Gaar, Scott & Co. v. Shannon

Citations

• 223 U.S. 468
• 32 S. Ct. 236
• 56 L. Ed. 510
• 1912 U.S. LEXIS 2247
• 4 A.F.T.R. (P-H) 4695

Syllabus

<p>Where the judgment of the state court rests on a matter of general law strong enough to sustain the judgment, this court cannot consider the Federal question involved; even if it were actually considered by the state court and determined adversely to plaintiff in error. Hale v. Akers, 152 U. S. 554.</p> <p>Where a Federal question was properly presented and necessarily controls the determination of the case, this court has jurisdiction even if . the decision is put by the state court upon some matter of local law. 'West Chicago R. R. ,Co. v. Chicago, 201 U. S. 506.</p> <p>Neither a statute imposing a tax, execution thereunder, nor mere demand for payment, constitutes duress; but where the statute contains self-operating ¿provisions by which non-payment of the tax results’in severe penalties and forfeiture of right to do business, payment by one within the class affected is not voluntary but compulsory.</p> <p>While a.payment of the tax by one included in the class to which a statute applies in order to avoid penalties and forfeiture is compulsory, it is not so as to one not included in such class and payment thereof by such person is voluntary and not under duress.</p> <p>Where the state court decides that a corporation which claims that it only does an interstáte business but paid a state tax levied only upon corporations doing an intrastate business made the payment not under duress, and the record shows that the question was fairly in the case, the judgment rests upon a ground of general law broad enough to sustain it. . '</p>