CORPORATION COMMISSION OF OKLAHOMA ET AL.
v.
CARY, TRUSTEE
AI-generated. These summaries, headnotes, and key points are machine-generated and may contain errors or omissions. Always verify against the full opinion text below. Not legal advice.
The Corporation Commission of Oklahoma sought to dismiss a federal court challenge to its order reducing gas rates, relying on a 1934 federal statute that prohibited federal courts from enjoining state regulatory orders unless no adequate remedy existed in state courts. The Supreme Court affirmed the District Court's jurisdiction and issuance of an injunction, holding that Oklahoma's state courts had not provided a clear and effective remedy for judicial review of the Commission's rate orders due to conflicting precedent, thus satisfying the federal statute's exception for cases lacking plain and speedy state remedies.
© FLexlaw, Inc. — AI-generated enrichments are proprietary. All rights reserved.
Per Curiam.
This suit was brought in the United States District Court for the Western District of Oklahoma to restrain the enforcement of an order of the Corporation Commission of that State reducing gas rates. Plaintiff, trustee of the properties of the Consolidated Gas Service Company, alleged that the order was confiscatory and violated the due process clause of the Fourteenth Amendment of the Constitution of the United States. Application for an interlocutory injunction was brought before the District Court composed of three judges. 28 U. S. C. 380. Defendants, the Corporation Commission and its members, moved to dismiss the complaint upon the ground that the court was without jurisdiction, by reason of the terms of the Act of Congress of May 14, 1934 (48 Stat. 775) which provide that no District Court shall have jurisdiction to restrain the enforcement of an order of an administrative board or commission of a State—
“ where jurisdiction is based solely upon the ground of diversity of citizenship, or the repugnance of such order to the Constitution of the United States, where such order (1) affects rates chargeable by a public utility, (2) does not interfere with interstate commerce, and (3) has been made after reasonable notice and hearing, and where a plain, speedy, and efficient remedy may be had at law or in equity in the courts of such State.”
Plaintiff contended that the constitution and laws of Oklahoma did not afford an opportunity for judicial review in the courts of the State of orders affecting rates for the transportation and sale of gas. The District Court considered the provision of the Constitution of Oklahoma creating the Corporation Commission and providing for review of its orders (Const. Okla., Art. IX, §§ 20, 23, 35), the state legislation with respect to appeals from orders affecting gas rates (Laws of 1913, chap. 93, § 5), and the pertinent decisions of the Supreme Court of the State. The District Court found that it had been repeatedly held by the state court that the reviewing power conferred upon it by the provision of the state constitution was legislative in character (compare Oklahoma Natural Gas Co. v. Russell, 261 U. S. 290, 291); and upon the question whether any opportunity was afforded in the courts of the State for a judicial review of an order of the Commission, the District Court found serious uncertainty because of “ diametrically opposed decisions ” of the state court. And as it did not appear that “ a plain, speedy, and efficient remedy ” could be had “ at law or in equity in the courts of such State,” the District Court took jurisdiction and granted an injunction pending a hearing upon the merits. 9 F. Supp. 709.
We find no error in that action. An examination of the decisions of the Supreme Court of Oklahoma confirms the conclusion reached by the court below as to the uncertainty with which it was confronted and the consequent lack of the effective judicial remedy in the state courts which was contemplated by the Act of May 14, 1934. The question presented on this appeal from the interlocutory order is whether the District Court had jurisdiction, and, if so, whether it abused its discretion in issuing the injunction. Alabama v. United States, 279 U. S. 229, 231; National Fire Ins. Co. v. Thompson, 281 U. S. 331, 338; United Fuel Gas Co. v. Public Service Common, 278 U. S. 322, 326, 327; Baldwin v. G. A. F. Seelig, Inc., 293 U. S. 522. Appellants’ counsel invoke the decision of the Supreme Court of Oklahoma in Oklahoma Cotton Ginners’ Assn. v. State, 174 Okla. 243, but it is unnecessary to analyze that decision or to attempt to determine its import in relation to subsequent litigation, as the decision was rendered after this suit was brought and the interlocutory injunction had been granted. The jurisdiction of the District Court had already attached and there is no ground for concluding that the granting of the injunction was an improvident exercise of judicial discretion.
The decree is
Affirmed.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
Cited By
-
Okla. Packing Co. v. Okla. GAS & Elec. Co., 309 U.S. 4 (U.S. 1939)…of the Circuit Court of Appeals in Oklahoma Gas & Electric Co. v. Wilson & Co., 54 F. 2d 596, 598, 599, applying the Oklahoma decisions. Compare Oklahoma Gas & Electric Co. v. Oklahoma Packing Co., 292 U. S. 386, 388; Corporation Commission v. Cary, 296 U. S. 452, 458. The contention of the complainants before the state court was that, the Commission’s order violated their rights under the Federal Constitution. 146 Okla. 272, 281, 288; 288 P. 316. But in the view, as then held, that the action of the state…
-
Marino v. Ragen, 332 U.S. 561 (U.S. 1947)…ine does not require the exhaustion of inadequate remedies. Hillsborough Twp. v. Cromwell, 326 U. S. 620; White v. Hagen, 324 U. S. 760; Driscoll v. Edison Co., 307 U. S. 104; Mountain Stales Co. v. Comm’n, 299 U. S. 167; Corporation Comm’n v. Cary, 296 U. S. 452; Pacific Tel. Co. v. Kuykendall, 265 U. S. 196; Okla. Gas Co. v. Russell, 261 U. S. 290; Moore v. Dempsey, 261 U. S. 86; Wallace v. Hines, 253 U. S. 66.…
-
Driscoll v. Edison Light & Power Co., 307 U.S. 104 (U.S. 1939)…ereby clothed with exclusive jurisdiction throughout the Commonwealth, of all proceedings for such injunctions, subject to an appeal to the Superior Court as aforesaid.” Mountain States Co. v. Comm’n, 299 U. S. 167, 170; Corporation Comm’n v. Cary, 296 U. S. 452. § 1103, P. L. 1053, Purdon’s Pa. Stat. Ann., 1938 Supp., Title. 66, § 1433. P. L. 1053, Purdon’s Pa. Stat. Ann., 1938 Supp., Tifie 66, § 1150. “Temporary Rates. — (a) The commission may, in any proceeding involving the rates of a public utility…
Previewing 3 of 9 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Alabama v. United States, 279 U.S. 229 (U.S. 1929)
- Nat'l Fire Ins. Co. of Hartford v. Thompson, 281 U.S. 331 (U.S. 1930)
- Okla. Natural Gas Co. v. Russell, 261 U.S. 290 (U.S. 1923)
- United Fuel Gas Co. v. Pub. Serv. Comm'n of W. Va., 278 U.S. 322 (U.S. 1929)
- Baldwin v. G. A. F. Seelig, Inc., 293 U.S. 522 (U.S. 1934)
- Abrams v. Van Schaick, 293 U.S. 522 (U.S. 1934)