Duke Power Co. v. Greenwood County
Headline: Upheld federal loans and grants under the National Industrial Recovery Act to fund a county electric power plant, allowing Greenwood County’s construction and rejecting local challengers’ bid to block funding and operation.
Holding: The Court affirmed that the National Industrial Recovery Act authorized the federal loan and grant, the administrator acted within that authority, and the challengers showed no legal right to block the county power project.
- Allows Greenwood County to build and operate a federally supported electric power plant.
- Affirms federal administrator’s authority to make loans and grants under Title II.
- Limits local challengers’ ability to enjoin projects absent proof of a legal right.
Summary
Background
A group of local residents and entities sued to stop Greenwood County, South Carolina, from building and running a new electric power plant and from receiving a federal loan and grant for that project under Title II of the National Industrial Recovery Act. The case was previously sent back to the trial court because of procedural problems so the parties could fix their pleadings and try the issues again. After a full rehearing, the trial court dismissed the challengers’ complaint, and the appeals court reviewed the facts and law.
Reasoning
The main question was whether the federal statute allowed the administrator to make the proposed loan and grant and whether the challengers had a legal right to block the county’s project. The appeals court found the statute constitutional, concluded the federal administrator acted within the authority given by Congress, and held that the challengers had not shown a legal right that was invaded by the proposed competition. The Supreme Court reviewed the lower rulings in light of a closely related pair of cases and agreed with the court below, affirming its decision.
Real world impact
Because the Court affirmed, Greenwood County may proceed with the federally supported power plant and associated funding, at least as to the legal issues decided here. The opinion means challengers must show a specific legal right before a court will block similar locally based, federally funded projects. The ruling follows and applies the Court’s treatment of the same legal question decided shortly before this case.
Dissents or concurrances
One Justice (Mr. Justice Black) noted his agreement with the outcome by concurring in the result, but did not change the Court’s final judgment.
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