Pierce Butler

“ The Supreme Court of a State does something more than make a scientific inquiry into a fact outside of and independent of it. It says with an authority that no one denies except when a citizen of another State is able to invoke an exceptional jurisdiction that thus the law is and shall be. ”

“ As respects the rule of decision to be followed by federal courts, distinction has always been made between statutes of a state and the decisions of its courts on questions of general law. The applicable rule sustained by many decisions of this court is that, in determining questions of general law, the federal courts, while inclining to follow the decisions of the courts of the state in which the controversy arises, are free to exercise their own independent judgment. ”

“ And we are of opinion that petitioner here has failed to show any valid ground for disregarding this contract and that its interference cannot be justified. Care is to be observed lest the doctrine that a contract is void as against public policy be unreasonably extended. Detriment to the public interest is not to be presumed in the absence of showing that something improper is done or contemplated. ”

“ The privilege granted to respondent does not impair the railroad company's service to the public or infringe any right of other taxicabmen to transport passengers to and from the station. While it gives the respondent advantage in getting business, passengers are free to engage any one who may be ready to serve them. ”

“ It may be departed from deliberately by judicial decisions, as with regard to water rights, in States where the common law generally prevails. Louisiana is a living proof that it need not be adopted at all. (I do not know whether under the prevailing doctrine we should regard ourselves as authorities upon the general law of Louisiana superior to those trained in the system.) Whether and how far and in what sense a rule shall be adopted whether called common law or Kentucky law is for the State alone to decide. ”

“ Respondent is a Tennessee corporation carrying on a transfer business at Bowling Green, Ky. The petitioner is a Kentucky corporation in competition with respondent. The railroad company is a Kentucky corporation. In 1925 it made a contract with respondent whereby it granted the exclusive privilege of going upon its trains, into its depot, and on the surrounding premises to solicit transportation of baggage and passengers. ”

“ It would be unwarranted and arbitrary to assume that this contract is contrary to public interest. The grant of privileges to respondent creates no duty on the part of the railroad company to give like privileges to others, and therefore there is no illegal discrimination. ”

“ But, as we understand the brief, it does not contend that, by reason of the rule of decision declared by section 34 of the Judiciary Act of 1789 (now R. S. § 721, U.S.C. tit. 28, § 725 (28 USCA § 725) ) , this court is required to adopt the Kentucky decisions. But, granting that this point is before us, it cannot be sustained. The contract gives respondent, subject to termination on short notice, license or privilege to solicit patronage and park its vehicles on railroad property at train time. There is no question concerning title to land. ”

“ And, as the state is without power to require any part of the depot ground to be used as a public hack stand without providing just compensation therefor, then a fortiori such property may not be handed over for the use of petitioner without the consent of the owner.
5. The decree below should be affirmed unless federal courts are bound by Kentucky decisions which are directly opposed to this court's determination of the principles of common law properly to be applied in such cases. ”

“ The decree enjoins petitioner from continuing such interference.
1. Section 37 of the Judicial Code (28 USCA § 80) requires any suit commenced in a District Court to be dismissed, if it shall appear that the suit does not really and substantially involve a dispute or controversy properly within its jurisdiction or that the parties have been improperly or collusively made or joined, either as plaintiffs or defendants, for the purpose of creating a case cognizable in such court. ”

“ Pedigo, supra, 468 (18 S. W. 15) . It is not bound to permit those engaged in such transportation to use its property, to solicit patronage, park their vehicles or otherwise to carry on their business. The contract does not relate to the railroad company's business as a common carrier. D. L. & W. R. R. Co. v. Morristown, February 20, 1928, 276 U.S. 182, 48 S.C.t. 276, 72 L. Ed. 523.
4. The Court of Appeals of Kentucky held such contracts invalid in McConnell v. Pedigo, supra, and Palmer Transfer Co. ”

“ The carrying out of such contracts generally makes for good order at railway stations, prevents annoyance, serves convenience and promotes safety of passengers. D. L. & W. R. R. Co. v. Morristown, supra. There is here no complaint by or on behalf of passengers; no lack of service, unreasonable exaction or inconvenience of the public is shown. ”

“ Beutler v. Grand Trunk Railway, 224 U.S. 85, 88, 32 S.C.t. 402, 56 L. Ed. 679, decides who are fellow servants as a question of general law. [1]
The lower courts followed the well-established rule, and rightly held the contract valid. The facts shown warrant the injunction granted. ”