Lenz v. Chicago & Northwestern Railway Co.

86 N.W. 607, 111 Wis. 198, 1901 Wisc. LEXIS 21
CourtWisconsin Supreme Court
DecidedSeptember 24, 1901
StatusPublished
Cited by19 cases

This text of 86 N.W. 607 (Lenz v. Chicago & Northwestern Railway 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
Lenz v. Chicago & Northwestern Railway Co., 86 N.W. 607, 111 Wis. 198, 1901 Wisc. LEXIS 21 (Wis. 1901).

Opinion

The following opinion was filed June 20, 1901:

Dodge, J.

The rights of parties similarly situated with those now before us were considered by this court in Kuhl v. C. & N. W. R. Co. 101 Wis. 42, which case, the respondent contends, is conclusive, as res adyudicata, upon the present. That contention, of course, cannot be sustained. The parties are not the same, and, as a decision in that proceeding would not have been conclusive against this petitioner, it cannot be conclusive in his favor.' So far, however, as the questions now presented are the same as those considered and disposed of in that case, the decision of the court is authoritative, upon the rule of stare decisis, unless we must now determine to overrule it.

The first position argued by appellant is that an abutting lotowner upon the opposite side of the street has no right to institute condemnation proceedings in reliance upon sec. 1852, Stats. 1898, for the reason that sec. 1296a, Stats. 1898, giving to the lotowner right to compensation, gives right of condemnation only to the railroad company. This question was squarely presented by the briefs of the opposing parties and was fully decided in favor of the petitioner in the Kuhl Case, and we see no reason to hesitate in yielding to that decision full authority now. That objection to the present proceeding must, therefore, be overruled.

It was further decided in the Kuhl Case that, if the Northwestern, as a consideration for the transfer, to it from the Lake Shore, assumed and promised and agreed to pay. all [202]*202the debts and obligations of said Lake Shore, and all just, claims against it,— as the court found in that case,— then it was liable upon that contract to the petitioner in a proceeding under sec. 1852, Stats. 1898, and that the statute of limitations upon such right of recovery commenced to run only upon the making of the deed containing such assumption of liabilities. Appellant now assails the holding that, original liability could thus be created against the Northwestern. It also contends that the evidence which is now before us does not support the finding. The first of these-contentions — that which assails the proposition of law decided in the Kuhl Oase — we have no hesitation in overruling. We are entirely satisfied with the conclusion reached, in that case. The second contention, however, was not ruled upon in that case, and must be considered. The deed merely recites, as one of its considerations, assumption by the Northwestern of all the existing debts, liabilities, and obligations of the Lake Shore. There is no other evidence of any agreement or assumption. Does that support the finding ? Appellant contends not, for several reasons: first, that the word “assumption” is not equivalent to an agreement to pay such liabilities; secondly, that, if it is, there is nothing to-support an inference of intention in the parties that the agreement was for the benefit of the petitioner, so as to give-him direct right of action thereon.

The contention that an agreement to assume a debt or-liability is not an agreement to pay it is supported by no argument beyond the fact that in nearly all the cases which have come before this court the phrase used has been assumes and agrees to pay.” The extent, therefore, to which such argument goes is to establish that we have not, in those-cases, been called on to decide the effect of “assumption”' alone. Other courts, however, have not been so exempt-industry of respondent’s counsel has discovered numerous instances of the use of the word'“ assume,” in all of which [203]*203it has been construed to include the duty of payment, if the assumption be of a debt, and of payment to the creditor. Braman v. Dowse, 12 Cush. 227; Locke v. Homer, 131 Mass. 93; Schley v. Fryer, 100 N. Y. 71; Stout v. Folger, 34 Iowa, 71; Sparkman v. Gove, 44 N. J. Law, 252; Mills v. Dow's Adm'r, 133 U. S. 423. No decision has been cited in contradiction of these holdings. They seem to us entirely correct in principle and reason-* upon the subject now under consideration. “ To assume ” is defined by the lexicographers as “to take upon one’s self,” “to undertake,” “to adopt.” Obviously, to take upon one’s self or to adopt the obligation or the liability of another is to put one’s self in the place of that other as to such obligation or liability, to become bound as such other was bound. An assumption is broader than a promise to pay, as “liability” or “obligation” is broader than “money debt” in significance; but the broader term naturally and necessarily includes the narrower, in the absence of exception. As the liabilities and obligations of the Lake Shore, though covering other things, clearly included its duty to pay debts, so the assumption by the Northwestern bound it to pay the debts, as well as to perform the other obligations of the former company. The reason for the use of the word “ assumption alone in this connection in the deed is rendered obvious in the light of the situation. LTo other would have been broad enough. The Lake Shore was a railway company in full operation. Its undertakings were, of course, various. Freighting contracts, rent and hire of switch, track, and dockage privileges, outstanding mileage tickets, maintenance of a steamboat line, are but a few of the liabilities and obligations under which it rested, and as to which its grantee undertook to perform all its duties. The assumption of a debt includes the duty to pay it as fully as if the latter words were used. We thus reach the conclusion that the evidence — namely, the deed — fully supports the finding that appellant did assume and agree to pay [204]*204all the existing, debts, liabilities, and obligations of the Lake Shore; not impliedly, as counsel suggest, but by express agreement, evidenced and declared by the deed under which title to the railroad property is held and enjoyed. Vilas v. Dickinson, 13 Wis. 488; Stites v. Thompson, 98 Wis. 329, 331.

The conclusion thus reached — that the finding is supported by the evidence — brings this case again to identity with the Kuhl Case on this immediate subject, for the finding there considered was in the same words. We might well rest our present decision on that authority, but it may be well to consider some of the earnest argument of appellant’s counsel against the existence of direct personal liability to petitioner. He urges upon us an intimation in Electric Appliance Co. v. U. S. Fidelity & G. Co. 110 Wis. 434, where it was said: “There are cases going to the limit of holding that, to entitle the third person to recover upon a contract made between other parties, there must not only be an intent to secure some benefit to such third person, but the contract must have been entered into directly and primarily for his benefit. .” . . We consider the true rule to be that there must not only be an intent to secure some benefit to the third party, but thei’e must be a promise, legally enforceable.” The insufficiency in .the bond under consideration in that case was that it did not require or promise any payment to the materialmen seeking to enforce it, merely protection to the obligee party; hence, of course, there was no apparent intent to benefit the materialmen. Clearly, if the performance of a contract must necessarily benefit the third person, am intent to accomplish that result must be presumed.

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Bluebook (online)
86 N.W. 607, 111 Wis. 198, 1901 Wisc. LEXIS 21, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lenz-v-chicago-northwestern-railway-co-wis-1901.