Kelly-Sullivan, Inc. v. Moss

180 Misc. 3, 39 N.Y.S.2d 797, 1943 N.Y. Misc. LEXIS 1574
CourtNew York Supreme Court
DecidedFebruary 10, 1943
StatusPublished
Cited by1 cases

This text of 180 Misc. 3 (Kelly-Sullivan, Inc. v. Moss) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kelly-Sullivan, Inc. v. Moss, 180 Misc. 3, 39 N.Y.S.2d 797, 1943 N.Y. Misc. LEXIS 1574 (N.Y. Super. Ct. 1943).

Opinion

Null, J.

The question presented by plaintiffs’ application for judgment on the pleadings is the constitutionality of chapter 614 of the Laws of 1940 (amdg. General Business Law, art. X-B, §§ 167-169-j, incl.). In their first cause of action, the plaintiffs contend that so much of the statute is invalid as limits the maximum premium upon the resale of theatre and amusement tickets to seventy-five cents for each ticket. It is urged that the imposition of such limitation is violative of the Fourteenth Amendment of the Constitution of the United States and of section 6 of article I of the Constitution of the State of New York. In the second cause of action, the plaintiffs contend that the entire statute is invalid upon the ground that it contravenes sections 11, 12 and 13 of article IX of the Constitution of the State of New York.

The action is for a declaratory judgment and for relief restraining the defendants from enforcing the provisions of the statute. The material allegations of the complaint are not controverted and there is no real question of fact in issue. The relief sought by way of declaration is not inappropriate for the purpose of testing a constitutional question and the court may dispose, summarily, of the matters of law thus presented. (Dun & Bradstreet, Inc., v. City of New York, 276 N. Y. 198.)

1 Plaintiffs insist that the question here involved is controlled by the determination in Tyson & Bro. v. Banton (273 U. S. 418), which invalidated a similar statute on the ground that it exceeded the constitutional limitations imposed upon the exercise of the police power. It would serve little purpose to analyze precedents based upon familiar principles hitherto thought applicable*. (Cf. Slaughter-Bouse Cases, 16 Wall. 36; Munn v. Illinois, 94 U. S. 113; Davidson v. Neio Orleans, 96 U. S. 97; Hurtado v. California, 110 U. S. 516; Butchers’ Union Co. v. Crescent City Co., Ill U. S. 746; with Chicago, M. é St. P. By. Co. v. Minnesota, 134 U. S. 418; Lochner v. New York, 198 U. S. 45; Adkins v. Children’s Hospital, 261 U. S. 525; Burns Baking Co. v. Bryan 264 U. S. 504; Tyson & Bro. v. Ban-ton, supra; Bibnik v. McBride, 277 U. S. 350; Baldwin v. Missouri, 281 U. S. 586. Cf., also, Mugler v. Kansas, 123 U. S. 623; Powell v. Pennsylvania, 127 U. S. 678; Holden v. Hardy, 169 U. S. 366.) Similar contentions in a prior action between some of the parties to this litigation were passed upon in this court. Mr. Justice Bernstein, in a scholarly and comprehensive opinion, stressed the contrast between the old and new concepts of legislative power and pointed out that the rule in the Tyson case was no longer applicable. (Kelly-Sullivan, Inc., v. [6]*6Moss, 174 Misc. 1098, affd. 260 App. Div. 921.) Since that decision the United States Supreme Court, in Olsen v. Nebraska (313 U. S. 236), has reiterated that the sphere of legislative action upon property or business and the regulation of the use thereof is not restricted to such use which the court may deem to be “ affected with a public interest.”

Concepts long established, although not without vigorous dissent, have recently been the subject of scrutiny and reappraisal. (Nebbia v. New York, 291 U. S. 502; West Coast Hotel Co. v. Parrish, 300 U. S. 379; Olsen v. Nebraska, supra.) Notions of public policy embodied in earlier decisions have ceased to be the test of constitutionality. (Olsen v. Nebraska, supra.) Independently of these rejected principles, the doctrine of the Tyson case cannot survive.

On the contrary, it is the dissenting opinions in the Tyson case which formulate the measuring rod of due process. In the exercise of its police power the Legislature may regulate any business, the conduct of which it deems to be detrimental to the general public, who but for legislative intervention would be powerless to protect themselves against extortionate and unjust practices. Without attempting to limit by definition, unless expressly forbidden by the Constitution, the criterion of legislative power is the promotion of the general public welfare.

The allegations that the maximum premium fixed by the statute is unreasonable, confiscatory and discriminatory are without merit. “ The Constitution does not guarantee the unrestricted privilege to engage in a business or to conduct it as one pleases. Certain kinds of business may be prohibited; and the right to conduct a business, or to pursue a calling, may be conditioned. * * * And statutes prescribing the terms upon which those conducting certain businesses may contract, or imposing terms if they do enter into agreements, are within the state’s competency.” (Nebbia v. New York, supra, pp. 527, 528.)

The failure of the Legislature to distinguish between high-priced tickets and low-priced tickets, or to differentiate between theatre tickets and tickets of admission to sporting and other amusement events, does not render the statute invalid. The court has no concern with the policy embodied in the statute. Having once determined the power of the Legislature, the need, appropriateness or wisdom of the measure is a matter purely of legislative concern. (Nebbia v. New York, supra; Olsen v. Nebraska, supra.) The remedy for unwise or unnecessary action lies in the ballot box.

[7]*7Similarly, there is apparent no violation of equal protection. The Fourteenth Amendment does not preclude distinction in the treatment of persons falling within different categories. The only limitation imposed by the Amendment is that, the classification be neither arbitrary nor fanciful. (U. S. Mortgage Co. v. Matthews, 293 U. S. 232; Borden’s Co. v. Ten Eyck, 297 U. S. 251; St. John v. New York,

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Bluebook (online)
180 Misc. 3, 39 N.Y.S.2d 797, 1943 N.Y. Misc. LEXIS 1574, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kelly-sullivan-inc-v-moss-nysupct-1943.