Appalachian Electric Power Co. v. Smith

67 F.2d 451, 1933 U.S. App. LEXIS 4504
CourtCourt of Appeals for the Fourth Circuit
DecidedOctober 3, 1933
Docket3500
StatusPublished
Cited by30 cases

This text of 67 F.2d 451 (Appalachian Electric Power Co. v. Smith) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Appalachian Electric Power Co. v. Smith, 67 F.2d 451, 1933 U.S. App. LEXIS 4504 (4th Cir. 1933).

Opinion

PARKER, Circuit Judge.

This is an appeal in a suit instituted by the Appalachian Electric Power Company, as plaintiff, against George Otis Smith, Frank R. McNinch, Ralph B. Williamson, Marcel Garsaud, and Claude L. Draper, as defendants, who were at the time members of the Federal Power Commission. They were sued, however, not in their official capacity, but as individuals; and, upon the return of process, they moved to quash the service thereof [(D. C.) 4 F. Supp. 3] and also to dismiss the bill of complaint for lack of jurisdiction in the court to entertain the suit as well as for non-joinder of necessary parties. (D. C.) 4 F. Supp. 6. The court overruled these motions and took jurisdiction of the cause, but dismissed the bill on the merits. Defendants in this court again challenge the jurisdiction of the court below in addition to insisting that, if there was jurisdiction, the decision on the merits was correct. As we are of opinion *453 that the position of defendants is correct on the question of jurisdiction, we shall confine our discussion to that question.

Plaintiff is the owner of a large body of land on New river in Pulaski county, Va. This land has been acquired with a view of developing the water power of New river through the erection of a dam, and its chief value consists in its prospective use as a basin for the pond or reservoir which will be thereby created. In June, 1925, the New river Development Company, which at that time held title to the land, filed a “declaration of intention” with the Federal Power Commission pursuant to section 23 of the Federal Water Power Act (16 USCA § 817), describing the0 dam and power plant which it intended to construct and requesting the commission to cause an investigation thereof to be made pursuant to the provisions of the act. In September, 1926, plaintiff, having acquired title to the lands held by the New River Development Company, and having with the consent of the commission taken an assignment of the “declaration of intention,” applied to the commission for a license authorizing the construction of the project. The application for license described the New river as nonnavigable but as a tributary to the Kanawha, which was described as being navigable to Montgomery, W. Va., 156 miles below the project.

The Power Commission caused investigation to be made and on June 1, 1927, found that New river in the part involved was not “navigable waters” within the definition of the Water Power Act, but that “the interests of interstate or foreign commerce” would be affected by the proposed construction. The commission thereupon tendered plaintiff a standard or major form license containing all of the terms and conditions specified by the Water Power Act (16 USCA § 803). Plaintiff promptly notified the commission that it would not accept the license. In February, 1930, it requested the commission to reconsider the finding made on June 1,1927 and to disclaim jurisdiction over the proposed development or, alternatively, to issue a minor part license pursuant to section 10(i) of the act. In the letter making this request, plaintiff challenged the jurisdiction of the commission over the development, but offered to accept a minor part license containing only such conditions as would be appropriate to prevent any substantial interference with the navigable capacity of the Kanawha river rendered unlawful by the River and Harbor Act of March 3,1899 (33 USCA § 403).

No further action was taken in the matter until after the defendants became members of the commission in December 1930. A hearing was held in February 1931, and on April 3, 1931, the commission entered an order as follows:

“1. That the motion of the applicant company to reconsider the finding of June 1, 1927, ‘that the interests of interstate or foreign commerce would be affected by such proposed construction’ be and the same is hereby denied;

“2. That the application, dated October 6, 1930, for a minor part license for this project be and the same is heaeby denied; and

“3. That the applicant shall be tendered a standard form license under the Act, and it is hereby ordered that it shall not proceed with construction until it shall have received and accepted such license.”

In May, 1931, the commission again tendered plaintiff a standard or major form license. Plaintiff again refused to accept such license and in June, 1981, instituted this suit in the Western District of Virginia, not against the commission but against the members of the commission individually. No one of the members of the commission was resident in Virginia, but process was served upon them in the District of Columbia under order entered on the theory that the suit was one to remove a cloud from the title of plaintiff’s property. Defendants appeared speeiaEy and objected to the court’s taking jurisdiction of the cause and moved to quash and set aside the service of process, but their objection was overruled and motion denied. (D. C.) 4 F. Supp. 3.

The bill of complaint set forth the facts hereinabove stated, other than those relating to service of process, and averred that it was beyond the authority of the members of the Power Commission to enter the orders of June 1,1927, and April 3,1931, or to require plaintiff to accept the Heense tendered as a condition of proceeding with the construction of the proposed project; that, if the Water Power Act by its terms conferred such power upon the commission, it was to that extent contrary to the provisions of the federal Constitution and void for that reason; that the orders of the commission were void, either because not authorized by statute, or because the statute authorizing them was unconstitutional; and that these orders constituted a cloud on plaintiff’s title to its lands, which prevented it from obtaining funds necessary to develop them so as to realize their value. The prayer of the biE was that the orders of *454 June 1, 1937, and April 3, 1931, be declared null and void, that defendants be required to expunge them from the records of the Power Commission, and that defendants be enjoined from interfering with plaintiff’s construction of its contemplated power development, or from instituting any prosecutions against plaintiff or its officers pursuant to the penal or injunctive provisions of the Water Power Act.

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Bluebook (online)
67 F.2d 451, 1933 U.S. App. LEXIS 4504, Counsel Stack Legal Research, https://law.counselstack.com/opinion/appalachian-electric-power-co-v-smith-ca4-1933.