Columbia Railway, Gas & Elec. Co. v. South Carolina, 261 U.S. 236 (1923)

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Columbia Railway, Gas & Electric Company v. South Carolina

No. 297

Argued January 26, 1923
Decided February 19, 1923
261 U.S. 236

ERROR TO THE SUPREME COURT

OF THE STATE OF SOUTH CAROLINA

Syllabus

1. Article I, § 10 of the Constitution affords no protection against impairment of the obligation of a contract by judicial decision. P. 244.

2. But where a state court, though placing its decision upon the construction of a contract, in substance and effect gives force to a statute complained of as impairing the contract obligation, jurisdiction of this Court attaches. P. 245.

3. A clause in a grant will be construed as a covenant if reasonably possible, rather than as a condition subsequent. P. 248.

4. The fact that a legislative grant, upon valuable consideration, was made to attain a particular end cannot, in itself, debase the estate granted. P. 249.

5. The fact that such a grant makes express provision for forfeiture in case of default in one of the obligations imposed on the grantee is a strong reason against construing other obligations not so fortified as conditions subsequent. P. 250.

6. A state statute which seeks to convert a covenant in a prior legislative contract into a condition subsequent, and to impose as a penalty for its violation the forfeiture of valuable property, impairs the obligation of the contract, and is void. P. 251.

112 S.C. 528 reversed.

Error to a judgment of the Supreme Court of South Carolina affirming a judgment for the state in a suit to enforce a forfeiture of a grant and recover possession of the property for breach of an alleged condition subsequent.