Guaranty Trust Co. of New York v. West Virginia Turnpike Commission

109 F. Supp. 286, 1952 U.S. Dist. LEXIS 2135
CourtDistrict Court, S.D. West Virginia
DecidedNovember 14, 1952
Docket1331
StatusPublished
Cited by20 cases

This text of 109 F. Supp. 286 (Guaranty Trust Co. of New York v. West Virginia Turnpike Commission) is published on Counsel Stack Legal Research, covering District Court, S.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Guaranty Trust Co. of New York v. West Virginia Turnpike Commission, 109 F. Supp. 286, 1952 U.S. Dist. LEXIS 2135 (S.D.W. Va. 1952).

Opinion

MOORE, Chief Judge.

Plaintiff brings this action under the provisions of U.S.C., Title 28 §§ 2201 and 2202, the Declaratory Judgment Act, seeking a ■declaration of the rights of the parties with respect to certain turnpike projects and the revenue bonds isstied and sold in connection therewith; the Attorney General of West Virginia having rendered an official •opinion that the Turnpike Commission exceeded its statutory powers in authorizing the projects; and the Governor of West Virginia having thereupon requested the Turnpike Commission to comply with the Attorney General’s opinion as a condition precedent to going forward with the work of building a turnpike. Plaintiff also prays for affirmative relief.

Jurisdiction is claimed on the basis of diversity of citizenship. Before proceeding to a consideration of the merits of plaintiff’s action, the following jurisdictional 'questions must be answered:

1. Is there an actual controversy between the parties?

2. Is there diversity of citizenship?

The basis for answers to these questions, as well as a determination of the case on its merits, if it is found to be maintainable in this court, must be found in the facts of the case, which are as follows:

•The Legislature of West Virginia, at its 1947 session, enacted a law providing for the appointment of a turnpike commission, with power to construct turnpikes by means of the issuance and sale of revenue bonds, to be paid off from the proceeds of tolls exclusively. The title and pertinent provisions of the Act are:

“An Act to facilitate vehicular traffic in the state of West Virginia by providing for the construction, maintenance, repair and operation of turnpike projects; creating the West Virginia turnpike commission and defining its powers and duties; providing for financing the construction of such projects by the issuance of turnpike revenue bonds of the state, payable solely from tolls and other revenues; and providing for the collection of tolls and other revenues to pay the cost of maintenance, repair and operation of such projects and to pay such bonds and the interest thereon.” Title of Act.
“Constructing and Financing Turnpike Projects. — In order to remove the present handicaps and hazards on the congested highways in the, state of West Virginia, to facilitate vehicular traffic throughout the state, to promote the agricultural and industrial development of the state, and to provide for the construction of modern express highways embodying every known *289 safety device including center division, ample shoulder widths, longsight distances, the by-passing of cities, multiple lanes in each direction and grade separations at all intersections with other highways and railroads, the West Virginia turnpike commission (hereinafter created) is hereby authorized and empowered to construct, maintain, repair and operate turnpike projects (as hereinafter defined) at such locations as shall ibe approved by the state road commission, and to issue turnpike revenue bonds of the state of West Virginia, payable solely from revenues, to pay the cost of such projects.” Acts of the Leg. of W.Va.1947, c. 139, § 1.
“Definitions.— * * * The word ‘project’ or the words ‘turnpike project’ shall mean any express highway or turnpike which the commission may at any time determine to construct under the provisions of this act, and shall embrace all bridges, tunnels, overpasses, underpasses, interchanges, entrance plazas, approaches, toll houses, service stations, and administration, storage and other buildings which the commission may deem necessary for the operation of the project, together with all property, rights, easements and interests which may be acquired by the commission for the construction or the operation of the project.” § 4(b).
“General Grant of Powers. — The commission is hereby authorized and empowered:
******
“To construct, maintain, repair and operate turnpike projects as herein-above defined at such locations within the state as may be determined by the commission; * * § 5(e).
“To issue turnpike revenue bonds of the state of West Virginia, payable solely from revenues, for the purpose of paying all or any part of the cost of any one or more turnpike projects;” * * *. § 5(f).
“Act Liberally Construed; Constitutional Construction; Inconsistent Acts Repealed. — This act, being necessary for the welfare of the state and its inhabitants, shall be liberally construed to effect the purposes thereof.” § 20.

The Act sets out in detail the procedure to be followed by the Turnpike 'Commission in the performance of its duties and the exercise of its powers under the Act. It is provided that the Commission may sue and be sued; that it is constituted an agency of the State, and that its powers as exercised under the Act shall be deemed an essential governmental function of the State; it is authorized to condemn or purchase property and take title thereto in the name of the State of West Virginia. The State assumes no liability whatsoever, either for paying any of the expenses of the organization and maintenance of the Commission, or liquidating any part of the principal or interest of any of the revenue bonds issued by it, or any other direct or consequential liability. The members of the Commission serve without pay. It is noted here that there is a provision of this Act which permits the State 'Road Commission (the department of the State government which has supervision and control of the State Road system) to advance to the Turnpike Commission moneys needed to conduct preliminary surveys and engineering studies, as well as to contribute the services of the Road Commission’s personnel in this connection; but the question of the constitutionality of this provision having been submitted to the Attorney General of the State of West Virginia, and he having rendered an opinion that it is unconstitutional, the Turnpike Commission has accepted and acted upon the Attorney General’s opinion in this respect; and I assume its unconstitutionality for the purposes of this opinion. The Act gives to the Trustee under the trust agreement, which is provided for in detail by other sections of the Act, the right to maintain an action to protect any rights conferred by the Act, or under other laws of the 'State, or under the trust agreement, or the resolution authorizing the issuance of the bonds; and provides specifically that the Trustee may compel performance of all duties required by the Act, the trust agreement, or the res *290 olution authorizing the issuance of the bonds. The Turnpike Commisson is exempted from the payment of any 'State taxes on any of the property acquired or used under the Act; and the revenue bonds and the income therefrom are also made tax free. When the bonds are fully paid with interest, the toll charges are to be discontinued and the turnpike, for the construction of which the ibonds were issued, if in good repair, is to become part of the State Road system.

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Bluebook (online)
109 F. Supp. 286, 1952 U.S. Dist. LEXIS 2135, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guaranty-trust-co-of-new-york-v-west-virginia-turnpike-commission-wvsd-1952.