Lead Opinion
delivered the opinion of the court.
This was an action to recover damages for the breach of a contract for the sale and delivery of a crop of wheat estimated at 14,000 bushels. The plaintiff was a Tennessee corporation engaged in operating a flour and feed mill at Union City, in that State. The defendant was a resident of Hickman, Kentucky, and extensively engaged in farming in that vicinity. They were the parties to the contract. It was made at Hickman and the wheat was to be delivered and paid -for there. . But the delivery was to be on board the cars of a common carrier, and the plaintiff intended to ship the wheat to its mill in Tennessee. A small part of the crop was delivered as agreed, but delivery of the rest was refused, although the plaintiff was prepared and expecting to receive and pay for it. A payment advanced on the crop more than covered what was delivered.' At the time for delivery wheat had come to-be worth several cents per bushel more than the price fixed by the contract. The action was brought in a state court in Kentucky.
The principal defense interposed — the only one which we have occasion to notice — was to the' effect that the plaintiff had not complied, as was the fact, with a statute of Kentucky (Ky. Stats. 1915, § 571) prescribing the conditions on which corporations of other States might do business in that State, and that the contract was therefore not enforceable. To this the plaintiff replied that the only business done by it in Kentucky consisted in purchasing
The cause was tried twice. On the first trial the plaintiff obtained a verdict and judgment, the court ruling .that the statute could not constitutionally be applied to the transaction in question. But the Court of Appeals of the State, while conceding the invalidity of the statute as respects transactions in interstate commerce, held the transaction in question was not in such commerce, declared the statute valid and properly enforceable as to that transaction and reversed the judgment with a direction for a new trial. That court proceeded on the theory that, as the contract was made in Kentucky, related to property then in that State and was to be wholly performed therein, the transaction was • strictly intrastate and not within the reach ,or protection of the commerce clause of the Constitution of the United States; — and this although the wheat was to be delivered oh board the cars of a public carrier and the plaintiff intended to ship it to Tennessee as soon as it was so delivered.
The case is here on a writ of error and our jurisdiction is challenged. The objection is not that we are without
“ any suit . . . where is drawn in question the validity of a statute of, or an authority exercised under any State, on the ground of their being repugnant to the Constitution, treaties, or laws' of the United States, and the decision is in favor of their validity.”
Among those in which the review may be on writ o.f certiorari are—
“ any cause . . . where is drawn in question the validity of a statute of, or an authority exercised under any State, on the ground of their being repugnant to the Constitution, treaties, or laws of the United States, and the decision is against their validity ”; and .
“ any cause . ■. . where any title, right, privilege, or immunity is claimed under the Constitution, or any treaty or statute of, or commission held or authority exercised under the United States, and the decision is either in favor of or against the title, right, privilege, or immunity especially set up or claimed, by either party, under such Constitution, treaty, statute, commission, or authority.”
In the state court the plaintiff did not simply claim a right or immunity under the Constitution of the United
Our conclusion on the jurisdictional question is that, as the state court applied and enforced to the plaintiff’s disadvantage a state statute which the plaintiff seasonably insisted as so applied and enforced was repugnant to the Constitution and void, the case is rightly here on writ of error. Like rulings on like grounds will be found in Eureka Pipe Line Co. v. Hallanan, ante, 265, and United Fuel Gas Co. v. Hallanan, ante, 277.
The commerce clause of the Constitution, Art. I, § 8, cl. 3, expressly commits to Congress and impliedly withholds from the several States the power to regulate commerce among the latter. Such commerce is not confined to transportation from one State to another, but comprehends all commercial intercourse between different States and all the component parts of that intercourse. Where goods in one State are transported into another for purposes of sale the commerce does not end with the transportation, but embraces as well the sale of the goods after they reach their destination and while' they are in the original packages. Brown v. Maryland,
A corporation of one State may go into another, without obtaining the leave or license of the latter, for all the legitimate purposes of such commerce - and any statute of the latter State which obstructs or lays a burden on the exercise of this privilege is void under the commerce clause. Crutcher v. Kentucky,
There is no controversy about the facts bearing on the character of the transaction in question. It had been the
For these reasons we are of opinion that the transaction was a part of interstate commerce, in which the plaintiff
Judgment reversed.
Concurrence Opinion
with whom concurred
The writ of error should, in my opinion, be dismissed. The obstacle to our assuming jurisdiction is not procedural; as it is in those cases where a plaintiff fails because the claim was not made seasonably or in appropriate form.
