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Summary of Opinion — 6 Div. 801 (March 31, 1927)

Factual and Procedural Background

Appellant, a milk dealer, filed a bill in equity seeking to enjoin appellees — the city of Birmingham, the board of health of Jefferson County, J. D. Dowling (health officer), and L. C. Bulmer (director of food and dairy inspection) — from interfering with his business by refusing to grant or renew a license to sell milk within the city. The bill alleged that Dowling and Bulmer denied appellant a hearing and the license required for his business, acting arbitrarily, unreasonably, and without warrant, and that such denial threatened irreparable injury to appellant's investment and goodwill. A temporary injunction was initially granted. On submission (general demurrer, sworn bill, answer, and affidavits), the trial court dismissed the bill as devoid of equity and dissolved the temporary injunction. On appeal, the appellate court reviewed the validity of the ordinance, the equity of the bill, and the factual record supporting dissolution of the injunction, and rendered an interlocutory decision: it reversed the dismissal of the bill, affirmed the dissolution of the temporary injunction (for reasons stated by the appellate court), and remanded for further proceedings and trial evidence. Costs on appeal were taxed equally between the parties.

Legal Issues Presented

  1. Whether the municipal ordinance regulating the sale of milk (and authorizing denial of permits by the board of health) is an unlawful delegation of legislative power.
  2. Whether equity should enjoin enforcement of the ordinance or officials' actions where denial of a license threatens irreparable injury to private property and business goodwill.
  3. Whether the trial court erred in dismissing appellant's bill as devoid of equity.
  4. Whether the trial court properly dissolved the temporary injunction in light of the sworn pleadings and competing affidavits.

Arguments of the Parties

Appellant's Arguments

  • Private property is subordinate to reasonable police regulation, but lawful property cannot be destroyed or confiscated under the mere guise of police regulation or by arbitrary or unreasonable exercise of power (citing cases such as Spear v. Ward and Board of Comm. v. Orr).
  • The ordinance is void because it unlawfully delegates legislative powers from the municipality to the board of health (citing Parke v. Bradley, Dunn v. Wilcox, Fox v. McDonald).
  • An injunction is an appropriate remedy to restrain enforcement of an ordinance when enforcement would cause irreparable injury; a temporary injunction should not be dissolved when irreparable injury will result to complainant (citing Town of Cuba v. Cotton Oil Co., P. M. Bank v. Laucheimer, Lauderdale v. McAllister, Gilreath v. Carbon Hill Co.).
  • The dissolution of an injunction is permissible only for want of equity or other specified reasons (citing Thompson v. Johnson).
  • A license may not be arbitrarily refused (citing Elmore v. Overton and authority).

Appellees' Arguments

  • The city of Birmingham has statutory authority to adopt and enforce the ordinances at issue (Acts 1915; Code 1923, § 2032), and the ordinance in question is reasonable and valid (citing People v. Vandecarr and related authorities).
  • The ordinance does not vest arbitrary power in defendants; it contains safeguards (citation to 12 A.L.R. and cases).
  • The appellees' answer and supporting affidavits demonstrate that appellant is an improper person to be granted a permit to dispense milk (citing People v. Dept. of Health; Harrison v. People).

