Oshkosh Waterworks Company v. City of Oshkosh

Decision Date05 January 1903
Docket NumberNo. 75,75
Citation47 L.Ed. 249,23 S.Ct. 234,187 U.S. 437
PartiesOSHKOSH WATERWORKS COMPANY, Plff. in Err. , v. CITY OF OSHKOSH
CourtU.S. Supreme Court

Mr. Moses Hooper for plaintiff in error.

Mr. John F. Kluwin for defendant in error.

Mr. Justice Harlan delivered the opinion of the court:

This case presents a question under the clause of the Constitution of the United States which prohibits a state from passing a law impairing the obligation of contracts.

The question arose upon demurrer by the defendant, the city of Oshkosh, to the complaint filed against it on the 16th day of June, 1900, by the Oshkosh Waterworks Company, a municipal corporation of Wisconsin. The principal ground of demurrer was that the complaint did not state facts sufficient to constitute a cause of action.

The complaint set forth two causes of action, on the first one of which the company claimed a judgment for $4,085, which was alleged to be due from the city under an agreement made between it and the company on June 18th, 1883, in reference to the building and maintaining by the company of a waterworks plant for supplying water for domestic and fire purposes, and the renting of public fire hydrants.

On the second cause of action the company asked a judgment for $1,060, which amount was claimed under an agreement of the 31st day of August, 1891, having reference to the company's extensions of its then-existing mains, and the rentals to be paid by the city for hydrants to be located on such extensions.

After the contract of 1883 was made, the charter of the city was amended and revised,—the revision taking effect March 23d, 1891. The revised charter contained certain provisions as to suits against the city, imposing on suitors conditions or restrictions that did not previously exist.

The company insisted that the revised charter could not be applied to this suit without impairing the obligation of its contracts with the city. This view was rejected by the state court, the demurrer was sustained, and the suit dismissed.

The general principles which must control in determining whether a state enactment impairs the obligation of contracts have become so firmly established by the decisions of this court that any further discussion of their soundness would be inappropriate. It is only necessary to recall them, and then ascertain their applicability to the particular state legislation now alleged to be repugnant to the Constitution of the United States.

It is well settled that while, in a general sense, the laws in force at the time a contract is made enter into its obligation, parties have no vested right in the particular remedies or modes of procedure then existing. It is true the legislature may not withdraw all remedies, and thus, in effect, destroy the contract; nor may it impose such new restrictions or conditions as would materially delay or embarrass the enforcement of rights under the contract according to the usual course of justice as established when the contract was made. Neither could be done without impairing the obligation of the contract. But it is equally well settled that the legislature may modify or change existing remedies, or prescribe new modes of procedure, without impairing the obligation of contracts, provided a substantial or efficacious remedy remains or is given, by means of which a party can enforce his rights under the contract. Green v. Biddle, 8 Wheat. 1, 85, 5 L. ed. 547, 568; Bronson v. Kinzie, 1 How. 311, 317, 11 L. ed. 143, 145; Planters' Bank v. Sharp, 6 How. 301, 327, 12 L. ed. 447, 458; Walker v. Whitehead, 16 Wall. 314, 317, 21 L. ed. 357; Murray v. Charleston, 96 U. S. 432, 438, 24 L. ed. 760; Edwards v. Kearzey, 96 U. S. 595, 601, 24 L. ed. 793, 796; Vance v. Vance, 108 U. S. 514, 518, 27 L. ed. 808, 810, 2 Sup. Ct. Rep. 854; McGahey v. Virginia, 135 U. S. 685, 693, 34 L. ed. 312, 314, 10 Sup. Ct. Rep. 972; Barnitz v. Beverly, 163 U. S. 118, 41 L. ed. 93, 16 Sup. Ct. Rep. 1042; McCullough v. Virginia, 172 U. S. 102, 104, 43 L. ed. 382, 383, 19 Sup. Ct. Rep. 134. The decisions of the supreme court of Wisconsin as to what are to be deemed laws impairing the obli- gations of contracts are in harmony with the decisions of this court. Lightfoot v. Cole, 1 Wis. 26, 34; Von Baumbach v. Bade, 9 Wis. 559, 76 Am. Dec. 283; Paine v. Woodworth, 15 Wis. 298; Northwestern Mut, L. Ins. Co. v. Neeves, 46 Wis. 147, 49 N. W. 832; Lee v. Buckheit, 49 Wis. 54, 4 N. W. 1077; Rosenthal v. Wehe, 58 Wis. 621, 17 N. W. 318.

Having these principles in view, we proceed to inquire whether the revised charter of Oshkosh so changed existing remedies for the enforcement of contract rights against municipal corporations as to impair the obligation of the contract made in 1883 between the waterworks company and the city.

By the act of the Wisconsin legislature revising and amending the charter of the city of Oshkosh, that municipal corporation was made capable of suing and being sued in all courts of law and equity. 2 Wis. Laws 1883, p. 687, chap. 1, § 1. The same act provided that all moneys, credits, and demands of the city should be under the control of the common council, and 'be drawn out only upon the order of the mayor and city clerk, duly authorized by the vote of the common council.' 2 Wis. Laws 1883, p. 724, chap. 7, § 1. It was further provided that 'any account or demand against the city, before acted on or paid, the council may require the same to be verified by affidavit, except salaries and amounts previously fixed or determined by law, and any person who shall falsely swear to any such amount or demand shall be deemed guilty of perjury, and shall be punished according to law.' 2 Wis. Laws 1883, p. 726, chap. 7, § 10.

