221(4) provides that, in approving
any plan, the judge must be satisfied that "all payments made or
promised" by the debtor, the new company, or any other person "for
services and for costs and expenses" are not only fully disclosed,
but "are reasonable or, if to be fixed after confirmation of the
plan, will be subject to the approval of the judge."
Thus, Ch. X not only contains detailed machinery governing all
claims for allowances from the estate. It also
Page 321 U. S. 183
requires the plan to contain provisions for the payment of all
allowances and places on the judge the duty to pass on their
reasonableness. The approval of the plan of reorganization has been
entrusted to the bankruptcy court exclusively. Even reports on
plans submitted by the Securities and Exchange Commission are
"advisory only." § 172. It could hardly be contended that the
bankruptcy court might dispense with the finding required by §
221(2) that the plan is "fair and equitable, and feasible" and
confirm the plan on another basis or delegate the task to another
court or agency.
See Case v. Los Angeles Lumber Products
Co., 308 U. S. 106,
308 U. S.
114-115;
Consolidated Rock Products Co. v. Du
Bois, 312 U. S. 510.
But, if that cannot be done, it is difficult to see how a plan
could be confirmed which left the approval of certain allowances to
a state court. The finding as to allowances required by §
221(4) is as explicit and as mandatory as the finding of "fair and
equitable, and feasible" required by § 221(2). On each,
Congress has asked for the informed judgment of the bankruptcy
court, not another court or agency. In the present case, the plan
of reorganization which was approved in 1940 gave the trustees full
power to retain or displace attorneys representing them, and it
retained in the bankruptcy court continuing jurisdiction over all
claims in favor of the debtor and the prosecution thereof. And, in
accordance with the express requirements of § 241(3), it left
to the bankruptcy court the power to fix the "reasonable
compensation" to be paid the attorneys of the trustees. Those
requirements, prescribed by the Act, cause any conflicting
procedure in the state courts to give way. [
Footnote 4]
Kalb v. Feuerstein, 308 U.
S. 433. The jurisdiction which Congress has conferred on
the bankruptcy
Page 321 U. S. 184
court is paramount and exclusive.
Gross v. Irving Trust
Co., 289 U. S. 342.
Thus, the supervention of bankruptcy deprives a state court, in
which a receivership was pending, of power to fix the compensation
of the receivers and their counsel who were appointed by the state
court and who rendered service in the state proceedings.
Gross
v. Irving Trust Co., supra; Emil v. Hanley, 318 U.
S. 515,
318 U. S.
519.
Sherman v. Buckley, 119 F.2d 280, which arose in
ordinary bankruptcy, is relied upon for the contrary conclusion. In
that case, an action brought by the bankrupt had been pending in
the state court for seven years before the adjudication in
bankruptcy. The trustee obtained the consent of the bankruptcy
court to allow the action to be prosecuted in the state court on
behalf of the estate and to substitute attorneys other than those
retained by the bankrupt. It was held that the state court could
require as a condition upon the substitution the liquidation of the
New York charging lien of the displaced attorneys. Whether that
case was correctly decided on its facts we need not stop to
inquire. It is sufficient to say that it does not state the correct
rule of law under Ch. X of the Act.
It is said, however, that § 77B, rather than Ch. X,
measures the jurisdiction of the bankruptcy court, since the main
suit was instituted in the state court prior to the effective date
of Ch. X, September 22, 1938.
See § 7. But the short
answer is that the petition was approved after that date, and the
provisions of Ch. X were thus brought into play. [
Footnote 5] It is suggested that, since
§ 23 of
Page 321 U. S. 185
the Act [
Footnote 6] was
applicable to reorganizations under § 77B but inapplicable
[
Footnote 7] to those under Ch.
X (§ 102), there was a greater limitation on the jurisdiction
of the bankruptcy court over plenary suits at the time the main
suit was instituted than there was after Ch. X became effective.
[
Footnote 8] From that, it is
argued that, since Congress left the enforcement of such claims to
the state courts, it permitted them to control all incidents of the
litigation, including the fixing of attorneys' liens. Sec. 23 deals
with questions of the jurisdiction of federal district courts,
e.g., whether, in suits by trustees in bankruptcy against
adverse claimants, the jurisdiction of the district courts rests on
consent of the parties, regardless of diversity of citizenship.
