Mitchell Properties, Inc. v. City of Milwaukee

13 N.W.2d 508, 245 Wis. 96, 1944 Wisc. LEXIS 284
CourtWisconsin Supreme Court
DecidedFebruary 16, 1944
StatusPublished

This text of 13 N.W.2d 508 (Mitchell Properties, Inc. v. City of Milwaukee) 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
Mitchell Properties, Inc. v. City of Milwaukee, 13 N.W.2d 508, 245 Wis. 96, 1944 Wisc. LEXIS 284 (Wis. 1944).

Opinion

Wickhem, J.

Plaintiff’s complaint alleges in substance that on or about April 14, 1928, plaintiff and defendant city executed a warranty deed by the terms of which plaintiff conveyed to defendant certain lands therein described in consideration of the performance of certain conditions therein set forth, plus the payment of a specified sum of money. It is further alleged that on April 30, 1937, defendant city conveyed to impleaded defendant, Milwaukee county, the land described in the warranty deed, subject to the covenants and conditions above referred to. The land described in the deed is situated south of a right of way of the Chicago' & North Western Railway Company which separates the land conveyed from land further north and still owned by plaintiff. This controversy centers about the scope of the grantee’s obligation under the deed to extend or reroute two certain creeks. The covenant in the deed is as follows :

“The city of Milwaukee, grantee herein, hereby agrees and it is a condition to the within conveyance that the city will at its own expense and without cost to the party of the first part, Mitchell Realty Company, its successors or assigns, extend the creek, the course of which is described as follows:
*98 “ ‘Entering the northwest one quarter of section twelve (12) by crossing the south line of Lincoln avenue at a point approximately one hundred (100) feet east of Thirty-Seventh avenue and flowing southerly approximately seven hundred (700) feet, easterly approximately nineteen hundred (1900) feet, and southerly approximately sixteen hundred (1600) feet to a point in the south line of the northwest one quarter of section twelve (12), which is approximately seven hundred (700) feet west of the southeast corner thereof, being the point where said creek enters Jackson park’—
so that said creek will join with that certain creek which now flows southeasterly along the south right-of-way line of the Madison division, and will further agree to reroute the' waters of both creeks herein mentioned in such manner as to cross •the lands herein conveyed and connect with the creek in Jackson park at such point in said park as may prove feasible and practicable.”

The warranty deed is signed and sealed, not only by plaintiff-grantor, but also by defendant city of Milwaukee. The breach alleged is that the city has not performed the covenant and that the land still owned by plaintiff has, because of the meandering of the creek through the property, been rendered incapable of use for heavy industry for which it is zoned.

The material portions of defendant’s answer may for convenience be considered independently of the order in which they are set forth in the answer. The first defense is that the action is barred by the statute of limitations,’ reliance being had on sec. 330.19 (3), Stats. The second is that the contract is void because the resolution completing or authorizing it did not state the maximum price to> be paid by the defendant as required by defendant’s charter. The third is that the covenant is ambiguous, that parol evidence is admissible to indicate its proper construction, and that properly construed, defend ant is not obligated to the extent alleged in the complaint .and, indeed, that defendant is not obligated at all until grantors *99 have relocated portions of the creek on the land retained by them, an action which they have not as yet taken. Attached to the answer or included therewith are the offer, resolution, and such other facts as are considered to bear upon the construction of the covenant, if it is considered to be ambiguous.

■ Defendant’s first contention is that the promise of the city to change or extend the course of the creeks involved in this case is a simple contract and not a specialty, although it actually did sign and seal the warranty deed and that the six-year statute of limitations prescribed by sec. 330.19 (3), Stats., upon “An action upon any other contract, obligation or liability, express or implied, except those mentioned in sections 330.16 and 330.18” is applicable.

Defendant’s argument runs thus: The resolution of the common council accepting the company’s written offer was adopted February 27, 1928, and by this acceptance a simple contract was formed between the company and the city under which the company was to convey by warranty deed, and the city to extend or reroute the creeks; that the resolution was countersigned by the comptroller, satisfied in every respect charter requirements as to the execution of contracts, and did not contemplate, authorize, or leave any need for a further writing obligating the city, much less one under seal. In other words, that signing and sealing of the warranty deed was ultra vires the city officers; that the warranty deed neither extended nor enlarged the obligation imposed by adoption of the resolution of acceptance. It follows, according to defendant, that while the warranty deed is a sealed instrument, so far as the grantor is concerned, it is a simple contract so far as it imposes an obligation upon the city to reroute the creeks. Marathon County v. Industrial Comm. 218 Wis. 275, 260 N. W. 641, is relied upon for the rule that a municipal officer acting without authority of law cannot bind a municipality by his unauthorized acts and H. Hohensee Construction Co. v. Oshkosh, 234 Wis. 274, 291 N. W. 309, to the effect that *100 an officer of a city has no power to alter the terms of a contract entered into pursuant to common-council action. Reliance is also had upon Mariner v. Wiens, 137 Wis. 637, 640, 119 N. W. 340, where this court applied the twenty-year statute of limitations applicable to sealed instruments in the following language:

“Since, however, it is a sealed contract executed by private persons, we discover no grounds for excepting it from the operation of sec. 4220, Stats. (1898), which permits action to be brought on such instruments within twenty years after the 'cause of action has accrued.”

To the same effect, Jacobs v. Spalding, 71 Wis. 177, 36 N. W. 608, is cited.

Defendant emphasizes the phrase “executed by private persons” as the foundation for an argument that the twenty-year statute does not apply to cases where contracts are executed by a corporation required by law or its articles to use its seal as part of its signature. This argument we deem to be unsound. The court in the cases next above cited was referring to the rule of sec. 330.19 (2), Stats. Under that section municipal contracts for the payment of money, even though under seal, are controlled by the six-year statute and for this reason it was necessary to make the exception above noted with reference to contracts between private persons. Reference to this distinction and reason is contained in Jacobs v. Spalding, supra, and needs no further exposition.

We think that there is no merit to the contention that the acceptance closed the contract and disabled city officers from signing and sealing the deed. The transaction' contemplated a deed of conveyance by plaintiff to the city and a covenant or condition in that conveyance binding the city to extend or reroute the creeks.

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Related

H. Hohensee Construction Co. v. City of Oshkosh
291 N.W. 309 (Wisconsin Supreme Court, 1940)
Bishop v. Douglass
25 Wis. 696 (Wisconsin Supreme Court, 1870)
Jacobs v. Spalding
36 N.W. 608 (Wisconsin Supreme Court, 1888)
Mariner v. Wiens
119 N.W. 340 (Wisconsin Supreme Court, 1909)
Marathon County v. Industrial Commission
260 N.W. 641 (Wisconsin Supreme Court, 1935)

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Bluebook (online)
13 N.W.2d 508, 245 Wis. 96, 1944 Wisc. LEXIS 284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mitchell-properties-inc-v-city-of-milwaukee-wis-1944.