1. By force of the act of the legislature of Louisiana known as
Act No. 3 of 1814, and the constitutional amendment adopted in that
year, which provided that bonds should be issued under that act in
exchange for valid outstanding bonds and warrants at the rate of
sixty cents in the new bonds for one dollar of the old bonds and
warrants, the state entered into a formal contract, the obligation
of which it was forbidden by the Constitution of the United States
to impair, and thereby stipulated with each holder of the new bonds
so issued that an annual tax of five and one-half mills on the
dollar of the assessed value of all the real and personal property
in the state should be levied and collected, and the income
therefrom applied solely to the payment of the bonds and coupons;
that the tax levied by the act and confirmed by the constitution
should be a continuing annual tax until the bonds, principal and
interest, were paid in full, that the appropriation of the revenue
derived therefrom should be a continuing annual appropriation, and
that no further authority than that contained in the act should be
required to enable the taxing officers to levy and collect the tax,
or the disbursing officers to pay out the money as collected in
discharge of the coupons and bonds.
2. After the said act of 1874 was passed and the constitutional
amendment sanctioning it was adopted, sundry parties, citizens of
another state, exchanged
Page 107 U. S. 712
their old bonds for new coupon bonds executed pursuant to the
requirements of that act and demanded of the proper state officers
payment of the coupons which fell due Jan. 1, 1880, and the
application thereto of the funds collected under the levy imposed
by the act. Payment was refused solely on the ground that it was
forbidden by the third article of the state Debt Ordinance of the
new constitution adopted July 23, 1879,
post, p.
107 U. S. 715,
and the treasurer claimed to hold the funds only for the purposes
for which they were appropriated by the terms of that constitution.
The parties then brought in the state court of Louisiana a suit for
a mandamus against the auditor and treasurer of state and the other
members of the Board of Liquidation, requiring them to apply the
funds in the treasury derived from the taxes levied or to be levied
to the retirement of the bonds, and to execute the said act
according to its intent and purpose. They also brought in the
circuit court against the same defendants a suit praying for an
injunction forbidding them to recognize as valid said ordinance,
and to oppose the full execution of said act and the constitutional
amendment. The suit for mandamus was removed to the circuit
court.
Held:
1. That the ordinance forbade the payment of the interest due
January, 1880, and withdrew from the officers of the state the
means of carrying her contract into effect.
2. That the execution of the contract cannot be enforced, nor
the relief sought be awarded, in a suit to which she is not a
party, but which is brought against officers, who are merely
obeying the positive orders of the supreme political power of the
state.
3. That at the time the bonds were issued or since, no statute
or judicial decision authorized a suit against Louisiana in her own
courts, nor can she be sued in the courts of the United States by a
citizen of another state.
4. That the money in her treasury is her property, held by her
officers, not in trust for her creditors nor as their agents, but
as her servants, and that the courts cannot control them in the
administration of her finances, and thus oust the jurisdiction of
the political power of the state.
The case is stated in the opinion of the Court.
MR. CHIEF JUSTICE WAITE delivered the opinion of the Court.
The Legislature of Louisiana, at its session of 1874, by an act
known as Act No. 3 of 1874, provided for an issue of bonds, to be
designated as consolidated bonds of the state, for the purpose of
consolidating and reducing the floating and
Page 107 U. S. 713
bonded debt. The bonds were to be payable to the bearer forty
years from January 1, 1874, and bear interest at the rate of seven
percent per annum, payable on the first day of July and the first
day of January in each year. The amount was not to exceed in the
aggregate $15,000,000. The governor, lieutenant governor, auditor,
treasurer, secretary of state, speaker of the house of
representatives, and a person to be elected by these officers as a
fiscal agent of the state, were created a Board of Liquidation,
with power to issue the bonds and exchange them for all valid
outstanding bonds, and certain valid warrants on the treasury at
the rate of sixty cents in the new bonds for one dollar of old
bonds and warrants. The bonds were to be signed by the governor,
auditor, and secretary of state, and the coupons by the auditor and
treasurer.
Section 7 of the act was as follows:
"That a tax of five and a half mills on the dollar of the
assessed value of all real and personal property in the state is
hereby annually levied, and shall be collected, for the purpose of
paying the interest and principal of the consolidated bonds herein
authorized, and the revenue derived therefrom is hereby set apart
and appropriated to that purpose, and no other, and that it shall
be deemed a felony for the fiscal agent or any officer of the state
or board of liquidators to divert the said fund from its legitimate
channel as provided, and upon conviction, the said party shall be
liable to imprisonment for not more than ten years nor less than
two at the discretion of the court. If there shall during any year
be a surplus arising from said tax after paying all interest
falling due in that year, such surplus shall be used for the
purchase and retirement of bonds authorized by this act, said
purchases to be made by the said Board of Liquidation from the
lowest offers, after due notice,
provided that the total
tax for interest and all other state purposes, except the support
of public schools, shall never hereafter exceed twelve and a half
mills on the dollar. The interest tax aforesaid shall be a
continuing annual tax until the said consolidated bonds shall be
paid or redeemed, principal and interest, and the said
appropriation shall be a continuing annual appropriation during the
same period, and this levy and appropriation shall authorize and
make it the duty of the auditor and treasurer, and the said board,
respectively, to collect said tax annually, and pay said interest
and redeem said bonds until the same shall be fully discharged.
"
Page 107 U. S. 714
By other sections it was provided that any judge, tax collector,
or any other officer of the state obstructing the execution of the
act, or any part of it, or failing to perform his official duty,
should be deemed guilty of a misdemeanor, and on conviction thereof
punished; that each provision of the act should be, and was
declared to be, a contract between the State of Louisiana and each
and every holder of such consolidated bonds; that the tax
collectors should not pay over any moneys collected by them to any
other person than the state treasurer, and that no court or judge
thereof should have power to enjoin the payment of principal or
interest of any of the bonds, or the collection of the special tax
therefor.
Immediately after the passage of this act, the state adopted an
amendment to its constitution, as follows:
"The issue of consolidated bonds authorized by the General
Assembly of the state at its regular session in the year 1874 is
hereby declared to create a valid contract between the state and
each and every holder of said bonds, which the state shall by no
means and in no wise impair. The said bonds shall be a valid
obligation of the state in favor of any holder thereof, and no
court shall enjoin the payment of the principal or interest thereof
or the levy and collection of tax therefor; to secure such levy,
collection, and payment, the judicial power shall be exercised when
necessary. The tax required for the payment of the principal and
interest of said bonds shall be assessed and collected each and
every year until the bonds shall be paid, principal and interest,
and the proceeds shall be paid by the treasurer of the state to the
holders of said bonds, as the principal and interest of the same
shall fall due, and no further legislation or appropriation shall
be requisite for the said assessment and collection, and for such
payment from the treasury."
Under this authority, consolidated bonds to the amount of about
twelve million dollars were issued. John Elliott, Nicholas Gwynn,
and Henry S. Walker are the holders and bearers of these bonds to
the amount of $20,000, and of unpaid coupons due January 1, 1880,
to the amount of $78,900. The bonds, in accordance with the
requirements of the act under which they were issued, are signed by
the governor, auditor,
Page 107 U. S. 715
and secretary of state, and the coupons by the auditor and
treasurer.
On the first day of January, 1880, a new Constitution of
Louisiana went into effect. A portion of that Constitution, called
the "Debt Ordinance," is in these words:
"
STATE DEBT"
"Art. 1.
Be it ordained by the people of the State of
Louisiana, in convention assembled, that the interest to be
paid on the consolidated bonds of the State of Louisiana be and is
hereby fixed at two percent per annum for five years from the first
day of January, 1880, three percent per annum for fifteen years,
and four percent per annum thereafter, payable semiannually, and
there shall be levied an annual tax sufficient for the full payment
of said interest, not exceeding three mills, the limit of all state
tax being hereby fixed at six mills,
provided the holders
of consolidated bonds may at their option demand, in exchange for
the bonds held by them, bonds of the denomination of five dollars,
one hundred dollars, five hundred dollars, one thousand dollars, to
be issued at the rate of seventy-five cents on the dollar of bonds
held, and to be surrendered by such holders, the said new issue to
bear interest at the rate of four percent per annum, payable
semiannually."
"Art. 2. The holders of consolidated bonds may at any time
present their bonds to the treasurer of the state, or to an agent
to be appointed by the governor -- one in the City of New York and
the other in the City of London -- and the said treasurer or agent,
as the case may be, shall endorse or stamp thereon the words,
'interest reduced to two percent per annum for five years from
January 1, 1880, three percent per annum for fifteen years, and
four percent per annum thereafter,'
provided the holder or
holders of said bonds may apply to the treasurer for an exchange of
bonds as provided in the preceding article."
"Art. 3.
Be it further ordained that the coupon of said
consolidated bonds falling due the first day of January, 1880, be
and the same is hereby remitted, and any interest taxes collected
to meet said coupon are hereby transferred to defray the expenses
of the state government."
Article 209 of the same constitution provides that
"The state tax on all property for all purposes whatever,
including expenses of government, schools, levees, and interest,
shall not exceed in any one year six mills on the dollar of its
assessed valuation. "
Page 107 U. S. 716
Elliott, Gwynn, and Walker demanded of the proper state officers
payment of their coupons which fell due January 1, 1880, but such
payment was refused, the auditor and treasurer stating
"that they could not comply with the request made of them, owing
to the prohibition contained in art. 3, state debt ordinance of the
Constitution of the State of Louisiana, adopted 23d July, 1879, and
recently promulgated."
All the taxes allowed by the new constitution have been levied
for the year 1880, but no proceedings have been taken to levy and
collect the five-and-a-half mill tax under the act of 1874. About
$300,000 is in the treasury of the state, collected under the levy
imposed by the act of 1874 to meet the coupons falling due January,
1880, but the treasurer refuses to apply it to the payment of the
coupons, and claims to hold it only for the purposes to which it
was to be appropriated by the terms of the new constitution. There
are also taxes levied for former years under the act of 1874 which
remain uncollected, and which are subject to future collection and
payment into the treasury under the operation of the collection
laws.
In this condition of things, the appellants Elliott, Gwynn, and
Walker, on the sixteenth of January, 1880, commenced a suit in
equity in the Circuit Court of the United States for the Eastern
District of Louisiana against the several officers of the state
composing the Board of Liquidation, and the prayer of the bill is
that it may be "ordered, adjudged, and decreed" that the act No. 3,
of 1874,
"so far as your orator's interests hereinabove declared are
concerned, was all the time from its passage, has been, and at the
time of the rendition of the decree herein prayed for, is a valid
and subsisting law of the State of Louisiana; that the act
aforesaid, the constitutional amendment of 1874, and the several
bonds and coupons of interest held and owned by your orators as
aforesaid, separately and together, constituted, were, and are
good, valid, subsisting, and binding contracts between the state
aforesaid and the bearers and holders of the consolidated bonds and
coupons, the obligation of which contract cannot be lawfully or
constitutionally impaired, and that under and by virtue of such
contract, your orators were and are entitled to take and enjoy all
the rights, privileges, taxes, and moneys particularly set forth
and mentioned in act No. 3, and
Page 107 U. S. 717
the constitutional amendment of 1874, aforesaid; that so much of
the aforesaid Constitution of 1879 as alters, varies, modified, or
changes, or assumes, purports, or attempts to alter, vary, modify,
or change the provisions of the said act of 1874, and the
constitutional amendment of that year, especially article 208 of
the constitution of the year 1879, and that portion of such
constitution known and distinguished as the ordinance on 'state
debt,' do impair the obligation of the contract hereinabove
referred to; that the said parts and portions of such constitution
are therefore violative of the Constitution of the United States
and are absolutely null and void and without the slightest force or
effect whatever against complainants, and afford and offer no
authority or warrant for the defendants, or any one or more of
them, to make such disposition or application of any part or
portion of the aforesaid taxes, and the proceeds thereof, collected
and to be collected, as to enable the state therewith to defray the
expenses of the state government or to accomplish any purpose or
purposes other than those prescribed in the aforesaid funding act,
and constitutional amendment of 1874; that the defendants, and each
of them, may be adjudged and decreed to replace and reinstate to
the credit of said interest fund any moneys or funds that may have
been diverted therefrom; . . . and that said defendants and each
and every one of them may be peremptorily enjoined and restrained
from recognizing as valid, against your orators, article 208 of the
Constitution of Louisiana,"
and the "debt ordinance," and
"from ignoring the funding act and constitutional amendment of
1874, and from doing and causing to be done any act or thing
whatsoever obstructing, preventing, or impeding, or tending,
directly or indirectly, to obstruct, prevent, or impede, in the
slightest degree the prompt, full, and complete execution and
enforcement of the act and constitutional amendment aforesaid; and
finally that the said defendants and each and every one of them may
be enjoined and restrained to such other and further extent and in
such additional way and manner as the court may deem right and
proper."
On the 26th of January, 1880, the same parties as relators filed
a petition in a state court of Louisiana against the auditor and
treasurer of state and the several members of the
Page 107 U. S. 718
Board of Liquidation, being Louis A. Wiltz, the Governor, Samuel
McEnergy, Lieutenant Governor, Allen Jumel, Auditor, Edward A.
Burke, Treasurer, William A. Strong, Secretary of State, Robert N.
