Petitt v. Field, No. 48139

• Court: United States State Supreme Court of Missouri
• Writing for the Court: HYDE
• Citation: 341 S.W.2d 106
• Parties: Leonard PETITT et al., Respondents, v. Lyman FIELD et al., Appellants
• Decision Date: 12 December 1960
• Docket Number: No. 1,No. 48139

Page 106

341 S.W.2d 106 Leonard PETITT et al., Respondents,
v.
Lyman FIELD et al., Appellants. No. 48139. Supreme Court of Missouri, Division No. 1. Dec. 12, 1960.

Page 107

John M. Dalton, Atty. Gen., Julian L. O'Malley, Asst. Atty. Gen., for appellants.

Ben W. Swofford, Laurence R. Smith, Hammond C. Woods, Kansas City, Swofford, Smith & Waisblum, Kansas City, of counsel, for respondents.

HYDE, Judge.

Declaratory judgment action to have declared unconstitutional and void House Bill 238 enacted by the 1959 General Assembly (Sale of Checks Law, Secs. 405.010-405.150, 1960 Pocket Part, V.A.M.S.) and to enjoin its enforcement. The court's decree so declared and ordered a permanent injunction, and defendants have appealed.

The Act was entitled 'An Act relating to the definition, licensing and regulating of the sale and issue of checks, drafts and money orders in this state as a service for a fee or other consideration, providing for investigation, licensing and regulation by the Commissioner of Finance of Missouri of persons engaged in such business providing certain exemptions to its application based upon classification of business conducted providing for judicial review of certain orders of the Commissioner of Finance and prescribing penalties for its violation.' Plaintiffs claim Sec. 3, subd. B makes the act unconstitutional as discriminatory class legislation, depriving them of due process and equal protection of law and grants special and exclusive rights, privileges and immunities in violation of the 14th Amendment to the U. S.

Page 108

Constitution, Article I, Secs. 2 and 10, and Art. III, Sec. 40(28), (30), Mo.Constitution, V.A.M.S. Section 3 is as follows:

'Section 3. A. No person shall sell or issue checks in this state as a service for a fee or other consideration without first obtaining a license from the commissioner pursuant to the provisions of this Act, provided, however, that this Act shall not apply to the receipt of money by an incorporated telegraph company at any office or agency of such company for immediate transmission by telegraph.

'B. No license shall be issued or renewed to any person who is engaged in any business the major portion of which involves the processing, manufacture or purchase and sale of commodities or articles of tangible personal property.'

Plaintiffs are retail merchants engaged in the purchase and sale of commodities or articles of tangibel personal property; and bring this action on their own behalf and on behalf of others similarly situated. The parties stipulated that the Act is 'intended to exercise the police powers of the State with reference to licensing and regulation of sale and issue of checks, drafts and money orders as a service for a fee and that such field is a proper one for the exercise of the police power and there is a need therefor.' Written applications for licenses were required to be made to the Commissioner of Finance (See. 5), 'accompanied by an investigation fee of $500' (Sec. 6); and by a corporate surety bond of $25,000 (Sec. 7). An annual license fee of $500 was also required (Sec. 10); and a licensee could conduct business at several locations through agents or employees who were not required to be licensed (Sec. 11). It was stated (Sec. 4) that the Act should not apply to banks, trust companies or savings and loan associations or to 'the Government of the United States or any department or agency thereof.'

Plaintiffs' evidence showed that between 50 and 75 individual merchants engaged in such service in Jackson County, about 87 in St. Louis, and some in other cities such as St. Joseph and Springfield. This service was rendered mostly to workers, who did not have bank accounts and who would cash pay checks after banking hours, taking money orders usually for such purposes as paying accounts to utility companies, finance companies, mortgage companies or for rent. A charge of a few cents (maximum 50 cents on money orders up to $100) was made for issuing money orders by one of plaintiffs (operating two drug stores) who said his net profit from this service had been $2,303.64 in the last eleven months. He also said that this service created customers' good will and increased his sales of merchandise. An agent for a licensee would not get more than 40% of the charge for this service. It was shown that only ten licenses had been issued by the commissioner but that those licensees had 2271 listed agents.

Defendants contend Sec. 3, subd. B in its exclusion from licensing designates a broad class and therefore cannot...