Dows v. City of Chicago

• Citation: 78 U.S. 108,20 L.Ed. 65,11 Wall. 108
• Parties: DOWS v. CITY OF CHICAGO
• Decision Date: 01 December 1870
• Court: United States Supreme Court

78 U.S. 108

20 L.Ed. 65

11 Wall. 108

DOWS v. CITY OF CHICAGO.

December Term, 1870

APPEALS from decrees of the Circuit Court of the United States for the Northern District of Illinois in two suits; one original, the other a cross suit. The bill in the original suit was filed by the complainant to restrain the collection of a tax levied by the city of Chicago upon shares of the capital stock of the Union National Bank of Chicago, owned by him. The bank was organized and doing business in the city of Chicago, under the general banking act of Congress, and the complainant was a citizen and resident of the State of New York.

The principal grounds alleged for the relief prayed were, that there was, in the tax of the shares of the bank, a want of uniformity and equality with the tax of other personal property in Illinois, as required by the constitution of that State; and that the shares of the bank followed the person of the owner, and were incapable of having any other situs than that of his domicile, and were not, therefore, property within the jurisdiction of the State.

Other objections, relating principally to the manner in which the tax lists were prepared, the want of notice of the assessment to the complainant, and the absence of any deductions for debts, were also urged, tending more to show irregularities in the proceedings than invalidity in the tax. No special circumstances respecting the tax, or its enforcement, were alleged in support of the equitable jurisdiction of the court.

The bill in the cross suit was filed by the Union National Bank of Chicago, and, besides alleging the illegality of the tax assessed, on various grounds, averred that if the shares were permitted to be sold, irreparable damage would not only be done to each of the shareholders, but also to the bank, which would be thereby subjected to great loss of standing and other injury, for the redress of which the law afforded no remedy; and that such also would be the result if the bank paid the taxes, and was subjected to suits by each of the shareholders by reason of doing so; and that in either event a multiplicity of suits would be rendered necessary to adjust the rights of the parties. A demurrer was interposed to the bills, original and cross. The Circuit Court sustained the demurrers to both, and the complainants in the two cases electing to abide by their bills, the court entered decrees dismissing the bills. From these decrees appeals were taken.

Messrs. M. F. Fuller and J. H. Roberts, for the appellants.

M. F. Tuley, contra.

Mr. Justice FIELD delivered the opinion of the court.

According to the view we take of this case, it is unnecessary to consider the force of any of the objections urged by the appellants to the decrees rendered. Assuming the tax to be illegal and void, we do not think any ground is presented by the bill justifying the interposition of a court of equity to enjoin its collection. The illegality of the tax and the threatened sale of the shares for its payment constitute of themselves alone no ground for such interposition. There must be some special circumstances attending a threatened injury of this kind, distinguishing it from a common trespass, and bringing the case under some recognized head of equity jurisdiction before the preventive remedy of injunction can be invoked. It is upon taxation that the several States chiefly rely to obtain the means to carry on their respective governments, and it is of the utmost importance to all of them that the modes adopted to enforce the taxes levied should be interfered with as little as possible. Any delay in the proceedings of the officers, upon whom the duty is devolved of collecting the taxes, may derange the operations of government, and thereby cause serious detriment to the public.

No court of equity will, therefore, allow its injunction to issue to restrain their action, except where it may be necessary to protect the rights of the citizen whose property is taxed, and he has no adequate remedy by the ordinary processes of the law. It must appear that the enforcement of the tax would lead to a multiplicity of suits, or produce irreparable injury, or where the property is real estate, throw a cloud upon the title of the complainant, before the aid of a court of equity can be invoked. In the cases where equity has interfered, in the...