Home Owners' Loan Corp. v. City of Tacoma

102 P.2d 832, 4 Wash. 2d 166
CourtWashington Supreme Court
DecidedMay 20, 1940
DocketNo. 27721.
StatusPublished
Cited by6 cases

This text of 102 P.2d 832 (Home Owners' Loan Corp. v. City of Tacoma) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Owners' Loan Corp. v. City of Tacoma, 102 P.2d 832, 4 Wash. 2d 166 (Wash. 1940).

Opinion

Simpson, J.

This action was brought by plaintiff to collect from defendant a total of $2,248.85 paid to it by plaintiff under protest in satisfaction of defendant’s demands for payment of delinquent water and light charges for past services to residence properties now owned by plaintiff and located in the city of Tacoma.

Trial was had to the court sitting without a jury. The court rendered judgment in favor of defendant, except as to an amount conceded to have been an overcharge. Plaintiff appeals.

The undisputed facts are these: Between November 6, 1933, and June 20, 1936, appellant made mortgage loans to various persons owning residence properties in the city of Tacoma. Thereafter, appellant acquired title to the properties either by foreclosure or by deed in satisfaction of the mortgages. Respondent owns and operates its own water works and the electric light and power plants and has a monopoly in the furnishing of water and electric light and power services within the limits of the city.

Respondent asserted its right to collect from appellant in all cases involved herein the balance due it as of June 7,1933, for water or electrical services rendered by it to each of the properties prior to that date. Appellant, realizing it was not possible to sell or rent its properties without making available the water and light services rendered, paid the amounts demanded by the city and sought reimbursement in this action.

In the case of each property involved, respondent, prior to appellant’s acquisition of title and right to possession, exercised its privilege to discontinue its ser *168 vices at least more than once, and in most cases it was exercised many times. In each instance, however, the services were resumed without a demand or insistence on the part of respondent that the balance owing as of June 7, 1933, first be paid in full.

Respondent bases its rights upon the provisions of chapter 161, §§ 1 and 2, Laws of 1909, p. 617, Rem. Rev. Stat., §§ 9471 and 9472, as amended by chapter 135, Laws of 1933, p. 473, Rem. Rev. Stat. (Sup.), §9471 [P. C. § 1225].

The original sections read as follows:

§ 9471. “Liens for unpaid charges. Cities owning their own waterworks, electric light or power plants, are hereby granted a lien for delinquent and unpaid charges for water or electric light or power, against the premises to which the same has been furnished.”
§ 9472. “Enforcement of lien. Said lien may be enforced by cities only by cutting off water or electric light or power against the premises to which the same has been furnished, after the charges become delinquent and unpaid, until such charges are paid. In the event of a disputed account, and tender by the owner of the premises of the amount claimed by him to be due prior to the city discontinuing such a service, the right to so refuse service to any premises shall not accrue until suit has been entered by the city, and judgment entered in such case.” (Italics ours.)

June 7, 1933, the amendment of that year became effective and reads as follows:

“Liens for unpaid charges. Cities owning their own waterworks, electric light or power plants, are hereby granted a lien for delinquent and unpaid charges for water or electric light or power, against the premises to which the same has been furnished: Provided, That the owner, or the owner of a delinquent mortgage on, of said premises may give written notice to the superintendent or other head of such works or plants to cutoff service to said premises, and from and after the giving of such notice and the payment or tender of the *169 then delinquent and unpaid charges against such premises for such service and the cut-off charge, the city shall have no lien on the premises for charges for such services thereafter furnished, nor shall the owner, or the owner of a delinquent mortgage on, be held for the payment thereof: Provided further, That such liens shall not be for more than four months’ charges due or to become due, nor for any charges which have been due for more than four months.” Rem. Rev. Stat. (Sup.), § 9471.

Appellant contends that the charges which it was compelled to pay in order to secure the light and water services to its properties, were barred by the statute of limitations; that the statutory right of cut-off could be exercised by respondent, but that respondent by voluntarily resuming its services, without requiring payment for delinquencies antedating June 7, 1933, waived its right to insist, at a later date, upon payment by appellant.

The court determined that the statutes of limitation had no application to the right of respondent to refuse its services of light and water in order to enforce the collection of those delinquent accounts, and that respondent was not guilty of laches in any respect.

The first question presented is whether the statute of limitations applies to the so-called lien given to the city by §§ 9471 and 9472, supra.

These sections of the statute have been considered by this court in McCormacks, Inc. v. Tacoma, 170 Wash. 103, 15 P. (2d) 688; Metropolitan Life Ins. Co. v. Hansen, 179 Wash. 537, 38 P. (2d) 387; and Moran v. Seattle, 179 Wash. 555, 38 P. (2d) 391. In each of those cases, we upheld the right of a city to enforce its right to suspend service of water and light pending the payment of delinquent charges.

The amendment of 1933 does not have a retroactive effect, in that it does not destroy the rights the *170 city had prior to its effective date. Moran v. Seattle, supra.

Our statute of limitations limits the scope of its application by stating that:

“Actions can only be commenced within the periods herein prescribed after the cause of action shall have accrued, except when in special cases a different limitation is prescribed by statute; ...” Rem. Rev. Stat., § 155 [P. C. § 8160].

In Port Townsend v. Eisenbeis, 28 Wash. 533, 68 Pac. 1045, this court held that a tax lien created by a city charter was not subject to the statute of limitations. The charter provision under consideration provided:

“ Whenever any general or special tax has been levied as provided and authorized in chapter two of this act, the same shall have the effect of a judgment against the person, and every lien created by this act has the force and effect of an execution duly levied against all property of the person assessed; the judgment is not satisfied, nor the lien removed until the taxes are paid, and every tax due upon real property is a lien against the property assessed; and every tax due upon improvements upon real estate assessed to other than the owner of the real estate is a lien upon the land and improvements, and every part thereof shall bear interest at the legal rate from the time the same is delinquent until paid or collected.’ ”

In Childs v. Smith, 51 Wash. 457, 99 Pac. 304, 130 Am. St.

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Bluebook (online)
102 P.2d 832, 4 Wash. 2d 166, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-owners-loan-corp-v-city-of-tacoma-wash-1940.