Santa Clara County v. Southern Pacific Railroad Co.: Difference between revisions
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The Supreme Court never reached the equal protection claims. Nonetheless, this case is sometimes incorrectly cited as holding that corporations, as [[juristic persons]], are protected by the Fourteenth Amendment.<ref name="motherjones.com">[http://www.motherjones.com/news/feature/2006/11/when_is_a_corporation_like_a_freed_slave.html When Is a Corporation Like a Freed Slave?<!-- Bot generated title -->]</ref> |
The Supreme Court never reached the equal protection claims. Nonetheless, this case is sometimes incorrectly cited as holding that corporations, as [[juristic persons]], are protected by the Fourteenth Amendment.<ref name="motherjones.com">[http://www.motherjones.com/news/feature/2006/11/when_is_a_corporation_like_a_freed_slave.html When Is a Corporation Like a Freed Slave?<!-- Bot generated title -->]</ref> |
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== Significance == |
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As such, it did not technically - in the view of most legal historians - have any legal precedential value.<ref>Thomas Van Flein. "Headnotes and the Course of History." The Alaska Bar Rag. May/June, 2003 (27 AK Bar Rag 2)</ref> However, the Supreme Court is not required by Constitution or even precedent to limit its rulings to written statements. |
As such, it did not technically - in the view of most legal historians - have any legal precedential value.<ref>Thomas Van Flein. "Headnotes and the Course of History." The Alaska Bar Rag. May/June, 2003 (27 AK Bar Rag 2)</ref> However, the Supreme Court is not required by Constitution or even precedent to limit its rulings to written statements. |
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Justice William O. Douglas wrote in 1949, "the ''Santa Clara'' case becomes one of the most momentous of all our decisions.. Corporations were now armed with constitutional prerogatives." |
Justice [[William O. Douglas]] wrote in 1949, "the ''Santa Clara'' case becomes one of the most momentous of all our decisions.. Corporations were now armed with constitutional prerogatives." |
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Justice [[Hugo Black]] wrote "in 1886, this Court in the case of Santa Clara County v. Southern Pacific Railroad, decided for the first time that the word 'person' in the amendment did in some instances include corporations...The history of the amendment proves that the people were told that its purpose was to protect weak and helpless human beings and were not told that it was intended to remove corporations in any fashion from the control of state governments...The language of the amendment itself does not support the theory that it was passed for the benefit of corporations." |
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==See also== |
==See also== |
Revision as of 01:59, 20 September 2009
Santa Clara County v. Southern Pacific Railroad | |
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Argued January 26–29, 1886 Decided May 10, 1886 | |
Full case name | Santa Clara County v. Southern Pacific Railroad Company |
Citations | 118 U.S. 394 (more) |
Holding | |
The railroad corporations are persons with the intent of the Fourteenth Amendment to the U.S. Constitution. | |
Court membership | |
| |
Case opinion | |
Majority | Harlan, joined by Unanimous court |
Laws applied | |
14 Stat. 292, §§ 1, 2, 3, 11, 18 (an Act of 1866 giving special privileges to the Atlantic and Pacific Railway Corporation) |
Santa Clara County v. Southern Pacific Railroad Company, 118 U.S. 394 (1886) was a United States Supreme Court case dealing with taxation of railroad properties. The case is most notable for the obiter dictum statement that juristic persons are entitled to protection under the Fourteenth Amendment.
For its opinion, the Court consolidated three separate cases: Santa Clara County v. Southern Pacific Railroad Company, California v. Central Pacific Railroad Company, and California v. Southern Pacific Railroad Company.
History and legal dispute
At the California Constitutional Convention of 1878-79, the state legislature drew up a new constitution that denied railroads "the right to deduct the amount of their debts [i.e., mortgages] from the taxable value of their property, a right which was given to individuals." [1] Southern Pacific Railroad Company refused to pay taxes under these new changes. The taxpaying railroads challenged this law, based on a conflicting federal statute of 1866 which gave them privileges inconsistent with state taxation (14 Stat. 292, §§ 1, 2, 3, 11, 18).
San Mateo, along with neighboring counties filed suit against the railroads to try and recoup the massive shortage of tax revenue stemming from Southern Pacific's refusal to pay. After hearing arguments in San Mateo County v. Southern Pacific Railroad Company, the California state Supreme Court sided with the county. Using the Jurisdiction and Removal Act of 1875, a law created so black litigants could surpass hostile southern state courts if they were denied justice, Southern Pacific was able to appeal all the way to the U.S. Supreme Court.[2]
A passing remark
The decisions reached by the Supreme Court are promulgated to the legal community by way of books called United States Reports. Preceding every case entry is what's known as a headnote, a short summary where a court reporter summarizes the opinion as well as outlining the main facts and arguments. For example, in U.S. v. Detroit Timber and Lumber (1905), a headnote is defined as "not the work of the Court, but are simply the work of the Reporter, giving his understanding of the decision, prepared for the convenience of the profession."[3]
The court reporter, J.C. Bancroft Davis, who was a former Railroad president, wrote the following as part of the headnote for the case:
"The court does not wish to hear argument on the question whether the provision in the Fourteenth Amendment to the Constitution, which forbids a State to deny to any person within its jurisdiction the equal protection of the laws, applies to these corporations. We are all of the opinion that it does."[4]
In other words, corporations enjoyed the same rights under the Fourteenth Amendment as did natural persons.[5] But the most interesting aspect is that the Supreme Court did not directly address the Fourteenth Amendment issue in its opinion.
