Simon v. Gallegos

99 P.2d 451, 44 N.M. 127
CourtNew Mexico Supreme Court
DecidedFebruary 14, 1940
DocketNo. 4512.
StatusPublished

This text of 99 P.2d 451 (Simon v. Gallegos) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Simon v. Gallegos, 99 P.2d 451, 44 N.M. 127 (N.M. 1940).

Opinion

ZINN, Justice.

Appellant prosecutes this appeal from, a judgment sustaining appellee’s demurrer to a complaint for injunction sought by appellant to restrain the appellee from a threatened enforcement of L.1939, Ch. 222.

Appellant is engaged in the oil and gas business, both retail and wholesale. In conjunction with his business, and ostensibly for the purpose of inducing customers to come to his places of business, he has instituted a system by which prizes are given away to customers. A description of the method devised by appellant for distributing such prizes is nonessential to a determination of the legal issue in the case. The complaint alleges that the appellee condemns the system devised by appellant as a lottery which is prohibited by L.1939, Ch. 222, Sec. 201 (e). The complaint further alleges that the appellee threatens enforcement of said law which would subject the appellant to criminal prosecution, and, unless appellee is restrained in his threatened enforcement, such enforcement will injure the rights, property and business of the appellant and others similarly situated, and result in a multiplicity of suits. Appellant questions the constitutionality of the law in that it is in excess of the police power of the State, and for other reasons.

The appellee stands upon the proposition that the appellant is seeking to restrain the enforcement of a statute which provides for criminal prosecutions against violators thereof and that therefore equity is without jurisdiction. This is not challenged by appellant.

We have thus before us this proposition. Can one who is engaged in a lawful business and who has devised a scheme or plan which he believes will bring additional customers to his place of business, but which scheme or plan has been condemned under penalty by the State, seek the aid of equity to restrain the enforcement of the law, in order to ascertain in advance whether the scheme or plan is in violation of the condemning statute?

The general rule is that equity has no jurisdiction to restrain the officers of the state who are charged with the execution of its laws, where, in such execution, criminal proceedings aré likely to be instituted. 14 R.C.L. 426, Injunction, Sec. 130. There are exceptions to this rule where rights of property are involved .(See 14 R.C.L. 428). We do not find that the case of the appellant comes within such exceptions.

