Ladd v. City of Portland

51 P. 654, 32 Or. 271, 1898 Ore. LEXIS 36
CourtOregon Supreme Court
DecidedJanuary 10, 1898
StatusPublished
Cited by11 cases

This text of 51 P. 654 (Ladd v. City of Portland) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ladd v. City of Portland, 51 P. 654, 32 Or. 271, 1898 Ore. LEXIS 36 (Or. 1898).

Opinion

Mr. Justice Bean

delivered the opinion.

This is a suit to restrain the collection of an assessment for street improvements. The facts, in brief, are that by article VI of.the charter of East [272]*272Portland, adopted in 1870, the board of trustees was authorized and empowered to improve the streets and parts of streets within the limits of the city at the expense of the abutting property; but it was provided (section 27) that, when a street “has been once improved, under and by virtue of the provisions of this chapter, thereafter such street or part thereof is not subject to be again improved, but may be repaired”: Laws 1870, page 156. Under the power thus delegated, the board of trustees of East Portland, in 1883, made a full improvement of Fifth street in front of plaintiffs’ property by building to the established grade an elevated roadway thirty-six feet wide, with an elevated sidewalk twelve feet wide on each side thereof, and assessed the cost upon the abutting property, which assessment was duly paid by plaintiffs’ predecessor in interest. Afterward, and in 1891, the cities of Portland, East Portland, and Albina were, by an act of the legislature, consolidated into one municipality, under the name • of the City of Portland, and the several acts of incorporation of the respective cities repealed: Laws 1891, page 796. In 1893 (Laws 1893, page 810) the present charter of the City of Portland was passed, and the'act of 1891 repealed, all vested rights being reserved. By chapter IX the council is given power and authority, whenever it deems it expedient, to improve any street or part thereof, and assess the cost on the abutting property. Under the authority thus granted, the common council, in 1894, proceeded to and did improve said Fifth street along and in front of the plaintiffs’ [273]*273property, formerly improved under the East Portland charter of 1870, assessed the cost thereof against the abutting property,-and was threatening to enforce its collection when this suit was brought.

Plaintiffs contend that the provisions of the act of 1893, authorizing such improvement at the expense of the owners of abutting property, are unconstitutional and void, under the clause of the federal constitution which forbids the states to pass any law impairing the obligations of a contract. The argument is that the provision of the charter of the former City of East Portland, under which the first improvement was made, that when a street had been once improved it should not be subject to be again improved, constituted, when the street had in fact been improved, a contract between the public and the property owner by which the state for all time so tied up its hands as to preclude it from granting to the municipality the power to reimprove the street, except out of the general fund, and at the expense of the entire property of the city. It is familiar law that any legislation by a state which impairs in any respect the obligations of a valid contract between individuals, or between the state or one of its governmental agencies ánd any ■ person or corporation, is violative of the provisions of the federal constitution referred to, and void. This doctrine has been so often announced by the Supreme Court of the United States, beginning with Fletcher v. Peck, 10 U. S. (6 Cranch) 87, and the Dartmouth College Case, 17 U. S. (4 Wheat.) 518, that the principles upon which it rests, as [274]*274said by Mr. Justice Swayne in Von Hoffman v. City of Quincy, 71 U. S. (4 Wall.) 535, “are now axiomatic in American jurisprudence, and are no longer open to controversy.” And it may be regarded as equally well settled, though not without protest on the part of the state courts and the earnest dissent of-several of the federal judges, that a contract by the state granting immunity from taxation to an individual or corporation is within the constitutional provision inhibiting the passage of laws by the state impairing the obligations of contracts: Cooley on Constitutional Limitations, *274. See, also, Mr. Russell’s admirable article in 30 Am. Law Rev. 321, on the “ Status and Tendencies of the Dartmouth College Case.” The controversy in the case before us lies, therefore, in very narrow limits. The only question is whether the provisions of the charter of East Portland, under which the street was improved in 1883, was a contract between the public and the owner that such property should thereafter, for all time, be exempt from special taxation for the improvement of the street in front thereof. If so, the plaintiffs are entitled to the relief demanded. If not, the suit should be dismissed.

The supreme court of the United States, in interpreting the clause of the constitution now under consideration, has always taken the terms thereof in their ordinary meaning, and holds that the word “contract,” as used therein, means a voluntary agreement of minds, upon a sufficient consideration, to do or not to do certain things: Murray v. [275]*275Charleston, 96 U. S. 432; Louisiana v. Mayor, etc., of New Orleans, 109 U. S. 285 (3 Sup. Ct. 211); Fisk v. Jefferson Police Jury, 116 U. S. 133 (6 Sup. Ct. 329). And in our opinion the legislation in question has none of the essential ingredients of such a contract. The power to assess the costs of the improvement of a street upon abutting property is embraced within the sovereign power of taxation primarily in the legislature, but which it may constitutionally delegate to local municipal governments, with or without restraints or limitations; but it is “ never presumed to be relinquished unless the intention to relinquish is declared in clear and unequivocal terms”: Philadelphia Railroad Company v. Maryland, 51 U. S. (10 How.) 394. And even then, if the exemption is not supported by some consideration, it may be revoked at any time: Rector, etc., of Christ Church v. County of Philadelphia, 65 U. S. (24 How.) 300. The charter of East Portland, under which the first improvement was made, was a partial delegation of such power to the city, and, when once exercised, was exhausted, — not, however, by reason of any contract between the public and the lot owner, nor because the power of taxation in the state was not adequate to require an assessment for the reimprovement of the street, but because the power delegated to the city had by its express terms ceased to exist. And how can this provision of the charter be tortured into a contract? It does not purport to be one, for it makes no offer of exemption to the landowner, either expressly or impliedly, in consideration of the performance of some [276]*276voluntary act on his part; nor does it ask or agree to accept anything from him which the state could not have unconditionally exacted. The assessment of the cost of improving the street in front of his property was an exercise of sovereignty, and a proceeding in invitum. He was simply required to discharge a duty which he owed to the public, and the performance of which cannot by any show of reason be construed into a consideration moving from him to the state upon which a contract can be supported.

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Bluebook (online)
51 P. 654, 32 Or. 271, 1898 Ore. LEXIS 36, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ladd-v-city-of-portland-or-1898.