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Spear v. Ward Cited for the principle that private property is subordinate to reasonable police regulation but cannot be destroyed or confiscated under the mere guise of police regulation. Used in appellant's brief to frame the tension between regulation and property rights; cited as background authority for injunctive protection against arbitrary action.
Board of Comm. v. Orr Also cited for limits on police regulation relative to property rights. Cited in support of the proposition that arbitrary enforcement of ordinances harming property may be enjoined.
Parke v. Bradley, 204 Ala. 455, 86 So. 28 Addressed in argument about unlawful delegation of legislative power; in the opinion, cited to show administration of ordinances may be committed to subordinate officers. Court applied it to conclude that committing administration to subordinate officers does not violate constitutional principles and that the ordinance's administrative delegation is permissible.
Dunn v. Wilcox Cited by appellant for the proposition against unlawful delegation. Referenced in appellant's argument; court did not find the delegation objection persuasive in this case.
Fox v. McDonald Cited by appellant on delegation/legislative power issues. Included among authorities considered but did not lead the court to invalidate the ordinance.
Town of Cuba v. Cotton Oil Co., 150 Ala. 259, 43 So. 706 Cited for the proposition that injunction is a proper remedy to restrain enforcement of an ordinance when enforcement would cause irreparable injury. Adopted as part of the standard for when equity may intervene to protect property and business interests from municipal action.
P. M. Bank v. Laucheimer, 102 Ala. 454, 14 So. 776 Cited regarding injunctive relief in the face of irreparable injury. Used to support the view that equity can protect business rights threatened by municipal enforcement.
Lauderdale v. McAllister, 193 Ala. 176, 68 So. 984 Cited in appellee/appellant authorities concerning injunctions and equity. One of the authorities grounding the principle that equity may enjoin enforcement where irreparable injury to property is shown.
Gilreath v. Carbon Hill Co., 157 Ala. 153, 47 So. 298 Cited on the availability of injunctive relief. Contributed to the court's understanding that injunction may be appropriate to protect property/business rights.
Thompson v. Johnson, 201 Ala. 315, 78 So. 91 Cited for the proposition that dissolution of an injunction will be allowed only for want of equity or denials of the verified answer. Referenced by appellant as limiting grounds for dissolution; the court reviewed the actual facts and affidavits rather than accepting dismissal solely on demurrer.
Elmore v. Overton, 104 Ind. 548, 4 N.E. 197 Cited for the rule that a license may not be arbitrarily refused. Quoted by appellant; the court treated arbitrary denial as a ground for equity to act but required proof of arbitrariness.
People v. Vandecarr, 175 N.Y. 440, 67 N.E. 913 Appellees cited it to support the reasonableness and validity of the ordinance. Cited by appellees as precedent supporting municipal power to regulate; court noted this authority in evaluating the ordinance's validity.
Id., 199 U.S. 552 Further federal-level authority cited by appellees on upholding regulation/ordinance. Used by appellees to support the contention that the ordinance was reasonable and valid; court treated such authorities as supporting municipal discretion.
People v. Dept. of Health, 189 N.Y. 187, 82 N.E. 187 Cited by appellees for the proposition that the answer shows appellant is an improper person to receive a permit. Appellees relied on authorities like this to justify the denial; the court found appellees' affidavits and exhibits sufficiently detailed to justify dissolution of the injunction pending trial.
Harrison v. People, 121 Ill. App. 189 Cited by appellees on the "improper person" principle for licensing. Referenced in appellees' defense that the board's denial was supported by facts; the court accepted that such factual showings may warrant denial/review.
Eckhardt v. Buffalo, 19 App. Div. 1, 46 N.Y. S. 204 Cited for the proposition that a hearing will be presumed or is provided as a safeguard where licenses may be refused. Used to support the court's conclusion that the ordinance afforded an opportunity to be heard and that denial without hearing would be objectionable; the court found the ordinance made ample provision for hearing.
Franklin Social Club v. Phil Campbell, 204 Ala. 259, 85 So. 527 Cited for the proposition that equity will interfere to preserve property rights against unlawful enforcement of ordinances causing irreparable loss. Relied upon to justify that appellant's averments of irreparable injury and arbitrary action made a case for equitable relief.
Hardie-Tynes Mfg. Co. v. Cruise, 189 Ala. 66, 66 So. 657 Cited for the protection of the right to conduct lawful business from wrongful interference. Cited by the court as supportive authority for protecting appellant's right to conduct business where wrongful denial threatens destruction of business goodwill and investment.
Bryan v. Birmingham, 154 Ala. 447, 45 So. 922 Cited among authorities concerning municipal regulation and equity's role. Included in the group of cases supporting the court's view that arbitrary enforcement may be enjoined.
Commissioners v. Orr, 181 Ala. 308, 61 So. 920 Cited in connection with limits on municipal action affecting property rights. Quoted as part of precedent from which the court derived its equitable principles regarding enforcement and protection of property rights.
Wheeler v. River Falls Power Co. (Ala. Sup.) 111 So. 907 (215 Ala. 655) Cited (in opinion) relating to delegation/administration of ordinances to subordinate officers. Used to support the proposition that administration of municipal ordinances may be committed to subordinate officers without constitutional violation.
Toney v. Burgess, 208 Ala. 55, 93 So. 850 Cited regarding the necessity of de novo review of the factual issue when an injunction is dissolved without a full determination of facts. Applied to explain that the dissolution of the injunction presented a factual issue to be determined anew because the trial court had erroneously dismissed the bill on demurrer.
Daniel v. Birmingham Co., 207 Ala. 659, 93 So. 652 Cited for the proposition that full denials in a sworn answer are not conclusive (post-enactment of Code § 8311). Used to explain that the appellees' denials in a sworn answer do not conclusively resolve the factual dispute; factual determination remains for trial.
Saxon v. Parson, 206 Ala. 491, 90 So. 904 Cited alongside Daniel to show that sworn denials are not conclusive after statutory change. Supported the court's approach that the competing affidavits required factual resolution at trial rather than final disposition on the pleadings.