Ogden, Speaker of the House of Representatives, and the State
National Bank of New Orleans, fiscal agent, for a mandamus
requiring them
"to apply and pay to the extinguishment of the interest now due
and payable upon the consolidated bonds of the State of Louisiana,
or becoming due and payable upon said bonds, and to the redemption
and retirement of such consolidated bonds, as are provided for and
required by the aforesaid act No. 3 of the year 1874, any and all
moneys and proceeds of the tax levied or fixed by said act now in
the hands or subject to the control of the said defendants, or
either one of them, or which have been in the hands or subject to
the control of the said defendants, or either one of them, or which
may come into their hands or become subject to the control of
either of them, not already applied to the payment of interest upon
the aforesaid bonds, or to the redemption and retirement of the
bonds themselves, as provided for and required in and by said act
No. 3,"
and that they
"may furthermore be commanded and required to proceed, without
delay, to collect the tax fixed or levied in and by the aforesaid
act No. 3 of the year 1874 in the manner and to the extent
contemplated by that statute, and to apply and pay all moneys
realized from such tax to the discharge of the interest and
redemption of the bonds issued under and by virtue of the aforesaid
funding act No. 3, . . . until the principal and interest of such
bonds be fully extinguished and discharged, and finally that the
said defendants may severally be commanded and required to enforce
the act herein above last referred to, and particularly to carry
out, perform, and discharge each and everyone and all the
ministerial acts, things, and duties respectively required of them
by the aforesaid act No. 3 according to the full and true intent
and purport of that act."
This suit was afterwards removed into the Circuit Court of the
United States for the Eastern District of Louisiana.
Upon final hearing, the circuit court denied the relief prayed
for in each of the suits because, as stated in the conclusions of
law which were filed in connection with the findings of fact,
it
Page 107 U. S. 719
appeared that the respondents were constitutional officers of
the state, and had no relation to the funds collected or to be
collected except as such officers; that they were clothed with no
authority and charged with no duty to pay over or collect said
funds to or in behalf of the relators and complainants, but, on the
contrary, by the organic law of the state, under which their
offices were created and exist, the provisions of which constitute
their sole mandate, are prohibited from so doing. For these reasons
it was concluded that the state was the party which, by its action
in its original capacity through the people, had rendered the
execution of its contract with the relator impossible through the
instrumentality of its officers or functionaries, and that the
question presented was political, rather than judicial, and could
not be adjudicated without calling the state to the bar of the
court and subverting its entire financial basis, no matter how
unjustly adopted and ordained.
From a judgment and decree to that effect a writ of error and
appeal were taken to this Court.
The two suits may properly be considered together here, as they
were below, because they present substantially the same
questions.
We have no doubt it was the intention of the State of Louisiana
to enter into a formal contract with each and every holder of bonds
issued under the act of 1874, to levy and collect an annual tax of
five and one-half mills on the dollar of the assessed value of all
the real and personal property in the state, and to apply the
revenue derived therefrom to the payment of the principal and
interest of the bonds, and to no other purpose. By the obligation
so entered into, it was also agreed that the tax levied by the act
and confirmed by the constitution should be a continuing annual tax
until the bonds, principal and interest, were paid in full; that
the appropriation of the revenue derived therefrom should be a
continuing annual appropriation, and that no further authority than
that contained in the act should be required to enable the taxing
officers to levy and collect the tax, or the disbursing officers to
pay out the money as collected in discharge of the obligation of
the bonds. Whatever may be ordinarily the effect of a promise or a
pledge of faith by a state, the language employed in this instance
shows
Page 107 U. S. 720
unmistakably a design to make these promises and these pledges
so far contracts that their obligations would be protected by the
Constitution of the United States against impairment.
It is equally manifest that the object of the state in adopting
the "Debt Ordinance" in 1879 was to stop the further levy of the
promised tax, and to prevent the disbursing officers from using the
revenue from previous levies to pay the interest falling due in
January, 1880, as well as the principal and interest maturing
thereafter.
The bonds and coupons which the parties to these suits hold have
not been reduced to judgment, and there is no way in which the
state, in its capacity as an organized political community, can be
brought before any court of the state or of the United States to
answer a suit in the name of these holders to obtain such a
judgment. It was expressly decided by the supreme court of the
state in
State v. Burke, 33 La.Ann. 498, that such a suit
could not be brought in the state courts, and under the Eleventh
Amendment of the Constitution, no state can be sued in the courts
of the United States by a citizen of another state. Neither was
there when the bonds were issued, nor is there now, any statute or
judicial decision giving the bondholders a remedy in the state
courts or elsewhere, either by mandamus or injunction, against the
state in its political capacity to compel it to do what it has
agreed should be done but which it refuses to do.
These, then, are suits by creditors at large, of the class
provided for in the act of 1874, to compel the officers of the
state by judicial process to enforce the provisions of the act when
the state, by an amendment to its constitution, has undertaken to
prohibit them from doing so, and when the court, if it requires an
officer to proceed, cannot protect him with a judgment to which the
state is a party. The persons sued are the executive officers of
the state, and they are proceeded against in their official
capacity. The money in the treasury is the property of the state,
and not in any legal sense the property of the bond or coupon
holders. If lost or destroyed, the loss will fall alone on the
state or its agents, and the bondholders will be entitled to
payment in full from other sources. True, the money was raised to
pay this particular class of debts,
Page 107 U. S. 721
and the agreement was it should not be used for any other
purpose; but notwithstanding this, the state has undertaken to
appropriate it to defray the expenses of the government. In this
way, the state has violated its contract, and, if it could be sued,
might perhaps be made to set aside its wrongful appropriation of
the money already in hand and raise more by taxation, if
necessary.
That the Constitution of 1879, on its face, takes away the power
of the executive officers to comply with the terms of the act of
1874 cannot be denied. As against everything but the outstanding
bonds and coupons, this constitution is the fundamental law of the
state, and it is only invalid so far as it impairs the obligation
of the contract on the faith of which the bonds and coupons were
taken by their respective holders. The question, then, is whether
the contract can be enforced, notwithstanding the constitution, by
coercing the agents and instrumentalities of the state, whose
authority has been withdrawn in violation of the contract, without
having the state itself in its political capacity a party to the
proceedings.
The relief asked will require to officers against whom the
process goes to act contrary to the positive orders of the supreme
political power of the state, whose creatures they are, and to
which they are ultimately responsible in law for what they do. They
must use the public money in the treasury and under their official
control in one way, when the supreme power has directed them to use
it in another, and they must raise more money by taxation when the
same power has declared it shall not be done.
The parties prosecuting the suits do not, in direct terms, ask
for the payment of the bonds and coupons they hold. In fact, this
seems to have been purposely avoided, for in the suit for mandamus,
the petition was amended before the hearing by striking out all
that would have the effect of confining the command of the writ to
such a payment, and left the prayer for an order requiring the use
of the money raised under the act of 1874 for the redemption and
retirement generally of all the bonds and coupons of the issue. In
the suit in equity, while it was asked that the debt ordinance of
1879 might be declared invalid as against the complainants, payment
of the
Page 107 U. S. 722
amount due was only sought through the general administration of
the finances in accordance with the provisions of the act of 1874.
In neither of the suits was any inquiry to be instituted in respect
to the particular bonds and coupons held by the plaintiffs, or any
special relief afforded as to them. All that is asked will inure as
much to the benefit of the other holders of similar obligations as
to the particular parties to these suits. So that the remedy sought
implies power in the judiciary to compel the state to abide by and
perform its contracts for the payment of money, not by rendering
and enforcing a judgment in the ordinary form of judicial
procedure, but by assuming the control of the administration of the
fiscal affairs of the state to the extent that may be necessary to
accomplish the end in view.
It is insisted, however, that the money in the treasury
collected from the tax levied for the year 1879 constitutes a trust
fund of which the individual defendants are
ex officio
trustees, and that they may be enjoined as such trustees from
diverting it from the purposes to which it was pledged under the
contract. The individual defendants are the several officers of the
state, who, under the law, compose the Board of Liquidation. That
board is in no sense a custodian of this fund. Its duty was to
negotiate the exchange of the new bonds for the old on the terms
proposed. It has nothing to do with levying the tax, collecting the
money, or paying it out further than by purchasing the bonds with
any surplus there might be from time to time in the treasury over
what was required to meet the interest. The provision in the law
that it shall be the duty of the auditor, treasurer, and the board,
respectively, to collect the tax, pay the interest, and redeem the
bonds, evidently means no more than that the auditor and treasurer
shall perform their respective duties under the general laws in the
assessment and collection of the tax, and shall pay in the usual
manner the interest and principal of the bonds as they respectively
fall due, and that the board shall purchase and retire the bonds
whenever there is a surplus that, under the law, is to be used for
that purpose.
The treasurer of the state is the keeper of the treasury, and in
that way is the keeper of the money collected from this tax just as
he is the keeper of other public moneys. The taxes
Page 107 U. S. 723
were collected by the tax collectors and paid over to the state
treasurer -- that is to say, into the state treasury -- just as
other taxes were when collected. The treasurer is no more a trustee
of these moneys than he is of all other public moneys. He holds
them, but only as the agent of the state. If there is any trust,
the state is the trustee, and unless the state can be sued, the
trustee cannot be enjoined. The officers owe duty to the state
alone, and have no contract relations with the bondholders. They
can only act as the state directs them to act and hold as the state
allows them to hold. It was never agreed that their relations with
the bondholders should be any other than as officers of the state,
or that they should have any control over this fund except to keep
it like other funds in the treasury and pay it out according to
law. They can be moved through the state, but not the state through
them.
In this connection, there is much that is instructive in the
case of
Reg. v. Lords Commissioners of the Treasury, L.R.
7 Q.B. 387. There, money had been appropriated by Parliament for
the payment of costs of a particular character, and an application
was made for a mandamus to compel the Lords Commissioners of the
treasury to pay certain bills which had been properly taxed, but
although the court was emphatic in its declaration that payment
ought to be made, the writ was refused because the Lords
Commissioners held "the money as the servants of the Crown, and no
duty was imposed upon them as between them and the persons to whom
the money was payable." Lord Chief Justice Cockburn, in his
opinion, said (p. 394):
"Though I quite agree that according to the appropriation act
they (the Lords Commissioners) were bound to apply the money upon
the vouchers being produced, and had no authority to retax these
bills, still I cannot say that there is any duty which makes it
incumbent upon them to do what I cannot hesitate to say they ought
to have done, except as servants of the Crown, because in that
character they have received the money, and in no other."
And Blackburn, J. (p. 399):
"It seems to me that the obligation, such as it is, is upon her
Majesty, to be discharged through her servants, and you cannot
proceed therefor against the servants."
So here, the obligation is all on the state, to be discharged
through its
Page 107 U. S. 724
servants, and the money is held by the officers proceeded
against in their character as servants of the state, and no
other.
There is nothing in any of the cases in this Court that are
relied on which to our minds authorizes any such relief as is
asked.
In
Osborn v. Bank of the United
States, 9 Wheat. 738, which is the leading case and
cited as authority in all the others, the object was to prevent
money which had been unlawfully taken out of the bank by the
officers of the state from getting into the treasury. The money
was, in legal effect, stopped while passing from the bank to the
treasury. The controlling facts are thus stated by Chief Justice
Marshall in the opinion (p.
22 U. S.
868):
"But when we reflect that the defendants Osborn and Harper are
incontestably liable for the full amount of the money taken out of
the bank; that the defendant Currie is also responsible for the sum
received by him, it having come to his hands with the full
knowledge of the unlawful means by which it was acquired; that the
defendant Sullivan is also responsible for the sum specifically
delivered to him, with notice that it was the property of the bank,
unless the form of having made an entry on the books of the
treasury can countervail the fact that it was, in truth, kept
untouched, in a trunk, by itself, as a deposit, to await the event
of the pending suit respecting it, we may lay it down as a
proposition safely to be affirmed that all the defendants in the
case were liable in an action at law for the amount of this decree.
If the original injunction was properly awarded for the reasons
stated in the preceding part of this opinion, the money, having
reached the hands of all those to whom it afterwards came with
notice of that injunction, might be pursued, so long as it remained
a distinct deposit, neither mixed with the money of the treasury
nor put into circulation. . . . The money of the bank had been
taken, without authority, by some of the defendants, and was
detained by the only person who was not an original wrongdoer, in a
specific form, so that detinue might have been maintained for it
had it been in the power of the bank to prove the facts which are
necessary to establish the identity of the property sued for."
Under this state of facts, the order for its return involved no
question of power to interfere with what was actually in the
treasury. The officers stood in the place
Page 107 U. S. 725
of a sheriff who had levied an execution on goods and was sued
to test his right to keep them, and the principle applied in the
decision is thus stated in the headnote of the report:
"A court of equity will interpose by injunction to prevent the
transfer of a specific thing which, if transferred, will be
irretrievably lost to the owner, such as negotiable stocks and
securities."
Thus the money seized was kept out of the treasury, because if
it got in, it would be irretrievably lost to the bank, since the
state could not be sued to recover it back. No one pretended that
if the money had been actually paid into the treasury, and had
become mixed with the other money there, it could have been got
back from the state by a suit against the officers. They would have
been individually liable for the unlawful seizure and conversion,
but the recovery would be against them individually for the wrongs
they had personally done, and could have no effect on the money
which was held by the state. Certainly no one would ever suppose
that by a proceeding against the officers alone, they could be held
as trustees for the bank and required to set apart from the moneys
in the treasury an amount equal to that which had been improperly
put there, and hold it for the discharge of the liability which the
state incurred by reason of the unlawful exaction.
