139 Ga. 274 | Ga. | 1913
F. W. Leonard filed his equitable petition against the American Life and Annuity Company, seeking to enjoin the defendant “from breaching” its contract with him and refusing to accept applications for certain special insurance contracts, of the character described in the first division of the opinion. He alleged that the damages would be irreparable. No point was made as to the necessity for equitable relief,- but the case was made to turn on two questions: (1) Did the contract which the plaintiff claimed the right to sell fall within the prohibition contained in the twentieth section of the act of August 19, 1912 (Acts 1912, pp. 119, 129) ? ,(2) If so, is that section unconstitutional on any of the grounds of attack made upon it, and which will be found in the opinion? The presiding judge refused an injunction, and the plaintiff excepted.
Is the exemption here sought to be granted a legitimate classification or an arbitrary discrimination? It does not put in one class companies which will do a participating business and in another companies which will do a non-participating business, and treat the members of each class alike. But, having divided eompa
It was suggested that companies then in process of formation may be presumed to have been organized with a view to the existing law, -and to have planned their finances accordingly. But is this any the less true of companies organized before the act? On the contrary, they completed their organization, and began business without notice of any probable change in the law, while a company which had not completed its formation when the law was on its passage and when it was enacted, before entering the field of active insurance business, had notice and an opportunity to adjust itself to the law. If there were any difference in the status of the two in this respect, it would not be in. favor of the beneficiaries of the
The “infant industry” suggestion, as a basis for giving an undue advantage to one company, or a few companies, does not impress us. It is too familiar as the argument of individuals or corporations which desire special privileges and unjust discriminations to be granted in their favor.
The act here under consideration comprehends a general legislative scheme looking toward standardization and uniformity under like circumstances, and the protection of policyholders and the public. The twentieth section has a general purpose to prevent rebates and “special” or “board” contracts, or other discriminatory insurance contracts. The proviso does not exempt permanently any company from this legislative purpose. It undertakes for about two years and a half to suspend the application of the statute to certain special companies in process of formation, but after that even they are to fall within the legislative scheme. Of necessity the number of companies in that situation on the date when the law was approved was small. Indeed only one or two companies answering'the description have been brought to our attention by
In this respect the case before us differs from that of Connolly v. Union Sewer Pipe Co., supra. There the general provisions of the act applied to all persons, firms, corporations, 'or associations combining their skill or capital for certain specified purposes tending toward restriction of trade or controlling of prices. One section declared that the statute should not apply to agriculturists or live-stock dealers in respect of their products or stock in hand. It was held that this was an unconstitutional discrimination. Then arose the question whether the entire act was void or only the attempted exemption. On this subject Mr. Justice Harlan said (p. 564) : “It can,not be said that the exemption made by the ninth section of the statute was of slight consequence, as affecting the general public interested in domestic trade and entitled to be protected against combinations formed to control prices for their own benefit; for it can not be disputed that agricultural products and live stock in Illinois constitute a large part of the wealth of the State.” That case arose in the Federal court. This arose in the State court, a special function of which is to construe State statutes. We construe the one before us to carry out the legislative purpose,' with the small and separable unconstitutional feature omitted.
Judgment affirmed.