Tollin v. DIAMOND STATE TELEPHONE COMPANY

164 A.2d 254
CourtCourt of Chancery of Delaware
DecidedSeptember 8, 1960
StatusPublished
Cited by1 cases

This text of 164 A.2d 254 (Tollin v. DIAMOND STATE TELEPHONE COMPANY) is published on Counsel Stack Legal Research, covering Court of Chancery of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tollin v. DIAMOND STATE TELEPHONE COMPANY, 164 A.2d 254 (Del. Ct. App. 1960).

Opinion

164 A.2d 254 (1960)

Blanche TOLLIN, Albert Tollin, Frances Tollin Freezman and Shirley Ingram, surviving partners doing business as Delaware Sports Service, Plaintiffs,
v.
DIAMOND STATE TELEPHONE COMPANY, a corporation of the State of Delaware, Defendant, and
State of Delaware, Defendant-Intervenor.

Court of Chancery of Delaware, New Castle.

September 8, 1960.

*255 Henry A. Wise, Jr., Wilmington, for plaintiffs.

William S. Potter and Hugh Corroon of Berl, Potter & Anderson, Wilmington, for defendant, Diamond State Tel. Co.

Januar D. Bove, Atty. Gen., of the State of Delaware, pro se, defendant-intervenor.

MARVEL, Vice Chancellor.

Plaintiffs, who are the surviving partners in a business known as Delaware Sports Service, claim to be engaged in the allegedly interstate business of collecting and disseminating to their patrons sporting event news by means of the general telephone exchange system or toll service. They seek injunctive relief against the discontinuance of telephone service presently furnished them by the defendant, The Diamond State Telephone Company, such drastic action having been requested of the telephone company by the Attorney General who claims to have reasonable grounds to believe that such service is being used by plaintiffs for the dissemination of information in the furtherance of gambling and for gambling purposes. This case has not been tried, being before me for final decision essentially on the pleadings. Accordingly, the exact modus operandi of plaintiffs' business has not been established although it appears to be conceded that any subscriber to plaintiffs' service may have his telephonic query as to a particular event plugged into the appropriate line of the general telephone system for a relay of the sporting event information sought but that plaintiffs neither act as bookmakers, nor do they give out probable odds or any other information, such as a forecast, about an imminent sporting event.

The case devoid of direct testimony, depositions or affidavits is now before the Court on motions of all parties for summary judgment, the record consisting of the pleadings and a stipulation which poses the constitutional issues allegedly raised by the pleadings and recites an agreement of all parties that plaintiffs operate a "call service" as defined in a 1952 statute which the Attorney General relied on in his request. Those parts of intervenor's answer which plaintiffs have not moved to strike[1] allege that plaintiffs' principal if not sole business is the dissemination of horseracing information and denies that plaintiffs have any property right in the telephone service currently furnished to them by the telephone company. By stipulation, as noted above, it has been agreed that the only evidence concerning plaintiffs' operation in the possession of the State indicates that they operate a "call service" which is defined in the controversial statute as to which a number of constitutional questions have been posed by agreement of the parties as meaning "* * * the furnishing of information upon request therefor or by prearrangement over general telegraphic, telephonic or teletypewriter exchange or toll service * * *." 11 Del.C. § 671. Plaintiffs take the position that their business, *256 namely the furnishing of information of results to their clients, merely serves to relieve such clients' anxiety as to the outcome of particular events in which they are interested and cannot possibly be forbidden even were the 1952 statute not, as they contend, technically invalid.

Plaintiffs concede that their business has been in operation for a period of at least eleven years, and in a 1951 opinion of Judge Carey in the case of Tollin v. State, 7 Terry 120, 78 A.2d 810, 812, the State's evidence in support of a gambling charge brought against Joseph Tollin (then sole proprietor of plaintiffs' business) under the provisions of § 669 of Title 11 Del.C. was reviewed as follows:

"The paraphernalia itself (a fifteen key switchboard, one microphone, one sound system, two amplifiers and one Western Union ticker machine, inter alia)[2] is not made or designed specifically for gambling purposes, as contrasted with devices like roulette wheels and slot machines. Actually, the evidence showed that the only use made of this equipment was the transmission of news. This information was obviously of great help to those who receive or place bets, since it included not only racing results but also last-minute details prior to a race. Moreover, I am not so naïve as to believe that Tollin did not realize the news was being used by others to facilitate gambling. But, notwithstanding that knowledge on his part, is it a violation of the quoted statute merely to disseminate such news, without more?"

Having answered the question in the negative, the court dismissed the criminal information and gave judgment for Tollin. On October 13, 1959, the Attorney General of the State of Delaware, evidently relying on a 1952 statute designed to bring about the cutting off of telephone service for the type of business carried on by plaintiffs and thus deprive plaintiffs of their claim to immunity from interference by the State, wrote to the defendant, The Diamond State Telephone Company, as follows:

"For the past several months, as you know, this office has been conducting an investigation of the business and activities of the Delaware Sports Service, 601 Tatnall Street, Wilmington, Delaware. We have reasonable grounds to believe that Delaware Sports Service is engaged in the business, of, and receiving compensation for, the dissemination of information in furtherance of gambling and for gambling purposes.

"For this reason we hereby request that you revoke your contract with the Delaware Sports Service and the individuals in charge thereof and that you cease and desist from furnishing it any further services.

"So that Delaware Sports Service may seek to test the applicable statutes in the courts, if it so desires, we request that your discontinuance of services not take place until three weeks from the date hereof. In the event the expected test litigation ensues within the three week period, we shall so advise you so that discontinuance of your services will not occur until disposition of the litigation. If you have any question of any kind or nature whatsoever, please feel free to call on us or to have your local counsel do so."

On October 15, 1959, the telephone company wrote the following letter to Delaware Sports Service:

"We have received a request from the Attorney General of Delaware, dated October 13, of which a copy is annexed, to discontinue your telephone service. The Attorney General reports that he has reasonable grounds to believe that the service is being used in the business of disseminating information in furtherance of gambling and for gambling purposes.

"Under § 675 of Title 11 of the Delaware Code and under paragraph 20 of § 1 of the *257 Company's Tariff P.S.C.Del. No. 1[3] which is on file with the Delaware Public Service Commission, the Company is obliged to revoke its contract and terminate service in view of the letter from the Attorney General referred to above. Therefore, as suggested in the Attorney General's letter, you are notified that your telephone service at 601 Tatnall Street, Wilmington, Delaware, will be terminated on November 3, 1959, which is three weeks from the date of the Attorney General's letter."

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Bluebook (online)
164 A.2d 254, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tollin-v-diamond-state-telephone-company-delch-1960.