In
Davis v. Gray,
16 Wall. 203, the receiver of a land grant railroad obtained an
injunction against the Governor and Commissioner of the Land Office
of Texas to restrain them from encumbering by patents to others
lands which had been contracted to the railroad company. The legal
title was in the state, but the equitable title in the company. The
specific tracts of land in dispute were, by the contract which had
been made, segregated from the public domain and set apart for the
company. The case rests on the same principle it would if patents
had been actually issued to the company and the state, through its
officers, was attempting to place a cloud on the title by granting
subsequent patents to others.
In
Board of Liquidation v. McComb, 92 U. S.
531, which arose under the same act of 1874 that we are
now considering, the Board of Liquidation was enjoined at the
instance of bondholders from admitting to the privileges of the
compromise proposed by the state certain persons other than those
originally provided for and on
Page 107 U. S. 726
different terms. And this clearly because the Board of
Liquidation was, by the very terms of the law, charged with the
duty of exchanging the bonds specifically set apart by the contract
for a particular purpose, and every
bona fide bondholder,
by accepting the compromise offered, became personally interested
in securing the due administration of the trust which had thus been
committed to the board. In fact, the board held the new issue of
bonds in trust, and everyone who gave up his old obligations and
accepted the new in settlement became a beneficiary under the
trust, and might act accordingly.
In this case, however, there is no such trust. As has already
been said, the board is charged with no duty in respect to the
taxes, except in connection with the purchase of bonds whenever
there are funds which can be used in that way. The auditor and
treasurer are required to audit and pay the coupons as they are
presented, but that does not make them trustees for the bondholders
of the money in the treasury out of which the payment is to be
made. They may draw on the fund raised to make the payment, but
that is the extent of their official control over it. The law has
never made it a part of their official duty to separate from the
other moneys in the treasury that which was realized from the taxes
in question and hold it in trust for the bondholders. The state has
contracted not to use this money in any other way than to pay the
debt, but, as against the state, the officers have no right to say
they will keep it for that purpose only. It may be, without doubt,
easily ascertained from the accounts how much of the money on hand
is applicable to the payment of this class of debts, but the law
nowhere requires the setting apart of this fund any more than
others from the common stock. In the treasury, all funds are
mingled together and kept so until called for to meet specific
demands.
In
United States v. Lee, 106 U.
S. 196, it was held that the officers of the United
States, holding in their official capacity the possession of lands
to which the United States had no title, could be required to
surrender their possession to the rightful owner, even though the
United States were not a party to the judgment under which the
eviction was to be had. Here, however, the money in question is
lawfully the property of the
Page 107 U. S. 727
state. It is in the manual possession of an officer of the
state. The bondholders never owned it. The most they can claim is
that the state ought to use it to pay their coupons, but until so
used it is in no sense theirs.
Little need be said with special reference to the suit for
mandamus. In this no trust is involved, but the simple question
presented is whether a single bondholder, or a committee of
bondholders, can, by the judicial writ of mandamus, compel the
executive officers of the state to perform generally their several
duties under the law. The relators do not occupy the position of
creditors of the state demanding payment from an executive officer
charged with the ministerial duty of taking the money from the
public treasury and handing it over to them, and, on his refusal,
seeking to compel him to perform that specific duty. What they ask
is that the auditor of state, the treasurer of state, and the Board
of Liquidation may be required to enforce the act of 1874, and
"carry out, perform, and discharge each and every one of the
ministerial acts, things, and duties respectively required of them,
. . . according to the full and true intent and purport of that
act."
Certainly no suit begun in the circuit court for such relief
would be entertained, for that court can ordinarily grant a writ of
mandamus only in aid of some existing jurisdiction.
Bath County v.
Amy, 13 Wall. 244;
Davenport v. Dodge
County, 105 U. S. 236.
Our attention has been called to no case in the state courts of
Louisiana in which such general relief has been afforded, and the
jurisdiction of the circuit court was therefore in no way enlarged
through the operation of the removal acts, even if this is a case
which was properly removed -- a question we do not deem it
necessary now to decide. The remedy sought, in order to be
complete, would require the court to assume all the executive
authority of the state, so far as it related to the enforcement of
this law, and to supervise the conduct of all persons charged with
any official duty in respect to the levy, collection, and
disbursement of the tax in question until the bonds, principal and
interest, were paid in full, and that too in a proceeding to which
the state, as a state, was not and could not be made a party. It
needs no argument to show that the political power cannot be
thus
Page 107 U. S. 728
ousted of its jurisdiction, and the judiciary set in its place.
When a state submits itself without reservation to the jurisdiction
of a court in a particular case, that jurisdiction may be used to
give full effect to what the state has by its act of submission
allowed to be done, and if the law permits coercion of the public
officers to enforce any judgment that may be rendered, then such
coercion may be employed for that purpose. But this is very far
from authorizing the courts, when a state cannot be sued, to set up
its jurisdiction over the officers in charge of the public moneys
so as to control them as against the political power in their
administration of the finances of the state. In our opinion to
grant the relief asked for in either of these cases would be to
exercise such a power.
Judgment affirmed; decree affirmed.
MR. JUSTICE FIELD and MR. JUSTICE HARLAN dissented.
MR. JUSTICE FIELD. I am not able to concur in the judgment in
these cases, and I will briefly state my reasons.
I admit that the rule of the common law that the sovereign
cannot be held amenable to process in his own courts without his
consent is applied in this country to the state, under which
designation are included the people within its territorial limits,
in whom resides whatever sovereignty the state possesses. But they
act and speak in this country, at least in times of peace, only
through the constitution and laws. For their will we must look to
these manifestations of it. If in that way they consent to suits,
either directly against themselves by name, or against any of their
authorized agents, there can be no reasons of policy or of law
against issuing process in proper cases to bring them or their
agents before the court. And if, in that way -- that is, by their
constitution or laws -- they direct their officers to do or omit
certain things in the doing or omission of which individuals are
interested, and they provide appropriate remedies to compel or
enjoin the performance of those things, there can be no reason why
such remedies should not be resorted to when private rights are
involved. And such is the case with respect to the subjects of
the
Page 107 U. S. 729
present suits. The State of Louisiana entered into certain
engagements with her creditors; she embodied them in the most
solemn form in a statute and in her organic law; she provided for
the levying of a tax to pay those creditors; she prescribed certain
duties for designated officers to perform in its collection and
disbursement; she made it a felony for those officers to divert the
fund thus raised to other purposes; she declared that no further
legislation should be necessary for the collection of the tax or
the appropriation of the proceeds, and that for the collection and
payment of the tax the judicial power of the state should be
exercised when necessary. The plaintiffs in these suits seek the
enforcement of these engagements, and they are resisted merely
because the engagements are repudiated by the state, and this Court
holds that it has no power to stay the repudiation.
That the character and object of these suits may more clearly
appear, I will briefly give the history of the action of the state.
Prior to 1874, Louisiana had contracted an indebtedness amounting
to about $18,000,000. She asserted that a large portion of it had
been fraudulently contracted, while the holders contended that
their claims were valid and that she was legally and equitably
bound therefor. Under these circumstances and with a view to
determine the conflicting claims of the parties and to liquidate
and settle her indebtedness, she proposed to issue new bonds for
sixty percent of the alleged indebtedness upon the surrender of the
claims, and to induce the surrender offered to make various
enactments to secure the principal and interest of the new bonds.
In 1874, she passed an act, known as act No. 3 of the laws of that
year, entitled:
"An act to provide for funding obligations of the state by
exchange for bonds; to provide for principal and interest of said
bonds; to establish a Board of Liquidation; to authorize certain
judicial proceedings against it; to define and punish violations of
this act; to prohibit certain officers diverting funds, except as
provided by law, and to punish violations therefor; to levy a
continuing tax and provide a continuing appropriation for said
bonds; to make a contract between the state and holders of said
bonds; to prohibit injunctions in certain cases; to limit the
indebtedness of the
Page 107 U. S. 730
state and to limit state taxes; to annul certain grants of state
aid; to prohibit the modification, novation, or extension of any
contract heretofore made for state aid; to provide for the receipt
of certain warrants for certain taxes, and to repeal all
conflicting laws."
By this act, the governor, lieutenant governor, auditor,
treasurer, secretary of state, and speaker of the house of
representatives, and a seventh person to be selected by them,
called a fiscal agent, were constituted a Board of Liquidation, and
were authorized to issue bonds of the state, to be called
consolidation bonds, payable in forty years, with interest at seven
percent, and to exchange them for valid outstanding bonds and
auditor's warrants at the rate of sixty cents on the dollar. The
interest was to be payable semiannually, on the first of January
and July of each year, and for it coupons were to be annexed to the
bonds.
The act levied an annual tax of five and a half mills on the
dollar of the assessed value of all real and personal property in
the state, and declared that it should be collected for the purpose
of paying the principal and interest of the consolidated bonds, and
that the revenue derived therefrom was thereby "set apart and
appropriated to that purpose, and no other," and that it should be
a felony for the fiscal agent, or any officer of the state or of
the Board of Liquidation, to divert the fund from its legitimate
channel. It also declared that this tax, which is called an
interest tax,
"shall be a continuing annual tax until the said consolidated
bonds shall be paid or redeemed, principal and interest, and the
said appropriation shall be a continuing annual appropriation
during the same period, and this levy and appropriation shall
authorize and make it the duty of the auditor and treasurer, and
the said board respectively, to collect said tax annually, and pay
said interest and redeem the said bonds until the same shall be
fully discharged."
One section also provided
"That any judge, tax collector, or any officer of the state
obstructing the execution of this act or any part of it or failing
to perform his official duty thereunder shall be deemed guilty of a
misdemeanor, and on conviction thereof shall be punished by
imprisonment not exceeding five years, and by fine not exceeding
two thousand dollars, at the discretion of the court. "
Page 107 U. S. 731
Another section enacted that each provision of the act should
be, and it was declared to be, "a contract between the State of
Louisiana and each and every holder of the bonds" issued under the
act.
But, as though this act was not of itself a sufficient assurance
of the unalterable purpose of the state to fulfill the promise it
contained, an amendment to her constitution was proposed and
adopted, of which the following is the first section:
"The issue of consolidated bonds, authorized by the General
Assembly of the state at its regular session in the year 1874, is
hereby declared to create a valid contract between the state and
each and every holder of said bonds, which the state shall by no
means and in no wise impair. The said bonds shall be a valid
obligation of the state in favor of any holder thereof, and no
court shall enjoin the payment of the principal or interest thereof
or the levy and collection of the tax therefor, to secure such
levy, collection, and payment, the judicial power shall be
exercised when necessary. The tax required for the payment of the
principal and interest of said bonds shall be assessed and
collected each and every year until the bonds shall be paid,
principal and interest, and the proceeds shall be paid by the
treasurer of the state to the holders of said bonds as the
principal and interest of the same shall fall due, and no further
legislation or appropriation shall be requisite for the said
assessment and collection, and for such payment from the
treasury."
It would puzzle the wit of man to find anywhere in the
legislation of the world a more perfect assurance of the fixed
purpose of a state to keep faith with her creditors, or of a pledge
of a portion of her revenues for their payment, or of the
submission of her officers to the compulsory process of the
judicial tribunals, if necessary, to carry out her engagements.
With the knowledge that the federal Constitution ordains "that no
state shall pass any law impairing the obligations of contracts,"
Louisiana proclaims that each provision of the act shall be and is
thereby declared to be a contract between her and each and every
holder of the bonds issued under the act. And the constitutional
amendment reiterates substantially the same thing by declaring that
the issue of the consolidated bonds
Page 107 U. S. 732
created a valid contract between the state and each and every
holder of said bonds "which the state shall by no means and in no
wise impair."
Under this act and the constitutional amendment, obligations of
the state, amounting to over $12,000,000 were surrendered, and
bonds taken for sixty percent of their amount, which are held all
over the country. The complainants in the injunction suit, and the
petitioners for the mandamus, hold for themselves and others, whom
they represent, $900,000 of the bonds. The interest on them has not
been paid, and yet a portion of the tax levied to meet such
interest has been collected and is now in the hands of the
treasurer of the state, one of the Board of Liquidation. The amount
is admitted to be about $300,000, and as collections were being
made when this admission was given, there is now probably a much
larger amount in his hands. In both suits it is alleged that the
treasurer and other officers of the state intend to use the funds
thus collected for other purposes than the payment of the interest.
In one of them, an injunction is asked against such a perversion of
the funds. In the other, a mandamus is asked to compel the
application of the funds to the payment of the interest and also
the collection of the taxes authorized by the act of 1874, and the
constitutional amendment of that year, to meet further interest as
it shall become due.
Why should not both of these prayers be granted?
The only answer offered is that in 1879, Louisiana adopted a new
constitution, which reduced the interest on the consolidated bonds
to two percent per annum for five years, to three percent for
fifteen years afterwards, and to four percent thereafter, with a
proviso that the holders of the bonds might take new bonds for
seventy-five percent on the dollar, drawing four percent
interest.
