MURRAY, McSWEEN, AND PATTON, AS THE STATE DISPENSARY COMMISSION, v. STATE OF SOUTH CAROLINA Ex Rel. RAY, TRUSTEE

Background

A commission appointed under a 1907 state law to wind up the state dispensary was asked to pay a judgment under a 1908 state law. The commission refused, saying orders from the United States Circuit Court in suits by the Wilson Distilling Company and the Fleischmann Company blocked any payment. The South Carolina Supreme Court found the commission’s return insufficient and ordered a peremptory writ of mandamus to force payment. A writ of error reached this Court on the claim that the state court had failed to give proper effect to the federal court orders.

Reasoning

The central question was whether the commission had to obey the state law and pay the judgment despite its claim of protection from federal court orders. The opinion states that the federal questions raised are controlled by the Court’s decision in Murray v. Wilson Distilling Company decided the same term. Relying on that ruling, the Court concluded the South Carolina Supreme Court’s decision was correct and affirmed the order requiring the commission to pay.

Real world impact

The decision requires the state dispensary commission to pay the judgment from funds it holds and allows the South Carolina court’s enforcement step to stand. The ruling affects the parties who sought payment and the management of the dispensary’s remaining funds. The opinion notes that the determination followed the related federal case, and that the Chief Justice did not take part in this case.