Flambeau River Lumber Co. v. Chippewa & Flambeau Improvement Co.

236 N.W. 679, 204 Wis. 602, 1931 Wisc. LEXIS 372
CourtWisconsin Supreme Court
DecidedMay 12, 1931
StatusPublished
Cited by2 cases

This text of 236 N.W. 679 (Flambeau River Lumber Co. v. Chippewa & Flambeau Improvement 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
Flambeau River Lumber Co. v. Chippewa & Flambeau Improvement Co., 236 N.W. 679, 204 Wis. 602, 1931 Wisc. LEXIS 372 (Wis. 1931).

Opinion

Rosenberry, C. J.

Upon the trial the court made and filed exhaustive findings of fact and an opinion discussing [605]*605the law applicable to the facts in a helpful way. We do not find it necessary, in order to dispose of the issues presented on this appeal, to set out either the opinion or the findings of fact.1 The questions presented are (1st) whether the Improvement Company can be held for damages under the facts in this case; (2d) if it be held that the Improvement Company is liable for damages, then whether or not the trial court correctly ascertained the damages for which the plaintiff is entitled to recover; (3d) whether the right of navigation of the Flambeau river for logs and forest products is subject to reasonable regulation under ch. 640 of the Laws of 1911, and if so, whether that part of the judgment which perpetually enjoins the defendant Improvement Company from reducing the flow below 1,300 cubic feet per second, measured at the United States gauging station near Butternut, can be sustained. Such facts as are necessary to present the questions raised for decision will be stated.

The plaintiff has its principal place of business and office in the city of Ladysmith, where for many years it has conducted the business of logging and lumbering, including the cutting of timber and the transportation thereof mainly by water down the Flambeau river to its sawmill located in the city of Ladysmith. Its mill produces 100,000 feet of softwood lumber in ten hours’ run. In the winter of 1924 — 25 the plaintiff cut and banked on the Flambeau river above Babbs Island, ready for the spring drive, 8,790,850 feet of timber. It started its drive on the 3d of April, 1925, at which time the water in the river was very low and continued to fall until log-driving became impracticable. Under the conditions as they existed, the plaintiff was engaged for a period of five weeks in getting its log-drive to the junction with the South Fork of the Flambeau river, and after continuing work on the drive until June 29, 1925, it was [606]*606obliged, for lack of water at Cedar Rapids, a few miles below the junction of the Forks, to abandon the drive. In the winter of 1925-26 plaintiff cut and placed on the ice of the river for driving, above Babbs Island, 3,797,460 feet of logs and started its drive on April 15, 1926. Thereafter the water was lower than in 1925 and continued to drop, and driving progressed with great difficulty. While the water in the South Fork was high, the plaintiff was without a driving stage of water in the North Fork. The failure of the drives in the spring of 1925 and 1926 is claimed by the plaintiff to be due to the wrongful withholding of the water in the North Fork of the Flambeau river. Plaintiff alleges that by reason of such withholding it had been obliged to expend $7,400 in addition to normal expenses in the spring of 1926; that it lost' by sinkage of logs in 1925 and 1926 pine logs of the value of $4,536.48 and hemlock logs of the value of $41,909.41; that said sinkage was greatly in excess of the normal sinkage of logs and was mainly due to the fact that the two drives were hung up as a result of the wrongful withholding of water. Upon the advice of counsel, plaintiff did not purchase any timber or attempt to make any log-drive after it had completed the 1926 drive. This action was begun in the áutumn of 1927, and except for a brief operation in the summer of 1927 plaintiff has not operated its sawmill since finishing the summer season of 1926. The plaintiff sought to recover loss of profits for the years 1927, 1928, and 1929.

On behalf of the Improvement Company it is argued that under the provisions of ch. 640 of the Laws of 1911 it is a state agent and therefore not liable for wrongs done by it, and to sustain this proposition the Improvement Company relies on Northern Transp. Co. v. Chicago, 99 U. S. 635, 25 Lawy. Ed. 336. In that case the city had constructed a cofferdam in the river so as to interfere with the plaintiff’s [607]*607access to its dock. A suit was brought to recover for the resulting damage. The supreme court of the United States said:

“It is undeniable that in making the improvement of which the plaintiffs complain the city was the agent of the state, and performing a public duty imposed upon it by the legislature; and that persons appointed or authorized by law to make or improve a highway are not answerable for consequential damages, if they act within their jurisdiction and with care and skill.”

It is hardly necessary to point out the distinction between an act done by a city pursuant to direction of the legislature in the improvement of a highway and the acts of the Improvement Company complained of by the defendant in this case. The defendant is a corporation organized for profit, and while the rate of return is limited by the terms of the act, the stock in the Improvement Company was to be held by the respective water-power producers in proportion to the capacity of their respective plants and substantial benefits were expected to accrue to the respective owners of these plants by reason of the increased production of electric power in their plants. The declared purpose of the act was to improve navigation and regulate the flow of the stream. In order to accomplish this, certain powers were conferred upon the Improvement Company, and in the exercise of those powers it was subject to the order of the Railroad Commission and exercising a power which was public in its nature. It had the right of eminent domain, it had the right to obstruct streams by the erection of dams; but the fact that in doing these things it was exercising a power derived from the state did not render it immune from liability for damages for its wrongful acts committed in the exercise or in excess of its authority. It was a state agency in the same sense that boom companies, ferries, railroads, and other like [608]*608agencies may be said to be state agencies. It was in no sense and to no extent an agency performing a governmental function. It had been granted certain powers possessed by the sovereign for the purpose of carrying out a declared public purpose. A perusal of ch. 640 of the Laws of 1911 makes this perfectly apparent. We shall not indulge in an analysis of the chapter. The most superficial examination of it discloses this fact.

(2d) The question then arises whether or not the plaintiff’s damages have been correctly ascertained. Upon this proposition the trial court found as follows:

“The plaintiff sustained heavy losses because of its inability to get its log-drive to its mill in the spring of 1925. Its cost of driving its logs to the point where the same were hung up on Cedar Rapids was largely in excess of the amount it ordinarily would have cost on a good driving stage of water to get its logs to the mill, and by reason of being deprived of the logs for manufacture 'in the' year 1925 and its manufacturing costs on the logs which it received otherwise and manufactured, was largely increased, but none of such losses were chargeable to any wrongful acts of the defendant Improvement Company.
“By reason of the withholding of the water of the river by the defendant Improvement Company in the spring of 1926 the plaintiff was put to additional expenses in its log-driving and was obliged to pay over and above what it would have cost the plaintiff to drive its logs to the mill $7,400.

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Cite This Page — Counsel Stack

Bluebook (online)
236 N.W. 679, 204 Wis. 602, 1931 Wisc. LEXIS 372, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flambeau-river-lumber-co-v-chippewa-flambeau-improvement-co-wis-1931.