F. E. Nugent Funeral Home, Inc. v. Beamish

173 A. 177, 315 Pa. 345, 1934 Pa. LEXIS 617
CourtSupreme Court of Pennsylvania
DecidedApril 9, 1934
DocketAppeal, 24
StatusPublished
Cited by7 cases

This text of 173 A. 177 (F. E. Nugent Funeral Home, Inc. v. Beamish) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
F. E. Nugent Funeral Home, Inc. v. Beamish, 173 A. 177, 315 Pa. 345, 1934 Pa. LEXIS 617 (Pa. 1934).

Opinion

Opinion by

Mr. Justice Kephart,

Appellant, a Delaware corporation, applied to the state department for a certificate of authority to conduct an undertaking business in Pennsylvania. The secretary of the Commonwealth refused to grant the permission because appellant had not conformed to the conditions necessary to secure such right. The court below dismissed the proceeding against the attorney general, the secretary of the Commonwealth, the state board of undertakers, and the district attorney of Philadelphia. The issue before us is the validity of the Act of June 10, 1931, P. L. 485 (known as the Undertakers’ Act), under the federal Constitution.

Section 13, complained of, requires the officers of a corporation organized to carry on the business of undertaking to be licensed undertakers. * While appellant contends that this requirement is an invalid exercise of the police power, we will consider the primary question involved, the power of a state to condition the entry of foreign corporations to do business within its borders. Appellant is a foreign corporation which has never done business in this Commonwealth and seeks to enter to conduct that business.

*348 Corporations organized under a state’s laws, essentially creatures of that state, depending on it alone for power and authority, cannot by that state be invested with the right to do business in another state which must be recognized by such other state. A state may wholly exclude a foreign corporation from doing business therein, unless it is engaged in interstate or foreign commerce or is an instrumentality of the central government. Before a corporation of one state may do business in another, it must, if that state so demands, secure its permission to enter: Crescent Oil Co. v. Mississippi, 257 U. S. 129, 137; Horn Silver Mining Co. v. New York, 143 U. S. 305; Baltic Mining Co. v. Massachusetts, 231 U. S. 68, 83; Munday v. Wisconsin Trust Co., 252 U. S. 499. A state may impose any conditions it sees fit on the privilege of a foreign corporation to do business, provided the conditions do not invade rights created or guaranteed by the federal Constitution: Sioux Remedy Co. v. Cope, 235 U. S. 197, 203; Interstate Amusement Co. v. Albert, 239 U. S. 560; Munday v. Wisconsin Trust Co., supra; Frost Trucking Co. v. R. R. Com., 271 U. S. 591, 594. Justice Field, in Horn Silver Mining Co. v. New York, supra, at page 314, said: “......a foreign corporation......can claim a right to do business in another state, to any extent, only subject to the conditions imposed by its laws,” and quoted with approval from Paul v. Virginia, 8 Wall. 168, 181, in part as follows: “Having no absolute right of recognition in other states, but depending for such recognition......upon their assent, it follows, as a matter of course, that such assent may be granted upon such terms and conditions as those states may think proper to impose. They may exclude the foreign corporation entirely; they may restrict its business to. particular localities, or they may exact such security for the performance of its contracts......as in their judgment will best promote the public interest. The whole matter rests in their discretion. The right granted by the parent state, of a corporation to do busi *349 ness anywhere, is not a property right which will he protected by the Constitution of the United States.

But where a foreign corporation, by compliance with a state’s conditions, obtains a right to do business in that state, and does business therein, it has what in many particulars is akin to a domestic corporation’s federal rights as to subsequent or future regulation. This is true notwithstanding the right reserved in our Constitution to alter, amend or revoke the charters of domestic corporations. Neither domestic nor foreign corporations may be destroyed through unconstitutional acts. Thus a foreign corporation cannot he compelled to remove from the state because of a failure to comply with an unreasonable regulation imposed subsequently to its entry in violation of the Fourteenth Amendment. Having acquired a right to do business, and doing it, it cannot he limited in such right by regulations which will effect a deprivation of property (Liggett Co. v. Baldrige, 278 U. S. 105), or a denial of equal protection of the laws; nor can such regulations be imposed on a domestic corporation under the Fourteenth Amendment: Frost Trucking Co. v. R. R. Com., supra. Where such authority is invoked under the police power by a state, it is then that the reasonableness of regulations become pertinent. In each of the foregoing cases the corporation affected had a business physically located within the state, that is, it had a property right which was infringed by what the United States Supreme Court termed an unreasonable regulation.

In the cases where the Federal Supreme Court has stricken down provisions of state statutes because they violated the federal Constitution, the foreign corporations were within the state doing business. In some the provisions offended the Fourteenth Amendment: Power Co. v. Saunders, 274 U. S. 490; Liggett Co. v. Baldrige, supra, at page 111; Liggett Co. v. Lee, 288 U. S. 517. In others they were direct attacks on federal power by means of conditions imposed, which might have been *350 considered precedent to entry and under which the corporation entered. Instances of these are the attempts by states to prevent the removal of causes to the federal courts (Southern Pacific Co. v. Denton, 146 U. S. 202; Southern Ry. Co. v. Allison, 190 U. S. 326; Herndon v. C., R. I. & P., 218 U. S. 135; Harrison v. St. L. & San Francisco R. R., 232 U. S. 318), to burden interstate commerce (Pensacola Tel. Co. v. Western Union Tel. Co., 96 U. S. 1; Norfolk & Western Ry. v. Penna., 136 U. S., 114; Crutcher v. Kentucky, 141 U. S. 47; Western Union Tel. Co. v. Kansas, 216 U. S. 1), to regulate agencies of government: Pembina Mining Co. v. Penna., 125 U. S. 181, 186; Horn Silver Mining Co. v. New York, supra. Such conditions are invalid since no state may enact a law which nullifies a power of the federal government.

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173 A. 177, 315 Pa. 345, 1934 Pa. LEXIS 617, Counsel Stack Legal Research, https://law.counselstack.com/opinion/f-e-nugent-funeral-home-inc-v-beamish-pa-1934.