Lyon v. City of Elizabeth

43 N.J.L. 158
Supreme Court of New Jersey·Decided February 15, 1881·Published·Cited by 6 cases

Opinion

The opinion of the court was delivered by

Van Syckel, J.

The plaintiff having recovered a judgment against the city of Elizabeth in this court, caused a writ of fieri facias to be issued thereupon, by virtue of which the sheriff of Union county has levied upon eight several lots of land in said city, and advertised the same for sale to satisfy said judgment.

Lots numbers 1, 2, 3, 4 and'7 were purchased by the city at a sale made under the authority of the city charter for unpaid taxes assessed thereon.

Lots numbers 5 and 6 were conveyed to the city for the purpose of erecting school-houses thereon for public schools, but no school-house has, as yet, been erected upon either lot.

Lot number 8, upon which there is a dwelling-house, is a lot lying within the exterior lines of a public street recently laid out by the city. The lot has been condemned for the purposes of the highway, but the house has not yet been removed, and is rented to a tenant.

[160]*160On behalf of the city, application is made to set aside this levy.

In England an action would not lie against a quasi political corporation for breach of duty except by force of positive law, as in the case of neglect to make hue and cry, for which an action was given against the hundred by the statute of Win ton. 13 Edw. I.

Upon the rendition of judgment the remedy for enforcing its payment was not by execution against the property of the corporation, but by levying the damages out of the property of any one or more of the persons within the limits corporate.

Outside of the New England States it has never been held that the creditors of a municipal corporation can resort to the individual property of the inhabitants to satisfy a judgment obtained against the corporate body.

The practical construction of the courts in New England has been that in an action by or against a municipal corporation, every member of it is a party to the suit, and upon that ground the practice there held has been maintained. Chase v. Merrimack Bank, 19 Pick. 564; Beardsley v. Smith, 16 Conn. 368.

In Bees v. City of Watertown, 19 Wall. 107, this practice was pronounced to be indefensible, and contrary to the fundamental principle embodied in the constitution of the United States, that no man shall be deprived of his property without due process of law.

In suits against municipal corporations the individual citizen is not a party to the proceeding, he is not served with process and has no opportunity of being heard in his defence.

It seems to be clear, also, that a fi. fa. against the public property of a municipal corporation is unknown to the common law. The reason why, in the absence of express legislative sanction, these political divisions of the state cannot be subjected to such process, is obvious.

Municipal corporations are erected for political purposes only, and are mere instrumentalities through which the legislature administers the civil policy of the state.

[161]*161The legislature delegates to them such measures of political power as may be deemed essential for the efficient administration of their local affairs and for the government of the people within the corporate limits.

Their control of property is intended only for corporate purposes, and is to be applied only to promote the objects for which they are erected into governments.

The taxing power ordinarily furnishes the only means they possess for raising the revenue essential to defray their expenses.

The municipality cannot, in the absence of express legislation, be deprived of the means indispensable to the exercise of the functions with which it is charged.

Otherwise a judgment creditor, by force of an execution, could destroy the corporate powers by withdrawing the resources, without which they cannot be exercised.

It would be manifestly contrary to the theory upon which a part of the sovereignty of the state is delegated to local governments to concede to an individual the right thus to arrest their operations.

The unrestricted right in the creditor to pursue the corporation by execution could, for all practical purposes, as effectually annul a city charter as its absolute repeal. Monaghan v. City of Philadelphia, 28 Penna. St. 207; Schaffer v. Cadwallader, 36 Penna. St. 126 ; City of Chicago v. Hasley, 25 Ill. 595; Dill. on Mun. Corp., §§ 446, 686; Commonwealth v. Perkins, 43 Penna. St. 400; Frank v. Chosen Freeholders of Hudson, 10 Vroom 347.

In a recent decision by the Supreme Court of the United States, (Meriwether v. Garret, 102 U. S. 472,) the immunity from execution of property held by a city for public uses was very broadly recognized.

In Emeric v. Gilman, 10 Cal. 404, Justice Field says:

“ Whoever becomes a creditor of a county must look to its revenues alone for payment. The statute authorizes a suit against the county by which the demand may pass into judg[162]*162ment, but it has given no remedy by execution, and when.the judgment is rendered the plaintiff must resort to mandamus.”

Mr. Freeman, in his work on Executions, section 22, takes the same view:

“A judgment against a county or muncipal corporation is ordinarily no more than the mere establishment of a valid claim, for which it is the duty of the proper officers to provide means of payment out of the revenues of the defendant. It is error to award or issue execution on such judgment.”

There are cases which hold that a political corporation is impressed with a dual character, the one public, the other private. In the exercise of their powers, governmental and public, they are clothed with the immunities of sovereignty. When they step outside of the domain where they are engaged strictly in the exercise of sovereign powers, and make contracts in their private capacity, they incur the responsibilities of individuals or private corporations. Lloyd v. Mayor of New York, 1 Seld. 369; Clarke v. Rochester, 24 Barb. 446, 482.

Assuming that when they make, an engagement in their private capacity, the law will' afford every remedy incident to the enforcement of ordinary contracts, property acquired for, and employed in the discharge of their sovereign functions, could not be diverted to the satisfaction of obligations resting upon them in their character of private corporations. Logically, property held in their private capacity, could alone be appropriated to the liquidation of such private claims, by process of execution.

But it is insisted that by force of the first section of the act concerning judgments (Rev., p. 520,) all lands are liable to be levied on and sold by execution, whether the property of individuals or municipal corporations.

By the common law, execution went against lands or tenements of the defendant at the suit of the king only. The plaintiff could have satisfaction only of goods, chattels and the present profits of lands by fieri facias or

Free access — add to your briefcase to read the full text and ask questions with AI

Lyon v. City of Elizabeth, 43 N.J.L. 158 (N.J. 1881).

43 N.J.L. 158 (Lyon v. City of Elizabeth) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

First Nat. Bank of Chicago v. BMPA
768 A.2d 1066 (New Jersey Superior Court App Division, 2001)
Jersey Central Power & Light Co. v. Kingsley Arms, Inc.
637 A.2d 1303 (New Jersey Superior Court App Division, 1993)
ESSEX CTY. BD. OF TAXATION v. City of Newark
353 A.2d 535 (New Jersey Superior Court App Division, 1976)
County of Bergen v. Dept. of Pub. Util. of NJ
284 A.2d 543 (New Jersey Superior Court App Division, 1971)
Grosso v. City of Paterson
157 A.2d 868 (New Jersey Superior Court App Division, 1960)