Bowles v. Barde Steel Co.

• Decision Date: 04 December 1945
• Citation: 164 P.2d 692,177 Or. 421
• Parties: BOWLES, ADM'R., O.P.A. <I>v.</I> BARDE STEEL CO., GRESHAM BERRY GROWERS ET AL., LOMBARDI, OWEN, and ANDERSON
• Court: Oregon Supreme Court

177 Or. 421

164 P.2d 692

BOWLES, ADM'R., O.P.A.

v. BARDE STEEL CO., GRESHAM BERRY GROWERS ET AL., LOMBARDI, OWEN, and ANDERSON

Supreme Court of Oregon.

Argued September 19, 1945.

Reversed December 4, 1945.

War

1. In determining whether state court had jurisdiction of Price Administrator's actions to recover damages under Emergency Price Control Act because of sales or rentals in excess of price ceilings established under the Act, Administrator was seeking to recover what was in reality a penalty, since purpose under Act is to punish an offense against public justice, not to afford a private remedy to person injured by wrongful act.

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2. The "damages" recoverable under Emergency Price Control Act do not constitute a "penalty" within federal statute conferring exclusive jurisdiction on federal courts of suits for penalties incurred under federal laws.

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3. When Congress designates a recovery as wages, liquidated damages, or damages, it manifests intention to exclude the case from operation of federal statute conferring exclusive jurisdiction on federal courts of suits for penalties incurred under federal laws, regardless of essential character of cause of action.

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4. The Emergency Price Control Act manifests intention that state courts shall exercise jurisdiction in actions by Price Administrator and hence repeals pro tanto the federal statute conferring exclusive jurisdiction on federal courts of suits for penalties incurred under federal laws.

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5. Under Emergency Price Control Act provision that district courts shall have jurisdiction concurrently with state and territorial courts of "all other proceedings" under the Act, quoted phrase necessarily includes action for damages brought by Price Administrator.

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6. Under Emergency Price Control Act providing that action for damages by buyer or the Price Administrator may be brought in "any court of competent jurisdiction", quoted phrase means any federal, state or territorial court whose jurisdiction over cases of like nature is not prohibited by law.

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7. State's jurisdiction over cases founded on federal statutes does not rest on any theory that Congress can vest in state court any part of judicial power of the United States, but the power exercised, at least in cases where no penalty in strict sense is sought, is the judicial power of the state although right sued upon is created by federal statutes.

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8. A distinction exists between limitations arising from organic or statutory provisions concerning court's jurisdiction and limitations imposed by judicial opinion under rules of comity, judicially imposed limitations constituting refusal to exercise jurisdiction rather than denial of its existence.

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9. A state court need not enforce a federal statute if the State Constitution or statute excludes from jurisdiction of state court actions of general class to which federal statute belongs provided there is no discrimination against federal acts as such, but where statutory jurisdiction is adequate, the federal statute will be enforced.

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10. Rights created under federal statutes may be enforced in state court if "ordinary jurisdiction" of state court is adequate for the purpose, and state jurisdiction is adequate if under State Constitution and statutes state courts are open to general class of cases to which a case arising under federal statutes belongs.

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11. The circuit court of Oregon has jurisdiction of Price Administrator's action to recover damages under Emergency Price Control Act.

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12. State courts should not refrain from assuming jurisdiction of action to enforce penalties under federal status, as attempted delegation of federal judicial power, since generally that is the practice in common-law jurisdictions under doctrines of conflict of laws, and state of forum ought generally to take jurisdiction under federal statutes because they must not in exercise of state jurisdiction discriminate against federal rights.

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13. The Emergency Price Control Act within Oregon is the supreme law of the land and the courts in their official capacities are bound thereby, which supremacy is not a supremacy for defining or establishing the general jurisdiction of state courts, but is a supremacy which requires that state courts should not in exercise of their general jurisdiction discriminate against rights arising under federal law.

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14. The true nature of penal statutes is for determination of court of the forum, whatever the provision for recovery may be called in enacting statute.

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15. The penalty actions under Emergency Price Control Act are "civil enforcement proceedings" within the Act giving state courts concurrent jurisdiction of civil enforcement proceedings.

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16. Alleged unconstitutionality, as applied to state courts, of Emergency Price Control Act provision giving the Emergency Court of Appeals and the United States Supreme Court exclusive jurisdiction to determine validity of any regulation promulgated by Administrator would not affect state court's rights or duty to try a case under the Act, if no issue involving the validity of Administrator's orders was presented.