The new constitution also directed that the coupon of the
consolidated bonds falling due January 1, 1880, should be remitted,
and that the interest taxes collected for its payment should be
transferred to defray the expenses of the state government. The
change in the rate of interest and the remission of the coupon
falling due January 1, 1880, were made
Page 107 U. S. 733
without the consent of the bondholders or any consultation with
them. Of course the new constitution, in these provisions, is a
repudiation of the engagements of the act of 1874 and of the
constitutional amendment of that year, and is a direct violation of
the inhibition of the federal Constitution against the impairment
of the obligation of contracts.
Is this inhibition against the repudiation by the state of her
engagements of any efficacy? The majority of the Court answer "No."
I answer, adhering to the doctrines taught by a long line of
illustrious judges preceding me, "Yes, it is," and, though now
denied, I feel confident that at no distant day its power will be
reasserted and maintained. In that faith I dissent from the
judgment of my associates, and I shall continue to do so on all
proper occasions, until the prohibition inserted in the
Constitution as a barrier against the agrarian and despoiling
spirit, which both precedes and follows a breach public faith, is
restored to its original vigor.
The question whether the court will restrain the diversion of
the funds in the hands of the treasurer, a member of the Board of
Liquidation, is to be considered precisely as though the new
constitution had never been adopted. The inhibition of the federal
Constitution is upon the state, and not merely upon her
legislature. All the authority which her people can confer, whether
by constitutional enactment or legislative provision, is subject to
the inhibition. Her people are at all times, under the Constitution
of the United States, subject to its restrictions, as they are
entitled to its privileges. They cannot lawfully insert in any
constitution or organic law provisions contravening that
instrument. They cannot authorize their legislature to pass a bill
of attainder, or an
ex post facto law, or a law impairing
the obligation of contracts, nor can they embody in their
constitution clauses amounting to or operating as such enactments.
Any such authority or clauses would be treated as nugatory and
futile by all tribunals holding that the Constitution of the United
States is what on its face it is declared to be -- the supreme law
of the land. Therefore the new Constitution of Louisiana stands
before us, with respect to her past contracts, with no greater
weight than would a legislative enactment containing similar
provisions, and what the state
Page 107 U. S. 734
authorizes to be done by her judicial tribunals against her
officers in the collection of the tax and the application of the
moneys raised for the payment of the interest on the bonds can be
done by the judicial tribunals of the federal government when a
case is transferred to them from a state court.
If the new constitution had never been adopted, there could be
no question as to the power of the state courts to require that the
moneys collected be applied to the payment of the interest. It
would not only have been the duty of the Board of Liquidation to
thus apply them, but it would have been a felony to refuse to do
so. Now whatever enactment, constitutional or legislative, impairs
the obligation of the contract with the bondholders -- that is,
abrogates or lessens the means of its enforcement -- is void.
Therefore the new constitution, as to that contract, is to be
treated as though it never existed. As said by this Court, without
a dissenting voice, only two years ago, in
Wolf v. New
Orleans:
"Legislation producing this latter result [impairment of the
obligation of a contract by abrogating or lessening the means of
its enforcement], not indirectly as a consequence of legitimate
measures taken, as will sometimes happen, but directly by operating
upon those means, is prohibited by the Constitution and must be
disregarded, treated as though never enacted, by all courts
recognizing the Constitution as the paramount law of the land."
103 U. S. 103 U.S.
358,
103 U. S.
365.
And again, in the same case:
"The prohibition of the Constitution against the passage of laws
impairing the obligation of contracts applies to the contracts of
the state, and to those of its agents acting under its authority,
as well as to contracts between individuals. And that obligation is
impaired in the sense of the Constitution when the means by which a
contract at the time of its execution could be enforced -- that is,
by which the parties could be obliged to perform it -- are rendered
less efficacious by legislation operating directly upon those
means."
Id., 103 U. S.
367.
No reason in law, therefore, any more than in morals, can be
given why the mandates of the act of 1874 and the constitutional
amendment of that year should not be carried out. There is nothing
in the fact that the defendants are officers of
Page 107 U. S. 735
the state. The books are full of cases where executive and
administrative officers of a state have been required by the
judiciary to do certain acts or been enjoined from doing them. And
it has not been deemed an answer to the proceeding that the state
was interested in the controversy.
In
Osborn v. Bank of the United States, decided in
1824, an injunction was sustained against the Treasurer and Auditor
of Ohio to prevent the seizure of moneys belonging to the bank in
payment of taxes levied under an unconstitutional law of the state.
It was urged with much zeal that the State of Ohio, though not
nominally a defendant, was the real party in interest, and that the
suit was in fact against the state, which it was conceded could not
be sued directly. But the court said, Chief Justice Marshall
delivering the opinion:
"If the State of Ohio could have been made a party defendant, it
can scarcely be denied that this would be a strong case for an
injunction. The objection is that, as the real party cannot be
brought before the court, a suit cannot be sustained against the
agents of that party, and cases have been cited to show that a
court of chancery will not make a decree unless all those who are
substantially interested be made parties to the suit. This is
certainly true where it is in the power of the plaintiff to make
them parties; but if the person who is the real principal, the
person who is the true source of the mischief, by whose power and
for whose advantage it is done, be himself above the law, be exempt
from all judicial process, it would be subversive of the best
established principles to say that the laws could not afford the
same remedies against the agent employed in doing the wrong which
they would afford against him could his principal be enjoined in
the suit."
22 U. S. 9 Wheat.
738,
22 U. S.
842.
These views, as was said in the opinion in
United States v.
Lee, 106 U. S. 196,
have never been overruled, and the case is cited with approval in
Davis v. Gray, decided in 1872, as establishing, among
other propositions, that:
"Where the state is concerned, the state should be made a party
if it could be done. That it cannot be done is a sufficient reason
for the omission to do it, and the court may proceed to decree
against the officers of the state in all respects as if the state
were a party to the record. In deciding who are parties to the
suit,
Page 107 U. S. 736
the court will not look beyond the record. Making a state
officer a party does not make the state a party, although her law
may have prompted his action and the state may stand behind him as
the real party in interest."
83 U. S. 16 Wall.
203,
83 U. S.
220.
In
Davis v. Gray, the Governor of Texas was enjoined
from executing patents of certain lands the sale of which her
constitution had authorized, upon the supposition that the title of
a corporation to them had been lost. In considering the right of a
private party to maintain suit against the executive officer of the
state, inasmuch as a suit could not be brought directly against the
state, the Court reasserted the doctrine announced in
Osborn v.
Bank of the United States.
The objection suggested was also considered and disposed of in
Board of Liquidation v. McComb, a case against these very
officers decided in 1875. There, the board undertook to liquidate a
debt contracted in reconstructing and keeping in repair levees on
the Mississippi River, with consolidated bonds issued under the act
of 1874, pursuant to the authority of a subsequent statute of the
legislature. A citizen of Delaware holding some of the consolidated
bonds contended that the levee debt was not one of the debts to
fund which these bonds had been issued, and that the use of them
for that purpose would defeat one of the benefits of the funding
scheme. He therefore applied to the circuit court of the United
States for an injunction to restrain the board from funding the
levee debt with those bonds, and obtained it. The injunction was
made perpetual by a final decree, which was affirmed here. "In our
judgment, therefore," said this Court, speaking by MR. JUSTICE
BRADLEY,
"the court below was right in granting the injunction as to the
consolidated bonds if the defendants, occupying the official
position they do, are amenable to such process. On this branch of
the subject, the numerous but well considered cases heretofore
decided by this Court leave little to be said. The objections to
proceeding against state officers by mandamus or injunction are
first that it is in effect proceeding against the state itself, and
secondly that it interferes with the official discretion vested in
the officers. It is conceded that neither of these things can be
done. A state, without its
Page 107 U. S. 737
consent, cannot be sued by an individual, and a court cannot
substitute its own discretion for that of executive officers in
matters belonging to the proper jurisdiction of the latter. But it
has been well settled that when a plain official duty requiring no
exercise of discretion is to be performed, and performance is
refused, any person who will sustain personal injury by such
refusal may have a mandamus to compel its performance, and when
such duty is threatened to be violated by some positive official
act, any person who will sustain personal injury thereby for which
adequate compensation cannot be had at law may have an injunction
to prevent it. In such cases, the writs of mandamus and injunction
are somewhat correlative to each other. In either case, if the
officer plead the authority of an unconstitutional law for the
nonperformance or violation of his duty, it will not prevent the
issuing of the writ. An unconstitutional law will be treated by the
courts as null and void."
92 U. S. 92 U.S.
531,
92 U. S.
541.
Nor is there any force in the objection that the funds which the
complainants and petitioners seek to reach are in the treasury of
the state. They are appropriated by the law of 1874, and by the
constitutional amendment of that year, to the payment of the
interest on the consolidated bonds. The statute declares that the
revenue derived from the taxes levied to pay the interest and
principal of the bonds is "set apart and appropriated to that
purpose and no other;" that "the said appropriation shall be a
continuing annual appropriation" until the bonds are paid or
redeemed, principal and interest, and that "it shall be deemed a
felony for the fiscal agent, or any officer of the state or Board
of Liquidation, to divert the fund from this channel." The
constitutional amendment declares that no further legislation than
that specified therein shall be requisite for the appropriation of
the proceeds of the taxes levied.
Nothing more could be expressed to render the appropriation of
the fund for the interest and principal of the bonds absolutely
complete. The fund could not afterwards be diverted to any other
purpose. The ministerial duty alone remained with the officer of
the state having charge of the fund, wherever it might be, to apply
it.
Page 107 U. S. 738
There would seem to be an impression that to constitute a valid
appropriation, there must be some segregation of the amount
appropriated from the general mass of money in the treasury, by
which it is placed in packages, bags, or boxes, separate from the
rest and set one side. But nothing of the kind is done, nor is it
required to take the amount appropriated from the control of the
fiscal officers of the state for other purposes. The appropriation
is the legalization of the use of a designated amount in the
treasury for a specific object, and an inhibition of its use in any
other way. That is all. Henceforth, to meet the appropriation, the
fiscal officers must retain the designated amount in the treasury,
but not necessarily separated in packages, bags, or boxes from
other funds. Their duty is purely ministerial -- to hold it and pay
it when called for. Were this not so, there could be no
appropriations of moneys before their collection, which it is the
constant practice of legislative bodies to make in view of
anticipated revenue. When the moneys are collected and passed into
the treasury, the appropriation is complete. They are, in the eye
of the law, dedicated to a specific purpose, and the party in whose
behalf the appropriation is made can compel its payment by
mandamus, as in the case of appropriations for the salaries of
judges, heads of departments, and others. That writ is the common
and appropriate remedy to enforce such payment.
Nor is there any weight in the objection that the officers of
the state are called upon to enforce the collection of the tax.
They are simply called upon to obey the mandates of the law and
constitution of the state; both levy the tax and designate its
amount and the officers to collect it. The statute declares that
the tax shall be a "continual annual tax" until the bonds are paid
or redeemed. The constitutional amendment declares that
"the tax required for the payment of the principal and interest
of said bonds shall be assessed and collected each and every year
until the bonds shall be paid, principal and interest, and the
proceeds shall be paid by the treasurer of the state to the holders
of said bonds as the principal and interest of the same shall fall
due, and no further legislation or appropriation shall be requisite
for the
Page 107 U. S. 739
said assessment and collection and for such payment from the
treasury."
Here are provisions for levying, collecting, and appropriating
sufficient for these purposes or language is incapable of
expressing them. Whatever doubts might be entertained as to the
authority of the legislature to make a levy and an appropriation to
take effect in subsequent years, to meet the interest then
accruing, they are removed by the constitutional amendment. There
is nothing in the reason of the thing why the levy of taxes and the
appropriations for all purposes should be made annually. They may
be made for years in advance, if the constitution of the state so
permits, in order to provide for a sinking fund, or to meet an
expenditure for a work which may take years for its completion, or
to meet, as in this case, future interest on its indebtedness. In
some of the states, the sessions of the legislature are biennial.
The interval between the sessions might be increased, and there
would be quite as much objection, so far as power is concerned, to
the levy of taxes and the appropriations for those periods as for
one year.
The tax provided and the appropriation of its proceeds were made
for many years by the amendment to the constitution, which
expressed at the time the will of the people of the state. Nothing
is to be done by the court, and nothing is asked of it, but to
require that this will be obeyed.
There is another reason suggested against the maintenance of the
suits, not, as appears to me, very potential, but which affects the
judgment of some able men -- that the obligations of states are
purely honorary, and cannot therefore be the subject of judicial
cognizance. What is meant by honorary, so far as I can understand
it, is that the obligations may or may not be fulfilled, as the
states will -- in other words, that they are matters of convenience
and not of duty, to be performed if the caprice of the hour
approve, to be disregarded if the caprice of a subsequent hour
disapprove. Or, to use other terms of explanation, as there is no
mode of compelling a state, by suit directly against her, to
observe her obligations, they must be deemed honorary -- that is,
just so far as they may be dishonored without redress to those who
trusted
Page 107 U. S. 740
to her good faith, they are to be deemed honorary
obligations.
