The due process clause prohibits state penalties that are so severe and oppressive as to be wholly disproportionate to the offense and obviously unreasonable.
A railroad company challenged a state statute that imposed a penalty of fifty to three hundred dollars for collecting passenger fares exceeding the prescribed rate. The company argued the penalty violated the due process clause of the Fourteenth Amendment because it was arbitrary and disproportionate to the actual damages. The court held that while the due process clause limits state power to prescribe penalties, such enactments only transcend this limitation when the penalty is so severe and oppressive as to be wholly disproportioned to the offense and obviously unreasonable. Because the penalty served to ensure uniform adherence to public rates, it was constitutional.
At page 66 State latitude in setting statutory penalties48 citing cases“as a punishment for the violation of a public law, the legislature may adjust its amount to the public wrong rather than the private injury, just as if it were going to the state.”
- Vanderbilt Mortg. & Fin. v. Terri L. Cole, 740 S.E.2d 562 (W. Va. 2013).published (Nor does giving the penalty to the aggrieved passenger require that it be confined or proportioned to his loss or damages ... as it is imposed as a punishment for the violation of a public law____)
- Montera v. Premier Nutrition Corp., No. 3:16-cv-06980 (N.D. Cal. Mar. 10, 2025). Louis, I.M. & S. Ry. 9 Co. v. Williams, 251 U.S. 63, 66-67 (1919)). 10 Beyond Williams’s guideposts, courts can also look to the factors articulated in Six (6) 11 Mexican Workers v Ariz. Citrus Growers for “further guidance” in determining…
- Provencher v. Bimbo Bakeries USA, Inc., 705 F. Supp. 3d 238 (D. Vt. 2023).publishedCo. v. Williams, 251 U.S. 63, 66-67 (1919)).
- Cothron v. White Castle Sys., Inc., 2023 IL 128004, 216 N.E.3d 918.publishedCo. v. Williams, 251 U.S. 63, 66 (1919).
- Gessele v. Jack In The Box Inc., No. 3:14-cv-01092 (D. Or. Mar. 30, 2023).The Supreme Court noted “the power of the state to impose fines and penalties for a violation of its statutory 9 The actions were consolidated for appeal. 17 - OPINION & ORDER requirements is coeval with government.” Id. at 66 (quotation o…
- Havana Docks Corp. v. Norwegian Cruise Line Holdings, Ltd., No. 1:19-cv-23591 (S.D. Fla. Dec. 30, 2022).Co. v. Williams, 251 U.S. 63, 67 (1919).
- Lori Wakefield v. Visalus, Inc., 51 F.4th 1109 (9th Cir. 2022).published Co. v. Williams, 251 U.S. 63, 67 (1919).
- Montera v. Premier Nutrition Corp., 621 F. Supp. 3d 1012 (N.D. Cal. 2022).publishedCo. v. Williams, 251 U.S. 63, 66-67 (1919).
- Havana Docks Corp. v. MSC Cruises SA CO, 484 F. Supp. 3d 1177 (S.D. Fla. 2020).publishedCo. v. Williams, 251 U.S. 63, 66 (1919) (citations and internal quotation marks omitted).
- Wakefield v. Visalus, Inc., No. 3:15-cv-01857 (D. Or. Aug. 14, 2020). (simplified)
Show 38 more citing cases
- United States v. DISH Network L.L.C., 954 F.3d 970 (7th Cir. 2020).published Louis, Iron Mountain & Southern Ry. v. Williams, 251 U.S. 63, 66 (1919).
- Comm. To Elect Dan Forest v. Emps. Political Action Comm., 817 S.E.2d 738 (N.C. Ct. App. 2018).publishedLouis v. Williams, 251 U.S. 63, 66-67 (1919).
- HIKO Energy, LLC v. Pennsylvania Pub. Util. Comm'n, 163 A.3d 1079 (Pa. Commw. Ct. 2017).publishedCo. v. Williams, 251 U.S. 63, 67 (1919) (state-ordered monetary penalties violate due process clause’s guarantee against unlawful deprivation of property when penalties are “wholly disproportioned to the offense and obviously unreasonable”…
- Dami Hosp., LLC v. Indus. Claim Appeals Off., 2017 COA 21.published(Although states have wide latitude in setting penalties for statutory violations, states cannot impose penalties “so severe and oppressive as to be wholly disproportioned to the offense and obviously unreasonable.)
