Frahn v. Tennessee Valley Authority

41 F. Supp. 83, 1941 U.S. Dist. LEXIS 2612
CourtDistrict Court, N.D. Alabama
DecidedOctober 2, 1941
DocketNo. 452
StatusPublished
Cited by3 cases

This text of 41 F. Supp. 83 (Frahn v. Tennessee Valley Authority) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frahn v. Tennessee Valley Authority, 41 F. Supp. 83, 1941 U.S. Dist. LEXIS 2612 (N.D. Ala. 1941).

Opinion

MURPHREE, District Judge.

This is a proceeding for declaratory judgment based on Section 8(a) of the Tennessee Valley Authority Act of 1933, Title 16, U.S.C.A. § 831g, which provides: “The Corporation shall maintain its principal office in the immediate vicinity of Muscle Shoals, Alabama.”

[84]*84The plaintiffs bring the action as citizens and taxpayers of the communities near Muscle Shoals for themselves and for others similarly situated and ask that a declaratory judgment be entered against the Tennessee Valley Authority and its directors adjudging and holding that they are not complying with the above provision of said Act, and in effect praying that they be made to comply by order of this court.

The petition charges that the defendants maintain only a small building and office force near Muscle Shoals, Alabama; that its principal office as well as its principal place of business are maintained at Knoxville, Tennessee, and at other points in the State of Tennessee, and that the office maintained by defendants at Muscle Shoals, Alabama, is maintained as a subterfuge and that such conduct constitutes an evasion of the Act of Congress.

Defendants have filed a motion to dismiss the petition for failure to state a claim, relying upon two grounds: (1) Lack of legal interest in the plaintiffs to demand judicial relief, (2) lack of judicial power to control the discretion of the executive branch of the government within matters of the primary jurisdiction of the latter.

The question is one of wide public interest to people of Northern Alabama. That the Tennessee Valley Authority in actuality maintains its principal place of business and its general headquarters in the State of Tennessee is a matter of common knowledge. It is probably true that great public benefit would accrue to the Muscle Shoals communities and the people living there if the officers and offices of the Tennessee Valley Authority had been located according to the letter of the Act. The court feels constrained to say that there may have been an interpretation placed upon the quoted provision of the Tennessee Valley Authority Act which was not intended when the Act was adopted by Congress, and doubtlessly, the selection of the personnel of the Board of the Tennessee Valley Authority very greatly influenced the adopted interpretation. However, for reasons which the court will hereinafter set out, the motion of the defendants to dismiss for failure to state a claim must be granted, for the court is without jurisdiction in this proceeding to determine the issue.

The Constitution, Art. 3, § 2, limits the exercise of the judicial power to “cases and controversies”. The Declaratory Judgment Act, 48 Statutes 955, known as Declaratory Judgment Act of 1934, 28 U.S.C.A. § 400, extends jurisdiction to federal courts only in cases of actual controversy. The controversy must be justiciable, i. e., it must be definite and concrete touching the legal relationship of parties having adverse legal interests. Aetna Life Insurance Company v. Haworth, 300 U.S. 227, 57 S.Ct. 461, 81 L. Ed. 617, 108 A.L.R. 1000. Therefore, unless the complaint or petition discloses some legal interest in the plaintiffs, no justiciable controversy is presented for decision. The plaintiffs allege neither the violation of a personal contract nor an injury affecting their personal financial rights. It might be argued that if the office of the Tennessee Valley Authority were removed from Tennessee to North Alabama that thousands of dollars would then be spent in the Muscle Shoals area, and that necessarily the plaintiffs, as citizens of that community, would benefit in the general increase of the welfare of the community. The matter would be not only one of personal interest, but of general and public interest. This principle has been recognized in many state courts as applied to the relationship of the taxpayer and citizens of a state, county or municipal government, and the matter of municipal or state expenditures of funds or improvements. The doctrine has been repudiated as between citizens of a particular state and federal authorities or administrative agencies. The courts have uniformly denied sufficient legal interest in private citizens, as such, to enjoin or compel the acts of federal agencies based purely on a showing of public interest and not a direct and immediate financial interest.

Plaintiffs cite the case of Smith v. Franklin County et al., 221 Ala. 136, 127 So. 904, but the court is unable to distinguish the holding of the Federal Court in the cases of Massachusetts v. Mellon, 1923, 262 U.S. 447, 43 S.Ct. 597, 67 L.Ed. 1078, and United States ex rel. American Silver Producers’ Association v. Mellon, 59 App. D.C. 24, 32 F.2d 415, 418, certiorari denied, 1929, 280 U.S. 561, 50 S.Ct. 19, 74 L.Ed. 616, from this case. In the latter case a writ of mandamus was sought to compel the Secretary of the Treasury and the directors of the Mint to purchase silver under the provisions of the Pittman Act, 40 [85]*85Statutes 535. The court there held that the relators were without sufficient interest to maintain the suit, as there was no certainty that the silver would be bought from them rather than from other producers, and that a showing of public interest would not be sufficient. The following excerpt from the opinion of the court will be sufficient to illustrate the point involved :

“Undoubtedly, before a corporation may maintain an action in mandamus, its interest in the subject-matter of the litigation must be personal and direct, not indirect and remote. This rule of direct interest, however, is controlling in mandamus, whether the action be in the interests of a corporation or a private individual. * * *

“Relators in their brief urge that, if they ‘cannot bring the action, who can? There is and can be no producer who can say with certainty that the silver would be purchased from him rather than from other producers.’ This admission, in our opinion, ends the case, for, unless such a direct interest, as that which it is admitted cannot be shown, exists, there will be no one entitled to the writ; but the fact that no one else possesses the required interest to entitle him to the writ does not entitle relators to its issuance. * * *

“Finally, it is urged that the relator corporations may maintain this action on behalf of the public. Assuming, without admitting, that the corporations have all the political and commercial rights of citizens, they are not in position to maintain an action in mandamus against defendant officers in the interest of the whole people. It is well settled that a citizen and taxpayer is not in position to challenge the constitutionality of a law or restrain its enforcement by the proper officers, though he will be financially injured to the extent of being required to pay larger taxes. * * * ”

In the case of Atlanta v. Ickes, 308 U. S. 517, 60 S.Ct. 170, 84 L.Ed. 440, the plaintiff, City of Atlanta, sought an injunction restraining the National Bitumi-nous Coal Commission and its members from promulgating and enforcing orders fixing minimum prices for the sale of coal, together with a declaratory judgment that the National Bituminous Coal Act was unconstitutional, etc. The three judge District Court, Atlanta v.

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41 F. Supp. 83, 1941 U.S. Dist. LEXIS 2612, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frahn-v-tennessee-valley-authority-alnd-1941.