Merchants National Bank v. City of East Grand Forks

102 N.W. 703, 94 Minn. 246, 1905 Minn. LEXIS 408
CourtSupreme Court of Minnesota
DecidedFebruary 17, 1905
DocketNos. 14,185—(207)
StatusPublished
Cited by15 cases

This text of 102 N.W. 703 (Merchants National Bank v. City of East Grand Forks) 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
Merchants National Bank v. City of East Grand Forks, 102 N.W. 703, 94 Minn. 246, 1905 Minn. LEXIS 408 (Mich. 1905).

Opinion

JAGGARD, J.

This was an action brought against the city of East Grand Forks to recover on certain warrants issued by that city, with interest. [248]*248That city entered into a contract for paving certain streets with one Thornton. As the work progressed, estimates due and payable in the succeeding month were furnished by the city engineer, and were allowed by the city council. Upon them, six warrants on the city treasurer, aggregating $8,000, were issued to the contractor, and .in course of time were duly presented for payment. Payment was refused for lack of funds. The treasurer indorsed the warrants as registered, and as drawing interest until presented for payment. These warrants were pledged to the plaintiff as collateral security for loans', and became its absolute property through foreclosure proceedings.

The defenses interposed were (1) the illegality of the contract; and (2) the contractor’s failure to perform. Upon the trial the court made rulings as to the evidence, and finally based its findings of fact and conclusions of law and order for judgment for the plaintiff, in the full amount claimed, upon the proposition that the contract was validated and the warrants legalized by section 9, c. 382, p. 695, Uaws 1903. The exceptions taken by the defendant at the time of the trial, and its assignments of error here, present clearly and fully to this court the question of the correctness of that ruling.

1. The first contention of the defendant was that the learned court below was in error, because the law itself was unconstitutional, inasmuch as it conflicts with section' 27, article 4, of the state constitution: “No law shall embrace more than one subject, which shall be expressed in its title.” The title of the act is as follows:

An act relating to public improvements heretofore or hereafter made in' all villages and in cities of ten thousand or less inhabitants, to the levying of assessments to defray the expenses thereof, and to the issuance of evidence of indebtedness in anticipation of their collection.

The first eight sections of the chapter provide procedure for cities and villages of less than ten thousand inhabitants in making improvements in general, and also provide for payment by means of local assessments. Section 9 reads as follows:

Whenever any village or city within the purview of this act has heretofore made or caused to be made any such improvement or has issued evidences of indebtedness to defray the cost of [249]*249any such improvement in whole or in part, all undertakings and agreements and all proceedings of whatever nature had or made by it with reference to such improvement, and any such evidence of indebtedness are hereby validated and legalized.; and such village or city is hereby empowered to complete the same, to pay any such evidences of indebtedness already issued, and to provide funds for the completion of any such improvement by proceeding as in this act provided.

One objection to the title of the act is based on its argued failure to give to. any person interested reasonable notice of the character of the legislation, and to set forth that the act legalizes any contract or suspends the operation of laws limiting the indebtedness of cities. An examination of the title, however, shows that it clearly and adequately indicates the subject-matter which follows, and is well designed to su1'"erve purposes of indexing. It expressly refers to improvements “heretofore or hereafter made.” The first eight sections relate to improvements thereafter made; the ninth section, to improvements theretofore made. The title does not set forth the whole of the statute, nor is this essential. The courts have inclined to a reasonable, but liberal, construction of the constitutional inhibition.. It is sufficient if the title is “fairly suggestive.” “It was not intended to embarrass legislation by making laws more restrictive in their scope and operation than is reasonably necessary in order to conserve the purpose for which the constitutional limitation was adopted.” Winters v. City of Duluth, 82 Minn. 127, 84 N. W. 788; Ek v. St. Paul Permanent Loan Co., 84 Minn. 245, 84 N. W. 844; State v. Board of Control, 85 Minn. 165, 88 N. W. 533; State v. Board of Co. Commrs. of Renville County, 83 Minn. 65, 85 N. W. 830; Lien v. Board of Co. Commrs. of Norman County, 80 Minn. 64, 82 N. W. 1094; State v. Cassidy, 22 Minn. 312.

The second objection to the title, on the ground of duplicity, is not well taken. The act, taken as a whole, provides a complete code to1 be followed by cities of a certain class with respect to public improvements. It was designed to enable such cities to extricate themselves from preceding complications (section 9), and to proceed in the future in an orderly and effective way (sections 1 to 8). Section 9 is entirely germane to the general subject. “To constitute duplicity of subject,” said Justice Mitchell in Johnson v. Harrison, 47 Minn. 575, 50 N. W. [250]*250923, “an act must embrace two or more -dissimilar and discordant subjects, that by no fair intendment can be considered as having any legitimate connection with or relation to each other.” And see In re Piedmont Avenue East, 59 Minn. 522, 61 N. W. 678; State v. Starkey, 49 Minn. 503, 52 N. W. 24; City of Crookston v. Board of Co. Commrs. of Polk County, 79 Minn. 283, 82 N. W. 586.

2. The second contention of the defendant was that a vested cause of action is beyond legislative impairment, and that a vested right to an existing defense is equally protected, saving only those which are based on informalities not affecting substantial rights, and which do not touclu the substance of the contract, and are not based on equity and justice. Justice Matthews, in Pritchard v. Norton, 106 U. S. 124, 132, 1 Sup. Ct. 102; and see Farnsworth L. & R. Co. v. Commonwealth T. I. & T. Co., 84 Minn. 62, 86 N. W. 877. Because, “in the nature of things, there can be no vested right to violate a moral duty or to resist the performance of a moral obligation.” Grinder v. Nelson, 9 Gill (Md.) 299.

The decision of this branch of the case is not, however, determined by limitations placed by the constitution upon the power of the legislature to affect private property. The question here is whether the state legislature has the power to impose upon a municipal corporation the payment of certain disputed obligations. The result of the exercise of that discretion is upon taxation. Now, it is well settled that the power which the legislature may “exercise over the revenues of the state it may exercise over the revenues of a city for any purpose connected with its present or past condition.” Justice Field in New Orleans v. Clark, 95 U. S. 644, 654. In following this case, Justice Peckham says in Guthrie Nat. Bank v. Guthrie, 173 U. S. 528, 537, 19 Sup. Ct. 513: “In the exercise of this jurisdiction over municipal corporations by the state or by the territorial legislature, no constitutional principle is violated.

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Bluebook (online)
102 N.W. 703, 94 Minn. 246, 1905 Minn. LEXIS 408, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merchants-national-bank-v-city-of-east-grand-forks-minn-1905.