- State v. Ortho-McNeil-Janssen Pharm., No. 27502 (S.C. July 8, 2015).publishedCo. v. Williams, 251 U.S. 63, 66 (1919).
- State ex rel. Wilson v. Ortho-McNeil-Janssen Pharm., Inc., 777 S.E.2d 176 (S.C. 2015).publishedCo. v. Williams, 251 U.S. 63, 66 (1919).
- Mustafa Nadaf v. Texas Comm'n on Env't Quality, No. 04-13-00068-CV (Tex. App.—San Antonio Apr. 23, 2014).publishedCo. v. Williams, 251 U.S. 63, 66-67 (1919)).
- Metro. Life Ins. Co. v. Hamer, 2013 IL 114234, 990 N.E.2d 1144.publishedCo. v. Williams, 251 U.S. 63, 66 (1919).
- Metro. Life Ins. Co. v. Hamer, 966 N.E.2d 1052 (Ill. App. Ct. 1st Dist. 2012).publishedCo. v. Williams, 251 U.S. 63, 66 (1919); In re Marriage of Miller, 227 Ill. 2d 185, 196 , 879 N.E.2d 292 (2007).
- Perez-Farias v. Global Horizons, Inc., 669 F.3d 927 (9th Cir. 2011).unpublishedCo. v. Williams, 251 U.S. 63, 66 (1919); see also United States v. Citrin, 972 F.2d 1044, 1051 (9th Cir. 1992).
- Capitol Records, Inc. v. Thomas-Rasset, 799 F. Supp. 2d 999 (D. Minn. 2011).published In the case of statutory damage awards, Congress “may adjust its amount to the public wrong rather than the private injury, just as if [the penalty] were going to the state.” *1008 Williams, 251 U. S. at 66, 40 S.Ct. 71 (citation omitted).
- In re Marriage of Miller, 879 N.E.2d 292 (Ill. 2007).published Ed. 139, 141 , 40 S. Ct. 71, 73 (1919); see also Opyt’s Amoco, Inc. v. Village of South Holland, 149 Ill. 2d 265, 270 (1992) (“Due process requirements prevent the arbitrary and unreasonable exercise of the police power”); Heimgaertner v.…
- Zomba Enter v. Panorama Records, No. 06-5266 (6th Cir. June 26, 2007).publishedCo. v. Williams, 251 U.S. 63, 66-67 (1919), to ensure they comport with due process.
- Baker v. Exxon Mobile Corp., 490 F.3d 1066 (9th Cir. 2007).publishedCo. v. Williams, 251 U.S. 63, 66-67 (1919)).
- Baker v. Exxon Mobile Corp., 472 F.3d 600 (9th Cir. 2006).publishedCo. v. Williams, 251 U.S. 63, 66-67 (1919)).
- In re Marriage of Miller, 860 N.E.2d 519 (Ill. App. Ct. 1st Dist. 2006).publishedEd. 139, 141 , 40 S. Ct. 71, 73 (1919).
- Parker v. Time Warner Ent. Co., L.P., 331 F.3d 13 (2d Cir. 2003).published(in setting a statutory penalty, the state may "adjust its amount to the public wrong rather than the private injury.)
- BMW of North Am., Inc. v. Gore, 517 U.S. 559 (1996).published (punitive award may not be "wholly disproportioned to the offense)
- TXO Prod. Corp. v. All. Resources Corp., 509 U.S. 443 (1993).published Co. v. Williams, 251 U. S. 63, 66-67 (1919); Standard Oil Co. of Ind. v. Missouri, 224 U. S. 270, 286 (1912). [16] Moreover, in Southwestern Telegraph & Telephone Co. v. Danaher, 238 U. S. 482 (1915), the Court actually set aside a penalty…
- Browning-Ferris Indus. of Vermont, Inc. v. Kelco Disposal, Inc., 492 U.S. 257 (1989).published Co. v. Williams, 251 U. S. 63, 66-67 (1919), but we have never addressed the precise question presented here: whether due process acts as a cheek on undue jury discretion to award punitive daihages in the absence of any express statutory l…
- VECO Int'l, Inc. v. Alaska Pub. Offices Comm'n, 753 P.2d 703 (Alaska 1988).publishedLouis Iron Mountain & Southern Ry Co. v. Williams, 251 U.S. 63, 67 , 40 S.Ct. 71, 73 , 64 L.Ed. 139, 141 (1919).
