State ex rel. North Carolina Corp. Commission v. Southern Railway Co.

151 N.C. 447
CourtSupreme Court of North Carolina
DecidedDecember 15, 1909
StatusPublished
Cited by4 cases

This text of 151 N.C. 447 (State ex rel. North Carolina Corp. Commission 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
State ex rel. North Carolina Corp. Commission v. Southern Railway Co., 151 N.C. 447 (N.C. 1909).

Opinion

BeowN, J.

1. Tbe motion to dismiss was improperly allowed, as tbe law required no notice to be served on B. F. Davis, president of tbe Merchants Association, as be was no party to tbe proceeding. It is not claimed that said association is a legal entity; but if it was, it is no party to a proceeding of this kind.

The statute provides that when an appeal is taken from an order of this nature, made by tbe Corporation Commission, tbe State shall be tbe plaintiff, and that tbe cause shall be docketed, “State of North Carolina on relation of tbe Corporation Commission v. tbe appellant.”

As it is admitted that tbe defendant filed exceptions to tbe order with tbe Corporation Commission, and, when it received notice of tbe decision of tbe commission overruling them, gave tbe commission notice of appeal in apt time and in due form, tbe appeal should not have been dismissed. Nothing else was required by tbe statute (Revisal, sec. 1074).

[450]*4502. Although the petition and bond for removal appear to be in all respects-regular, and were filed in apt time, we are of opinion that it appears upon the petition itself that this proceeding is not such a suit at law or in equity, within the meaning of the acts of Congress, as can be removed into the Circuit Court of the United States.

When the defect appears upon the face-of the petition, it is conceded that the State courts are not ousted of their jurisdiction, for they are not bound to surrender it until a case has been made which on its face shows the petitioner has a right to the transfer of the cause to the Federal Court. Stone v. State, 117 U. S., 430; McCullock v. Railroad, 149 N. C., 305; Winslow v. Collins, 110 N. C., 121.

It is admitted by the defendant that as long as this matter was pending before the commission it was not removable, under the act, inasmuch as that commission is not a judicial court, but a mere administration agency of. the State, possessing certain quasi judicial and legislative powers. But it is contended that when an appeal was taken from the order of the Corporation Commission, and the record was certified by it to the Superior Court for trial, then the matter was no longer before a mere administrative tribunal, but was pending in a court of justice — a judicial court- — and there was an adverse controversy, action, or suit, pending between parties litigant — a plaintiff and a defendant — and this suit, action, or controversy, could be removed into the Circuit Court of the United States on the petition of the defendant, who was a nonresident and a foreign corporation.

We admit this general proposition to be sustained by the Supreme Court of the United States in several cases: Uphur v. Rich, 135 U. S., 467; Boom Co. v. Patterson, 98 U. S., 403, and others. All these cases, however, relate to matters of condemnation of land, and the like, which constituted the legitimate subject-matter of a suit between parties litigant.

Although the term, “suit of a civil nature,” as employed in the act of Congress, is very comprehensive, it is construed to apply only to a proceeding in a court of justice by which a litigant pursues that remedy which the law affords him. Weston v. Charleston, 2 Pet. (U. S.), 449. Or, as stated in later cases, it applies to any proceeding in a court of justice in which the plaintiff pursues his remedy to recover a right or claim. Sewing Machine Cases, 18 Wallace, 553; Cohens v. Virginia, 6 Wheaton, 264.

And it matters not how the proceeding is formally disguised; [451]*451if in substance it is “a suit,” it will be treated as such for purposes of removal.

But the subject-matter of this proceeding does not, in tbe light of more recent decisions of the Supreme Court of the United States, constitute a suit, in the broadest acceptation of that word. The petition to remove describes this as “a proceeding to enforce the right of the Morganton Retail Merchants Association to have the North Carolina Corporation Commission order and direct this petitioner to remove its depot from the south side of the present main line of this petitioner to the north side of the present main line of this petitioner, and the matter actually in controversy involves the right of the defendant to have and maintain and use its present depot on the south side of its main line at Morganton, or whether or not it shall be compelled to construct another depot on the north side-of its present main line, and the amount in controversy largely exceeds the sum of value of $2,000, exclusive of interest and costs.” '

The record shows that certain citizens of Morganton, informally organized as the Morganton Retail Merchants Association, filed a petition before the Corporation Commission setting forth their grievances in relation to the handling of freight by defendant at Morganton and alleging that the facilities provided were inadequate, and praying that the commission will cause an adequate freight depot to be constructed by defendant. The commission gave notice to the defendant and proceeded to examine into the complaint, visiting Morganton for the purpose of having a personal inspection and a hearing of the matter. At this hearing the complainants and the defendant were represented by counsel. The commission made full findings of fact, and concluded as follows: “In view of these facts, it is the opinion of the commission that the removal of the depot to the north side of the railroad and enlarging the warehouse space will promote the convenience, security and accommodation of the public. Therefore, be it so ordered.” To the findings and order the defendant excepted and appealed.

Whether this order is justified by the facts is a controversy not now before us. That is a matter yet to be determined, when the defendant’s appeal is finally heard.

We refer to the findings for the purpose of demonstrating that the order appealed from is not.a judgment of a court, but an administrative regulation made by a State agency in the exercise of certain legislative powers which the'General Assembly has conferred upon it. It cannot be questioned at this day that railroads, from the public nature of their business and the [452]*452interest which, the public have in their operation, are subject, as to their State business, to State regulation, which may be exerted directly by the legislative authority or by administrative bodies endowed with power to that end.

While the justness and feasibility of such regulations may be reviewed upon appeal by the State’s own tribunals, endowed by legislation with such supervisory power, the Federal Courts have no jurisdiction over them, unless the regulation is of such an unreasonable or arbitrary character as to be in effect not a mere regulation, but an infringement upon the right of ownership, or is in some other way repugnant to the protective clauses of the Fourteenth Amendment to the Federal Constitution. Stone v. Farmers L. & T. Co., 116 U. S., 307; Railroad v. Minnesota, 134 U. S., 418; Railroad v. Corp. Commission, 206 U. S., 1. And this can only be determined by the Supreme Court of the United States, upon writ of error, after the carrier has exhausted the right of review and appeal open to it under the laws of the State. Prentis v. A. C. Line, 211 U. S., 210.

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Bluebook (online)
151 N.C. 447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-north-carolina-corp-commission-v-southern-railway-co-nc-1909.