McChord v. Louisville & Nashville Railroad

183 U.S. 483, 22 S. Ct. 165, 46 L. Ed. 289, 1902 U.S. LEXIS 726
CourtSupreme Court of the United States
DecidedJanuary 6, 1902
Docket141, 142, 143, 144, 145
StatusPublished
Cited by46 cases

This text of 183 U.S. 483 (McChord v. Louisville & Nashville Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McChord v. Louisville & Nashville Railroad, 183 U.S. 483, 22 S. Ct. 165, 46 L. Ed. 289, 1902 U.S. LEXIS 726 (1902).

Opinion

Mr. Chief Justice Fuller,

after stating the case, delivered the opinion of the court.

By the decrees the Sailroad Commission of the Commonwealth of Kentucky was permanently restrained from proceeding under the act of March 10, 1900, which was alleged and held to be unconstitutional.

Conceding that the mere fact that a duly enacted law is unconstitutional does not entitle a party to relief by injunction against proceedings in compliance therewith, it is contended that ground of equity jurisdiction existed here in the want of *495 adequate remedy by the ordinary processes of-law for the threatened consequences of the exercise of the power to fix rates in multiplicity of suits and irreparable injury.

It is insisted that, according to the terms of the act, the order of the Commission fixing the rate, toll or compensation which the railroad companies may charge, is self-executing, and that no duty to enforce it is imposed on the Commission; that the companies are shut up by the act, to the final determination of the Commission that they have charged more than a just and reasonable rate, and that on the trial of indictments for failure to observe the rates made by the Commission, the courts cannot entertain any inquiry as to the reasonableness of the rates so fixed because such inquiry is unwarranted by the statute, and because such an investigation -would be illusory and worthless. And that even if the question of constitutionality could be raised in defence, yet that if such order be permitted to be entered of record, and notified as provided, the companies, if they do not comply, will be at once exposed to imramerable'prosecutions, and to financial ruin by the accumulation of penalties before a judicial decision as to the validity of the statute could be had, if it should then happen that the statute is upheld. ’

However all this may be, we think it is not to be doubted that these bills cannot be maintained if it appear that-the Commission is charged with the duty of enforcing the orders it may enter fixing rates. The objection that before this is done, the Commission is required to exercise judicial functions in determining that the companies have charged or received more than a just and reasonable fate, goes to the validity of the act. The fixing of rates is essentially legislative in its character, and the general rule is that legislative action cannot be interfered with by injunction.

It is true that in Stone v. Farmers’ Loan & Trust Company, 116 U. S. 307, the suit was brought to enjoin the railroad commission of Mississippi from proceeding under the provisions of a certain statute therein mentioned against a railroad company, but the question of jurisdiction does not seem to have been raised. The case was considered on its merits and the bill di *496 rected to be dismissed. Mr. Chief Justice "Waite, speaking for the court, among other things, said: “As yet the commissioners have done nothing. There is, certainly, much they may do in regulating charges within the State, which will not be in conflict with the Constitution of the United, States. It is to be presumed they will always act within the limits of their constitutional authority. It will be time enough to consider what may be done to prevent it when they attempt to go beyond.” ■'

In New Orleans Waterworks Co. v. New Orleans, 164 U. S. 471, 472, the general rule was stated and applied, and Mr. Justice Harlan, who delivered the opinion of the court, said : “We repeat that when the city council- shall pass an ordinance that infringes the rights of the plaintiff, and is unconstitutional and void as impairing the obligation of its contract with the State, it will be time enough for equity to interfere, and, by injunction to prevent the execution of such ordinance. If the ordinances already passed are in derogation of the plaintiff’s contract rights, their enforcement can be prevented by appropriate proceedings instituted directly against the parties who seek to have the benefit of them. This may involve the plaintiff in a multiplicity of actions. But that circumstance cannot justify any such decree as it asks.”

The rule was also applied by Mr. Justice Field in Alpers v. San Francisco, 32 Fed. Rep. 503, where complainant sought an injunction to restrain the passage of an ordinance which he alleged would impair the obligation of a contract he had with the city. Mr. Justice Field said: “This no one will question as applied to the- power of the legislature of the State. The suggestion of any such jurisdiction of the court over that body would not be entertained for a moment. The same exemption from judicial interference applies to all legislative bodies, so far as their legislative discretion exténds.The courts cannot in the one case forbid the passage of a law nor in the other the passage of a resolution, order or ordinance. If - by either body, the legislature or the board of supervisors, an unconstitutional act be passed, its enforcement may be arrested. The parties seeking to execute the invalid act can be reached by the courts, while the legislative body of the State or of the munici *497 pality, in the exercise of its legislative discretion, is beyond their jurisdiction. The fact that in either case the legislative action threatened may be in disregard of constitutional restraints, and impair the obligation of a contract, as alleged in this case, does not affect the question. It is legislative discretion which is exercised, and that discretion, whether rightfully or wrongfully exercised, is not subject to interference by the judiciary.”

In Southern Pacific Company v. Board of Railroad Com missioners, 78 Fed. Rep. 236, the law of California provided that the commissioners might “ enforce their decisions and correct abuses through the medium of the courts; ” and, in substance, that after the rate was made by the commission, a copy of the order should be served on the corporation affected thereby, and that twenty days thereafter the rate should take effect. A bill was filed before the twenty days had expired, and Mr. Justice McKenna, then Circuit Judge, held, that it was the duty of the commissioners. to enforce the. rate, and that an injunction would lie. The railroad commission had made an order reducing the grain rates of the company eight per cent, and had passed a resolution declaring, that its general charges were twenty-five per cent too high, and that “ this board proceed at once to adopt a revised schedule of rates in accordance herewith in order that the same may be in force before January 1, 1896.” The court enjoined the enforcement of the eight per cent reduction, which had already .been made, but declined to restrain the twenty-five per cent •reduction, because .no decisive action had been taken.

T -Beading the various sections of the General Statutes of Kentucky, set forth in the statement preceding this opinion, as in parí mateida

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Bluebook (online)
183 U.S. 483, 22 S. Ct. 165, 46 L. Ed. 289, 1902 U.S. LEXIS 726, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcchord-v-louisville-nashville-railroad-scotus-1902.