Whatever merit this suggestion may possess, it can have no place
for consideration here. When a state enters into the markets of the
world as a borrower, she for the time lays aside her sovereignty
and becomes responsible as a civil corporation. And although suits
against her even then may not be allowed, her officers can be
compelled to do what she then contracts that they shall do. And as
to these consolidated bonds, Louisiana has declared in her organic
law that they created a valid contract between her and each and
every holder, which she "shall by no means and in no wise impair,"
and that no court "shall enjoin the payment of the principal or
interest thereof, or the levy and collection of the tax therefor,"
but that, to secure them, her judicial power shall be exercised
when necessary. These engagements are not imperfect obligations --
mere honorary promises which she can keep or break without
accountability.
If a state can successfully repudiate her solemn obligations,
can obtain the surrender of a large portion of the demands of her
creditors upon pledges for the more prompt payment of the
remainder, and then set aside as worthless the pledges given, with
no possibility of redress to the creditors, either by enforcement
of the pledges or by a return of the surrendered demands, what
confidence can be reposed anywhere? Public faith will be the
synonym of public dishonesty, and, as I stated on a former
occasion:
"If the government will not keep its faith, little better can be
expected from the citizen. If contracts are not observed, no
property will in the end be respected, and all history shows that
rights of persons are unsafe when property is insecure. Protection
to one goes with protection to the other, and there can be neither
prosperity nor progress where this foundation of all just
government is unsettled."
Sinking Fund Cases, 99 U. S. 700,
99 U. S.
767.
On the argument, much weight was placed upon the decision of the
Supreme Court of Louisiana in
State v. Burke and
Hart
v. Burke, and they are cited as authority to the point that no
remedy by mandamus exists in the courts of the state to compel her
officers to carry out her engagements, stated,
Page 107 U. S. 741
however, in the opinion as deciding that there is no remedy by
mandamus or injunction against the state in its political capacity
-- a proposition which no one controverts. The cases were similar
in their character and objects to those now under consideration,
and it was there held that the courts of Louisiana have no
jurisdiction to entertain any judicial proceeding the object of
which is to enforce the performance of a contract or obligation of
the state against her will; that they have no authority to declare
that a provision of her constitution does not express her will, and
that they cannot annul a provision of that constitution on the
ground that it impairs the obligation of a contract with the state,
because such a contract can never become the subject of judicial
enforcement against her will. In these conclusions, the court gave
no force to the constitutional inhibition as against the state. It
would seem as though it was of opinion that in all matters of
contract, the inhibition applies only to legislative action. It
says:
"We have been referred to authorities to the effect that where
an officer pleads the authority of an unconstitutional law as a
justification for the nonperformance or violation of his duty, this
will not prevent the issue of the writ. 9 Wheat.
22 U. S.
859; 16 Wall.
83 U. S. 220. This may be so
when the authority invoked is a statute under the state
constitution, but it is different when the authority is an article
in the Constitution itself."
And the Court proceeds to lay down the doctrine that clauses of
the state constitution, though violative of the Constitution of the
United States, express the will of the state, and as such must be
respected by her courts. In thus holding, the Court would seem to
have lost sight of two provisions of the federal Constitution --
one which declares that "the Constitution, and the laws of the
United States which shall be made in pursuance thereof, . . . shall
be the supreme law of the land," and the other which declares that
"the judges in every state shall be bound thereby, anything in the
constitution or laws of any state to the contrary notwithstanding."
These provisions, which govern in Louisiana as well as in other
states, being overlooked, and the inhibition against the impairment
of the obligation of contracts being limited to legislative action
only on the part of the state, so far as concerns her own
contracts, it is not surprising
Page 107 U. S. 742
that the Court held that the ordinance of repudiation and shame
embodied in the new constitution was to be obeyed; that its
conflict with the federal Constitution was to be disregarded, and
that what the state was prohibited from doing should be deemed the
legal expression of her will, and enforced as such. The decision
rests upon the theory that a proceeding against the officers of the
state to compel them to do their duty is a suit against the state,
and that her consent to suit against them has been withdrawn by
clauses of the new constitution. But if those clauses never
lawfully became a part of the new constitution -- because the state
under the federal Constitution was incapable of enacting them --
then her consent remains, and the present suits are simply attempts
to compel her officers to do her lawful bidding. The state cannot
speak through an enactment which contravenes the federal
Constitution.
There can be no doubt that but for the debt ordinance in the
Constitution of 1879, a mandamus or other compulsory process could
have been issued by the courts of Louisiana to compel officers of
the state, and of the Board of Liquidation, to execute the
provisions of the act of 1874 and of the constitutional amendment
of that year. The Code of Procedure of the state declares that the
object of the writ
"is to prevent a denial of justice or the consequence of
defective police, and it should therefore be issued in all cases
where the law has assigned no relief by the ordinary means, and
where justice and reason require that some mode should exist of
redressing a wrong or an abuse of any nature whatever,"
sec. 830, and that "it may be directed to public officers to
compel them to fulfill any of the duties attached to their office,
or which may be legally required of them," sec. 834. These
provisions are sufficiently comprehensive to embrace the present
cases, and authorize compulsory process against the defendants to
enforce the performance of the duties with which they are charged
under the act and constitutional amendment of 1874.
But independently of them, the constitutional amendment of 1874
of itself invests the courts of the state with jurisdiction to
issue such compulsory process by the clause which declares that to
secure the levy, collection, and payment stipulated, "the
judicial
Page 107 U. S. 743
power shall be exercised when necessary," and that means such
power as properly belongs to judicial tribunals, to enforce the
performance by public officers of duties imposed upon them by
law.
In
Marbury v.
Madison, 1 Cranch 137, the conditions under which
the writ will be issued are stated as clearly and happily as
anywhere in the reports, and though the case is familiar to all,
some of the observations of the great Chief Justice, who there
spoke for the Court, may properly be repeated. The relator there,
as is well known, had been appointed a justice of the peace for the
District of Columbia; his commission was signed by the President
and sealed by the Secretary of State, but its delivery to the
relator was refused by a new Secretary, succeeding to the one who
had signed the commission. The Court held that the relator was
entitled to his commission, and to withhold it was an act not
warranted by law, but in violation of a vested right, and then
proceeded to consider whether the laws of the country gave him a
legal remedy. "The very essence of civil liberty," said Chief
Justice Marshall,
"certainly consists in the right of every individual to claim
the protection of the laws whenever he receives an injury. One of
the first duties of government is to afford that protection. In
Great Britain, the King himself is sued in the respectful form of a
petition, and he never fails to comply with the judgment of his
court. And, again:"
"The government of the United States has been emphatically
termed a government of laws, and not of men. It will certainly
cease to deserve this high appellation if the laws furnish no
remedy for the violation of a vested legal right. If this obloquy
is to be cast on the jurisprudence of our country, it must arise
from the peculiar character of the case."
He then shows that there was nothing in the character of the
case or the nature of the transaction which exempted it from legal
investigation or prevented the injured party from having redress,
and, among other instances, he referred to the act of Congress of
1794, concerning invalids, as one where the performance of duties
imposed upon the heads of departments might be enforced. "By the
act concerning invalids, passed in June, 1794," he said,
"the Secretary of War is ordered to place on the pension list
all persons whose names are contained
Page 107 U. S. 744
in a report previously made by him to Congress. If he should
refuse to do so, would the wounded veteran be without remedy? Is it
to be contended that when the law in precise terms directs the
performance of an act in which an individual is interested, the law
is incapable of securing obedience to its mandate? Is it on account
of the character of the person against whom the complaint is made?
Is it to be contended that the heads of departments are not
amenable to the laws of their country? Whatever the practice on
particular occasions may be, the theory of this principle will
certainly never be maintained. No act of the legislature confers so
extraordinary a privilege, nor can it derive countenance from the
doctrines of the common law."
And, again:
"If one of the heads of departments commits any illegal act
under color of his office by which an individual sustains an
injury, it cannot be pretended that his office alone exempts him
from being sued in the ordinary mode of proceeding and being
compelled to obey the judgment of the law. How then can his office
exempt him from this particular mode of deciding on the legality of
his conduct if the case be such a case as would, were any other
individual the party complained of, authorize the process? It is
not by the office of the person to whom the writ is directed, but
the nature of the thing to be done, that the propriety or
impropriety of issuing a mandamus is to be determined."
If the act be one which involves discretion, the officer only
conforms to the law in exercising that discretion. If it be one
which calls for the consideration of evidence and the exercise of
judgment, he must be left free to act upon his own conclusions. If,
however, the act does not rest in his discretion; if it does not
call for the exercise of judgment, but is a specific duty, imposed
by the law, ministerial in its character, such as the delivery of a
commission, the issue of a patent, the drawing of a warrant, or the
payment of moneys appropriated -- the subject to which the
appropriation is made not calling for the exercise of judgment in
its selection -- and individuals have a direct pecuniary interest
in the performance of that duty, the officer is as much subject to
the compulsory process of the judicial tribunals as a private
citizen. If it were not so, our government would cease to be a
government of laws, and the
Page 107 U. S. 745
obloquy to which Marshall refers would be cast on the
jurisprudence of the country.
It is not, then, the office of the defendants which can preclude
an inquiry into the propriety of calling upon the courts to enforce
the performance of duties imposed by law upon them. The propriety
of issuing the writ must be determined by the nature of the act to
be done -- whether it is one which they, under the law, are
required to do.
No interference is sought with the general financial affairs of
the state. These she may manage as she chooses. What is sought is
an injunction to prevent her officers from diverting to other
purposes funds collected for the payment of her creditors, and a
direction to them to proceed and carry out her command as to the
collection hereafter of the specific tax levied by herself and the
disbursement of its proceeds. The fact that she subsequently made
an unconstitutional attempt to rescind that command cannot affect
its character or efficacy.
In
Woodruff v.
Trapnall, 10 How. 190, decided in 1850, this Court
enforced a contract of the State of Arkansas in a proceeding by
mandamus against one of her officers, compelling him to receive
certain bills in satisfaction of a judgment recovered by the state
in the face of a subsequent statute prohibiting their receipt.
In
Hartman v. Greenhow, 102 U.
S. 672, decided only two years since, this Court, with
but a single dissenting voice, enforced a contract of the State of
Virginia in a proceeding by mandamus against one of her officers
compelling him to receive coupons of certain bonds for taxes
pursuant to the law under which the bonds were issued, although a
subsequent law of the state had forbidden their receipt. And the
Supreme Court of Appeals of Virginia has, in similar cases, after
mature consideration, asserted a like authority over officers of
the state, never apparently imagining that the sovereignty of the
commonwealth was at all assailed by judicial process compelling
them to do their duty. The commonwealth has required no reminder
from a federal tribunal to awaken her attention to the invasion of
any of her rights of sovereignty.
A number of other cases in this Court and in the circuit courts
might be cited to the same purport, and if the law respecting
Page 107 U. S. 746
contracts with states, and rights of property acquired from
states, is not to be subject to continual change, that law should
remain undisturbed, having been recognized as sound for more than a
third of a century. The doctrine of
stare decisis is
deemed of great importance on questions affecting private rights.
Much more ought it to be respected and resolutely adhered to in
determinations touching the limits of the powers of the federal and
state governments, and the authority of each over the contracts of
states with individuals.
Nor can I perceive in what way the law, as thus pronounced,
encroaches here upon any of the powers of the state. It is
undoubtedly a matter of great importance, indeed of absolute
necessity to wise government in this country, that there should be
no interference with the rights of the states in the management of
their local affairs, including in these the collection and
disbursement of their revenues. But if a state contracts to do
certain things, and in order that they may be performed subjects
her officers to the control of the courts and makes their refusal
to carry out her pledges a felony, it cannot be justly contended
that her reserved rights are at all invaded if her officers are
judicially commanded to do what she says they shall do. No doctrine
is here asserted in conflict with the exercise of any rightful
authority of the state. All that is claimed is simply a right to
compel her officers to obey her own enactments, such as were
constitutionally passed, and thus became laws, and to disregard
such as she had no power to pass. If the state is above the
Constitution of the United States; if the protection of that
instrument does not extend to her engagements with individuals; if
her power is as absolute as that of the Parliament of England; if
the theory of the federal Constitution that it binds states as well
as individuals is unsound; if it is not, as it declares itself to
be, the supreme law of the land -- then my position falls; but
otherwise there is no answer to it -- at least none that I have
been able to see.
MR. JUSTICE HARLAN.
Having a deep conviction that the decision of the Court is in
conflict with the spirit and tenor of its former decisions,
subversive of long established doctrines,
Page 107 U. S. 747
and dangerous to the national supremacy as defined and limited
by the Constitution, I deem it my duty to dissent from it.
That the bonds and coupons issued by Louisiana in pursuance of
the statute and constitutional amendment of 1874 are contracts
within the meaning of that clause of the federal Constitution which
declares that no state shall pass any law impairing the obligation
of contracts; that the provisions in its new constitution known as
the debt ordinance of 1879 were intended to impair, and, if
enforced, do impair, the obligation of those contracts, and that
such ordinance is therefore a nullity as against bondholders who do
not accept its terms -- are propositions so manifestly correct as
not to require argument in their support. Indeed, I understand the
Court substantially to concede them to be sound. As the
Constitution of the United States is the supreme law of the land,
"anything in the constitution or laws of any state to the contrary
notwithstanding," I had supposed that all state action, whether by
legislative provision or constitutional enactment, must be
disregarded when in conflict with that law. Yet this Court holds
that it cannot enforce nor restrain the agents of a state from
destroying the obligations of her contract with citizens upon the
ground mainly that such relief will require them, in the discharge
of their official duties, to disobey the orders of what is
denominated the supreme political power of that state. The Court,
it seems to me, in effect adjudges that the defendants cannot be
coerced by the courts of the Union to disregard nullifying
enactments of their state, although such coercion, if employed,
would only be for the purpose of enforcing the rightful authority
of the Constitution. It appears upon the very face of these
proceedings, and is not to be disguised, that those officers refuse
to perform purely ministerial duties solely because the will of the
state is, with them, paramount and to be obeyed although thereby
they destroy rights guaranteed by the supreme law of the land.
