Equitable Guarantee & Trust Co. v. Donahoe

Citations

• 8 Del. Ch. 422

Syllabus

<p>Upon a bill filed by a trust company to restrain the collection from the complainant, either in its individual or fiduciary capacity, of a purely personal state and county tax, the legality of which is questioned solely on the ground of the unconstitutionality of the law under which it had been laid and apportioned; there being no question raised of fraud or injustice or irregularity on the part of any officials, but only a claim that the remedy at law is inadequate because complainant is trustee or guardian in approximately one hundred cases, and there might be a separate action at law in each case; and it had been notified by some of its cestuis que trust that it would be held responsible for any payment made by it under the law; held,</p> <p>1. That an injunction will not be granted to restrain the collection of- the tax by the collector designated under the law to perform that duty.</p> <p>2. That there were no such special circumstances as would justify the Court of Chancery in assuming jurisdiction.</p> <p>3. That the bill must be dismissed on motion for want of jurisdiction.</p> <p>An injunction will not be granted to restrain the collection of a tax questioned solely on the ground of the unconstitutionality of the law under which it has been levied; there must be shown to exist special circumstances bringing the case under some recognized head of equity jurisprudence.</p> <p>It is not a sufficient ground of equitable jurisdiction to enjoin the collection of a tax, alleged to be unconstitutional, that the complainant might be subjected to a multiplicity of suits at law because it holds and administers the office of trustee or guardian in a large number of cases, and would be liable to be sued by its beneficiaries in consequence of such payment.</p> <p>That it is real and not imaginary suits, it is probable and not possible danger of multiplicity of suits, that will warrant the assumption of jurisdiction on that ground, is a postulate of every well consider