Phillips Petroleum Co. v. Jenkins
Phillips Petroleum Co. v. Jenkins
Opinion of the Court
delivered the opinion of the Court.
Appellee sued the Phillips • Petroleum Company and J. H: Myers in ah Arkansas court to recover damages for injuries suffered by him while working for that company. There was a trial by jury. It gave plaintiff &r verdict in accordance with which the court entered judgment against both defendants for $50,000. On appeal to tlfe state supreme court, the guaranty company became surety on a supersedeas bond. That court reduced the judgment to-$30,000 and held plaintiff entitled to recover that amount from the petroleum company and the surety.
The petroleum company is a Delaware corporation authorized to do business in Arkansas and engaged in that State in the production and transportation of oil. Crawford and Moses’ Digest of the Arkansas Statutes, § 7137, enacted March 8, 1907, declares that all corporations shall be liable for injuries sustained by any employee resulting from negligence of any other employee.
The substance of the. cause of action alleged is this: April 5, 1934, plaintiff and Myers were fellow servants in the service of the petroleum company. They and other employees were engaged in laying pipe. Plaintiff was injured while he and Myers were carrying a length of pipe. Plaintiff, his back toward Myers, had the forward end upon his shoulder; Myers had the other .end
Appellant, does not suggest discrimination between foreign and domestic corporations or between it and any other corporation.' The section by its terms extends to all corporations whether organized in Arkansas or elsewhere. Undoubtedly the power of the State to prescribe the rule of liability as one of the conditions for the admission of foreign corporations is not less than its power to include the rule in the-charters of domestic corporations. Appellant’s position is the same as, in like circumstances, would be that of an Arkansas corporation. Its complaint is that the State makes corporations liable for personal injuries sustained by an employee through negligence of any other employee while as to individual employers it leaves in force the common law rule that every servant assumes the risk of injuries through the negligence of his fellow servants.
We shall first consider whether consistently with the equal protection clause the State, by exertion of its power to specify provisions of charters of corporations organized under its laws and to impose conditions for the admission of foreign corporations, may prescribe the challenged rule of liability. If, by specifying the terms upon which corporations may be organized under its laws or by the exertion of the reserved power to amend corporate charters, the State may impose the challenged
Arkansas might have refrained from enactment of statutes creating or authorizing organization of corporations and might have denied to foreign corporations admission to the State. But it may not enforce any part of the charter of a domestic corporation or any provision of its laws relating to admission of a foreign corporation that is repugnant to the Federal Constitution.
The reservation of power to amend is a part of the contract between the State and the corporation- and therefore. § 10 of Art. I of the Federal Constitution does not apply. The reserved power is • not' unlimited and cannot be exerted to defeat the purpose for which the corporate powers were granted, or to take property without compensation, or arbitrarily to make alterations that are inconsistent with the scope and object of the charter
Essential to a just consideration of appellant’s contention is a definite understanding of what is denied to it by the construction put upon § 7137 by the state supreme court. It was, as described by that court in an earlier case, “the common-law rule that a servant assumes the
The power reserved by the state constitution to the general assembly “to alter, revoke or annul” any charter of incorporation is not a general authorization^ Amendment may only be made whenever in the opinion of the general assembly the charter “may be injurious to the citizens of this State” and then only “in such manner, however, that ho injustice shall be done to the corporators.” The enactment of § 7137 necessarily implies legislative determinations in accordance with these requirements. There is nothing in the record or of which judicial notice may be taken to negative the conclusions of the general assembly upon the matters specified or to show that the distinction made by the statute is a groundless and arbitrary discrimination against corporations. Eor aught that appears, conditions in Arkansas do not warrant belief that enforcement of the common law. fellow-servant rule as to employees’ claims for damages
We need not decide the question whether, independently of the reserved power to amend charters and of the bases for legislative action upon which the state constitution conditions alterations, the provisions of § 7137 under consideration may be sustained as not . repugnant to the equal protection clause.
Affirmed.
“Hereafter all railroad companies operating within this State, whether incorporated or not, and all corporations of every kind and character, and every company whether incorporated or not, engaged in the mining of coal, who may employ agents, servants or employees, such agents, servants or employees being in the exercise of due care, shall be liable to respond in damages for injuries or death sustained by any such agent, employee or servant, resulting from the careless oihission of duty or negligence of such employer, or which may result from the carelessness, omission of duty or negligence of any other agent, servant or employee of the said employer, in the same manner and to the same extent as if the carelessness, omission of duty or negligence causing the injury or death was that of the employer.”
Ozan Lumber Co. v. Biddie, 87 Ark. 587; 113 S. W. 796. Soard v. Western Anthracite C. & M. Co., 92 Ark. 502; 123 S. W. 759. Missouri & North Arkansas R. Co. v. Vanzant, 100 Ark. 462, 466-467; 140 S. W. 587. See Graham v. Thrall, 95 Ark. 560, 563; 129 S. W. 532.
Aluminum Co. v. Ramsey, 89 Ark. 522, 535; 117 S. W. 568; affirmed 222 U. S. 251. Missouri Valley Bridge & Iron Co. v. Malone, 153 Ark. 454, 461; 240 S. W. 719. Postal Telegraph-Cable Co. v. White, 190 Ark. 365, 368; 80 S. W. (2d) 633.
Western Union v. Kansas, 216 U. S. 1, 27, 33. Ludwig v. Western Union, 216 U. S. 146. Looney v. Crane Co., 245 U. S. 178, 188. Terral v. Burke Construction Co., 257 U. S. 529. Fidelity & Deposit Co. v. Tafoya, 270 U. S. 426, 434. Hanover Fire Ins. Co. v. Harding, 272 U. S. 494, 507, et seq. Power Mfg. Co. v. Saunders, 274 U. S. 490. Quaker City Cab Co. v. Pennsylvania, 277 U. S. 389, 400-401. Washington v. Superior Court, 289 U. S. 361. Cf. Sioux Remedy Co. v. Cope, 235 U. S. 197, 203. Western Union v. Foster, 247 U. S. 105, 114. Frost Trucking Co. v. Railroad Comm’n, 271 U. S. 583, 593, et seq. Foster-Fountain Packing Co. v. Haydel, 278 U. S. 1, 13. United States v. Chicago, M., St. P. & P. R. Co., 282 U. S. 311, 328.
Tomlinson v. Jessup, 15 Wall. 454, 459. Miller v. State, 15 Wall. 478, 488, 493 et seq. Shields v. Ohio, 95 U. S. 319, 324. Beer Co. v. Massachusetts, 97 U. S. 25, 33. Sinking-Fund Cases, 99 U. S. 700, 720. Greenwood v. Freight Co., 105 U. S. 13, 17 et seq. Close v. Glenwood Cemetery, 107 U. S. 466, 474-476. Lake Shore & M. S. Ry. Co. v. Smith, 173 U. S. 684, 698. Fair Haven & W. R. Co. v. New Haven, 203 U. S. 379, 388 et seq. Berea College v. Kentucky, 211 U. S. 45, 57. Hammond Packing Co. v. Arkansas, 212 U. S. 322, 345, 346. Missouri Pacific Ry. Co. v. Kansas, 216 U. S. 262, 274. Chicago, M. & St. P. R. Co. v. Wisconsin, 238 U. S. 491, 501. Sears v. Akron, 246 U. S. 242, 248. Coombes v. Getz, 285 U. S. 434, 441. Public Service Common of Puerto Rico v. Havemeyer, 296 U. S. 506.
Looker v. Maynard, 179 U. S. 46, 52.
Texas & N. O. R. Co. v. Miller, 221 U. S. 408, 414.
Aluminum Co. v. Ramsey, 89 Ark. 522, 535; 117 S. W. 568.
Railroad Company v. Fort, 17 Wall. 553, 559. Hough v. Railway Co., 100 U. S. 213, 217. Randall v. Baltimore & Ohio R. Co., 109 U. S. 478, 483. Armour v. Hahn, 111 U. S. 313, 318. Chicago, M. & St. P. Ry. v. Ross, 112 U. S. 377, 382 et seq. Northern Pacific R. Co. v. Herbert, 116 U. S. 642, 647. New. York Central R. Co. v. White, 243 U. S. 188, 198-199. Cf. Standard Oil Co. v. Anderson, 212 U. S. 215, 220.
Lindsley v. Natural Carbonic Gas Co., 220 U. S. 61, 78-79. Rast v. Van Deman & Lewis Co., 240 U. S. 342, 357. O’Gorman & Young v. Hartford, Fire Ins. Co., 282 U. S. 251, 257. Concordia Fire Ins. Co. v. Illinois, 292 U. S. 535, 547. Cf. Quaker City Cab Co. v. Pennsylvania, 277 U. S. 389, 399.
Reference
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