State v. Texas Co.

134 S.E. 211, 136 S.C. 200, 1926 S.C. LEXIS 128
CourtSupreme Court of South Carolina
DecidedAugust 9, 1926
Docket12046
StatusPublished
Cited by1 cases

This text of 134 S.E. 211 (State v. Texas Co.) is published on Counsel Stack Legal Research, covering Supreme Court of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State v. Texas Co., 134 S.E. 211, 136 S.C. 200, 1926 S.C. LEXIS 128 (S.C. 1926).

Opinion

The opinion of the Court was delivered by

Mr. Justice StabrEr.

This is an appeal taken from an order of his Honor, Judge Memminger, directing a verdict for the defendant. The appeal in this case was first argued during the fall, 1925, term of this Court, the opinion, affirming the judgment of the lower Court, being filed December 22, 1925. A rehearing, on petition of the appellant, was granted by the Court, and the case was reargued at the March, 1926, term. The following statement appears in the case:

*202 “This was an action begun in the Court of Common Pleas for Richland County for penalty under Sections 3536 and 3537, Vol. Ill, Code of Laws 1922. At the conclusion of plaintiff’s case on Thursday, December 4th, defendant moved for a nonsuit. This was refused. Defendant then announced that they would put up no evidence, and made a motion for directed verdict based on the same grounds set forth in a motion for nonsuit. The Court then directed a verdict in favor of the defendant.”

The complaint of the plaintiff alleges, in substance: That the defendant is a corporation and has numerous places of business within the State of South Carolina, where it sells at wholesale petroleum and its products; that on the 27th day of January, 1923, in the City of Columbia, S. C., the defendant, for the purpose of destroying the business of a competitor in the said City of Columbia, sold and delivered gasoline to the Calhoun Auto Supply Company, a corporation retailing gasoline in the said city, at 19 cents per gallon, when the prevailing market at that time in the City of Columbia was 20 cents per gallon; that in so doing the defendant violated Section 3536 of the Code of Laws of 1922, and made itself liable to the penalty prescribed. in Section 3537 of said Code of Laws. The defendant, by its answer, admitted that it was incorporated under the laws of the State of Texas, and was engaged in the distribution of gasoline and other products of petroleum in the State of South Carolina, but denied all other allegations of the complaint.

Section 3536 of the Code of Laws of 1922, which is alleged to have been violated by the defendant, is as follows :

“Any person, firm, company, association, or corporation, foreign or domestic, doing business in the State of South Carolina, and engaged in the production, manufacture or distribution of any commodity in general use, that shall intentionally, for the purpose of destroying the business *203 of a competitor in any locality, discriminate between different sections, communities or cities of this State, by selling such commodity at a lower rate in one section, community, or city than is charged for said commodity by said party in another section, community, or city, after making due allowance for the difference, if any, in the grade or quality, or quantity, and in the actual cost of transportation from the point of production, if a raw product, or from the point of manufacture, if a manufactured product, shall be deemed guilty of unfair discrimination, which is hereby prohibited and declared unlawful.”

The defendant’s motion for a nonsuit was based upon the following grounds:

(1) That it has not been shown that the price paid for gasoline at the time here in question in the City of Columbia was lower or different from that paid in other cities, communities, or sections of the State of South Carolina.
“(2) That no reasonable inference can be drawn from the testimony except that such reductions as the defendant made were legitimate, competitive reductions based on the quantity sold and to meet inducements and reductions given by other companies, and in order to dispose of its products.
“(3) That no reasonable inference can be drawn from the testimony except that such reductions as were made by the defendant were in a legitimate effort to sell its products and to meet competitive offers made to the parties here in question by the complaining witness and other companies engaged in a similar business.
“(4) That there is no evidence tending to show that the price made by this defendant was actuated in any manner whatsoever by an intention to injure or destroy the business of the complaining witness, nor is there any evidence that the effect of such reductions in the price of gasoline was to injure or destroy to any appreciable extent the bus *204 iness of the complaining witness or of any other company.”

The Court, after due consideration, overruled this motion. Later, a motion was made by the defendant for a directed verdict, upon the same grounds. The Court, after giving careful consideration to the question over night, ordered a directed verdict for the defendant, and, in doing so, gave the following well-considered reasons:

“Now, gentlemen, I have thought over this case very carefully on the grounds for a nonsuit, and I have no right to order a nonsuit in this case, but on a motion for a directed verdict the idea is a little different. There the question is for the Court. Can any reasonable jury reach a verdict except in one way? and I am inclined to think that there is absolutely no reason to submit this case to the jury, as the complainant himself said in the testimony that he himself was satisfied that this company had nothing against him so as to injure him in his business — that they were simply out to get business. Now, how could that injury, even though there is some testimony as to ai secret matter, or rebate, how could they go out and hold that there was an intention, by the greater weight of the testimony, to injure or destroy this man’s business, when he himself said that he was satisfied that this company had nothing against him, but were only out to get business. There is nothing to warrant a jury in reaching that in either conclusion. I have thought over this matter very carefully last night as to whether the statute meant in the same city or in different cities, and I am absolutely satisfied that that is not in the contemplation of the statute. The idea is this: That this company can go to this city and lower the price in one section, locality, and community and destroy a competitor’s business and at the same time raise the price in another city, locality, and section, and they absolutely lose nothing, for they can make in another section, locality, or community or city what they lost in the *205 other city, locality, or community. They can raise the price in another place as much as they lowered it in this city and thereby lose nothing, although they destroy the competitor’s business in this city. That is the reason that this statute was passed. I have studied this thing over carefully, and I am satisfied that that is the construction to be put on this statute. I feel sure that there is no other construction to be put upon this statute; therefore, my idea is that this case can be tested in the Supreme Court. That this case is not one within the terms of this statute, because it is alleged that the prices were lowered only at different points within the same city.

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Related

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3 N.W.2d 841 (Michigan Supreme Court, 1942)

Cite This Page — Counsel Stack

Bluebook (online)
134 S.E. 211, 136 S.C. 200, 1926 S.C. LEXIS 128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-texas-co-sc-1926.