Michigan Central R. R. v. State

7 Ill. Ct. Cl. 133, 1933 Ill. Ct. Cl. LEXIS 13
CourtCourt of Claims of Illinois
DecidedMarch 6, 1933
DocketNos. 555-556-565-565A-573, Consolidated
StatusPublished

This text of 7 Ill. Ct. Cl. 133 (Michigan Central R. R. v. State) is published on Counsel Stack Legal Research, covering Court of Claims of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Michigan Central R. R. v. State, 7 Ill. Ct. Cl. 133, 1933 Ill. Ct. Cl. LEXIS 13 (Ill. Super. Ct. 1933).

Opinion

Mr. Justice Thomas

delivered the opinion of the court:

These claims have been pending in this court for a number of years. They were consolidated for hearing, and on May 19, 1926, all were denied. A petition for rehearing was granted July 19, 1926, and they are now up for final hearing.

All the claims are for. the refund of fees paid into the State treasury by claimants under the provisions of Section 31 of the Public Utilities Act. Claimants had made application to the Public Utilities Commission for authority to issue bonds or equipment notes pursuant to the provisions of that Act. After the hearing on the applications the Commission granted the authority asked to each of claimants and ordered that the application “be, and it is hereby, charged an amount equal to ten cents for each One Hundred Dollars of bonds authorized by this order, and the same shall be paid into the State treasury before any of the said bonds shall be issued.” This order was in literal compliance with the provisions of Section 31 of the Act. Each claimant paid the amount of fees so assessed against it, and later filed suit in this court asking that the amount paid be refunded..

Claimants base their right to have the fees paid refunded on the ground that the order of the Commission requiring the payment of the fees “constituted an interference with and a burden upon interstate commerce contrary to the Third Paragraph of Section 8 of Article 1 of the Constitution of the United States and constituted a regulation and taxation of the property of claimants and of their business and of the exercise of their functions and of their right to have and use their properties outside of the State of Illinois and the taking of their property without due process of law, contrary to the Fourteenth Amendment of the Constitution of the United States.”

In their statement and argument claimants say: “It was thought by Mr. Harris, Mr. Cary and other attorneys for the claimants that Section 31 would be unconstitutional if construed literally to apply to every railroad company making applications for issues of stocks, bonds and other securities. That if so applied, whether to domestic or foreign corporations engaged in interstate commerce and having lines located outside of the State of Illinois, it would be a burden upon interstate commerce and a tax upon property beyond the jurisdiction of the Commission; and that as applied to a foreign would be a burden upon interstate commerce and deny due process of law and equal protection of the laws. These views were communicated by Mr. Cary to the members of the Commission before it began to function and were pressed upon the Commission from time to time ’’ etc. It thus appears that the Commission had before it the same questions relative to the legality of the fees assessed against claimants that are presented to this court. The Commission disagreed with the contention of claimants upon these questions and entered the order above mentioned in each case.

The fees paid in compliance with these orders and the dates of payment and of filing claims in this court for their refund are as follows: By the Michigan Central Railroad Co., No. 555, $4,000.00, paid March 25, 1915; suit filed for refund December 19, 1921. By the Michigan Central Railroad Co., No. 556, $8,000.00, paid March 6, 1917; suit filed for refund December 19, 1921. By the Cleveland, Cincinnati, Chicago, & St. Louis Railroad Co., No. 565, $7,000.00, paid June 13, 1914, and $1,725.00 paid January 21, 1915; suit for refund filed March 3, 1922. By the Cleveland, Cincinnati, Chicago & St. Louis Railroad Co., No. 565A, $20,000.00, paid July 3, 1919; suit for refund filed March 14, 1922. By the New York Central Railroad Co., No. 573, $12,762.40, paid March 4, 1920; suit for refund filed April 1, 1922. The total amount of all the fees paid by claimants is $53,487.40.

Counsel for claimants and the State have filed able and voluminous briefs and arguments in support of their respective contentions. In the view we take of the case it is only necessary to discuss two of them.

Claims No. 555 and 565 were not filed in this court within five years after they accrued. Section 10 of the Act creating the Court of Claims provides that “Every claim against the State, cognizable by the Courtof Claims shallbe forever barred unless the claim is filed with the secretary of the court within five years after the claim first accrues.” The State contends this law bars the allowance of these two claims. Claimants contend that as the law was passed after the claims accrued that it does not apply to them, and to apply it would make it retrospective. It is true that a retrospective law impairing the obligation of a contract or depriving one of a vested right cannot be enforced. But the right to come within this principle must be vested. There is no such thing as a vested right in a public law. Claimants had no vested right to sue the State in this court. The giving of that right was merely an Act of grace which the Legislature has the right to take away at any time. In providing that persons might present their demands against the State to the Court of Claims the Legislature merely established a new method of procedure. It had the right to change the method at any time or to abolish it altogether. In revising the Court of Claims Act in 1917 the Legislature deemed it proper to limit the jurisdiction of the court to claims filed within five years after they first accrued. The time within which a claim must be filed is not a limitation law, and the statute in force at the time the claim is filed is the statute which gives the court jurisdiction to hear the claims. It is manifest, we think, that the Legislature intended by this section to limit the jurisdiction of the court to claims filed within five years after they first accrued. And as these two claims were not filed within that time the court has no authority to allow them. But if Section 10 be held to be a Limitation Act the Legislature had the right to change the time within which claims might be filed if such change did not deprive claimants of a reasonable time in which to file their claims. “The time within which suit shall ■be brought relates solely to the remedy to enforce the contract, and it may be shortened or lengthened, and changed from time to time, at the pleasure of the Legislature, so long as the creditor is not denied a reasonable opportunity to enforce collection of his debt.” (Drury vs. Henderson, 143 Ill. 315-320.) “When the law only affects the remedy or procedure, the rule in this State is that all rights of action will be enforceable under the new procedure, without regard to whether they accrued before or after such change in the law and without regard to whether the suit has been instituted or not, unless there is a saving clause as to existing litigation.” (The People vs. Clark, 283 Ill. 221-225.) The fees in Claim No. 555 having been paid March 25, 1915, and the Act limiting the time within which to file claims being in effect July 1, 1917, that claimant had the time from July 1, 1917, to March 25, 1920, to file its claim for those fees, a period of over two years and eight months. The fees in claim No.

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Bluebook (online)
7 Ill. Ct. Cl. 133, 1933 Ill. Ct. Cl. LEXIS 13, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michigan-central-r-r-v-state-ilclaimsct-1933.