Constitutional law

17. The Emergency Price Control Act could not be held unconstitutional merely because a regulation which was not challenged might have been arbitrary, and if so, prescribed review might have proved inadequate.

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18. In view of continuing emergency giving rise to Emergency Price Control Act, courts must exercise their power whether mandatory or discretionary in aid of national policy to prevent inflation so long as conditions which validate the Act persist.

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19. The circuit court was not without jurisdiction of Price Administrator's suits to restrain further violations of regulations imposed by Administrator under Emergency Price Control Act on theory that state courts will refuse to enforce non-penal provisions of a federal statute if a penalty is involved in some other part of the statute, where suits sought no penalty and were based upon a provision which would be equally effective if there were no penal provisions in the Act.

Injunction

20. In determining right to injunctive relief, suits to restrain violation of police regulations are not penal since their function is to afford preventive relief not to redress wrongs already committed.

War

21. The circuit court was not without jurisdiction of Price Administrator's suits to restrain further violations of regulations imposed by Administrator under Emergency Price Control Act because the Act provides that no bond shall be required and

Oregon procedure requires a bond as condition for issuance of temporary injunction where no temporary injunction had been issued and it might be that none would be issued.

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22. The alleged non-liability of the United States for costs would not defeat jurisdiction of circuit court of Price Administrator's suits to restrain further violations of regulations imposed by Administration under Emergency Price Control Act.

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23. In Price Administrator's action to recover damages for rental overcharges, wherein complaint alleged that Administrator's rule fixed maximum rents and that defendant charged rent in excess thereof, and exhibit of complaint showed amount of legal rate and amount of overcharge, complaint was not demurrable on ground of insufficiency.

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24. Under Emergency Price Control Act authorizing injunction whenever in judgment of Price Administrator any person has engaged or is about to engage in violation of the regulations, neither inadequacy of legal remedy nor irreparable injury need be alleged to obtain injunctive relief.

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25. In Price Administrator's suit to enjoin further violation of regulation imposed by Administrator under Emergency Price Control Act, complaint which alleged that defendant sold cirgarettes on punch board at prices exceeding ceiling prices, and that defendant refused to sell unless purchaser had secured a winning number on punch board, was a subterfuge to evade the regulation, was not demurrable on theory that transaction alleged did not constitute a "sale".

ROSSMAN, J., dissenting.

                  Constitutionality, construction, and application of Emergency
                Price Control Act, notes, 146 A.L.R. 718; 148 A.L.R. 1429; 149
                A.L.R. 1472; 150 A.L.R. 1470; 151 A.L.R. 1469; 152 A.L.R. 1472
                153 A.L.R. 1444; 154 A.L.R. 1468; 155 A.L.R. 1467; 156 A.L.R
                1467; 157 A.L.R. 1463; 158 A.L.R. 1474. See 21 C.J.S., Courts
                § 526
                

Appeals from Circuit Court, Multnomah County.

HON. WALTER L. TOOZE, Judge.

Arthur G. Silverman of Washington, D.C., (George Moncharsh, Deputy Administrator for Enforcement, Office of Price Administration, Washington, D.C.; David London, Chief Appellate Branch, Office of Price Administration, Washington, D.C.; Arthur C. Silverman, Attorney, Office of Price Administration, Washington, D.C.; Herbert H. Bent, Regional Litigation Attorney, San Francisco, California; Fleming James, Jr., Director of Litigation, Office of Price Administration, Washington, D.C.; F.E. Wagner, District Enforcement Attorney, Portland, Oregon; on the brief) for appellant.

Herbert L. Swett of Portland, (Hampson, Koerner, Young & Sweet on the brief) for respondent, Barde Steel Company, a corporation.

A.E. Clark of Portland, (Clark & Clark on the brief) for respondents Gresham Berry Growers, a corporation, and North Pacific Canners and Packers, Inc.

Paul R. Harris of Portland for respondent Martin Lombardi, doing business as The Hotel Australian.

Lee A. Ellmaker of Portland for respondent W.L. Owen, doing business as Jack Spratt's Meats.

Arthur E. Prag of Portland, (Hoy & Prag on the brief) for respondent Emma Anderson, doing business as Market Tobacco Shop.

Before BELT, Chief Justice, ROSSMAN, BAILEY, LUSK, BRAND and HAY, Associate Justices.

REVERSED.

Action by Chester Bowles, Administrator of the Office of Price Administration, to enforce...