Schumacher v. Beeler, 293 U. S. 367. The
fact that the suits against the former officers and directors of
the debtor could have been brought in the state courts alone does
not advance the solution of the present problem. A bankruptcy
trustee who, by choice or by necessity, resorts to a state court
for the prosecution of a claim is, of course, bound by the
adjudication made in the state proceeding.
Winchester v.
Heiskell, 119 U. S. 450;
Fischer v. Pauline
Oil
Page 321 U. S. 186
& Gas Co., 309 U. S. 294,
309 U. S. 303.
The state court has full control over the litigation. But, even as
an incident thereto, it may not take action which involves the
performance of functions which Congress has entrusted to the
bankruptcy court.
See Eau Claire National Bank v. Jackman,
204 U. S. 522,
204 U. S.
537-538.
The suggestion has been made that New York could open its courts
to the prosecution of such suits as the trustees instituted on
condition that New York control the legal fees incident to the
litigation, and that, so long as New York did not discriminate
against those asserting rights under the federal act, such
condition would be valid.
Cf. Douglas v. New York, N.H. &
H. R. Co., 279 U. S. 377. It
does not appear, however, that New York has followed that course.
The fact that New York has adopted measures designed to protect
attorneys practicing in its courts does not demonstrate that New
York has made its control over the fees a condition to the use of
its tribunals. There is no such indication in the opinion of the
New York Court of Appeals. Thus, we cannot say that New York has
provided conditions for entry into its courts which collide with a
Congressional enactment. We can only assume, therefore, that the
case is no different in principle from the one where a state grants
to creditors attachments in aid of the collection of their claims.
There can be no doubt that such liens could be nullified by
supervening bankruptcy, whether the creditor be lawyer or
merchant.
But, if it is assumed that New York might have refused to
entertain such suits as were brought against the old management
(
cf. Mondou v. New York, N.H. & H. R. Co.,
223 U. S. 1,
223 U. S. 56-59),
it does not follow that it could take jurisdiction of them but fail
to apply any federal law in which those claims might be rooted.
Garrett v. Moore-McCormack Co., 317 U.
S. 239. Where Congress has prescribed the rule to govern
the compensation of those employed
Page 321 U. S. 187
by the bankruptcy court, those claims are no less dependent on
the federal rule because they are asserted as an incident to
another suit. If the state court could disregard the federal rule
in that situation, then any of the duties of administration which
Congress has imposed on the bankruptcy court could be absorbed by
the state tribunal.
Eau Claire National Bank v. Jackman,
supra. Congress has fixed the fees which various
representatives or officers of the bankruptcy court may receive for
their services. §§ 40, 48. Among these are the bankruptcy
trustees. § 48(c). As in the present case, those trustees may
at times choose to act as their own attorneys. But it would be
novel doctrine indeed to hold that state courts could increase any
maximum allowance which Congress might authorize bankruptcy
trustees to receive from the estate merely because the trustees
rendered some of their services in state tribunals. Yet, if
Congress can protect bankruptcy estates by itself prescribing
maximum fees for those representing or rendering service to the
estate, it is not apparent why it may not reach the same result by
delegating that authority to the bankruptcy court. Whatever doubts
may have once existed as to the functions of a reorganization
court, it is clear under this recent bankruptcy legislation that
the approval of all fees as part of the plan has been entrusted to
the bankruptcy court exclusively. The case is therefore controlled
by the principle of
Hines v. Lowrey, 305 U. S.
85. In that case, we held that, where an Act of Congress
limited to ten dollars the fees for services in connection with
veterans' War Risk Insurance claims, the New York court could not
award a greater amount to an attorney representing a guardian of an
insane veteran even where the guardian was appointed by the New
York court. We reversed a judgment of the New York court granting
the attorney $1,500 for his services. The purpose of Congress to
place the control of petitioners'
Page 321 U. S. 188
fees in the bankruptcy court is no less clear than its purpose
to limit the amount of fees in the
Hines case. In each,
the federal rule is the supreme law of the land.