To state the proposition in another from: here are contract
rights which, but for the nullifying provisions in the new
Constitution of Louisiana, the courts (as I will presently show)
would unquestionably protect by the process of injunction, and also
by mandamus against the officers
Page 107 U. S. 748
of the state compelling them to discharge plain official duties,
requiring in their performance no exercise of discretion. Now,
however, it is determined -- if I do not misapprehend the decision
-- that the judicial arm of the nation is hopelessly paralyzed in
the presence of an ordinance destructive of those rights and passed
in admitted violation of the Constitution of the United States. A
state -- which "cannot be viewed as a single, unconnected,
sovereign power," but is a member of the Union under a
constitution, the supremacy of which all must acknowledge --
assumes to release its officers from the duty of obeying important
provisions of that constitution, and this Court, it would seem,
holds that it has no power, as against such hostile action of the
state, and in cases like these, to require those officers to
respect private rights guaranteed by such provisions.
1. What are the terms of the admitted contract between Louisiana
and the holders of the consolidated bonds?
By the statute of 1874, a fixed annual tax is levied for the
purpose of paying the principal and interest of the bonds
authorized to be issued; the revenue therefrom is thereby "set
apart and appropriated to that purpose and no other;" it is made a
felony for any officer to divert it from that purpose; the interest
tax is declared to be a continual annual tax until the bonds,
principal and interest, are paid or redeemed; the appropriation is
made a continuing annual one during the same period, and the levy
and appropriation, it is declared, shall authorize and make it the
duty of the auditor and treasurer and the Board of Liquidation,
respectively, to annually collect the tax, pay the interest, and
redeem the bonds until they are fully discharged.
Each provision of the act is declared to be a contract between
the state and each holder of bonds; it is made a misdemeanor for
any judge, tax collector, or other officer to obstruct the
execution of any part of it or to fail to perform his official
duty; tax collectors are inhibited from paying over moneys so
collected to any other person than the state treasurer, and it is
provided that no court or judge of the state shall have power to
enjoin the payment of the principal or interest of the bonds or the
collection of the special tax therefor.
These provisions were embodied in the Constitution of
Louisiana
Page 107 U. S. 749
by an amendment adopted in 1874, and, with a view of
facilitating the sale of the bonds, provided for in the act of that
year, it declares that such issue creates "a valid contract between
the state and each and every holder of said bonds, which the state
shall by no means and in nowise impair;" that "no court shall
enjoin the payment of the principal or interest thereof, or the
levy and collection of the taxes therefor;" that "to secure such
levy, collection, and payment, the judicial power shall be
exercised when necessary;" that the tax required for the payment of
the principal and interest of such bonds
"shall be assessed and collected each and every year until the
bonds shall be paid, principal and interest, and the proceeds paid
by the treasurer of the state to the holders of said bonds, as the
principal and interest of the same shall fall due,"
and lastly "that no further legislation or appropriation shall
be requisite for the said assessment and collection, and for such
payment from the treasury."
With these statutory and constitutional provisions in force, the
state issued bonds to the amount of about $12,000,000, and taxes
were assessed, collected, and paid over to the state treasurer
solely for the purpose of meeting their interest. Of the amount
collected to pay coupons maturing January 1, 1880, about $300,000
are in the state treasury. The state officers refuse to apply the
money for that purpose or to take any steps toward further
collections, as enjoined by the statute and constitution of
1874.
2. What has the state done that impairs the obligation of her
contracts? By her debt ordinance, the coupons falling due the first
of January, 1880, are "remitted" without the consent of creditors,
and the interest tax already collected is therein directed to be
used exclusively for the payment of the expenses of the state
government. Unless the holders of consolidated bonds are paid out
of this money, raised for their benefit exclusively, and unless
future collections are made as required by the contract, they will
be wholly without remedy and their bonds will cease to have any
value. Plainly that ordinance is a breach of the plighted faith of
the state. The financial world, as we have seen, was assured by
legislative enactment and constitutional
Page 107 U. S. 750
provision that what the state officers now propose to do should
never be done; that those who took these bonds might rely upon a
fixed annual levy to meet the principal and interest; that all
money thereby raised should be applied exclusively to that purpose,
and that not only the officers of the state should assess, collect,
and pay as the contract stipulates, but that the power of the
judiciary should be exercised whenever necessary to enforce its
obligation. These laws, in their substantial provisions, are as
binding on the state, and are as much a part of the contract as if
those provisions had been set forth in its stipulations.
McCracken v.
Hayward, 2 How. 608;
Bronson v.
Kinzie, 1 How. 311;
Walker v.
Whitehead, 16 Wall. 314;
Planters'
Bank v. Sharp, 6 How. 301;
Edwards v.
Kearney, 96 U. S. 595;
Louisiana v. New Orleans, 102 U.
S. 203.
The state has no more right by law to impair the obligation of
its contracts than it has by law to impair the obligation of
contracts between individuals. It has long been the settled
doctrine of this Court that contracts with states are as fully
protected by the Constitution against impairment by state law as
contracts between individuals.
Providence Bank v.
Billings, 4 Pet. 514;
Green v.
Biddle, 8 Wheat. 1;
Woodruff v.
Trapnall, 10 How. 190;
Wolff v. New
Orleans, 103 U. S. 358.
3. If the debt ordinance of Louisiana is in violation of the
Constitution of the United States and therefore a nullity as
against the holders of consolidated bonds -- if the latter are
entitled by the terms of their contract to be paid out of the
moneys collected for their benefit and to have further collections
made -- is there any mode known to the law by which their rights
can be protected? My brethren of the majority answer this question
in the negative when they adjudge that no relief whatever can be
given in either of these suits. One is a suit in equity commenced
in the circuit court of the
Page 107 U. S. 751
United States by holders of consolidated bonds to prevent, by
injunction, officers of the state from using the proceeds of taxes
already raised under the statute and Constitution of 1874 for any
purpose other than that for which they were collected and paid to
the state treasurer. In the other suit, the plaintiffs, holders of
consolidated bonds and citizens of New York, ask a mandamus against
the state officers compelling the application of the moneys so
collected to the payment of their coupons, and also the collection
of taxes to meet future interest as it becomes due.
Some comment is made upon the extended nature of the relief
asked by plaintiffs. It is sufficient to remark that the court is
never bound to give relief to the full extent demanded, and all
relief is not to be denied because more is asked than the court
will grant under any circumstances or in the particular case. And
there is no ground, I submit, for the suggestion that granting
relief would require the administration by the court of the general
finances of the state. What should be done, if properly it may be,
is, by necessary orders, to prevent the officers of the state from
depriving creditors of moneys which by express contract have been
set apart and appropriated exclusively to the payment of their
claims. There is no obstacle to the payment out of that fund except
the prohibition in the void debt ordinance of 1879. It is admitted
that it can be easily ascertained from the accounts how much of the
money in the treasury is applicable to this class of debts. Indeed,
it appears from the opinion in
Newman v. Burke, hereafter
referred to, that the treasurer and fiscal agent of Louisiana held
within their control, when these suits were commenced, all the
moneys raised under the statute and constitution of 1874 to meet
the interest falling due January 1, 1880. They have in their hands
more than enough to pay the coupons of January 1, 1880, held by the
parties now before the court. Further -- a fact most significant in
view of the suggestion that these moneys are mingled with other
moneys in the state treasury -- the interest fund created to pay
coupons maturing January 1, 1880, were, by an Act of the General
Assembly of Louisiana approved January 4, 1882, directed to be
invested in United States bonds. Acts La. 1881, p. 50. And it is
not pretended
Page 107 U. S. 752
that payment from that fund will produce the slightest confusion
in the treasurer's accounts or involve the use of moneys raised for
other and distinct purposes. If any confusion ensues from such an
application of these moneys, it would be only of that kind which
arises when the law prevents a repudiating debtor from
misappropriating funds in his hands that have been dedicated to a
specific purpose.
It is apparently urged as an obstacle in the way of relief that
plaintiffs do not seek to have the proceeds of these taxes applied
specially to the payment of their claims, but ask such orders as
will enable all holders of consolidated bonds to participate in the
distribution of the moneys raised under the statute and
constitution of 1874. Had the application for mandamus sought the
application of the moneys solely to pay the coupons held by the
plaintiffs, it might perhaps have been urged as ground for its
refusal that each bondholder had an interest in the fund so
created.
State ex Rel. Royer v. State Treasurer, 32
La.Ann. 177. If the relief asked cannot be given for the benefit of
all holders of consolidated bonds, there would seem to be no
difficulty in restricting payments to such as are actually before
the court in person or by representation. It is, however, proper to
say that notwithstanding the criticisms made by the Court upon the
nature and extent of the relief asked, I do not feel authorized to
infer from its opinion that relief would be given to the parties
before it had they asked payment only of their coupons. The opinion
seems to proceed upon the broad ground that as Louisiana is not
directly suable in its corporate capacity, the courts of the Union
cannot reach its agents employed, under its orders, in the work of
destroying the contract rights of plaintiffs.
4. The these suits forbidden by the Eleventh Amendment of the
federal Constitution, which declares that the judicial power of the
United States shall not be construed to extend to any suit in law
or equity commenced or prosecuted against one of the United States
by citizens of another state? I understand the Court, in effect if
not in terms, to hold that they cannot be maintained without
violating that amendment.
The first authority cited in support of that view is
Reg. v.
Lords Commissioners of the treasury, L.R. 7 Q.B. 387.
Page 107 U. S. 753
It appears that by an act of Parliament, a round sum was
appropriated to the Crown to be used in paying costs incurred in
prosecutions at assizes and quarter sessions in England, formerly
paid out of county rates. Bills of costs having been passed by
local officers, certain items were disallowed and others reduced by
the Lords of the Treasury. Subsequently a rule went against the
latter to show cause why a writ of mandamus should not issue
compelling them to pay these bills out of the funds appropriated to
the Crown for such purposes. The judges, although of opinion that
the defendants should be governed by the taxation of the local
officers, declined to grant the writ. The question, said Cockburn,
C.J., was
"whether the Lords Commissioners of the Treasury, when this
money got into their hands, are bound to apply it as servants of
the Crown or as the servants of the Parliament who voted the
money."
Said Blackburn, J.:
"The question remains whether there is any statutable obligation
cast upon the Lords of the Treasury to do what we asked to compel
them to do by mandamus -- namely to issue a minute to pay that
money -- because, it seems to me clear that we have a right to
grant a mandamus if there is such a statutory obligation,
particularly when the application is made on behalf of persons who
have a direct interest in the matter."
Similar declarations were made by the other judges. They all
concurred in denying the writ upon the ground that the money was
voted not to named officers to be by them applied to a designated
purpose, but as "a supply to the Crown;" that the officers who
distributed it for the purposes named acted as servants of the
Crown, not as servants of Parliament; that a suit against those
officers was therefore one against the sovereign, whom, said Chief
Justice Cockburn, the Court of Queen's Bench had no power, even in
appearance, to command.
It seems to me that case furnishes no support for the suggestion
that these are suits against the state simply because they are
brought against its officers. It does not conflict with the
proposition that the state treasurer can be compelled to apply the
proceeds of these taxes as stipulated in the statute and
Constitution of 1874, which were his sole authority to receive
them. Here there
is a statutable obligation upon him
to
Page 107 U. S. 754
pay the coupons as they matured. And to that is added the
obligation imposed by that constitution, which, in terms, declares
that the proceeds of taxes collected under the act of that year
"shall be paid by the treasurer of the state to the holders of said
bonds, as the principal and interest of the same shall fall due,"
without further legislative authority. These obligations remain
upon the officer unless it be that the debt ordinance, although
unconstitutional and void, has discharged them. Had Parliament,
instead of the act involved in the case cited, passed one directly
imposing upon the defendants the duty of paying out of moneys
appropriated for that purpose a certain class of claims, it is
manifest that the Court of Queen's Bench would have compelled them,
by mandamus or other process, to perform that duty. In the case
supposed, there would have been a statutable obligation which the
court would not have permitted the defendants to evade on the
pretext that they were officers under the Crown.
This distinction is well illustrated in
Grenville-Murray v.
Earl of Clarendon, L.R. 9 Eq. 20. There, the plaintiff sought
a decree for the value of certain services alleged to have been
rendered by him in the diplomatic service. He claimed that he was
entitled to be paid out of certain money voted by Parliament to the
foreign office. Lord Romilly, M.R., said:
"It [the money so voted] is not paid in trust for any particular
person. The case that was cited was to this effect: that if
Parliament votes a sum of �1,000 to John Smith, and the treasury
devote in their books the payment of that sum to other purposes,
then a mandamus will lie to the treasury in order to pay that
�1,000 to John Smith. But there is nothing of the sort here.