Court's Reasoning and Analysis

The court analyzed this case in two principal phases: (1) whether the bill stated equity and whether the ordinance is a forbidden delegation of legislative power; and (2) whether, on the factual showing in the sworn bill, answer, and affidavits, the preliminary injunction should have been maintained pending final hearing.

On the ordinance and delegation question, the court concluded that the ordinance was not void for unlawful delegation. The enabling Act (Acts 1915) empowered the city to adopt ordinances for health and safety. The court observed that administration of such ordinances necessarily may be committed to subordinate officers and that the ordinance contained procedural safeguards — specifically, the right of the applicant to be heard in person or by counsel and to introduce evidence, and similar safeguards for revocation. The court cited authorities (including Parke v. Bradley and Wheeler v. River Falls Power Co.) to support that administrative delegation here did not offend constitutional principles.

On equity and injunctive relief, the court recognized that equity will not ordinarily administer mere criminal features of a municipal ordinance, but will interfere where property rights are at stake and unlawful enforcement would cause irreparable injury. The bill's averments — denial of license, threatened destruction of appellant's investment and goodwill, and allegations of arbitrary and unreasonable action by health officials — were sufficient to present a case for equitable relief. The trial court therefore erred in holding the bill devoid of equity and dismissing it.

However, the court proceeded to review the factual record concerning the preliminary injunction. Because the trial court's dismissal on demurrer left factual issues unresolved, the appellate court reviewed the sworn bill, answer, and numerous affidavits de novo. The defendants' answer and supporting affidavits (president of the commission, health officer, and director of food and dairy inspection) gave detailed facts that would justify denial of a license. The court placed the burden on appellant to show that appellees acted arbitrarily and without factual warrant. It found that affidavits from appellant's satisfied customers were insufficient to overcome the health authorities' factual showings, as customers were not positioned to attest to matters like cleanliness, tuberculosis inspection, water supply, bacterial counts, or dilution. Considering the whole record, the court concluded that dissolution of the temporary injunction was proper — though for reasons different from those stated by the trial court — while maintaining that the bill itself was not devoid of equity and required a factual hearing.

Holding and Implications

HOLDING: The appellate court affirmed in part, reversed in part, and remanded. Specifically, it affirmed the trial court's decree insofar as it dissolved the preliminary injunction, but reversed the dismissal of appellant's bill as devoid of equity and remanded for further proceedings and the taking of evidence.

Implications and immediate effects:

  • The trial court's dissolution of the temporary injunction is affirmed on the record presented; appellant cannot retain the injunction pending final hearing based on the existing sworn pleadings and affidavits.
  • The dismissal of the bill for want of equity is reversed; the bill survives and the cause is remanded for the usual taking of evidence, with each party having the right to confront and cross-examine witnesses and to a final decree after trial.
  • Costs of the appeal are taxed equally between the parties.
  • The opinion applies established principles regarding municipal regulatory power, the availability of equity to protect property and business rights against arbitrary administrative action, and the requirement that factual disputes presented by sworn pleadings and affidavits be resolved at trial; it does not announce a novel or sweeping new rule of law beyond these applications.

WALKER v. CITY OF BIRMINGHAM et al.

SAYRE, J.

Appellant sought by his bill to restrain and enjoin appellees, the city of Birmingham, the board of health of Jefferson county, J. D. Dowling, health officer of Birmingham, and L. C. Bulmer, who has been designated director of food and dairy inspection by the city, from interfering with appellant's business by refusing to grant him a license to sell milk in the city. In particular, complaint is made of the action of Dowling and Bulmer in their respective capacities, they, it is alleged, having denied appellant a hearing, or any reasonable opportunity to be heard, and denied him the license necessary to his business, acting therein unreasonably, arbitrarily, and without warrant. On submission upon the general demurrer denying the equity of the bill, and upon sworn bill, answer, and numerous affidavits pro and con, the court dismissed appellant's bill as being devoid of equity, and for the same reason dissolved the temporary injunction which had been previously granted.