Before publication, Davis wrote a letter to Chief Justice Morrison Waite, dated May 26, 1886, to make sure his headnote was correct:
Dear Chief Justice,
I have a memorandum in the California Cases Santa Clara County v. Southern Pacific %c As follows. In opening the Court stated that it did not wish to hear argument on the question whether the Fourteenth Amendment applies to such corporations as are parties in these suits. All the Judges were of the opinion that it does.[6]
Waite replied:
I think your mem. in the California Railrad Tax cases expresses with sufficient accuracy what was said before the argument began. I leave it with you to determine whether anything need be said about it in the report inasmuch as we avoided meeting the constitutional question in the decision.[7]
C. Peter Magrath, who discovered the exchange while researching Morrison C. Waite: The Triumph of Character, writes "In other words, to the Reporter fell the decision which enshrined the declaration in the United States Reports...had Davis left it out, Santa Clara County v. Southern Pac[ific] R[ailroad] Co. would have been lost to history among thousands of uninteresting tax cases."[8]
Author Jack Beatty wrote about the lingering questions as to how the reporter's note reflected a quotation that was absent from the opinion itself.
Why did the chief justice issue his dictum? Why did he leave it up to Davis to include it in the headnotes? After Waite told him that the Court 'acoided' the issue of corporate personhood, why did Davis include it? Why, indeed, did he begin his headnote with it? The opinion made plain that the Court did not decide the corporate personality issue and the subsidiary equal protection issue.[9]
Decision
The court's actual decision was uncontroversial. A unanimous decision issued by Justice ruled on the matter of fences -- in that the state of California illegally included the fences running beside the tracks in its assesment of the total value of the railroad's property. As a result, the county could not collect taxes from Southern Pacific that it wasn't allowed to collect in the first place.[10]
The Supreme Court never reached the equal protection claims. Nonetheless, this case is sometimes incorrectly cited as holding that corporations, as juristic persons, are protected by the Fourteenth Amendment.[11]
Significance
As such, it did not technically - in the view of most legal historians - have any legal precedential value.[12] However, the Supreme Court is not required by Constitution or even precedent to limit its rulings to written statements.
Justice William O. Douglas wrote in 1949, "the Santa Clara case becomes one of the most momentous of all our decisions.. Corporations were now armed with constitutional prerogatives."
Justice Hugo Black wrote "in 1886, this Court in the case of Santa Clara County v. Southern Pacific Railroad, decided for the first time that the word 'person' in the amendment did in some instances include corporations...The history of the amendment proves that the people were told that its purpose was to protect weak and helpless human beings and were not told that it was intended to remove corporations in any fashion from the control of state governments...The language of the amendment itself does not support the theory that it was passed for the benefit of corporations."
See also
- Corporate Personhood Debate
- Juristic person
- Equal protection
- List of United States Supreme Court cases, volume 118
References
- ^ Carl Brent Swisher, "Motivation and Political Technique" in The California Constitutional Convention, 1878-1879 (New York: Da Capo, 1969), p. 78
- ^ R. Hal Williams, The Democratic Party and California Politics, 1880-1896 (Stanford: Stanford University Press, 1973), pp. 34-36
- ^ http://supreme.justia.com/us/200/321/
- ^ 118 U.S. 394 (1886) - According to the official court Syllabus in the United States Reports
- ^ Westlaw, http://www.answers.com/topic/santa-clara-county-v-southern-pacific-railroad
- ^ Jack Beatty, Age of Betrayal: The Triumph of Money in America, 1865-1900
- ^ Ibid.
- ^ C. Peter McGrath, Morrison R. Waite: The Triumph of Character (New York: Macmillan, 1963), p.117
- ^ Beatty, Age of Betrayal, p. 173
- ^ 118 US Reports 412-17
- ^ When Is a Corporation Like a Freed Slave?
- ^ Thomas Van Flein. "Headnotes and the Course of History." The Alaska Bar Rag. May/June, 2003 (27 AK Bar Rag 2)
External links
- Text of Santa Clara County v. Southern Pacific Railroad, 118 U.S. 394 (1886) is available from: Justia
- Barry Yeoman, When Is a Corporation Like a Freed Slave?, Mother Jones
- "Unequal Protection: The Rise of Corporate Dominance and the Theft of Human Rights" by Thom Hartmann
- "Supreme Court Correspondence Uncovered" De-fact-o.com
- "Why do corporations have the same rights as you?" HowStuffWorks.com