Lane v. Minnesota State Agricultural Society

29 L.R.A. 708, 64 N.W. 382, 62 Minn. 175, 1895 Minn. LEXIS 38
CourtSupreme Court of Minnesota
DecidedOctober 2, 1895
DocketNos. 9233-(41)
StatusPublished
Cited by40 cases

This text of 29 L.R.A. 708 (Lane v. Minnesota State Agricultural Society) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lane v. Minnesota State Agricultural Society, 29 L.R.A. 708, 64 N.W. 382, 62 Minn. 175, 1895 Minn. LEXIS 38 (Mich. 1895).

Opinion

START, C. J.

Tbis is an appeal by tbe defendant from an order overruling its demurrer to tbe complaint of tbe plaintiff, wherein sbe alleges tbat sbe was injured by tbe negligence of tbe defendant, September 10, 1891, while riding in a horse race conducted by tbe defendant on tbe State, Fair' Grounds. Two general propositions are urged by counsel in support of tbe demurrer: First. Tbat tbe defendant is a public board or corporation, organized for tbe sole purpose of discharging a governmental function; and therefore, as such public agent, it is not legally liable for tbe negligence of its officers, agents, and servants, or any of them. Second. Tbat tbe facts alleged in tbe complaint do not constitute negligence on the part of tbe defendant or its agents. If either proposition is correct, tbe demurrer is well taken; but we are of tbe opinion that, tested by tbe allegations of tbe complaint which are admitted, neither is correct.

1. Tbe state may and must commit the discharge of its sovereign political functions to agencies selected by it for tbat purpose. Such agencies, while engaged exclusively in tbe discharge of such public duties, do not act in any private capacity, but stand in tbe place of the state, and exercise its political authority. Therefore, when tbe state creates public corporations solely for governmental purposes, such corporations, while engaged in tbe discharge of tbe duties imposed upon them for tbe sole benefit of tbe public, and from tbe performance of which they derive no compensation or benefit in their corporate capacity, are clothed with tbe immunities and privileges of [177]*177the state; and no private action, in the absence of an express statute to that effect, can be maintained against them for negligence in the discharge of such duties. The liability of cities and other municipal corporations created by special charters for negligence in the care of their streets is an illogical exception to this rule, but the rule itself is too well settled, by the almost unanimous agreement of all of the authorities, to be now questioned or discussed. Snider v. City of St. Paul, 51 Minn. 466, 53 N. W. 763. The rule, however, has no application to private corporations, — that is, to those wrhich are organized by the voluntary act and agreement of their members for their own benefit, — although the creation of such corporations directly promotes the public interest and welfare. It is also subject to the qualification that public or quasi public corporations are not exempt from liability, to which other corporations are subject, for negligence in managing or dealing with property or rights voluntarily held by them for their own profit and advantage, although inuring ultimately to the benefit of the public. 2 Dillon, Mun. Corp. §§ 980-984; Oliver v. Worcester, 102 Mass. 489; Mersey Docks v. Gibbs, 11 H. L. Cas. 686; Glavin v. Rhode Island Hospital, 12 R. I. 411; Moulton v. Scarborough, 71 Me. 267; Hannon v. St. Louis Co., 62 Mo. 313.

The allegations of the complaint, standing alone, make a prima facie case of a private corporation, engaged, for its own benefit, in an undertaking outside of any public duties, viz. promoting, controlling, and conducting a horse race, — a case not within the rule of immunity applicable to public corporations, institutions, and agencies created solely for governmental purposes. The demurrer admits the corporate existence and acts of the defendant as alleged, but its counsel claims (1) that the court must take judicial knowledge of the general statutes of the state relating to the defendant and its organization, and read them as if they were incorporated in the complaint; and (2) that such statutes show that the defendant is a. public or quasi public corporation, organized for the sole purpose of discharging governmental functions.

We assume, without so deciding, that the first of these claims is correct, but we cannot take judicial notice of the provisions of the defendant’s articles of incorporation, adopted and filed pursuant to the statute under which it was organized; nor can we assume [178]*178that it has no capital or property derived from membership and entrance fees, from fees for admission to its exhibitions, and from the sale of privileges to private parties to conduct, upon the grounds controlled by it, a multitude of independent shows and enterprises. On the contrary, it is a matter of common knowledge that it does derive a large revenue from these sources, over which the state has no control. A consideration of the general laws relating to the defendant does not justify the claim of its counsel that it is not liable for the negligence alleged in .this action because it is within the rule of immunity to which we have referred. At the outset of our examination of such laws, we are embarrassed by the fact that there is nothing in the record to show when or under what particular law the defendant was incorporated. This necessitates a review of the entire legislation in reference to the defendant.

Pub. St. 1858, c. 17, §§ (334) (3-38), authorized the incorporation of agricultural societies of the character of the defendant, and by implication authorized a division of the property of the corporations upon dissolution. Laws 1860, c. 17, made ample provisions for incorporation of county agricultural societies. Section 2 of this act provided that such corporations should have perpetual succession, with the right to adopt a seal, constitution, and by-laws, to purchase, hold, sell, and convey all real and personal property ■necessary to promote the objects of the corporation, and to have police and full control of its grounds. Provision was made by section 3 for filing a copy of the constitution and by-laws of such corporations in the office of the register of deeds, and for the making of annual reports of their receipts and disbursements to the governor of the state. Sections 4, 5, and 6 provided for annual meetings of the societies, for the election of officers, and for two delegates from each county society, who, together with its president as delegate ex officio, were to represent their county in the state agricultural society. These delegates were to meet together, at the city of St. Paul, or such other place as a majority should determine, on the first Wednesday in February in each year, (see amendment, Laws 1864, c. 50,) and at the first meeting after the passage of the act file articles of their incorporation in the office of the secretary of state. Section 8 of this act declared that the State Agricultural So[179]*179ciety (presumably the defendant) “shall possess all of the powers enumerated in section two,” to which we have referred.

This chapter 17, Laws I860, was repealed by G. S. 1866, c. 122, but such repeal did not affect any act done or any right accruing or accrued or established under the statute before its repeal. Id. c. 121, § 4. Therefore, if the defendant became incorporated under this statute of 1860, its repeal did not work a dissolution of the corporation. This would seem to be so without reference to the saving clause of the repealing statute. The act of 1860 was substantially re-enacted by Laws 1867, c. 21. In 1868 the corporate existence of the defendant was expressly recognized by the legislature, which appropriated to it $1,000, and $2,000 pro rata to the several county societies, but no part of either appropriation was to be used for the payment of officers’ salaries or fees or as a premium for horse racing. Laws 1868, c. 19. This last act required the defendant to keep an account of the manner in which the state appropriations to it were expended, and transmit the same annually to the governor of the state.

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Bluebook (online)
29 L.R.A. 708, 64 N.W. 382, 62 Minn. 175, 1895 Minn. LEXIS 38, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lane-v-minnesota-state-agricultural-society-minn-1895.