- Veco Intern. v. Alaska Pub. Off. Com'n, 753 P.2d 703 (Alaska 1988).publishedLouis Iron Mountain & Southern Ry Co. v. Williams, 251 U.S. 63, 67 , 40 S.Ct. 71, 73 , 64 L.Ed. 139, 141 (1919).
- Sony BMG Music Ent. v. Tenenbaum, 660 F.3d 487 (1st Cir. 2011).published
- Zomba Enter., Inc. v. Panorama Records, Inc., 491 F.3d 574 (6th Cir. 2007).published
- Capitol Records, Inc. v. Jammie Thomas-Rasset, 692 F.3d 899 (8th Cir. 2012).published
- Sony BMG Music Ent. v. Tenenbaum, 719 F.3d 67 (1st Cir. 2013).published
- United States v. Certain Real Prop. & Premises Known as 38 Whalers Cove Drive, 747 F. Supp. 173 (E.D.N.Y. 1990).published
- Pactiv Corp. v. Chester, 455 F. Supp. 2d 680 (E.D. Mich. 2006).published
- Sony BMG Music Ent. v. Tenenbaum, 721 F. Supp. 2d 85 (D. Mass. 2010).published
- Ron Golan v. FreeEats.com, Inc., 930 F.3d 950 (8th Cir. 2019).published
- Perez-Farias v. Global Horizons, Inc., 286 P.3d 46 (Wash. 2012).published
- Bellshaw v. Farmers Ins. Co., 533 P.3d 40 (Or. Ct. App. 2023).published
- Tapia-Rendon v. Emp. Solutions Staffing Grp. II, LLC, No. 1:21-cv-03400 (N.D. Ill. Feb. 2, 2024).
- Braver v. Northstar Alarm Servs. LLC, No. 5:17-cv-00383 (W.D. Okla. Nov. 6, 2019).
- Tina McPherson v. Suburban Ann Arbor, LLC, 135 F.4th 419 (6th Cir. 2025).published
- Top Tobacco, L.P. v. Star Importers & Wholesalers, Inc., 135 F.4th 1344 (11th Cir. 2025).published
- Smith v. Flynn, 155 So. 2d 497 (Ala. 1963).published
- Chair King, Inc. v. GTE Mobilnet of Houston, Inc., 135 S.W.3d 365 (Tex. App.—Houston [14th Dist.] 2004).published
At page 67 Determining if penalties are wholly disproportioned to offense18 citing cases“so severe and oppressive as to be wholly disproportioned to the offense and obviously unreasonable.”
- Gessele v. Jack in the Box Inc., No. 23-2527 (9th Cir. Apr. 20, 2026).publishedCo. v. Williams, 251 U.S. 63, 67 (1919)).
- Gessele v. Jack in the Box Inc., 160 F.4th 1011 (9th Cir. 2025).publishedCo. v. Williams, 251 U.S. 63, 67 (1919)).
- Stephen Grant v. Steven Zorn, 107 F.4th 782 (8th Cir. 2024).publishedCo. v. Williams, 251 U.S. 63, 67 (1919)).
- Georgiou v. Harmon Stores, Inc., No. 2:22-cv-02861, 2023 WL 112805 (E.D.N.Y. Jan. 5, 2023).Co. v. Williams, 251 U.S. 63, 67 (1919).
- Havana Docks Corp. v. Norwegian Cruise Line Holdings, Ltd., No. 1:19-cv-23591 (S.D. Fla. Dec. 30, 2022).Co. v. Williams, 251 U.S. 63, 67 (1919).
