Chapman Valve Manufacturing Co. v. Oconto Water Co.

60 N.W. 1004, 89 Wis. 264, 1895 Wisc. LEXIS 125
CourtWisconsin Supreme Court
DecidedFebruary 5, 1895
StatusPublished
Cited by15 cases

This text of 60 N.W. 1004 (Chapman Valve Manufacturing Co. v. Oconto Water Co.) is published on Counsel Stack Legal Research, covering Wisconsin Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chapman Valve Manufacturing Co. v. Oconto Water Co., 60 N.W. 1004, 89 Wis. 264, 1895 Wisc. LEXIS 125 (Wis. 1895).

Opinion

NbwMAN, J.

The instant case is an action for a statutory lien upon the entire waterworks plant of the defendant, or, if that is denied, upon the valves furnished by the plaintiff, as machinery which may be removed.

In Wilkinson v. Hoffman, 61 Wis. 637, this court held, on grounds of public policy and convenience, that a mechanic’s lien was not given by sec. 3314, R. S., against machinery placed in a building which was a part of a waterworks plant owned by a city and held for public use. It was said that: “ The public inconvenience which wpuld result from having such machinery removed is too obvious and grave to require any discussion. The comfort, health, safety, and property of the citizens would be greatly endangered by allowing the facilities for procuring water to be suspended, even for a short period. In view of the serious consequences which would result by allowing the lien to attach to machinery thus used, and which more than countervails any private advantage, we are inclined to hold that the provision does [272]*272not apply in the case before us.” And so the court held, “ on grounds of public necessity and convenience,” that a lien was not given by the statute on property so held for public use. '

The city of Oconto has provided for the supply of the water necessary for its protection against fire, and for all the uses of its citizens, by a contract with the defendant, which is a corporation specially organized for that purpose, for the term of thirty years. The defendant’s system of waterworks was constructed under an ordinance of the city, which directed, in considerable detail, the manner of its construction, extent and capacity of the plant, and the manner of its operation. It also gave it a franchise to construct and operate its works for thirty years. After the plant was completed, the city accepted it by an ordinance which declared it to be constructed in accordance with the ordinance and the franchise conferred. In this manner the city provided itself with a system of waterworks for the protection and convenience of its inhabitants. It became and was the waterworks of the city of Oconto. It is manifest that the inconvenience and danger which must result from a stoppage of the operation of the waterworks, or from any interference with their use and operation, to the city and to its inhabitants, would be equally grave and important whether the system was owned and operated by the city or whether the city owned only the right to have it operated for its benefit and for the benefit and protection of its citizens. The effect of enforcing a lien upon the valves, as machinery Avhich might be removed, would be to dismantle the plant and stop its operation for a time at least, and to deprive the city and its inhabitants of its protection and use in either case. So the case comes within the rule of Wilkinson v. Hoffman, 61 Wis. 637, and the lien upon the valves must be denied.

To extend the lien over the entire plant would bring a like [273]*273.mischief and inconvenience. Tbe 'lien could, by tbe terms of tbe statute, extend only to and include tbe entire plant, vitb all tbe interest which the defendant has in tbe land on which tbe plant is situated. Tbe statute, in terms, gives no more. Tbe defendant has an oral contract with tbe city for tbe purchase of tbe lots on which its piunping works stand, and tbe franchise to lay its main pipes and hydrants in tbe streets. It has no other or further interest in tbe land. Perhaps this is a sufficient interest to support a lien, in an ordinary case, upon tbe plant, with tbe interest in tbe land. But in terms tbe statute gives no more. It gives no lien upon or right to sell tbe franchise to operate tbe works. Whether tbe statute shall be extended by construction to •cases not within its express terms may depend somewhat on its subject matter as related to questions of public policy and convenience. Tbe effects and consequences which may result from an enlarged construction of tbe statute may be •considered in determining its proper construction. If it shall be held that tbe plaintiff has a lien which covers tbe plant, then tbe plant may be sold to satisfy tbe ben. It will then come to a purchaser who has no franchise to operate it, for tbe statute does not give a ben upon tbe franchise. Nor does it provide that tbe franchise sbab fobow tbe plant on sale under a ben judgment. Nor does tbe franchise follow tbe plant by force of tbe rule that tbe incipient follows its principal. If that maxim bas any application, it should be considered that tbe franchise is tbe principal thing. AU other rights spring from tbe franchise. Tbe franchise is a grant in gross of an incorporeal hereditament, and is not appurtenant to any particular land or property. Fond du Lac Water Co. v. Fond du Lac, 82 Wis. 322. It would not follow the plant on sale under a ben judgment. It is neither subject to tbe ben, by provision of tbe statute, nor fobows tbe plant on sale as an incident fobows its principal. It is not appurtenant to the plant. Nor can tbe [274]*274plant be sold separately from the franchise to operate it. The franchises and corporate rights of a company, and the-means vested in them, which are necessary to the existence and maintenance of the object for which they were created,, are incapable of being granted away or transferred by any act of the company itself, or by any adverse process against' it, — unless it is authorized by a statute. Yellow River Imp. Co. v. Wood Co. 81 Wis. 554; Foster & Co. v. Fowler & Co. 60 Pa. St. 27; 8 Am. & Eng. Ency. of Law, 634, and cases cited in notes. To sell the plant to a purchaser who had no franchise to operate it would work all the public mischief and inconvenience which its total destruction would cause. Besides, a sale of the plant separate from the franchise would be a delusive remedy to the plaintiff. The plant without the franchise is practically without value, a consideration which shows that that cannot be the plaintiff’s remedy. Nor has a court of equity power to extend the lien, over rights not made subject to it by the statute. So it must be held that no mechanic’s lien is given by the statute-upon a waterworks plant which a city has provided for the-protection and convenience of its citizens by a contract with a corporation organized for that purpose.

The court has not overlooked nor failed to appreciate the-force of the.learned and industrious opinion upon these same questions of Mr. Justice JjluKINS in the United States circuit court for the Eastern district of Wisconsin against the same defendant (National F. & P. Works v. Oconto Water Co. 52 Fed. Rep. 43), and affirmed by the circuit court of appeals (Oconto Water Co. v. Nat. F. & P. Works, 7 C. C. A. 603, 59 Fed. Rep. 19). While this court entertains the highest respect for the opinions of those learned courts, and for the distinguished ability of the judges who have pronounced and affirmed that decision, it has yet felt constrained to a different judgment by the force of its former decisions and by the logic of the situation. It is considered that the view it has-[275]*275taken in this opinion is in accord with the weight of authority and of the better reason.

By the Count.— The judgment of the circuit court is affirmed.

Upon a motion for a rehearing counsel for the appellant contended, inter alia, that the sale of the waterworks plant under a mechanic’s hen would carry with it the franchise to operate it. This is demonstrated by the authorities cited in. the opinion of Judge JeNKINS in 52 Fed. Rep.

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Cite This Page — Counsel Stack

Bluebook (online)
60 N.W. 1004, 89 Wis. 264, 1895 Wisc. LEXIS 125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chapman-valve-manufacturing-co-v-oconto-water-co-wis-1895.