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Keywords

jurisdictionstatuteequitywillrespondent
jurisdictionstatuteequityinjunctionwilldue process

Related Cases

Liu v. Farr, 39 Haw. 23, 1950 WL 6686

Facts

The petitioners operated entertainment businesses and sought to enjoin the enforcement of Act 147, a penal statute that regulated the consumption of liquor on their premises. They claimed that the statute was unconstitutional and threatened their property rights, alleging that its enforcement would cause them substantial financial losses. However, the bills did not assert that the statute prohibited their businesses or that they had property rights adversely affected by the statute's enforcement.

The bills in substance allege that the petitioners have been and now are operating businesses of entertainment 'in strict conformity with all valid laws of the Territory'; that such statute (presumably violated in the conduct of those businesses) is invalid and unconstitutional and invades without due process of law their rights of property to pursue such businesses.

Issue

Did the equity court have jurisdiction to grant injunctive relief against the enforcement of a penal statute alleged to be invalid, and did the petitioners demonstrate a sufficient basis for such relief?

A court of equity will not enjoin the enforcement of a criminal statute, even though invalid, unless it clearly appears as a matter of fact that a direct invasion of a property right would result in great and immediate irreparable injury, mere conclusions of law not sufficing.

Rule

A court of equity will not enjoin the enforcement of a criminal statute unless there is a clear showing of a direct invasion of property rights resulting in great and immediate irreparable injury, and there is no adequate remedy at law.

A grievance that the enforcement of an ordinary criminal statute under the police power has prevented and will prevent continuing profits to be made from its violation does not invoke an acknowledged jurisdiction of equity even though that grievance is coupled with a claim that the statute is invalid.

Analysis

The court analyzed the allegations in the bills and found that the petitioners did not provide sufficient factual support for their claims of irreparable injury. The court noted that the statute did not prohibit the petitioners from conducting their businesses and that their financial losses were a normal risk associated with operating in violation of the law. Therefore, the court concluded that the equity court should not have granted the injunctive relief sought.

The allegations state as a fact that the petitioners 'have heretofore and now are operating' their businesses of entertainment. There are, however, no allegations, nor is it contended, that the penal statute in question or the threatened enforcement thereof prohibits those businesses or tends to disenfranchise, or limit the time and place for transacting them, under whatever license they may have.

Conclusion

The court affirmed the decree of the equity court, ruling that the bills failed to state a case of proper cognizance in equity and that the equity court lacked jurisdiction to grant the requested injunctive relief.

That portion of the decree dissolving the restraining orders and temporary injunctions, denying the prayers for permanent injunction and dismissing the bills for injunction is affirmed, but on the ground that the bills failed to state a case of proper cognizance in equity.

Who won?

The respondents prevailed in the case because the court found that the petitioners did not meet the necessary criteria for injunctive relief and that the equity court lacked jurisdiction.

The court affirmed the decree of the equity court, ruling that the bills failed to state a case of proper cognizance in equity and that the equity court lacked jurisdiction to grant the requested injunctive relief.

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