Puritan Coal Mining Co. v. Pennsylvania R. R.

85 A. 426, 237 Pa. 420, 1912 Pa. LEXIS 951
CourtSupreme Court of Pennsylvania
DecidedOctober 14, 1912
DocketAppeal, No. 99
StatusPublished
Cited by19 cases

This text of 85 A. 426 (Puritan Coal Mining Co. v. Pennsylvania R. R.) is published on Counsel Stack Legal Research, covering Supreme Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Puritan Coal Mining Co. v. Pennsylvania R. R., 85 A. 426, 237 Pa. 420, 1912 Pa. LEXIS 951 (Pa. 1912).

Opinion

Opinion by

Mr. Justice Stewart,

This was an action brought by the Puritan Coal Mining Company against the Pennsylvania Railroad Company, to recover damages for alleged undue and unlawful discrimination against the plaintiff in the matter of the distribution of cars for shipment of coal during a period beginning 1 April, 1902, and ending 31 December, 1904. By agreement between the parties a trial by jury was waived, and the case was heard by the court, resulting in' a judgment for the plaintiff in the sum of $74,323.88. In discussing the points put in issue by this appeal as indicated by the several assignments of error, we shall observe the order followed by counsel for appellant in their submitted brief of argument, and confine the discussion to those questions which are there urged upon our attention.

"(1) The first proposition advanced in support of the appeal is, that even if the plaintiff had at any time a claim of the character asserted in the present action, it had voluntarily transferred it to others prior to the trial of the case, and had thereby deprived itself of the right to maintain the action or to recover damages claimed therein.”

Briefly the facts are these: During the period covering the alleged discrimination, and at the commencement of the action, three individuals owned the entire capital stock of the plaintiff corporation. Subsequently, by a written agreement, these persons sold the stock, reserving to themselves individually the claim covered by the present action, with the right of access to the books and papers of the company and the right to continue the present action in its name, with the further stipulation that in case of settlement by the coal company, the money received therefor was to be paid over to the three selling the stock, who were to have the [441]*441entire control of any adjustment or settlement. The objection urged in the court below, and here renewed, is that the transaction was a virtual assignment by the coal company of its claim for damages to the individuals so parting with their stock; and that because of the character of the claim recovery cannot be had therefor in the name of the assignor. The argument in support of the contention fails to distinguish between the corporation and its shareholders. They are not one and the same. The latter are not owners of the property of the corporation, but the title to the property rests exclusively in the entity called the corporation. It follows that shareholders of a corporation have not, by mere fact of being shareholders, any agency for the corporation or any authority to act for it; nor can they convey or assign its property although all unite, unless through formal action of the corporation they have been made its agents to that end: 10 Cyc. 374. None of the stipulations in the contract for the sale and purchase of this stock bound the corporation in the remotest way. It could have refused the, use of its name in an action for the recovery of this specific claim, and it could have denied the vendors of the stock, access to the books of the company without incurring corporate liability. The claim remained the claim of the corporation notwithstanding the fact that the individual shareholders had agreed that others ceasing to be shareholders should receive the benefit of it. With the rights and equities of these parties as between themselves we have here no concern; nor does it concern us to anticipate what the corporation may or may not dd with the damages in the event it recovers.

, The second proposition which appellant seeks to maintain is as follows:

“(2) That the court below was without jurisdiction to entertain the action, due to the fact that the only subsisting obligations to which the defendant was subject, in respect to the distribution of its cars during the [442]*442period of the action, were those imposed upon it by the acts of the Congress of the United States known as the 'Interstate Commerce Acts,’ which acts prescribe and designate the forums in which actions fon nonobservance of the obligations thereof may be brought, these being either the commission created by these acts or the Federal courts and not the state courts.”

For a correct understanding of the point involved, a fuller statement of the facts is here necessary. That we may do no injustice to appellant in this regard we recite the facts as they are stated in the history of the case furnished by itself, and we accept these with the single qualification that it nowhere appears that the shortage of cars, the subject of plaintiff’s complaint, was due to the delivery of an excessive number to the Berwind-White Coal Mining Company.

“The defendant, during the period of the action was engaged in the transportation of bituminous coal, and the plaintiff was a shipper over its lines.

The coal transported by the defendant was transported to points both within and without the State of Pennsylvania, and this was true of that shipped by the plaintiff. '

To facilitate the distribution of its eoal cars among the operators on its lines, the coal territory tributary to the defendant’s lines had been divided by it into several regions or districts. The mines of the plaintiff, three in number, known as 'Puritan Nos. 1, 3 and 5,’ were located in a district known as the 'Pittsburg — East End’ or 'Mountain’ district. The Berwind-White Coal Mining Company owned and operated a large number of mines also located on the line of the defendant, which were situated in a district known as the 'Scalp Level’ district. All of the mines on the defendant’s lines were given certain ratings based upon their shipping capacity, and,, the distribution of the cars in times of shortage was, as, a rule, made in accordance with these ratings.

[443]*443In the period of the action, however, which included the period of the anthracite coal strike of 1902, the distribution of cars in accordance with the ratings was largely departed from, and that actually made was controlled, more or less, by what were known and are referred to in the testimony as ‘special orders.’ The distribution made to the Berwind-White Coal Company’s mines was largely of this character.

Separate distributions of its cars were not made by the defendant for shipments to points within and without the State, respectively; but one distribution was made, and no control was exercised or was attempted to be exercised by the defendant over the use which should be made of the cars as between the two classes of shipments, this being left optional with the operator to whom the cars were delivered, who could use them entirely for shipments to points within the State, or part for one and part for the other purposes.

The plaintiff, upon the theory that, having regard to their respective ratings, the Berwind-White Coal Mining Company, under and by virtue of the special orders in its favor had secured a larger number of cars than it had received, instituted the present action, and by its statement alleged and charged that it had been unjustly deprived of a portion of the cars which the ratings of its mines entitled it to, due to the. delivery of an excessive number to the Berwind-White Coal Mining Company.”

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Bluebook (online)
85 A. 426, 237 Pa. 420, 1912 Pa. LEXIS 951, Counsel Stack Legal Research, https://law.counselstack.com/opinion/puritan-coal-mining-co-v-pennsylvania-r-r-pa-1912.