Friday, September 25, 2009

The Progenitor

The U.S. Supreme Court case of Santa Clara County v. Southern Pacific Railroad ( 118 U.S. 394; 6 S. Ct. 1132; 30 L. Ed. 118) is often regarded as the first major step in the establishment of corporations as possessing constitutional rights traditionally afforded to people.

The court opinion itself is a rather dry one, and seemingly innocuous. It begins with an explanation of the process of empowering, through federal and state legislation, of certain railroad companies for the purposes of creating a transcontinental railroad system during the mid nineteenth century. It then goes into detail regarding the issue at hand for the court, that of tax assessments on property owned by the railroad companies by individual counties. The court eventually ruled for the railroad company on the grounds that certain property had been inappropriately accessed for tax purposes.

Nowhere in the official court opinion was it opined by the justices that corporations enjoyed constitutional protections through the 14th Amendment's equal protection clause. So why is such a seemingly mundane court case so noteworthy? The reason it is known today is because the court reporter, J.C. Bancroft Davis, mentioned the following remark in the head note to 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 laws, applies to these corporations. We are all of the opinion that it does." http://www.law.com/jsp/article.jsp?id=1050369429283

Thus, despite the fact that the official court opinion made no decision on the issue (in effect, they punted and decided the case on other grounds), future Supreme Court decisions would use this head note in their rationales. Per the Law.com article cited earlier:

“Smyth v. Ames, 169 U.S. 466 (1898), and Northwestern Nat. Life v. Riggs, 203 U.S. 243 (1906) -- holding that corporations are "persons." Santa Clara has had a long life. In Boston v. Bellotti, 435 U.S. 765 (1978), the Court held that corporations are protected by the First Amendment. Citing Santa Clara, the majority opinion said, "It has been settled for almost a century that corporations are persons within the meaning of the Fourteenth Amendment."

Perhaps it would have occurred eventually regardless of Davis’s addition. However, as it stands, the unofficial precedent of 14th amendment protections for corporations was effectively created through the pen of one man

3 comments:

  1. Kevin: Fascinating story. I had never heard that one before. I think this blog will be very informative. At least for law wonks. --Mike 9/25

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  2. Very interesting. I very much enjoy learning information like this.

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  3. You know, the whole time I read this I really felt like it ought to be a case brief, Kevin. Good work, accolades, all that stuff.

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