- Lori Wakefield v. Visalus, Inc., 51 F.4th 1109 (9th Cir. 2022).published Co. v. Williams, 251 U.S. 63, 67 (1919).
- Sergio Ramirez v. Transunion LLC, 951 F.3d 1008 (9th Cir. 2020).publishedCo. v. Williams, 251 U.S. 63, 67 (1919)). 15 court to instruct the jury to award the same amount of damages to all class members—regardless of their degree of injury. 15 TransUnion also argued below for remittitur on the theory that the da…
- Larson v. Harman-Mgmt. Corp., No. 1:16-cv-00219 (E.D. Cal. Dec. 20, 2019).Co. v. Williams, 251 U.S. 63, 67 (1919)).
- Malibu Media, LLC v. Doe, No. 4:18-cv-04425 (S.D. Tex. Aug. 13, 2019).Co. v. Williams, 251 U.S. 63, 67 (1919); Sony BMG Music Entm’t v. Tenenbaum, 719 F.3d 67, 70 (1st Cir. 2013).
- HIKO Energy, LLC v. Pennsylvania Pub. Util. Comm'n, 163 A.3d 1079 (Pa. Commw. Ct. 2017).published(state-ordered monetary penalties violate due process clause’s guarantee against unlawful deprivation of property when penalties are “wholly disproportioned to the offense and obviously unreasonable)
Show 7 more citing cases
- Piñon v. Bank of Am., NA, 741 F.3d 1022 (9th Cir. 2014).published Co. v. Williams, 251 U.S. 63, 67 (1919).
- Sawtelle v. Waddell & Reed, Inc., 304 A.D.2d 103 (N.Y. App. Div. 1st Dep't 2003).publishedCo. v Williams, 251 US 63, 67 [1919]).
- Kenro, Inc. v. Fax Daily, Inc., 962 F. Supp. 1162 (S.D. Ind. 1997).published Id., 251 U.S. at 67, 40 .
- Pac. Mut. Life Ins. v. Haslip, 499 U.S. 1 (1991).published Co. v. Williams, 251 U. S. 63, 67 (1919).
- VECO Int'l, Inc. v. Alaska Pub. Offices Comm'n, 753 P.2d 703 (Alaska 1988).publishedLouis Iron Mountain & Southern Ry Co. v. Williams, 251 U.S. 63, 67 , 40 S.Ct. 71, 73 , 64 L.Ed. 139, 141 (1919).
- Veco Intern. v. Alaska Pub. Off. Com'n, 753 P.2d 703 (Alaska 1988).publishedLouis Iron Mountain & Southern Ry Co. v. Williams, 251 U.S. 63, 67 , 40 S.Ct. 71, 73 , 64 L.Ed. 139, 141 (1919).
- State ex rel. Pollution Control Co. v. Kerr-McGee Corp., 532 P.2d 1386 (Okla. 1975).published
At page 64 “not less than fifty dollars nor more than three hundred dollars”5 citing cases
- Gessele v. Jack In The Box Inc., No. 3:14-cv-01092 (D. Or. Mar. 30, 2023).The Supreme Court noted “the power of the state to impose fines and penalties for a violation of its statutory 9 The actions were consolidated for appeal. 17 - OPINION & ORDER requirements is coeval with government.” Id. at 66 (quotation o…
- Kenro, Inc. v. Fax Daily, Inc., 962 F. Supp. 1162 (S.D. Ind. 1997).published Id., 251 U.S. at 67, 40 .
- Perez-Farias v. Global Horizons, Inc., 286 P.3d 46 (Wash. 2012).published
- Tina McPherson v. Suburban Ann Arbor, LLC, 135 F.4th 419 (6th Cir. 2025).published
- Irvine v. 233 Skydeck, LLC, 597 F. Supp. 2d 799 (N.D. Ill. 2009).published
40 S. Ct. at 73 Legislature's power to set statutory penalty amount7 citing casesno requirement that statutory penalty “be confined or proportioned to his loss or damages; for, as it is imposed as a punishment for the violation of a public law, the Legislature may adjust its amount to the public wrong rather than the private injury ...