We think there can be no serious objection to the bill on the ground that the ordinance governing the sale of milk in the city of Birmingham is void as involving the unwarranted delegation of legislative power. The Act of August 20, 1915, § 6, armed the city with the full and complete power to adopt ordinances and regulations, not inconsistent with the laws of the state or the state and federal Constitutions, providing for the safety and preserving the health of its inhabitants. Acts 1915, p. 294 et seq. The administration of such an ordinance may be committed to subordinate officers — necessarily must be — without offense against any principle of constitutional law. Parke v. Bradley, 204 Ala. 455, 86 So. 28; Wheeler v. River Falls Power Co. (Ala. Sup.) 111 So. 907. Nor is the ordinance objectionable as committing to an officer or officers the power to decide, according to their own notion in each particular case, the question of issuing or withholding a license, and thus deciding according to 'their unregulated discretion who may, and who may not, engage in a legitimate and useful — even, we may say, necessary — business, for, while it confers upon the board of health the right to refuse a permit "when in its judgment the applicant for such permit is not a proper person to be granted such permit," the further provision is that in every case the applicant shall have the right to be heard in person or by counsel, or both, with the right to introduce competent evidence in support of his application, and the right of the board to revoke licenses is safeguarded in like manner, and probably, in the absence of an express provision for a hearing, the right would be presumed, and an opportunity afforded nevertheless to any applicant who has complied with the stipulated preliminaries, and whom it is sought to exclude on the ground that in the judgment of the board he is not a proper person to carry on the business of dealing in milk. Eckhardt v. Buffalo, 19 App. Div. 1, 46 N.Y. S. 204. But, however that may be, the ordinance in this case made ample provision for a hearing.

215 Ala. 655.

The court of equity will not undertake to administer the merely criminal features of a municipal ordinance; but, where property rights are involved, and the unlawful enforcement of an ordinance will involve irreparable loss, equity will interfere to preserve property rights. No criminal prosecution is alleged; but appellant has been refused a license, and his averment is that thereby his large investment in the necessary equipment of his dairy business and the good will of that business, built up by years of successful management and at great expense, will be destroyed — an averment of irreparable damage. The further averment, as we have already noted, is that, in refusing him a license, the board of health and its health officer and dairy inspector have acted arbitrarily, unreasonably, and without warrant. These averments in our judgment make a case for the interference of the court of equity. Franklin Social Club v. Phil Campbell, 204 Ala. 259, 85 So. 527. The right to conduct one's lawful business, without the wrongful and injurious interference of others, or, to accommodate the principle involved to the facts averred, without the arbitrary, unreasonable, and unwarranted denial of the necessary license is a valuable right, which will be protected, if necessary, by the injunctive process of equity. Hardie-Tynes Mfg. Co. v. Cruise, 189 Ala. 66, 66 So. 657.

The foregoing conclusions are sustained by Franklin Social Club v. Phil Campbell, supra; Bryan v. Birmingham, 154 Ala. 447, 45 So. 922, 129 Am. St. Rep. 63; Commissioners v. Orr, 181 Ala. 308, 61 So. 920, 45 L.R.A. (N.S.) 575, and other cases there referred to. Some of these cases involved the attempted enforcement of void ordinances to the injury of property rights, but the effort to enforce a valid ordinance arbitrarily, unreasonably, and without warrant of law or facts is in no better case, and may be enjoined.

The trial court therefore erred in its decree holding that there was no equity in the bill.

It necessarily resulted, and the trial court so ruled, that the preliminary injunction granted on appellant's sworn bill should be dissolved. But our conclusion that appellant's bill was not devoid of equity makes it necessary now to review this last-stated ruling of the court as affected by the sworn bill and answer and the numerous affidavits submitted on either side at the hearing of the motion; that is, on the facts. So considered, we are unable to conclude that there was error in dissolving the preliminary injunction. Defendants were in the exercise of a discretion conferred by law, not to be reviewed, unless for an unjust, arbitrary, and capricious denial of the license sought by appellant. The averments of the bill suffice to bring the action of defendants into review by the court, but the answer of appellees, supported by the affidavits of the president of the commission, of the health officer of the city, and the director of food and dairy inspection, makes full, complete, and detailed denial of the averments of the bill, and brings forward with great detail facts which would justify the action of the board of health and its officers in denying a license to appellant. The motion to dissolve the temporary injunction presents, therefore, an issue of fact to be determined de novo — this, because the chancellor's decree dissolving the injunction on the ground that the bill contained no equity, erroneous in itself, left the issue of fact presented by the pleadings and affidavits undetermined. Toney v. Burgess, 208 Ala. 55, 93 So. 850. Since the enactment of section 8311 of the Code the full denials of the sworn answer may not be accepted as conclusive. Daniel v. Birmingham Co., 207 Ala. 659, 93 So. 652; Saxon v. Parson, 206 Ala. 491, 90 So. 904.

