Beggs v. Edison Electric Illuminating Co.

96 Ala. 295
CourtSupreme Court of Alabama
DecidedNovember 15, 1892
StatusPublished
Cited by44 cases

This text of 96 Ala. 295 (Beggs v. Edison Electric Illuminating Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beggs v. Edison Electric Illuminating Co., 96 Ala. 295 (Ala. 1892).

Opinion

STONE, O. J.

Courts of equity bave, for a long time, exercised a general jurisdiction in cases of mutual accounts founded in privity, upon tbe ground of tbe inadequacy of tbe remedy afforded by tbe common law. And tbis equitable interposition lias been extended until equity will now entertain suits for accounts in matters wbich were formerly only cognizable at law. Tlie ancient common-law action of account being so imperfect in its processes, and so inadequate in its remedies, jurisdiction in sucb matters was originally given to equity, for tbe reason tbat tbe common law courts could not give any remedy at all, or tbe remedy was not as complete as tbat furnished by tbe Chancery Court. As courts of equity now entertain concurrent jurisdiction with tbe courts of law, in matters of accounts, a decision as to tbe proper tribunal must be governed by considerations of convenience and adequacy; and tbis is determined by tbe facts pertaining to each individual cause of action, and tbe relief sought. — 1 Sto. Eq. Ju., § 457.

As said above, where the accounts are mutual, and founded in privity, tbe jurisdiction of equity is undoubted. But where tbe accounts to be examined and stated are on one side only, tbe allegations of tbe bill must show tbe existence of certain conditions which are prerequisite to tbe exercise of equitable jurisdiction. There must either be so great a complication in tbe matters of account tbat a common-law court is unable to ferret them out, or there must be tbe [298]*298allegations of such facts as show tbe necessity for a discovery, and this discovery must be prayed for. Tbe reason for tbis rule is evident. Eor, in going into courts of equity, one is met at the threshold with the enquiry, can complete and adequate remedy be obtained in a court of law? If this question be answered in the affimative, the litigant must retrace liis steps, unless the allegations of his bill show that the matters involved come within the exclusive jurisdiction of equity.

The object of the present bill, as gathered from its allegations and the prayer, is the stating of an account between the complainant corporation and the defendant, and the obtaining of a decree against the defendant for three thousand dollars, which is alleged to have been obtained by the defendant through fraud. There are general allegations in the bill of complication in the accounts between the defendant and the Merchants’ Electric Light & Power Company, with which company complainant consolidated before the filing of the present bill. But there is no such particularity in these allegations as show in what way, and in reference to what matters, the accounts between the defendant and the company are complicated. There is no prayer for a discovery, nor does the frame of the bill disclose that a discovery is necessary.

It is now the settled doctrine of equity jurisprudence, that when the accounts to be examined are on one side only, great complication ought to exist in the accounts, or a discovery should be required, in order to induce a court of chancery to exercise jurisdiction. As is said by Mr. Story, “In such a case, if no discovery is asked, or required by the frame of the bill, the jurisdiction will not be maintainable. . . . Eor in such case there is not only a complete remedy at law, but there is nothing requiring the peculiar aid of equity to ascertain or adjust the claim. — 1 Story’s Eq. Jur. § 458. In Fowle v. Lawrason, 5 Pet. 495, Chief-Justice MARSHALL, in delivering the opinion of the court, said: “In all cases in which the action of account would be the proper remedy at-law, and in all cases where a trustee is a party, the jurisdiction of a court of equity is undoubted. It is the proper tribunal. And in transactions not of this peculiar character, great complication ought to exist in the accounts, and some difficulty should be interposed, or some discovery should be required, in order to induce a court of chancery to exercise jurisdiction.” It was said in Knotts v. Tarver, 8 Ala. 743, a leading case on this subject, “that it is not sufficient to give a court of equity jurisdiction that an account [299]*299exists between tlie parties, or that fraud lias been practiced; but there must be a discovery wanted in aid of tlie account, or to disclose tlie fraud, or the accounts must be so complicated as to require tbe aid of a court of chancery to adjust them; otherwise, there is -a complete remedy at law.” In cases where a discovery is not prayed for, the complication must be so alleged in the bill as to show on its face the inadequacy of a remedy at law. The rule stated by Lord Cot-tenham is: “Where the case is so complicated, or where there are other circumstances where a remedy at law will not give adequate relief, then a court of equity assumes jurisdiction.” — Foley v. Hill, 2 H. L. Cases, 28. These complications must be substantial and material. The fact that the bill happens to contain a general, vague charge that there are voluminous and intricate accounts between the parties, and this general allegation is inserted merely as a predicate for the purpose of bringing the case within the jurisdiction of a court of equity, the court will not entertain the bill, if demurred to for want of equity. This rule was clearly laid down by Lord Langsdale in Darthez v. Clemens, 6 Beavan, 165, and has been followed ever since.— Vanlier v. Kirkman, 7 Ala. 217; Knotts v. Tarver, 8 Ala. 744; Dickerson v. Lewis, 34 Ala. 538; State v. Bradshaw, 60 Ala. 238; County of Dallas v. Timberlake, 54 Ala. 403; Lott v. Mobile. County, 79 Ala. 69.

Under the principles above announced, the chancellor should have sustained tlieTst, 4th, 5th, 6th, 7th, 8th, 9th and 10th grounds of demurrer.

The other question sought to be raised by the demurrer was, whether the Edison Electric Illuminating Company and the Merchants’ Electric Light & Power Company were such corporations as were authorized to be consolidated under the statute. Section 1565 of the Code of 1886 declares that “any two or more mining, quarrying or manufacturing corporations may unite or consolidate their capital stock, property and business, in the manner hereinafter provided.” The direct question involved is, whether electric-light companies are manufacturing corporations, and as such are authorized by the statute to consolidate. In view of the rapid development of electricity as a motive power, and considering the many phases in which questions pertaining to this power arise, we do not deem it amiss to decide the question now presented.

The word manufacture means the making of anything by hand or artifice. — L. & N. R. Co. v. Fulgham, 91 Ala. 555. Mr. Worcester’s Dictionary defines manufacture as “the pro[300]*300cess of making anything by art, or of reducing materials into a form fit for use by the hand or by machinery.” The-definition that the word is given by the Century Dictionary is as follows: “The production of articles for use from raw or prepared materials, by giving these materials new forms, qualities, properties or combinations, whether by hand-labor or by machinery.” According to the above definitions of the word manufacture, we are constrained to consider and declare an electric-light company a manufacturing corporation to all intents and purposes. It is no answer to this argument to say, that electricity exists in a state in nature, and that a corporation engaged in the electric-light business collects or gathers such electricity.

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Bluebook (online)
96 Ala. 295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beggs-v-edison-electric-illuminating-co-ala-1892.