We only hold that the bankruptcy court has exclusive authority
under Ch. X to fix the amount of allowances for fees. Whether the
amount so fixed could be secured by a lien created by local law
raises a question which we do not reach.
Affirmed.
MR. JUSTICE ROBERTS concurs in the result.
[
Footnote 1]
Respondents sought an order from the bankruptcy court directing
petitioners to turn over their papers and memoranda. That motion
was resisted by petitioners, who claimed that the New York court
had exclusive jurisdiction. Thereupon, a stipulation was entered
into with the approval of the bankruptcy court whereby respondents
withdrew their motion and petitioners agreed to institute a suit in
the state court for fixation of their liens, if any. The parties
reserved their right to question the jurisdiction of the state
court or bankruptcy court over the matter.
[
Footnote 2]
"From the commencement of an action, special or other proceeding
in any court or before any state or federal department, except a
department of labor, or the service of an answer containing a
counterclaim, the attorney who appears for a party has a lien upon
his client's cause of action, claim or counterclaim, which attaches
to a verdict, report, determination, decision, judgment or final
order in his client's favor, and the proceeds thereof in whatever
hands they may come, and the lien cannot be affected by any
settlement between the parties before or after judgment, final
order, or determination. The court, upon the petition of the client
or attorney, may determine and enforce the lien."
[
Footnote 3]
See Continental Illinois Nat. Bank v. Chicago, Rock Island
& P. R. Co., 294 U. S. 648,
294 U. S. 685;
Reconstruction Finance Corp. v. Bankers Trust Co.,
318 U. S. 163.
[
Footnote 4]
The submission of the matter to the state court with objections
to its jurisdiction was a procedure which gave that "due regard for
comity" suggested by the Court in
Gross v. Irving Trust
Co., 289 U. S. 342,
289 U. S.
345.
[
Footnote 5]
Even if the petition had been approved prior to the effective
date of Ch. X, its provisions would have applied in their entirety
to the proceedings, provided such approval was within three months
prior to that date. § 276(c)(1).
[
Footnote 6]
Sec. 23 presently provides:
"a. The United States district courts shall have jurisdiction of
all controversies at law and in equity, as distinguished from
proceedings under this Act, between receivers and trustees as such
and adverse claimants, concerning the property acquired or claimed
by the receivers or trustees, in the same manner and to the same
extent as though such proceedings had not been instituted and such
controversies had been between the bankrupts and such adverse
claimants."
"b. Suits by the receiver and the trustee shall be brought or
prosecuted only in the courts where the bankrupt might have brought
or prosecuted them if proceedings under this Act had not been
instituted, unless by consent of the defendant, except as provided
in sections 60, 67, and 70 of this Act."
[
Footnote 7]
See Weinstein, The Bankruptcy Law of 1938 (1938), pp.
63, 64; 2 Collier on Bankruptcy, 14th Ed., pp. 435, 436.
[
Footnote 8]
See In re Standard Gas & Electric Co., 119 F.2d
658.
MR. JUSTICE FRANKFURTER, concurring.
1. Since 1789, rights derived from federal law could be enforced
in state courts unless Congress confined their enforcement to the
federal courts. This has been so precisely for the same reason that
rights created by the British Parliament or by the Legislature of
Vermont could be enforced in the New York courts. Neither Congress
nor the British Parliament nor the Vermont Legislature has power to
confer jurisdiction upon the New York courts. But the jurisdiction
conferred upon them by the only authority that has power to create
them and to confer jurisdiction upon them -- namely, the lawmaking
power of the New York -- enables them to enforce rights no matter
what the legislative source of the right may be.
See, for
instance, United States v. Jones, 109 U.
S. 513,
109 U. S.
520.