In deciding this issue private rights of property, the right to carry on a lawful and necessary business, must be protected against unwarrantable invasion, and authority must be restrained within reasonable and proper bounds on the one hand; on the other, the health and safety of the people must be conserved. Necessarily much must be left to the discretion of the municipal authorities, as, plainly enough and properly enough, the ordinance contemplates. Defendants were in the exercise of a discretion vested in them by law, though subject to regulation by the courts, for abuse and judicial interference must be denied, unless and until it is made plainly to appear that they transcended the power granted to them, and abused it without the warrant of facts. In other words, the burden is on appellant to show that, as alleged, appellees have acted arbitrarily, unreasonably, and without the warrant of necessary facts in refusing to issue a license or in refusing to renew the license under which for some years appellant has engaged in business. Appellant does not appear to have had a formal hearing, as provided by the ordinance, but the question now at issue was for a long time in dispute between the parties, each of them prepared to meet it, and each submitted his contention to the other, or, to say the least, the municipal authorities made it entirely clear to appellant what faults they found with his method of conducting his business, while appellant denied their complaints, and refused to further accommodate himself or his method of doing business to the demands made upon him, because, he all along insisted, he had done everything that could properly be required of him. Hence the refusal to issue a license, and hence this proceeding, in which appellant must ultimately have full and fair opportunity to propound and maintain as well as he may his claim of right to a license. The question now immediately before the court is whether on the showing made by the parties the trial court should have allowed the previously granted injunction to stand pending a final hearing of the cause. It would serve no useful purpose to enter into a detailed discussion of the facts as they are made to appear in the sworn pleadings and in the affidavits submitted on either hand. It seems necessary to mention only numerous affidavits from satisfied customers submitted on behalf of appellant. These affidavits are stereotyped, and, while for that reason they are open to criticism as probably not stating the carefully considered conclusions of the affiants, they are accepted as true statements of their conclusions and opinions, but not as weighty statements concerning the underlying facts on which the complaints of the health officers of the city of Birmingham were based. These affiants were not in a position to know whether appellant's dairy was conducted with proper regard for cleanliness, whether his cattle had been inspected for tuberculosis, whether his water supply was what it ought to have been, whether the bacterial count shown by appellant's milk indicated slovenly methods in its handling, or whether from time to time the milk sold by appellant had been diluted with water. These considerations were of great importance as affecting the judgment of the health authorities, but, most likely, the faults, if any, in the milk supplied were not so obvious as to attract the attention of appellant's customers, though such faults may have been a matter of serious concern to them and the public. Hence the necessity for inspection. Hence, also, it is that the affidavits of this class, though proving the satisfaction of appellant's customers, fall far short of proving that the milk furnished by appellant was as fit as it ought to have been for human consumption, and numerous exhibits to appellees' answer tend strongly to sustain their contention. There were other affidavits pro and con, bearing more immediately upon the true inwardness of the conflict between the parties, but, as we have said, it is considered best at this stage of the case to pretermit discussion. Upon consideration of the whole record the court here is of opinion that the temporary injunction was properly dissolved, though for a reason different from that assigned in the trial court.

The decrees now under consideration are interlocutory. It remains to take evidence in the customary way, each party having the right to cross-examine adversary witnesses, and a final decree rendered. In so far as the decree under review dissolved the temporary injunction, it is affirmed; in so far as it sustained the demurrer to appellant's bill and dismissed the same, the decree is reversed, and the cause will be remanded for further proceedings in agreement with this opinion.

Let the costs of appeal be taxed against the parties equally.

Affirmed in part, reversed in part, and remanded.

ANDERSON, C. J., and GARDNER and BOULDIN, JJ., concur.

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WALKER v. CITY OF BIRMINGHAM
(May 19, 1927)