Montana-dakota Utilities Co. v. Northwestern Public Service Co. (341 U.S. 246)
U.S. Supreme Court · decided May 7, 1951 · Supreme Court Database (Spaeth)
- Citation
- 341 U.S. 246 · 71 S. Ct. 692
- Decided
- May 7, 1951
- Term
- October Term 1950
- Vote
- 5–4
- Majority author
- Justice Jackson (R.H.)
- Issue area
- Judicial Power
- Disposition
- Affirmed
- Outcome
- Petitioning party lost
- Ideological direction
- Conservative
Opinion excerpt
Mr. Justice Jackson delivered the opinion of the Court. Petitioner and respondent are public electric utilities companies engaged in interstate commerce. Petitioner’s predecessor and respondent were under the same management through interlocking directorships and joint officers. During that relationship the two interchanged electric energy, shared expenses, and made a number of intercompany contracts establishing rates and charges, which contracts were filed with and accepted by the Federal Power Commission. These contract rates and charges are at the root of this controversy. Petitioner charges that, during the period 1935-1945, its predecessor paid respondent unreasonably high prices for what respondent furnished it, and that it received unreasonably low rates for what it provided respondent. That advantage, it is alleged, was fraudulent and unlawful and was due to the interlocking directorate, which prevented protest to the Commission to have reasonable rates and charges established pursuant to the provisions of the Federal Power Act. Petitioner sued in United States District Court and asserted jurisdiction on the ground that the case “arises under the Constitution or laws of the United States” and, more particularly, under a “law regulating commerce,” specifically the Federal Power Act. Petitioner was successful in the District Court, which found the contracts void for…
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