2. In short, subject to only one limitation, each State of the
Union may establish its own judicature, distribute judicial power
among the courts of its choice, define the conditions for the
exercise of their jurisdiction and the modes of their proceeding,
to the same extent as Congress is empowered to establish a system
of inferior federal courts within the limits of federal judicial
power, and the States are as free from control by Congress in
establishing
Page 321 U. S. 189
state systems for litigation as is Congress free from state
control in establishing a federal system for litigation. The only
limitation upon the freedom of a State to define the jurisdiction
of its own courts is that implied by Article IV, Section 2 of the
Constitution, whereby "The Citizens of each State shall be entitled
to all Privileges and Immunities of Citizens in the several
States." The Constitution does not require New York to give
jurisdiction to its courts against its will. But,
"If the state does provide a court to which its own citizens may
resort in a certain class of cases, it may be that citizens of
other states of the Union also would have a right to resort to it
in cases of the same class."
Anglo-American Provision Co. v. Davis Provision Co. No.
1, 191 U. S. 373,
191 U. S. 374.
The matter was well put by Judge Cuthbert Pound in connection with
litigation under the Federal Employers' Liability Act in the state
courts:
"the state courts must make no hostile discrimination against
litigants who come within the act in question; . . . they must
treat litigants under the federal act as other litigants are
treated; . . . they are to act in conformity with their general
principles of practice and procedure, and are not to deny
jurisdiction merely because the right of action arises under the
act of Congress."
Murnan v. Wabash Railway Co., 246 N.Y. 244, 247, 158
N.E. 508, 509.
3. The upshot of the matter is that
"rights, whether legal or equitable, acquired under the laws of
the United States may be prosecuted in the United States courts, or
in the State courts, competent to decide rights of the like
character and class, subject, however, to this qualification, that,
where a right arises under a law of the United States, Congress
may, if it see fit, give to the Federal courts exclusive
jurisdiction."
Claflin v. Houseman, 93 U. S. 130,
93 U. S.
136-137. Whether a state court is "competent to decide
rights of the like character and class," whether the particular
litigation is to be tried by jury, and, if so, how the jury
Page 321 U. S. 190
is to be composed, whether it is to be a jury of twelve or less,
whether decision is to be by unanimity or majority, whether
security is to be furnished, and of what nature -- in sum, whether
a state court can take jurisdiction and what the incidents of the
litigation should be -- all these are matters wholly within the
control of the State creating the court, and without the power of
Congress.
See, for instance, Minneapolis & St. Louis R. v.
Bombolis, 241 U. S. 211. As
it was put by Mr. Justice Story in
Martin v.
Hunter's Lessee, 1 Wheat. 304,
14 U. S.
330-331, "Congress cannot vest any portion of the
judicial power of the United States except in courts ordained and
established by itself." Congress may avail itself of state courts
for the enforcement of federal rights, but it must take the state
courts as it finds them, subject to all the conditions for
litigation in the state courts that the State has decreed for every
other litigant who seeks access to its courts.
4. Congress, from the beginning, has allowed federally created
rights to be enforced in state courts not only by the general
implications of our legal system, but also by explicit
authorization. The nature of the obligation of the state court
under such legislation has been most litigated in connection with
the Federal Employers' Liability Act, and, after thorough canvass,
the matter was thus summarized by Mr. Justice Holmes in
Douglas
v. New York, N.H. & H. R. Co., 279 U.
S. 377,
279 U. S.
387-388,
"As to the grant of jurisdiction in the Employers' Liability
Act, that statute does not purport to require State Courts to
entertain suits arising under it, but only to empower them to do
so, so far as the authority of the United States is concerned. It
may very well be that, if the Supreme Court of New York were given
no discretion, being otherwise competent, it would be subject to a
duty. But there is nothing in the Act of Congress that purports to
force a duty upon such Courts as against an otherwise valid excuse.
"
Page 321 U. S. 191
5. The simple fact is that, from 1789 to this day, no act of
Congress has attempted to force upon state courts the duty of
enforcing any right created by federal law on terms other than
those on which like litigation involving rights other than federal
rights is required to be conducted in a state court. It certainly
has not done so by the Bankruptcy Act, nor can any implication to
that effect be derived from the Supremacy Clause of the
Constitution. For the Supremacy Clause does not give greater
supremacy to the Bankruptcy Act over the free scope of the States
to determine what shall be litigated in their courts, and under
what conditions, than it gives with reference to rights directly
secured by the Constitution, such as those guaranteed by the Full
Faith and Credit Clause,
see Anglo-American Provision Co. v.