- In re Marriage of Miller, 879 N.E.2d 292 (Ill. 2007).published Ed. 139, 141 , 40 S. Ct. 71, 73 (1919); see also Opyt’s Amoco, Inc. v. Village of South Holland, 149 Ill. 2d 265, 270 (1992) (“Due process requirements prevent the arbitrary and unreasonable exercise of the police power”); Heimgaertner v.…
- Express Valet, Inc. v. City of Chicago, 869 N.E.2d 964 (Ill. App. Ct. 1st Dist. 2007).publishedEd. 139, 141 , 40 S. Ct. 71, 73 (1919).
- In re Marriage of Miller, 860 N.E.2d 519 (Ill. App. Ct. 1st Dist. 2006).publishedEd. 139, 141 , 40 S. Ct. 71, 73 (1919).
- In re Marriage of Chen & Ulner, 820 N.E.2d 1136 (Ill. App. Ct. 2d Dist. 2004).published Ed. 139, 141 , 40 S. Ct. 71, 73 (1919).
- Kenro, Inc. v. Fax Daily, Inc., 962 F. Supp. 1162 (S.D. Ind. 1997).published Id., 251 U.S. at 67, 40 .
At page 63 Mr. Justice Van Devanter delivered the opinion of the court. . By a statute of Arkansas, regulating rates for the transportation of passengers between points…1 citing case
- Sony BMG Music Ent. v. Tenenbaum, 660 F.3d 487 (1st Cir. 2011).On page 56, line 17, replace "251 U.S. at 63." with "Id. at 63.".
v.
Williams Et Al.
delivered the opinion of the court.
. By a statute of Arkansas, regulating rates for the transportation of passengers between points within the State,[*64] any railroad company that demands or collects a greater compensation than the statute prescribes is subjected “for every such offense” to a penalty of “not less than fifty dollars, nor more than three hundred dollars and costs of suit, including a reasonable attorney’s fee,” and the aggrieved passenger is given a right to recover the same in a civil action. Act April 4, 1887, Laws 1887, p. 227; Kirby’s Digest, 1904, §6620; Act March 4, 1915, Laws 1915, p. 365; Kirby & Castle’s Digest, 1916, § 8094.
In June, 1915, a company operating a line of railroad within the State demanded and collected sixty-six cents more than the prescribed fare from each of two sisters carried over part of its line when returning to their home from a school commencement elsewhere in the State; and in suits separately brought for the purpose, and afterwards consolidated, these passengers obtained judgments against the company for the overcharge, a penalty of seventy-five dollars and costs of suit, • including an attorney’s fee of twenty-five dollars. The company appealed, asserting that the provision for the penalty was repugnant to the due process of law clause of the Fourteenth Amendment; but the Supreme Court of the State sustained the pro-, vision and affirmed the' judgments. 131 Arkansas, 442. To obtain a review of that decision the company prosecutes this writ of error.
The grounds upon which the provision is said to contravene due process of law are, first, that the penalty is “so severe as to deprive the carrier of the right to resort to the courts to test the validity” of the rate prescribed, and, second, that the penalty is “arbitrary and unreasonable, and not proportionate to the actual damages sustained.”
It is true that the imposition of severe penalties as a maans of enforcing a rate, such as was prescribed in this instance, is in contravention of due process of law, where no adequate opportunity is afforded the carrier for safely testing, in an appropriate judicial proceeding/the validity[*65] of the rate — that is, whether it is confiscatory or otherwise — before any liability for the penalties attaches. The reasons why this is so are set forth fully and plainly in several recent decisions and need not be repeated now. Ex parte Young, 209 U. S. 123, 147; Willcox v. Consolidated Gas Co., 212 U. S. 19, 53; Missouri Pacific Ry. Co. v. Nebraska, 217 U. S. 196, 207-208; Missouri Pacific Ry. Co. v. Tucker, 230 U. S. 340; Wadley Southern Ry. Co. v. Georgia, 235 U. S. 651, 659, et seq.
