Gulledge v. Mo. Pac. R'y Co.

3 Willson 207
Court of Appeals of Texas·Decided October 30, 1886·No. No. 2303·Published

Opinion

Opinion by

Willson, J.

§ 168. Penalty for overcharge on freight; but one penalty recoverable by same party up to time of institution of suit; case stated. This is one of nine suits, all of a similar nature, filed by appellants against appellee on the 15th of September, 1885, and all for penalties for alleged overcharges made prior to that time. On the 13th day of October, 1885, the first of these suits, No. 270, was tried, and plaintiffs recovered the penalty sued for. When this case was called for trial at the January term, 1886, defendant interposed a plea to the effect that only one penalty could be recovered for all violations of the law, prior to the institution of the suit in which he had recovered a penalty, and offered to verify the allegations of said plea by the records of the court in which this suit was pending. This plea was tried before the court without a jury, and judgment rendered in favor of defendant. The important question presented for decision is shown [208] by the following proposition by appellants, and counter-proposition by appellee, to wit:

PROPOSITION.

“When the legislature, by a penal law, prohibits a certain act, and prescribes a penalty therefor, every transaction so prohibited which is complete within itself, and committed at different times, is a separate violation of such penal law.”

COUNTER-PROPOSITION.

“Unless the statute'giving the penalty expresses that it is ‘ for each and every offense,’ only one penalty can be recovered by the same person for all violations of the law up to the time of the institution of the suit.”

The statute prescribes a penalty of $500 for an overcharge on freight. It does not expressly provide that this penalty may be recovered for “ each and every overcharge.” [R. S. art. 4258.] We are not aware that the question now presented has ever been before the courts of this state. We are sure it has not been decided by either the supreme or this court. In Murray & Bro. v. G., C. & S. F. R’y Co. 63 Tex. 407, the plaintiff sought to recover several penalties for several distinct and sep - arate overcharges on freight, but the question now under consideration does not appear to have been raised, and was not passed upon by the court. Looking to other states having statutes upon this subject similar to ours, we find that the court of appeals of the state of New York, in Fisher v. R. R. Co. 46 N. Y. 644, held that but one penalty could be recovered by the same plaintiff for overcharges made prior to the commencement of the action. This decision is based upon a statute substantially the same as ours. After reviewing the authorities bearing upon the question, Justice Grover, delivering the opinion of the court, says: “My conclusion is, that but one penalty can be recovered upon the statute under consideration for all acts committed prior to the commence[209] ment of the action. If, after this, it is again violated, another may be recovered in another action commenced thereafter, and so on, as long as violations continue. This will not only tend to put a stop at once to the extortion, when it is committed knowingly by the defendant, but where it is done under a mistake as to its rights, will give it notice that its right to charge the amount claimed is challenged, and will induce a cautious examination of the question, and an abandonment of the claim before a ruinous amount of penalties has been incurred.” This decision was rendered December 12,1871, and is the leading case upon the question before us. Mr. Borer, in his work on Railroads, citing it, says: “ Such action for the penalty is not given as a satisfaction to the party injured, but is given as a punishment for the misconduct of the company in violating the law, and to compensate the party for the expenses of suit. Hence, a recovery can be had but for one penalty, by the same party, for illegal exactions up to the time of commencing the action, however often the illegal action may have been repeated, unless the statute otherwise provides. The intention of the law is to prevent the wrong act of taking excessive rates, and with that intent requires, though not so expressed, that each penalty incurred shall be sued for as it occurs, so that if the act be an oversight, it may thereafter be guarded against by the carrier, and if from a misconstruction of the law, the carrier may be undeceived by a judgment going against him, and may cease to violate the statute. . . . The object of the statute is not so much to vindicate the individual right, as the public law.” [1 Rorer on Railroads, pp. 576, 577, sec. 6.] Mr. Wait, in his work on Actions and Defenses [vol. 5, 164], quotes the doctrine of the decision without questioning its correctness. The same able court, in the earlier case of Sturgis v. Spofford, 46 N. Y. 446, in construing a statute giving a penalty against any person employing a person to act as pilot, not holding a license, held that but one penalty could be recovered, although such employment [210] was repeated for numerous ships. Chief J ustice Church, in the opinion, says: “It is a wholesome rule not to allow a recovery for aggregated penalties, unless the language of the statute clearly requires it. Under this rule the party prosecuted will have an opportunity to desist from doing the act complained of, and if he does not, he will knowingly incur all the hazards of repeated prosecutions.”

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Gulledge v. Mo. Pac. R'y Co., 3 Willson 207 (Tex. Ct. App. 1886).

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Related

Fisher v. . N.Y.C. and H.R.R.R. Co.
46 N.Y. 644 (New York Court of Appeals, 1871)
T. V. Murray & Bro. v. G., C. & S. F. R. R. Co.
63 Tex. 407 (Texas Supreme Court, 1885)