Parliament has merely voted certain sums to her majesty, and of
these sums �600,000 are to be applied to the foreign office. The
distribution of that amount is left to the officers of the foreign
office to apply in such a manner as is most subservient to her
Majesty's service and to the due support of the foreign office, and
there is nothing whatever to connect the plaintiff with a penny of
this money in any aspect. It is impossible for me, therefore, in
that state of things, to say that there is any trust for him."
I refer also to
Rex v. Lords Commissioners of the
Treasury,
Page 107 U. S. 755
4 Ad. & El. 286. That was an application for a mandamus
against the defendants, who had authority by statute to grant a
certain "superannuation allowance." Sir J. Campbell, Attorney
General, contended that it was against principle that the court
should order a mandamus in the name of the King directing the King
to pay money. But the mandamus was granted. Lord Denman, C.J.,
said:
"If, then, this is only the case of public officers having the
control of a sum of money for this particular purpose, there is no
reason that a mandamus should not issue. They are officers under
the Crown; but the Crown has no more to do with them for this
purpose than any other officers. They are merely parties who have
received a sum of money as trustees for an individual under the
provisions of an act of Parliament. . . . Here, it only appears
that a sum of money has been voted as an allowance to an
individual, which sum they have and refuse to pay."
There is another consideration which strengthens this position:
that is, the supremacy of the Constitution of the United States
over state constitutions and state laws. To the duty imposed by the
statute and Constitution of 1874 upon its officers there is
superadded the duty imposed by the supreme law of the land not to
regard as binding any state enactment which impairs the obligation
of contracts.
If the case cited from the Queen's Bench were susceptible of a
different construction, it should not have controlling influence.
Here no such relations exist between the executive and judicial
departments as exist in England between the Crown and the courts.
This was shown in the elaborate opinion of MR. JUSTICE MILLER,
speaking for the Court in
United States v. Lee,
106 U. S. 196.
That was ejectment to recover real estate in the actual possession
of officers who claimed it not in any personal right, but for the
United States -- property used and occupied as a cemetery for the
dead soldiers of the Union. It was contended that a suit against
officers of the United States having for its object to disturb
their possession was a suit against the government. In support of
that position, numerous cases were cited from the English courts
which held that a suit could not be maintained against officers of
the Crown. But we held that upon such a question
Page 107 U. S. 756
but little weight should be given to those adjudications; that
there is a vast difference in the essential character of the two
governments in reference to the source and depositaries of power;
that while in England, the Crown, the fountain of honor, cannot be
disturbed in its possession of property by process directed against
its officers or agents, "under our system, the people, who are
their subjects, are sovereign;" that "their rights, whether
collective or individual, are not bound to give way to a sentiment
of loyalty to the person of the monarch;" that
"the citizen here knows no person, however near to those in
power or however powerful in himself, to whom he need yield the
rights which the law secures to him when it is well
administered;"
that
"when he, in one of the courts of competent jurisdiction, has
established his right of property, there is no reason why deference
to any person, natural or artificial, not even the United States,
should prevent him from using the means which the law gives him for
the protection and enforcement of that right."
Said the Court further in that case:
"No man in this country is so high that he is above the law. No
officer of the law may set that law at defiance with impunity. All
the officers of the government, from the highest to the lowest, are
creatures of the law and are bound to obey it. It is the only
supreme power in our system of government, and every man who, by
accepting office, participates in its functions is only the more
strongly bound to submit to that supremacy and to observe the
limitations which it imposes upon the exercise of the authority
which it gives."
In that case the Court reaffirms the doctrines of
Osborn v. Bank of the United
States, 9 Wheat. 738. The latter was a suit to
recover moneys which officers of the State of Ohio, in conformity
with its statutes, had illegally taken from a bank of the United
States. The suit being against the officers of the state, the
objection was taken that it could not be sustained without the
state itself being a party; that the state could not be sued;
consequently, it was argued, the relief prayed -- the restoration
of the money -- could not be granted. But to that objection the
Court, speaking by Chief Justice Marshall -- and this language is
quoted approvingly
Page 107 U. S. 757
in
United States v. Lee -- said:
"If the State of Ohio could have been made a party defendant, it
can scarcely be denied that this would be a strong case for an
injunction. The objection is that as the real party cannot be
brought before the court, a suit cannot be sustained against the
agents of that party, and cases have been cited to show that a
court of chancery will not make a decree unless all those who are
substantially interested by made parties to the suit. This is
certainly true where it is in the power of the plaintiff to make
them parties, but if the person who is the real plaintiff, the
person who is the true source of the mischief, by whose power and
for whose advantage it is done, be himself above the law, be exempt
from all judicial process, it would be subversive of the best
established principles to say that the laws could not afford the
same remedies against the agent employed in doing the wrong which
they would afford against him could his principal be joined in the
suit."
The decision in that case has not been heretofore questioned in
this Court. It seems to establish, upon grounds which cannot well
be shaken, that a suit against state officers to prevent a
threatened wrong to the injury of the citizen is not necessarily a
suit against the state within the meaning of the Eleventh Amendment
of the Constitution, for, said Chief Justice Marshall,
"The Eleventh Amendment, which restrains the jurisdiction
granted by the Constitution over suits against states, is of
necessity limited to those suits in which a state is a party to the
record."
Here the state is not a party to the record. Here only officers
of Louisiana are parties defendants, and the relief asked is that
they be required to perform purely ministerial duties imposed upon
them by the statute and Constitution of 1874, whose provisions, as
respects the matters now in issue, are still in force and
obligatory because never affected, modified, or repealed otherwise
than by a debt ordinance, subsequently adopted, conceded to be in
conflict with the constitution and therefore absolutely void.
There are other decisions of this Court still more directly in
point. The leading one is
Davis v. Gray,
16 Wall. 203. In that case, it appears that the State of Texas made
a grant of
Page 107 U. S. 758
lands to a railroad company, upon the basis of which bonds were
issued known as land grant mortgage bonds. They were sold in large
numbers both in this country and Europe. Subsequently the state, by
provisions of its statutes and constitution, attempted to repudiate
and nullify its contract, and in pursuance thereof its officers
proposed to issue patents to others for a part of the lands
embraced in this grant. Thereupon a suit in equity was instituted
in the circuit court of the United States against the Governor and
Land Office Commissioner of Texas to prevent them from issuing
patents for the lands or any part of them. The state was, of
course, not made a party on the record. The bill was demurred to
upon the ground that she could not be sued, and that the suit,
being against her officers, was one, within the meaning of the
constitution, against the state. The demurrer was overruled, and
the relief asked was given.
Touching the question of jurisdiction, the Court, speaking by
Mr. Justice Swayne, stated these principles as having been
announced in
Osborn v. Bank of the United States. 1. That
a circuit court of the United States, in a proper case in equity,
may enjoin a state officer from executing a state law in conflict
with the Constitution or a statute of the United States when such
execution will violate the rights of the complainant. 2. Where the
state is concerned, the state should be made a party, if it can be
done. That it cannot be done is a sufficient reason for the
omission to do it, and the court may proceed to decree against the
officers of the state in all respects as if the state were a party
to the record. 3. That in deciding who are parties to the suit, the
court will not look beyond the record. Making a state officer a
party, said the court, does not make the state a party, although
her laws prompt his action and the state stands behind him as the
real party in interest. P.
83 U. S. 220. It was in conformity with those doctrines
that the relief asked was given.
See
also Vattier v.
Hinde, 7 Pet. 252;
Louisville
Railroad Co. v. Letson, 2 How. 497; 2 Story's
Constitution, sec. 1685; 1 Kent Com. 351.
In part upon the authority of
Davis v. Gray and
Osborn v. Bank of the United States, this Court, in
Board of Liquidation v. McComb, 92 U. S.
531,
92 U. S. 541,
maintained the right of a holder
Page 107 U. S. 759
of consolidated bonds to a decree against the officers of the
State of Louisiana, who are here defendants, constituting the Board
of Liquidation, preventing the use of such bonds for the payment of
a debt due from the state to a levee company. The proposed action
of the board was based upon a statute passed March 2, 1875. So that
the suit had for its object to prevent state officers, charged with
the execution of the latter act, from carrying out its provisions.
It never occurred to this Court that the suit was for that reason
one against the state within the meaning of the Constitution. Upon
the general question whether the defendants, being officers of the
state, were amenable to process from a federal court, MR. JUSTICE
BRADLEY, speaking for this Court, observed:
"On this branch of the subject, the numerous and well considered
cases heretofore decided by this Court leave little to be said. The
objections to proceeding against state officers by mandamus or
injunction are first that it is in effect proceeding against the
state itself, and secondly that it interferes with the official
discretion vested in the officers. It is conceded that neither of
these things can be done. A state, without its consent, cannot be
sued by an individual, and a court cannot substitute its own
discretion for that of executive officers in matters belonging to
the proper jurisdiction of the latter. But it has been well settled
that when a plain official duty, requiring no exercise of
discretion, is to be performed and performance is refused, any
person who will sustain personal injury by such refusal may have a
mandamus to compel its performance, and when such duty is
threatened to be violated by some positive official act, any person
who will sustain personal injury thereby for which adequate
compensation cannot be had at law may have an injunction to prevent
it. In such case, the writs of mandamus and injunction are somewhat
correlative to each other. In either case, if the officer plead the
authority of an unconstitutional law for the nonperformance or
violation of his duty, it will not prevent the issuing of the writ.
An unconstitutional law will be treated by the courts as null and
void. "
Upon these grounds, the decree of the circuit court was affirmed
so far as it prohibited the debt due the levee company from being
funded in consolidated bonds. Such use of them was
Page 107 U. S. 760
deemed an impairment of the contract rights of those who were
entitled to receive them.
It seems to me impossible in view of our decision in that case,
apart from previous decisions upon which it was founded, to hold
that these suits are forbidden by the Eleventh Amendment of the
federal Constitution. In that case, we have adjudged that there is
power in the courts of the Union, in a suit by an individual
against state officers, to prevent them, in execution of an
unconstitutional statute, from using these consolidated bonds for
purposes inconsistent with the contract under which they were
issued. In these cases, it is determined that those courts are
powerless, in suits against such officers, to prevent the
misapplication of moneys collected for the purpose of meeting the
interest on those bonds, and this in part upon the ground that the
relief asked will require the officers who have charge of those
moneys to disregard the confessedly void orders of the supreme
political power of the state.
It may be asked when before has this Court found the
unconstitutional mandate of a state to be an obstacle in the way of
compelling her officers to respect rights of contract, the
obligations of which are protected against impairment by any law of
the state? Of what value is the contract clause of the federal
Constitution if it cannot be enforced against hostile provisions of
a state constitution? This Court said in
Dodge v.
Woolsey, 18 How. 331,
59 U. S. 360,
that "a change of constitution cannot release a state from
contracts made under a constitution which permits them to be made;"
in
Jefferson Branch Bank v.
Skelly, 1 Black 436,
66 U. S. 448,
that a contract between Ohio and a bank in that state "was entitled
to the protection of the Constitution of the United States against
any law of the State of Ohio impairing its obligation;" in
Railroad Company v.
McClure, 10 Wall. 511,
77 U. S. 515,
that "the constitution of a state is undoubtedly a law" within the
meaning of the contract clause of the Constitution, and that "a
state can no more do what is thus forbidden by one than by the
other -- there is the same impediment in the way of both;" in
White v. Hart,
13 Wall. 646,
80 U. S. 652,
that
"it is well settled by the adjudications of this Court that a
state can no more impair the obligation of a contract by adopting a
constitution than by passing a law -- in the eye of the
constitutional
Page 107 U. S. 761
inhibition they are substantially the same thing,"
and in
Gunn v. Barry,
15 Wall. 610,
82 U. S. 623,
that the Constitution of the United States
"is above and beyond the power of Congress and the states, and
is alike obligatory upon both; a state can no more impair an
existing contract by a constitutional provision than by a
legislative act; both are within the prohibition of the national
Constitution."
Why should these established doctrines of the Court be
overruled, as, for all practical purposes, they are, by the
judgment this day rendered? The Constitution declares that it shall
be the supreme law of the land, "anything in the constitution or
laws of any state to the contrary notwithstanding." Its mandate in
that respect is addressed alike to the judges of the federal and
state courts, for it declares that "the judges in every state shall
be bound thereby." And, as is said in
Dodge v.
Woolsey,
"to make its supremacy more complete, impressive, and practical,
that there should be no escape from its operation and that its
binding force upon the states and the members of Congress should be
unmistakable, it is declared that"
"the senators and representatives before mentioned, and the
members of the state legislatures, and all executive and judicial
officers both of the United States and of the several states shall
be bound by an oath or affirmation to support this
Constitution."
Nor, if the relief here asked be granted, can I agree that the
officers of the state cannot be protected against any subsequent
action of the state. If proceeded against because of their
compliance with the judgments of the courts of the Union, the suit
can ultimately be brought here for review.