The supreme court of Wisconsin, in its opinion, states that, except for the above restrictions upon the payment of money, the city of Oshkosh was, in 1883, subject to be sued upon contract liability like any private person or corporation.

But by the city's amended charter of 1891 certain changes were made, and the question is whether those changes, if applied to the contract of 1883, would impair its obligation 2 Wis. Laws 1891, p. 321, chap. 59.

The revised charter retained substantially the above provisions in the charter of 1883, and the following, among other, additions, were made:

'Sec. 4. No action shall be maintained by any person against the city, upon any claim or demand, until such person shall first have presented his claim or demand to the common council for allowance, and the same shall have been disallowed in whole or in part: Provided, That the failure of such common council to pass upon such claim within sixty days after the presentation thereof shall be deemed a disallowance thereof.

'Sec. 5. The determination by the common council, disallowing in whole or in part any claim, shall be final and conclusive, and a bar to any action in any court founded on such claim, unless an appeal shall be taken from the decision of such common council, as in this act provided.

'Sec. 6. Whenever any claim against the city shall be disallowed in whole or in part by the common council, such person may appeal from the decision of such common council, disallowing said claim, to the circuit court of the county in which the city is situated, by causing a written notice of such appeal to be served on the clerk of the city within twenty days after making the decision disallowing such claim; and by executing a bond to the city in the sum of $150, with two sureties, to be approved by the city attorney and comptroller, conditioned for the faithful prosecution of such appeal, and the payment of all costs that shall be adjudged against the appellant in the circuit court. The clerk, in case such appeal is taken, shall make a brief statement of the proceedings had in the case before the common council, with its decision thereon, and shall transmit the same, together with all the papers in the case, to the clerk of the circuit [court] of the county. Such case shall be entered, tried, and determined in the same manner as cases originally commenced in such court: Provided, however, That whenever an appeal is taken from the allowance made by the common council upon any claim, and the recovery upon such appeal shall not exceed the amount allowed by the common council, exclusive of interest upon such allowance, the appellant shall pay the costs of appeal, which shall be deducted from the amount of the recovery; and when the amount of costs exceeds the amount recovered judg- ment shall be rendered against the appellant for the amount of such excess.' 2 Wis. Laws 1891, p. 412, chap. 21, § 6.

It is not alleged in the complaint that the waterworks company, before commencing this action, presented its claims to the common council for allowance.

The company contends that, if the above provisions are construed to mean what the supreme court of Wisconsin have declared similar provisions in other municipal charters to mean, then such burdens and restrictions have been imposed upon the entorcement of its contract with the city of Oshkosh as to impair its obligations. This suggestion renders it necessary to ascertain the import of those decisions.

In Drinkwine v. Eau Claire, 83 Wis. 428, 430, 53 N. W. 673, it appeared that Drinkwine preferred a claim against the city of Eau Claire, which was disallowed by the common council. He appealed from that action of the council, and executed a bond which recited that he had appealed to the circuit court of Eau Claire county, and conditioned for the payment of all costs that should be adjudged against him by the court aforesaid, and not generally by the court, as prescribed by the statute. It was contended that the bond was insufficient, since, in the event of a change of venue in the case, the surety would...

To continue reading

Request your trial
76 cases
  • Dunn v. Love
    • United States
    • Mississippi Supreme Court
    • June 5, 1934
    ... ... People's Bank & Trust Company of Tupelo. From a decree ... granting the petition, the ... 336, 99 N.E. 1, Am. Dec. 1915C, 200; Bay ... City v. State Treasurer, 23 Mich. 499; Cooley's ... Const ... ...
  • Belle City Manufacturing Co. v. Frizzell
    • United States
    • Idaho Supreme Court
    • May 9, 1905
    ...81 P. 58 11 Idaho 1 BELLE CITY MANUFACTURING COMPANY v. FRIZZELL Supreme Court of IdahoMay 9, 1905 ... FOREIGN ... Sullivan, 116 Ill. 375, 56 Am. Rep. 776, 6 ... N.E. 183; Oshkosh W. W. Co. v. City of Oshkosh, 187 ... U.S. 437, 23 S.Ct. 234, 47 L.Ed ... ...
  • Home Building Loan Ass v. Blaisdell
    • United States
    • U.S. Supreme Court
    • January 8, 1934
    ...181 U.S. 548, 21 S.Ct. 703, 45 L.Ed. 994; Wilson v. Standefer, 184 U.S. 399, 22 S.Ct. 384, 46 L.Ed. 612; Oshkosh Waterworks Co. v. Oshkosh, 187 U.S. 437, 23 S.Ct. 234, 47 L.Ed. 249; Waggoner v. Flack, 188 U.S. 595, 23 S.Ct. 345, 47 L.Ed. 609; Bernheimer v. Converse, 206 U.S. 516, 27 S.Ct. 7......
  • Des Moines Joint Stock Land Bank of Des Moines v. Nordholm, 42076.
    • United States
    • Iowa Supreme Court
    • April 4, 1934
    ...Building & Loan Ass'n v. Hardy, 86 Tex. 610, 26 S. W. 497, 24 L. R. A. 284, 40 Am. St. Rep. 870;Oshkosh Water Works v. Oshkosh, 187 U. S. 437, 23 S. Ct. 234, 47 L. Ed. 249;Conley v. Barton, 260 U. S. 677, 43 S. Ct. 238, 67 L. Ed. 456; American & Eng. Enc. of Law (2d Ed.) vol. 15, 1056; Holl......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT