Minneapolis, St. Paul, & Sault Ste. Marie Railway Co. v. Washburn Lignite Coal Co.

168 N.W. 684, 40 N.D. 69, 12 A.L.R. 744, 1918 N.D. LEXIS 82
CourtNorth Dakota Supreme Court
DecidedJune 12, 1918
StatusPublished
Cited by4 cases

This text of 168 N.W. 684 (Minneapolis, St. Paul, & Sault Ste. Marie Railway Co. v. Washburn Lignite Coal Co.) is published on Counsel Stack Legal Research, covering North Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Minneapolis, St. Paul, & Sault Ste. Marie Railway Co. v. Washburn Lignite Coal Co., 168 N.W. 684, 40 N.D. 69, 12 A.L.R. 744, 1918 N.D. LEXIS 82 (N.D. 1918).

Opinions

Birdzell, J.

This is an action to recover the difference between the statutory rate upon certain coal shipments and an alleged reasonable rate. It arose upon the following facts:

In the year 1907, the legislature of North Dakota passed a statute [74]*74prescribing a schedule of maximum rates to be charged for hauling lignite coal. When the law went into effect the carriers declined to comply with it, whereupon an action was brought to enjoin the continued violation. In this action, the carriers Avere unsuccessful. State ex rel. McCue v. Northern P. R. Co. 19 N. D. 45, 25 L.R.A.(N.S.) 1001, 120 N. W. 869, and Northern P. R. Co. v. North Dakota, 216 U. S. 579, 54 L. ed. 624, 30 Sup. Ct. Rep. 423. A supersedeas having been obtained, the statutory rate Avas not put into operation until after the decree of the United States Supreme Court, in March, 1910. The ease was later reopened in accordance with the terms of tho decree and additional evidence taken. It was then determined by this court that the statutory rates were reasonable, but it was ultimately held by the United States Supreme Court that the rates were confiscatory. State ex. rel. McCue v. Northern P. R. Co. 26 N. D. 438, 145 N. W. 135; Northern P. R. Co. v. North Dakota, 236 U. S. 585, 59 L. ed. 735, L.R.A.1917F, 1148, P.U.R.1915C, 277, 35 Sup. Ct. Rep. 429, Ann. Cas. 1916A, 1. The portion of the complaint AAdiieh states tho alleged cause of action is as follows: “That the plaintiff at the time said shipments moved, and until the 11th day of June, 1915, by reason of the mándate of the Supreme Court of the United States and the decree entered in the supreme court of the state in the year 1910, aforesaid, Avithout its consent and against its will, Avas coerced and forced to accept and transport for the defendant all of said shipments upon payment to the plaintiff of the rates and charges prescribed in said chapter 51. That from and after the 11th day of June, 1915, when final judgment was entered in the supreme court of the state in said state case as aforesaid, plaintiff became entitled to recover from the defendant the difference between said lawful and reasonable rates and the rates prescribed by said chapter 51 heretofore paid by the defendant, amounting in all to the sum of $26,819.99.”

It will be noted that the complaint alleges that, by reason of the decree of the United States Supreme Court, the plaintiff Avas coerced and forced to accept and transport shipments for the defendant at rates prescribed by chapter 51 of the Session Laws of North Dakota for the year 1907. The remainder of the paragraph merely states a legal conclusion to the effect that, by reason of said shipments, the plaintiff became entitled to recover from the defendant the difference between [75]*75a reasonable rate and the rate prescribed by the statute, which right is alleged to have arisen on June 11, 1915. It will be observed that it is not alleged that the defendant performed the services under protest or under any sort of legal compulsion, except such as was imposed by the mandate of the Supreme Court of the United States. The decree referred to affirmed that of this court, granting an injunction to prevent the violation of the statute, and the opinion of the court concludes as follows (Northern P. R. Co. v. North Dakota, 216 U. S. 579—581, 54 L. ed. 624, 625, 30 Sup. Ct. Rep. 423) : “We do not say that experiment may not establish a case in the future that would require a decision upon the question of constitutional law, but we can express no opinion upon it now. The great difficulty in the attempt to measure the reasonableness of charges by reference to the cost of transporting the particular class of freight concerned is well known and often has been remarked. It seems to us that the nearest approach to justice that can be made at this time is to follow the precedent of Willcox v. Consolidated Gas Co. 212 U. S. 19, 53 L. ed. 382, 48 L.R.A.(N.S.) 1134, 29 Sup. Ct. Rep. 192, 15 Ann. Cas. 1034, as nearly as may be, and affirm the decree, but without prejudice to the right of the railroad company to reopen the ease by appropriate proceedings, if, after adequate trial, it thinks it can prove more clearly than at present the confiscatory character of the rates for coal.” Following the entry of the above decree, the statutory rate was put into effect in conformity with the judgment.

The pertinent inquiry is: what is the basis for the legal conclusion that, by reason of the shipments, the plaintiff became entitled to recover from the defendant? It is elementary that a pleading which states legal conclusions merely does not state a cause of action; it must state facts from which the legal conclusion of liability follows. It is equally elementary that the facts stated must bring the plaintiff within the operation of some rule of substantive law, according to which a liability may be found to exist. Obviously, the relations between a carrier and a shipper are governed by the same basic principles that would control were they between individuals and related to matters not commonly subject to the regulatory power of the state. A departure from these principles in the case of earners is only to be countenanced when their application threatens to embarrass, or does actually [76]*76interfere with, the exercise of the regulatory power of the government in the interest of justice and equality. Thus, the liberty to contract for the services of a carrier is generally interfered with to the extent necessary to prevent discrimination as between patrons. But we are aware of no rule or policy that requires a determination of this case upon any principle peculiar to the relations of public carriers. It being clear that the liability contended for is not a tort liability, before a recovery can be had it must be found that the defendant is indebted to the plaintiff under an obligation in the nature of contract. This brings us to a consideration of the circumstances alleged in the complaint, and those reasonably inferable from the facts there alleged, for the purpose of determining, first, whether there was any contract, express or implied in fact, for the payment of the difference sought to be recovered; and second, whether, in case no contract in fact is alleged, the complaint states facts from which it must be held that there was a legal obligation in the nature of a contract obligation which could be enforced in this action.

If it be assumed that the shipper acted at all times with full knowledge of the litigation and of its ultimate result, could it then be further assumed that he agreed in fact to pay for the services at a higher rate than that fixed by statute if, perchance, the decree should be modified or reversed at some subsequent time? We think not. A business man acting with full knowledge of the facts that the law in question had been attacked, and that those interested in stopping its action had been defeated after prolonged litigation carried to the highest court in the land, would, we believe, be more' apt to assume that he was justified in dealing with the carrier on the hypothesis of the validity of the law, and in the absence of express protest, that the services of the carrier were rendered voluntarily.

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

Related

Continental Bus System, Inc. v. Toombs
325 S.W.2d 153 (Court of Appeals of Texas, 1959)
Maple Island Farm, Inc. v. Bitterling
209 F.2d 867 (Eighth Circuit, 1954)
The Burrows Co. v. Hollingsworth
112 N.E.2d 706 (Illinois Supreme Court, 1953)
State ex rel. Lemke v. Union Light, Heat, & Power Co.
182 N.W. 539 (North Dakota Supreme Court, 1921)

Cite This Page — Counsel Stack

Bluebook (online)
168 N.W. 684, 40 N.D. 69, 12 A.L.R. 744, 1918 N.D. LEXIS 82, Counsel Stack Legal Research, https://law.counselstack.com/opinion/minneapolis-st-paul-sault-ste-marie-railway-co-v-washburn-lignite-nd-1918.