Patterson v. Southern Railway Co.

214 N.C. 38
CourtSupreme Court of North Carolina
DecidedJune 22, 1938
StatusPublished
Cited by6 cases

This text of 214 N.C. 38 (Patterson v. Southern Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Patterson v. Southern Railway Co., 214 N.C. 38 (N.C. 1938).

Opinions

Seawell, J.

In Parsley v. Nicholson, 65 N. C., 207, it is said: “The ■object of pleading, both in the old and new systems, is to produce proper .issues of law or of fact, so that justice may be administered between ■parties litigant, with regularity and certainty.” Pleadings serve to con:fine the controversy between the parties to some issue relating to a justiciable cause, so that the field of investigation may be defined and brought within reasonable limits. A party to an action is entitled as a matter of right to put into his pleading a concise statement of the facts constituting his cause of action or defense, and nothing more. C. S., 506; C. S., 519.

Upon motion made in apt time, an aggrieved party may have irrelevant or redundant matter stricken from his opponent’s pleading, espe[43]*43cially when such matter is prejudicial to him, or scandalous. C. S., 537. A motion under tbis statute bas been beld to be made as a matter of right and not addressed to tbe discretion of tbe court. Bank v. Atmore, 200 N. C., 437, 439, 157 S. E., 129.

Upon motion of plaintiff made under tbis statute, tbe trial judge struck out tbe paragraphs of tbe answers above listed, finding them to be irrelevant and prejudicial.

If tbe matter stricken out should be found to contain a valid defense not asserted elsewhere in tbe pleading, tbe defendants would be entitled to have it stand, no matter bow prejudicial or scandalous. Powell v. Cobb, 56 N. C., 1; Mitchell v. Brown, 88 N. C., 156. And they could not complain if tbe matter stricken out contained no averment competent or necessary to tbe defense. Tbis case, therefore, turns upon tbe relevancy of tbe deleted paragraphs of tbe answer, as setting up matters of defense.

An approved test of relevancy is whether tbe matter alleged is competent to be shown on tbe bearing. Pemberton v. Greensboro, 203 N. C., 514, 515, 172 S. E., 196.

Tbe paragraphs stricken out of tbe answer by sections 1, 2, and 3 of tbe judgment are of tbe same tenor and may be considered together. They set up as a defense that tbe reduction of rates made by defendants bas bad tbe effect of reducing tbe price of gasoline to tbe consumer, with special reference to tbe vicinity of Burlington; that tbe result of a recovery by tbe plaintiff will be to destroy competition at Wilmington and raise tbe price of gasoline, and would therefore be in contravention of public policy, and bis action is therefore legally barred.

If tbe defendants could establish tbe causal sequence between their reduction of rates and tbe lowering of prices on gasoline, it would not be available as a defense in tbis action. Such a result is as likely to follow an unlawful reduction of rates in carrying out tbe conspiracy charged in tbe complaint as it is to follow a lawful reduction brought about solely by economic conditions.

Tbe public bas no vested right in a pecuniary or economic advantage produced by an unlawful invasion of private right, designed to injure an individual.

As to tbe policy involved, tbe State bas no policy directed toward tbe lowering of tbe price of gasoline, or any other commodity, although there is a strong public desire in tbis direction. Tbe policy of tbe State on tbis subject is comprised and declared in tbe Constitution (Article I, section 31), in tbe statutes on Monopolies and Trusts (chapter 53 of tbe Consolidated Statutes), and in tbe common law on tbis subject, still recognized as in force here; and it comprehends both tbe raising and lowering of prices by unlawful means and for an unlawful purpose.

[44]*44Generalizations respecting monopoly statutes, their purpose and effect, cannot be expected equally to fit them all, but it may be laid down as a principle common to our own laws that where an act has been directly condemned by the statute, no power resides in the court to balance the advantages of continuing the situation produced by defendants’ violation of law against the advantages of granting the relief sought in the action, thereby making such a violator of the law a sort of economic Robin Hood who may, with judicial approval, plunder the individual in the interest of the needy public.

In the North Carolina case cited in defendants’ brief, Mar-Hof Co. v. Rosenbacker, 176 N. C., 330, 97 S. E., 169, this Court had to reconcile a statute aimed against- restraint of trade with the right of contract in partial restraint of trade, and held only that the restrictive terms of the statute did not affect that right. Of a similar nature are the decisions of the United States Supreme Court on the Sherman Anti-Trust Law cited in the brief. The conclusions drawn from them are not germane to the question before us.

Here we have a much more particularized law to deal with. It has nothing to do with the limitations of private contract or their relation to public policy or statutes against restraint of trade.

The suggested conflict between public interest and private right said to arise under the Sherman Anti-Trust Act cannot obtain under the North Carolina statute, as applied to this case, since that statute gives the individual whose business is destroyed a cause of action of such a nature, and under such conditions, that the temporary advantage incident to the process of eliminating a competitor must have been considered and subordinated to a superior legislative intent. The law looks at the transaction “in the long run,” adopting the philosophy that the public is more interested in continuing competition than in reaping the temporary rewards of a fight in which it is extinguished. C. S., 2559; C. S., 2563 (3); S. v. Coal Co., 210 N. C., 742, 188 S. E., 412.

We think, therefore, that this portion of the pleading was irrelevant.

The contention of the defendants that plaintiff was engaged in an illegal business and, ipso facto, could have no recovery for injury to such business, is not tenable under the alleged facts in this case.

There is no privilege license required in this State, either for the business of contract hauling or the business of private hauling, and there is no law which makes either unlawful because of noncompliance with any condition bearing upon the business itself. If this business was illegal, such result must come about through a construction of the motor vehicle laws cited in defendants’ brief, which patently do not apply to the business in which the plaintiff was engaged, and not even to the manner in which it must be carried on, but only to the physical means which happened to be employed by plaintiff in its prosecution. Indeed, if the [45]*45business itself bad required a license, tbe defendants would not be materially helped, since the trend of authority on this subject is to the effect that when a person engages in a business without procuring the license which the State requires for the privilege, he incurs the penalties which the statutes pertaining to the license provide, and none other. The matter rests between him and the licensing authorities, and the fact that the business is carried on without license is ordinarily not available as a defense by a third party in a suit growing out of liability incurred in the course of the business, or in relation thereto. 31 O. J., page 259,' section 137. There are cases, not inconsistent with this view, holding contra,

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214 N.C. 38, Counsel Stack Legal Research, https://law.counselstack.com/opinion/patterson-v-southern-railway-co-nc-1938.