And it also is true that where such an opportunity is afforded and the rate is adjudged valid, or the carrier fails to avail itself of the opportunity, it then is admissible, so far as due process of law is concerned, for the State to enforce adherence to the rate by imposing substantial penalties for deviations from it. Wadley Southern Ry. Co. v. Georgia, supra, p. 667, et seq.; Gulf, Colorado & Santa Fe Ry. Co. v. Texas, 246 U. S. 58, 62.
Here it does not appear that the carrier had not been afforded an adequate opportunity for safely testing the validity of the rate, or that its deviation therefrom proceeded from any belief that the rate was invalid. On the contrary, it is practically conceded — and we judicially know — that if the carrier really regarded the rate as confiscatory, the way was open to secure a determination of that question by a suit in equity against the Railroad Commission of the State, during the pendency of which the operation of the penalty provision could have been suspended by injunction. Wadley Southern Ry. Co. v. Georgia, supra. See also Allen v. St. Louis, Iron Mountain & Southern Ry. Co., 230 U. S. 553; Rowland v. St. Louis & San Francisco R. R. Co., 244 U. S. 106; St. Louis, Iron Mountain & Southern Ry. Co. v. McKnight, ibid. 368. And the record shows that at the trial the carrier not only did not raise any question about the correct fare, but proposed and secured an instruction to the jury wherein the prescribed rate was recognized as controlling.
[*66] It therefore is plain that the first branch of the company’s contention cannot prevail.
The second branch is more strongly urged, and we now turn to it. The provision assailed is essentially penal, because primarily intended to punish the carrier for taking more than the prescribed rate. Railway Co. v. Gill, 54 Arkansas, 101, 106; St. Louis, Iron Mountain & Southern Ry. Co. v. Waldrop, 93 Arkansas, 42, 45. True, the penalty goes to the aggrieved passenger and not the State, and is to be enforced by a private and not a public suit. But this is not contrary to due process of law; for, as is said in Missouri Pacific Ry. Co. v. Humes, 115 U. S. 512, 523, “the power of the State to impose fines and penalties for a violation of its statutory requirements is coeval with government; and the. mode in which they shall be enforced, whether at the suit of a private party, or at the suit' of the public, and what disposition shall be made of the amounts collected, are merely matters of legislative discretion.” Nor does giving the penalty to the aggrieved passenger require that it be confined or proportioned to his loss or damages; for, as it is imposed as a punishment for the violation of a public law, the legislature may adjust its amount to the public wrong rather than the private injury, just as if it were going to the State. See Marvin v. Trout, 199 U. S. 212, 225.
The ultimate question is whether a penalty of not less than fifty dollárs and not more than three hundred dollars for the offense in question can be said to bring the provision prescribing- it into conflict with the due process of law clause of the -Fourteenth Amendment.
That this clause places a limitation upon the power of the States to prescribe penalties for violations of their laws has been fully recognized, but always with the express or tacit qualification that the States still possess a wide latitude of-discretion in the matter and that their enactments transcend the limitation only where the penalty[*67] prescribed is so severe arid oppressive as to be wholly disproportioned to the offense and obviously unreasonable. Coffey v. Harlan County, 204 U. S. 659, 662; (Seaboard Air Line Ry. v. Seegers, 207 U. S. 73, 78; Waters-Pierce Oil Co. v. Texas, 212 U. S. 86, 111; Collins v. Johnston, 237 U. S. 502, 510.
Of this penalty and the need for it the Supreme Court of the State says: “It is commonly known that carriers are not prone to adhere uniformly to rates lawfully prescribed and it is necessary that deviation from such rates be discouraged and prohibited by adequate liabilities and penalties, and we regard, the penalties prescribed as no more than reasonable and adequate to accomplish the purpose of the law and remedy the evil intended to be reached.” Chicago, Rock Island & Pacific Ry. Co. v. Davis, 114 Arkansas, 519, 525.
When the penalty is contrasted with the overcharge possible in any instance it of course seems large, but, as we have said, its validity is not to be tested in that way. When it is considered with due regard for the interests of the public, the numberless opportunities for committing the offense, and the need for securing uniform adherence to established passenger rates, we think it properly canriot be said to be so severe and oppressive as to be wholly disproportioned to the offense or obviously unreasonable.
Judgment affirmed.-
Mr. Justice McReynouds dissents.