Coal & Coke Ry. Co. v. Conley

67 S.E. 613, 67 W. Va. 129, 1910 W. Va. LEXIS 13
West Virginia Supreme Court·Decided March 8, 1910·Published·Cited by 145 cases

Opinions

POEEENBAEGEE, JUDGE:

In the chancery cause of the Coal & Coke Railway Company v. Wm. G. Conley and S. B. Avis, matured and brought on for hearing, on the bill, motion to dismiss, demurrer, answer and depositions, the circuit court of Kanawha county pronounced a decree, on the 16th day of June, 1909, perpetually enjoining, inhibiting and restraining said Conley and Avis from proceeding, as Attorney General of the State and Prosecuting Attorney of Ka-nawha County, respectively, to enforce, against the plaintiff, the penal provision of an act of the legislature, passed on the-20th day of February, 1907, entitled “AN ACT relating to and regu[138] lating passenger rates upon railroads in tbe state of West Virginia, and prescribing penalties for tbe violation thereof,” and popularly known as tbe “Two Cent Bate Act;” deeming said act void on its face for several reasons and confiscatory in its operation upon said company. From this decree, Conley and Avis have appealed.

The jurisdiction. of tbe circuit court is denied on several grounds, one of which is that the suit is, in substance and effect, one against the state, •although .nominally and ostensibly against Wm. G-. Conley and S. B. Avis, and, therefore, within the inhibition of section 35 of Art. VI of the Constitution of' this State, providing that “The State of West Virginia shall never be made defendant in any court of law or equity.” This, defense was set up by a motion to dismiss the bill, as well as by the demurrer, denying jurisdiction on other grounds, as well as the sufficiency of the bill, considered as a bill in equity.

In view of some of.the contentions found in the brief, we observe that there is no difference between courts of law and courts of equitj', in respect to immunity on the part of the state from liability to be sued therein. This inquiry is whether the-suit, irrespective of its form or the forum in which it is prosecuted, is against the state. Therefore, the distinction between proceedings at law and in equity will not be discussed in this: connection.

The State is not a party to the suit by name, but that would be immaterial, if a decision of the question involved mould be,, in substance and effect, one for or against the State. The criterion, then, is the nature and'extent of the State’s interest, if any, in the subject matter; and, upon these inquiries, the provisions of the statute, the status of the parties and the character of the relief sought, are all relevant and material.

Subject to a few trivial exceptions, the act involved limits-the charges of railroad companies, fifty miles long and over, for the transportation of passengers, to two cents per mile, and’ imposes a fine of not less than fifty nor more than five hundred dollars, for each violation of any provision thereof. According-to the allegations of the bill, the complainant had not incurred’ any penalties uncler the act,- at the time of the institution of this suit; but, having found the statute confiscatory in its opera[139] tion and effect, as applied to complainant’s business, and deeming it unconstitutional on its face, it had concluded not-to observe or respect the same thereafter, and accordingly filed its bill in this cause to restrain the defendants from attempting to enforce such penalties as might thereafter ostensibly accrue by reason of non-observance of the limitation prescribed by said act. If any penalties had been incurred at the date of the filing of the bill, the state government would have, had the right to inflict and exact the same, if valid. Assuming the validity of the statute, the state might have the right to enforce penalties incurred after the commencement of the suit. It would certainly have such an interest therein as would entitle it to be heard in the assertion of its claim thereto. That the State has an interest of this kind and to this extent is obvious. But is that such an interest as makes the suit substantially one against the State?

If the statute is valid, no' pecuniary benefit accrues to the State government under it otherwise than by means of the infliction of penalties for violation thereof, if any, and this is merely incidental. Its primary object is not revenue in the form of penalties. On the contrary, it is limitation of transportation charges in favor of the traveling public, and not of the State. The penal provision was inserted as a sanction te secure observance of the limitation, on the assumption of its sufficiency to deter railway companies from failure in that respect, and, sequentially, of no augmentation of the State’s funds from that source. Therefore, these penalties, like most others, are really for the benefit of the people and not the State, although, if incurred and enforced, they would come into the State treasury. The receipt thereof would be nevertheless merely incidental to the enforcement of a measure dictated by public policy, just as in the case of penalties arising from violation of other laws, enacted under the police power of the State.' If the relief prayed for in the bill and granted by the trial court should be sustained, and. a right to penalties has accrued, it is manifest that the interest of the State in the controversy is indirect and remote, for the reason statéd. But there is another reason which makes this view still more apparent.

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Coal & Coke Ry. Co. v. Conley, 67 S.E. 613, 67 W. Va. 129, 1910 W. Va. LEXIS 13 (W. Va. 1910).

67 S.E. 613 (Coal & Coke Ry. Co. v. Conley) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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