Davis Provision Co. No. 1, supra, or with reference to the
power exercised by Congress under the Commerce Clause,
see
Minneapolis & St. Louis R. v. Bombolis, supra.
6. The exercise of a right which Congress has not sought to
exercise since 1789 and evidently has not exercised because of the
constitutional relation of federal rights to their enforcement in
state courts should not be read into Chapter X. C. 575, 52 Stat.
883, 11 U.S.C. § 501
et seq. We should hesitate long
before we find that Congress has assumed the power to render
unconstitutional state legislation by which access to a state court
would be allowed to a litigant on no different terms than those
which the State has prescribed for its own litigants to whom access
to its courts is given in like cases. And certainly such a wholly
novel doctrine of constitutional law should not be resorted to
gratuitously when the case before us can be disposed of on the
conclusive ground that the litigation conducted in the New York
courts was conducted under an arrangement consonant with New York
law -- namely, that the attorneys' fees were to be fixed not by the
New York courts,
Page 321 U. S. 192
but by the Bankruptcy Court.
See Matter of Heinsheimer,
214 N.Y. 361, 108 N.E. 636. Recognition that such is New York law
and that, therefore, the remission of fee-fixing in this case to
the Bankruptcy Court is not in conflict with that law appears from
the opinion below:
"as a matter of fact, the retainer of these attorneys was
subject to the condition that the amount of any fees would be fixed
by the United States District Court."
290 N.Y. 468, 475, 49 N.E.2d 718, 720. The disposition of this
case requires neither the assumption made in the Court's opinion
relating to New York law nor the application given to Chapter X,
both of which must be inescapable before we even reach the
constitutional issue needlessly projected.
7.
Hines v. Lowrey, 305 U. S. 85, does
not touch this problem. That case involved § 500 of the World
War Veterans' Act, which limited to $10 the fee that may be allowed
for services in pressing a claim before the United States Veterans'
Bureau, and made it a crime to charge more. A New York court
granted a fee of $1,500 for such services because the estate of the
veteran was being administered by a committee appointed by the
state court which had appointed an attorney to press the claim
before the Veterans' Bureau. Of course, this Court held that a
state court cannot sanction that which Congress has outlawed as a
crime. The New York court, in effect, denied the authority of
federal law to fix fees for litigation before a federal tribunal --
a very different thing from denying to the New York the authority
to fix fees for litigation in its own courts. The limitations in
the
Hines case fixed by Congress did not run counter to
any requirement of New York law governing the conduct of suits in
its courts. That case was not concerned with such a situation, and
therefore could not possibly hold that, if New York had a policy
for litigation in its courts contrary to that expressed by
Congressional enactment, a federal right could be pursued in
disregard of the conditions for entry
Page 321 U. S. 193
into New York courts applicable to all other litigants. Congress
has never said that it can subvert the declared policy of a State
as to the manner in which, or the conditions under which,
litigation in state courts should be conducted. The federal law in
any field within which Congress is empowered to legislate is the
supreme law of the land in the sense that it may supplant state
legislation in that field, but not in the sense that it may
supplant the existing rules of litigation in state courts. Congress
has full power to provide its own courts for litigating federal
rights. The state courts belong to the States. They are not subject
to the control of Congress, though, of course, state law may, in
words or by implication, make the federal rule for conducting
litigation the rule that should govern suits to enforce federal
rights in the state courts. Surely it cannot be that, should New
York decide to regulate the public profession of the law by putting
the determination of all attorneys' fees in charge of its courts,
Congress could provide that actions thereafter brought in New York
courts in the enforcement of federal rights shall not be subject to
New York's fee system. I repeat,
Hines v. Lowrey, supra,
gives no support whatever to a claim which was not involved in that
case, which it did not consider, and which runs counter to the
whole course of federal judiciary legislation and federal
adjudication.
We ought not to go out of our way to embarrass consideration of
such delicate questions in the working of our federal system
whenever in the future they may call for decision by this
Court.
MR. JUSTICE JACKSON joins in this opinion.