This court has now, as it had before that act, jurisdiction under § 237 of. the Judicial Code to review a final judgment of the highest court of a State whenever a right under the Federal Constitution duly claimed has been denied in applying a state statute. And in no case involving a state statute can jurisdiction attach unless the statute has been applied. For unless it was applied, there could not have been an invasion of the party’s constitutional right; and unless there was such invasion the con
In considering whether in this case the validity of the state .statute was drawn in question, it is necessary to bear in mind that, in every case involving a statute, the state
The validity of a statute, as was said in Baltimore & Potomac R. R. Co. v. Hopkins,
That the character of the commerce — and not the validity of the statute — was the only question actually in' controversy and is the only question which the plaintiff actually seeks to present for review, appears from the following statement in its brief filed in this court, as well as from the supporting argument:
“ The sole question for decision by this court is whether the contract sued on is a part of interstate commerce or purely a transaction in intrastate commerce. If this court should conclude that the contract is any part of interstate commerce, the judgment of the Kentucky Court of Appeals must be reversed; otherwise, it should be affirmed.”
A party’s conception or characterization of the question presented by the record is, of course, not conclusive of his right to a review. The right is determined by the record. But in this case the record confirms the plaintiff’s conception of ‘the question submitted for review. The judgment of the Court of Appeals brought before us is that of October 17, 1919, which affirmed the judgment below en
“ This court has heretofore held that section 571, supra, does not have any application to a foreign corporation, which is engaged strictly in interstate commerce with citizens of this State. . . . Hence, if the contract sought to be enforced was an interstate commerce transaction, the failure to comply with section 571, supra, would not affect the right of appellee to sue and recover upon its contract, but if it was an intrastate business, the failure to have complied with section 571, supra, is fatal to appellee’s right of recovery. ... So the question for decision is, was the contract between appellant and appellee one which is protected by article I, chapter 8, paragraph 3, of the Federal Constitution, from regulation' by the State of Kentucky, as being a transaction in interstate commerce? ”
Since 1903 it had been the settled law of the State, as then declared by its highest court, that § 571 did not affect transactions in interstate commerce. Commonwealth v. Hogan, McMorrow & Tieke Co.,
If jurisdiction upon writ of error can be obtained by the mere claim in words that a state statute is invalid, if so construed as to “ apply ” to a given state of facts, the right to a review will depend, in large classes of cases, not upon the nature of the constitutional question involved but upon the skill of counsel. The result would be particularly regrettable, because the decision of such cases often depends not upon the determination of important questions of law (which should in the main engage the attention of this court), but upon the appreciation of evidence frequently voluminous. Thus, in proceedings under State Workmen’s Compensation Acts or State Employers’ Liability Acts, the question whether a carrier is liable depends often upon the question whether at the time of the accident the employee was engaged in interstate or in intrastate commerce. Since the Act of September 6, 1916, certiorari is the proper means of reviewing a judgment involving that question. Southern Pacific Co. v. Industrial Accident Commission,
Plaintiff relies upon a number of cases, assumed to be similar, in which, after the Act of September 6, 1916, jurisdiction was (mainly without discussion) taken on writ of error. They are not in point. In some of them orders of railroad commissions were challenged as violating the Constitution.
But cases coming from the District of Columbia and from the Territories in which a review by this court was' sought (under the Act of March 3, 1885, c. 355, 23 Stat. 443, and under § 250 of the Judicial Code) on the ground that the validity of an authority or of a statute was drawn in question, are persuasive as to the meaning of the phrase drawing in question tne -validity of a statute, as used in the Act of 1916. And they were recognized in Ireland v. Woods,
It is, of course, permissible to make the claim that" a statute is invalid and also that as administered or applied it violates a right or immunity under the Constitution. ■In such a case the writ of error is clearly appropriate. But in the case at bar there never has been a real claim that the statute as construed by the highest court of Kentucky .is invalid. The actual claim was and is that a. confessedly valid statute was misapplied and, thereby, a constitutional guaranty was violated. A review as of right is not to be obtained by misdescribing the question in controversy. When Congress declared that there should be a review as of right duly where the validity of the statute was drawn in question, it did not provide for securing the right by the use of a form of words — a potent formula which should operate as an “.Open Sesame.” It was dealing with substance. It legislated to relieve an overburdened court.
Notes
See Jett Bros. Co. v. Carrollton,
The word “ apply ” is used in connection with statutes in two senses. When construing a statute, in describing the class of persons, things or functions which are within its scope; as that the statute does not “ apply ” to transactions in interstate commerce. When discussing the use made of a statute, in referring to the process by which the statute is made operative; as where the jury is told to “ apply ” the statute of limitation if they, find that the cause of action arose before a given date. In this opinion it is used in the latter sense.
See also Ryman Steamboat Line Co. v. Commonwealth,
See Report of Judiciary Committee, House Doc. No. 794, 64th Cong., 1st sess., House Rep. vol. 3. Of the cases on the docket for the preceding term of this court 37 presented the question whether the employee was engaged in interstate or intrastate commerce. See New York Central R. R. Co. v. Winfield,
See e. g., Philadelphia & Reading Ry. Co. v. McKibbin,
Union Pacific R. R. Co. v. Public Service Commission,
Union Tank Line Co. v. Wright,
Thus comprehensive constitutional claims were made the basis of the writ of error in Coe v. Errol,
Compare also Snow v. United States,