In the case of Shuman v. Gilbert, 229 Mass. 225, 118 N.E. 254, 255, L.R.A.1918C, 135, Ann.Cas.1918E, 793, we find an excellent statement of the law covering the general rule and the exceptions. We quote: “It is the general rule that the prosecution and punishment of crimes will not be restrained by a court of chancery. But there is an exception to this comprehensive statement. Jurisdiction in equity to restrain the institution of prosecutions under unconstitutional or void statutes or local ordinances has been upheld by this court when property rights would be injured irreparably, and when other elements necessary to support cognizance by equity are present. Greene v. City of Fitchburg, 219 Mass. 121, 127, 106 N.E. 573; Moneyweight Scale Co. v. McBride, 199 Mass. 503, 506, 85 N.E. 870. The statement of the law in England has been made rather broadly that there is no jurisdiction in equity (at all events since the abolition of the court of the Star Chamber, which exercised a jurisdiction of so-called criminal equity) to enjoin prosecution for crime. Saull v. Browne, L.R. 10 Ch. 64; Kerr v. Preston Corp. 6 Ch.D. 463, 466. See also Grand Junction Waterworks Co. v. Hampton Urban Dist. Council (1898) 2 Ch. 331, 341; Merrick v. Liverpool Corp. (1910) 2 Ch. 449, 460-462. But there seems to be a caution about saying that circumstances may not arise authorizing a close approach to such jurisdiction. Auckland v. Westminster Dist. Board of Works, L.R. 7 Ch. 597; Burghes v. Atty. Gen. (1911) 2 Ch. 139, 156-157. It was said in Truax v. Raich, 239 U.S. 33 [at pages] 37, 38, 36 S.Ct. 7, 9 (60 L.Ed., 131, L.R.A.1916D, 545, Ann. Cas.1917B, 283) : ‘It is also settled that while a court of equity, generally speaking, has “no jurisdiction over the prosecution, the punishment or the pardon of crimes or misdemeanors” In re Sawyer, 124 U.S. 200, 210 (8 S.Ct. 482, 31 L.Ed. 402), a distinction obtains, and equitable jurisdiction exists to restrain criminal prosecutions under unconstitutional enactments, when the prevention of such prosecutions is essential to the safeguarding of rights of property.’ See Philadelphia Co. v. Stimson, 223 U.S. 605, 621, 32 S.Ct. 340, 56 L.Ed. 570. That is the law of this commonwealth. Doubtless that principle is generally recognized by the courts of this country. It has been applied to the institution of proceedings under statutes and ordinances, the enforcement of which would result in unlawful deprivation of the right to labor (Truax v. Raich, 239 U.S. 33, 36 S.Ct. 7, 60 L.Ed. 131, L.R.A.1916D, 545, Ann.Cas.1917B, 283), the illegal interference with the right to transact interstate commerce free from burdensome state restrictions (Western Union Tel. Co. v. Andrews, 216 U.S. 165, 30 S.Ct. 286, 54 L.Ed. 430; City of Lee’s Summit v. Jewel Tea Co., 133 C.C.A. 637, 217 F. 965; Herndon v. Chicago, etc., R. Co. 218 U.S. 135, 30 S. Ct. 633, 54 L.Ed. 970; Jewel Tea Co. v. Carthage, 257 Mo. 383, 391, 165 S.W. 743), the confiscation of property or property rights (Dobbins v. City of Los Angeles, 195 U.S. 223, 241, 25 S.Ct. 18, 49 L.Ed. 169; Home Telephone, etc., Co. v. City of Los Angeles, 227 U.S. 278, 293, 33 S.Ct. 312, 57 L.Ed. 510), the denial of due process of law (Hopkins v. Clemson Agricultural College of South Carolina, 221 U.S. 636, 31 S.Ct. 654, 55 L.Ed. 890, 35 L.R.A.,(N.S.) 243), and the denial of the equal protection of the laws (Ex parte Young, 209 U.S. 123, 146, 147, 28 S.Ct. 441, 52 L.Ed. 714, 13 L.R.A.,(N.S.) 932, 14 Ann. Cas. 764).”

In the instant case we find no valid •call to chancery to restrain the appellee from enforcing an act to regulate the sale of gasoline and petroleum products and which also prohibits the use of lotteries, prizes and other means to induce the sale of gasoline and motor fuels. We cannot see in this law, if enforced, anything that would amount to an irreparable injury to appellant. It is obvious that the appellant is seeking an interpretation by the courts as to the constitutionality of the law in question rather than the prevention of criminal prosecution which, as appellant claims, amounts to a deprivation of his property rights. We might be inclined to view the jurisdictional question in a different light if prosecutions under an unconstitutional statute were imminent and would result in immediate injury to the property or the property rights of the appellant.

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Related

In Re Sawyer
124 U.S. 200 (Supreme Court, 1888)
Dobbins v. Los Angeles
195 U.S. 223 (Supreme Court, 1904)
Ex Parte Young
209 U.S. 123 (Supreme Court, 1908)
Western Union Telegraph Co. v. Andrews
216 U.S. 165 (Supreme Court, 1910)
Philadelphia Co. v. Stimson
223 U.S. 605 (Supreme Court, 1912)
Truax v. Raich
239 U.S. 33 (Supreme Court, 1915)
Spielman Motor Sales Co. v. Dodge
295 U.S. 89 (Supreme Court, 1935)
Moneyweight Scale Co. v. McBride
85 N.E. 870 (Massachusetts Supreme Judicial Court, 1908)
Greene v. Mayor of Fitchburg
106 N.E. 573 (Massachusetts Supreme Judicial Court, 1914)
Shuman v. Gilbert
229 Mass. 225 (Massachusetts Supreme Judicial Court, 1918)
Jewel Tea Co. v. City of Carthage
165 S.W. 743 (Supreme Court of Missouri, 1914)
City of Lee's Summit v. Jewel Tea Co.
217 F. 965 (Eighth Circuit, 1914)

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Bluebook (online)
99 P.2d 451, 44 N.M. 127, Counsel Stack Legal Research, https://law.counselstack.com/opinion/simon-v-gallegos-nm-1940.