Upon the general question of the power of a circuit court to
grant a mandamus against state officers, there are some
propositions announced by the Court which should be examined. The
fact is mentioned that the coupons held by plaintiffs have not been
reduced to judgment, and it is said that a circuit court, in
exercising its original jurisdiction, can ordinarily grant a writ
of mandamus only in aid of some existing jurisdiction. As the state
cannot be sued as a party defendant, to say that a judgment for the
amount of the coupons is a condition precedent
Page 107 U. S. 762
to a mandamus is only another form of saying that there is no
remedy whatever to prevent the misapplication of the moneys raised
under the contract and by virtue of the statute and Constitution of
1874. The demands of the plaintiffs are not disputed except upon
the ground that the debt ordinance has assumed, without the consent
of the state's creditors, to remit the interest falling due January
1, 1880, and to divert the funds raised to meet it. The genuineness
of the bonds and coupons is not questioned. The case therefore
comes within the rule, explicitly laid down in
McComb's
and other cases, that mandamus will lie to compel the performance
by a public officer of a plain ministerial duty requiring no
exercise of discretion. Such a remedy is absolutely essential for
the protection of the rights here claimed.
Upon this question, reference is made by the court to
Bath County v.
Amy, 13 Wall. 244, and
Davenport v. Dodge
County, 105 U. S. 237. In
the first of those cases, it was decided that a circuit court had
no power under the act of 1789 to issue a writ of mandamus except
where necessary or ancillary to the exercise of its jurisdiction.
And that doctrine was reaffirmed in
Davenport v. Dodge
County upon the authority of
Bath County v. Amy, but
without any question being raised in the former case as to the
power of a circuit court to issue writs of mandamus since the Act
of March 3, 1875. It will be found that the decision in
Bath
County v. Amy was based upon
McIntire
v. Wood, 7 Cranch 504;
McClung v.
Silliman, 6 Wheat. 598, and
Kendall v.
United States, 12 Pet. 524.
In
McIntire v. Wood, a circuit court was held to have
authority to issue such writs only when necessary to the exercise
of its jurisdiction. But it was said:
"Had the 11th section of the Judiciary Act [the one declaring
what suits shall be within the original cognizance of circuit
courts] covered the whole ground of the Constitution, there would
be much reason for exercising this power in many cases wherein some
ministerial act is necessary to the completion of an individual
right arising under the laws of the United States, and the 14th
section of the same act would sanction the issuing of the writ for
such a purpose. But although the judicial power of the
Page 107 U. S. 763
United States extends to cases arising under the laws of the
United States, the legislature have not thought proper to delegate
the exercise of that power to its circuit courts, except in certain
specified cases."
In
Kendall v. United States, the previous cases were
held to decide that the writ was appropriate to compel the
performance of a ministerial act necessary to the completion of an
individual right arising under the laws of the United States. In
all the cases prior to
Bath County v. Amy, the want of
power in a circuit court to issue the writ in the first instance,
and in advance of a judgment establishing the rights of the
parties, was put distinctly upon the ground that the whole judicial
power of the United States had not been delegated to the circuit
courts. In
Kendall's Case, however, the power of the
Circuit Court in the District of Columbia to compel the Postmaster
General by mandamus to perform a duty enjoined by an act of
Congress was sustained because, differently from the circuit courts
in the several states, its jurisdiction then extended to all cases
in law or equity arising under the laws of the United States. Now
it is apparent that the Act of March 3, 1875, supplies what was
said in
McIntire v. Wood and
McClung v. Silliman
to be wanting. It substantially "covers the whole ground of the
Constitution." It invests the circuit courts of the United States
with original jurisdiction, and with jurisdiction by removal from
the state courts, of all suits at law or in equity, where the
matter in dispute exceeds, exclusive of costs, the sum or value of
$500, arising under the constitution or laws of the United States,
or treaties made, or which shall be made, under their authority; or
in which the United States are plaintiffs or petitioners; or in
which there is a controversy between citizens of different states;
or a controversy between citizens of a state and foreign states,
citizens, or subjects; or a controversy between citizens of the
same state claiming lands under grants of different states.
It seems to me entirely clear that since the enlargement, by the
Act of March 3, 1875, of the jurisdiction of the circuit courts,
they have power, in the first instance and in advance of a
judgment, to issue a writ of mandamus to compel the performance of
purely ministerial acts requiring no exercise of discretion,
Page 107 U. S. 764
and which are necessary to the protection or completion of an
individual right arising under the Constitution or laws of the
United States. Unless the circuit court can interfere by injunction
to prevent the officers of the state from doing what they propose
to do, and by mandamus to compel them to perform the ministerial
acts required by the statute and Constitution of 1874, then its new
and enlarged jurisdiction is of no practical value in any case
where a state determines to repudiate its contracts and to enforce
ordinances impairing their obligation. The power has always existed
in those courts to issue such writs, not specifically provided by
statute, as "may be necessary for the exercise of their respective
jurisdictions, and agreeable to the usages and principles of law."
1 Stat. 81, 334; Rev.Stat. sec. 716. Jurisdiction to hear and
determine a suit arising under the Constitution and laws of the
United States carries with it the power to issue either a writ of
mandamus or a writ of injunction, or both, when essential to the
protection and enforcement of rights involved in that suit. In such
cases, the writ is in every legal sense not simply necessary, but
vital to the exercise of the jurisdiction granted.
It must also be observed that the mandamus suit was commenced in
an inferior court of the state, and thence removed into the circuit
court of the United States. If the power of the latter depended
upon the question whether the state court could by mandamus compel
a state officer to perform plain official duties imposed by law,
the writ should be awarded. This Court, I submit with great
confidence, is in error if it means to say that
Hart v.
Burke, 33 La.Ann. 498, decides, or that the Supreme Court of
Louisiana has ever decided, that the courts of that state cannot
under any circumstances compel the officers of the state by
mandamus to perform plain official duties requiring no discretion.
The state Code of Procedure expressly declares that the writ "may
be directed to public officers to compel them to fulfill any of the
duties attached to their office, or which may be legally required
of them." Sec. 834. It is, I think, clear that but for the debt
ordinance, that court would have sustained the writ in
Hart v.
Burke and compelled the state officers to obey the statute and
Constitution of 1874. What that court adjudged was that, while
an
Page 107 U. S. 765
officer could not plead the authority of an unconstitutional
statute as a justification for the nonperformance or violation of
his duty, it was different where the authority is an article in the
state constitution. Upon that ground alone the writ was
refused.
That I do not misinterpret that case is clear from
Newman v.
Burke, determined in April, 1882. Newman, holding warrants on
the general fund of the state for 1880 and 1881, claimed that by
virtue of the debt ordinance he was entitled to be paid out of
moneys in the hands of state officers, collected under the statute
and Constitution of 1874 and by that ordinance directed to be
transferred to the general fund. He obtained by the judgment of the
supreme court of the state an order for a mandamus against the
state treasurer and fiscal agent directing them to conform their
books to the requirements of the debt ordinance, subject, however,
to the right and duty of those officers
"to retain
in statu quo so much of the fund in
controversy as may be necessary to satisfy the pending claims of S.
J. Hart and John Elliott
et al., . . . in case judgment
should be rendered in their favor in the judicial proceedings
instituted by them, and now pending the Supreme Court of the United
States."
Thus it seems that those officers, with the approval of the
Supreme Court of Louisiana, only await the final determination of
these suits to ascertain whether they will be permitted to execute
a state ordinance in conflict with the federal Constitution.
The state court, affirming the doctrines of
State ex Rel.
Hart v. Burke, said:
"Inasmuch as no court can ever acquire jurisdiction over a state
or to enforce a contract of a state against her will, it follows
that no court can ever have power to decree the invalidity of any
provision of the state constitution on the ground that it impairs
the obligation of such a contract. But unless the court may decree
the nullity of such a provision on such a ground, it follows that
it cannot compel the officers of the state to do anything in
violation thereof, because the constitution of the state is their
exclusive mandate and absolutely binding on them."
This language needs no interpretation. While the federal
Constitution declares that it shall be the supreme law of the
Page 107 U. S. 766
land, anything in the constitution of any state to the contrary
notwithstanding, the Supreme Court of Louisiana holds that in the
matter of state contracts, her constitution is the exclusive
mandate to, and absolutely binding upon, her officers, anything in
the Constitution of the United States to the contrary
notwithstanding. And I take leave to say, with all respect for my
brethren, that the decision this day rendered can be sustained upon
no other ground. But in vain has this Court repeatedly adjudged
that a suit against the officers of a state or enforce the
performance of plain official duties is not necessarily one against
the state within the meaning of that Constitution; in vain has it
often decided that contracts with states are as fully protected by
that Constitution as are those between individuals, and that a
state can no more impair an existing contract by constitutional
provision than by a legislative act; in vain have the circuit
courts of the United States been invested with jurisdiction of all
suits arising under the Constitution and laws of the United States;
in vain does that Constitution declare that it shall be the supreme
law of the land, binding upon the judges in every state, if it be
true, as determined by the Supreme Court of Louisiana, that no
court can ever have power to decree a provision of a state
constitution invalid on the ground that it impairs the obligation
of contracts with that state or to compel state officers to
disregard such invalid provision.
As further evidence that the state court recognizes the right to
a mandamus compelling, state officers to discharge ministerial
duties imposed by provisions of the debt ordinance, I refer to
State ex Rel. Eucyer v. Burke, 33 La.Ann. 969. Eucyer was
the owner of certain consolidated bonds issued under the act of
1874. He concluded to accept the provisions of the debt ordinance
of 1879, and in conformity therewith applied to the state treasurer
to have his bonds stamped so as to show that he acceded to the
reduction of interest made by that ordinance. The state treasurer
declining to comply with this request, an application was made to
an inferior state court to compel him to stamp the bonds. His
refusal to comply with the relator's demands was based in part upon
a statute passed in 1880 (after the debt
Page 107 U. S. 767
ordinance went into operation), which declares that no bond
shall be stamped until the coupons of January, 1880, were
surrendered. That the relator did not do. Mandamus was refused by
the inferior court, but the Supreme Court of Louisiana, after
deciding that the act of 1880 was inoperative because in conflict
with the debt ordinance, said:
"In his answer, defendant alleges that the service required of
him by relator is not a ministerial duty, and that the judiciary
has no control over the executive and coordinate branches of the
government except as regards purely ministerial duties of executive
officers. As regards the first proposition, we decide that the
service required in this case is the performance of a purely
ministerial duty, and this is too plain to require argument. As to
the second proposition, it is elementary, but, while fully
recognizing the independence and all the rights of the coordinate
branches of the government, it is only necessary to say that it is
the province and duty of the judiciary, whenever the question is
properly brought before it in judicial proceedings, to decide
whether duties sought to be enforced at the hands of officers are
or are not ministerial, and it is of the essence of the judiciary
to adjudge such questions, as otherwise those officers would
themselves, by their own decision, be judge of their legal and
constitutional powers."
The judgment of the lower court was reversed and the mandamus
ordered to be issued at the cost of the state treasurer in both
courts.
Thus it is shown that the same court which determined
State
ex Rel. Hart v. Burke has decided that the courts of Louisiana
have power by mandamus to compel an officer of the state to
discharge ministerial duties requiring in their performance no
discretion upon his part, especially when necessary to enforce a
provision in the state constitution in conflict with the
Constitution of the United States.
It would seem, then, the holders of the consolidated bonds of
Louisiana are in this anomalous condition. While the state courts,
because of the debt ordinance in the new constitution, will not by
mandamus compel its officers to perform the purely ministerial
duties imposed by the statute and Constitution of 1874, but will,
by using that writ, require those officers to execute the
provisions of that ordinance although it is in conflict with the
federal Constitution, the courts of the
Page 107 U. S. 768
United States, though now invested with jurisdiction of all
suits arising under the Constitution and the laws of the United
States, are, it seems, without power to compel those officers to
respect the inhibition in the supreme law of the land against state
laws impairing the obligation of contracts. Such are the results
which follow from the action of the supreme political power of a
state whose officers, sworn to support the Constitution of the
United States, are required by the state court to look to the state
constitution as their "exclusive mandate and absolutely binding on
them."
My own conclusions are: that the officers of Louisiana cannot
rightfully enforce provisions of its constitution which conflict
with the supreme law of the land, and the courts of the Union
should not permit them to do so; that but for the adoption of the
unconstitutional debt ordinance of 1879, and whether the suits were
in a state court or in the circuit court of the United States,
these state officers would have been restrained by injunction from
diverting the funds collected to meet the interest on the
consolidated bonds, and would have been compelled by mandamus to
perform the purely ministerial duties enjoined by the statute and
Constitution of 1874; that if by existing laws the circuit court of
the United States has no power to issue such writs, still, upon the
removal of the mandamus suit from the state court, the former had
power to do what the state court could legally have done had there
been no removal --
viz., make peremptory the alternative
mandamus granted at the beginning of the suit by the inferior state
court; that the debt ordinance being void because in conflict with
the Constitution of the United States, furnishes no reason whatever
-- least of all in the courts of the Union -- why the relief asked
should not be granted by any court of proper jurisdiction as to
parties; that to refuse relief because of the command of a state to
its officers to do that which is forbidden, or refrain from doing
which is enjoined, by the supreme law of the land, or to
Page 107 U. S. 769
give effect, for any purpose, in the courts of the Union, to the
orders of the supreme political power of a state, made in defiance
of the Constitution of the United States -- is practically to
announce that so far as judicial action is concerned, a state may,
by nullifying provisions in its fundamental law, destroy rights of
contract, the obligations of which the Constitution declares shall
not be impaired by any state law. To such a doctrine I can never
give my assent.
I am therefore unable to concur in the opinion and judgment of
the Court.