Newport v. Railway Co.

24 S.W. 427, 58 Ark. 270, 1893 Ark. LEXIS 38
CourtSupreme Court of Arkansas
DecidedDecember 9, 1893
StatusPublished
Cited by15 cases

This text of 24 S.W. 427 (Newport v. Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newport v. Railway Co., 24 S.W. 427, 58 Ark. 270, 1893 Ark. LEXIS 38 (Ark. 1893).

Opinion

Hughes, J.

The facts in this case are substantially as follows: The town of Newport made a contract with the Batesville & Brinkley Railway Company to construct a levee on two sides of the town to protect ■it from overflow, and was to pay the company therefor, in the warrants of the town, ten thousand dollars ; and the Railway Company was to have the privilege of using the levee as a road-bed for its railway.

One line of the levee was completed, accepted and paid for by the town, after which it declined and refused to accept and pay for the other line of the levee, one of these lines being north, and the other south, of the town. The company, having, as it contends, completed the levee according to the contract, brought this suit to recover a balance of $4480, which it alleges to be due on the contract. There is also a quantum meruit count in the complaint, for work and labor done, and materials furnished, in constructing a levee at the instance and request of the town.

The town answered, admitting that it attempted to execute the contract, but says, the contract was made for the purpose of inducing the railway company to locate and construct its road through the town, and to establish one of its principal stations there, and denies the power of the town to make the contract. It also denies that the levee was constructed for its use, or at its request, and says that it was constructed for the use of the railway company ; it also says that the work was not done according to contract, and that the work and materials of the railway company were not of the value alleged ; and that it had paid full value for all work done and materials furnished.

The cause was submitted to a jury upon the evidence in the case, and instructions by the court recognizing power in the town council to make a contract to construct a levee. All proper exceptions were preserved to the instructions given by the court, and to the court’s refusal of instructions, in effect, denying power in the town council to make the contract.

The fifth instruction given by the court, to which exception was saved, is as follows: “The jury are instructed that if they find from the evidence in this case that the defendant entered into a contract with the.plaintiff to pay it $10,000 in town warrants for the construction of a levee described in the written contract made with the defendant, together with, its crossings and drains, and under that contract the plaintiff, with the full knowledge and consent of the defendant, under the supervision of its council, or a committee appointed by it, proceeded to construct said levee under said contract with the privilege of using it as a road-bed or railroad track, and to keep the same in proper repair, and the plaintiff did so construct, use and keep the same in proper repair, so far as permitted by the defendant, they will find for the plaintiff whatever may be shown to be due and unpaid under said contract.”

The jury found specially that the railway company, in constructing the levee around the town, had complied substantially with the contract sued upon, and returned a verdict for the railway company. The appellant seeks to reverse this judgment on appeal to this court.

Had the incorporated town of Newport the power to make the contract which was the foundation of this suit ?

i. iucorporcannltlmfid In 1 Dillon, Mun. Corp. sec. 89, it is said : “ It is a general and undisputed proposition of law that a municipal corporation possesses and can exercise the following powers, and no others : First, those granted in express words ; second, those necessarily or fairly implied in or incident to the powers expressly granted; third, those essential to the declared objects and purposes of the corporation — not simply convenient, but indispensable. Any fair, reasonable doubt concerning the existence of power is resolved by the courts against the corporation, and the power is denied.” In Spaulding v. Lowell, 23 Pick. 71, 74, Chief Justice Shaw, in speaking of municipal and public corporations, says : They “ can exercise no powers but those which are conferred upon them by the act by which they are constituted, or such as are necessary to the exercise of their corporate powers, the performance of their corporate duties, and the accomplishment of the purposes of their association.” “It is proper, too, that these powers should be strictly construed, considering with how little care chartered privileges are these days granted.” Bank v. Chillicothe, 7 Ohio, 411 ; Port Huron v. McCall, 46 Mich. 565. “They act not by any inherent right of legislation, like the legislature of the State, but their authority is delegated, and their powers, therefore, must be strictly pursued. ’ ’

Is there any express grant of power to an incorporated town to make a contract for the building of a levee?

Sec. 740, Mansfield’s Digest, provides that “the city council shall have power to establish and construct and to regulate landing places, levees, etc.” Sec. 8 of the incorporation act of March 9, 1875. This refers to cities of the first and second class, but not to incorporated towns. Their powers are not always the same. In enumerating the powers of municipal corporations of all classes in section 18 of the act of March 9, 1875, the power to construct levees is not given, though, as we have seen, it is given in section 8 of the act to cities of the first and second class. It follows, therefore, that there is no express grant of power to incorporated towns to construct levees.

Construing the powers of municipal corporations strictly, does it appear, beyond “any fair, reasonable doubt,” that the power of an incorporated town to make a contract for the construction of a levee exists ? Is such power “ necessarily or fairly implied in or incident to the powers expressly granted,” or is such a power “ essential to the declared objects and purposes of the corporation, not simply convenient, but indispensable?” It does not appear to us that it is necessary that an incorporated town should possess such a power, in order to the exercise of its corporate powers, the performance of its corporate duties, and the accomplishment of the purposes of its organization. Unless such is the case, the power is not implied from the grant of general powers to an incorporated town. Spaulding v. Lowell, 23 Pickering, 71, 74. No “long established and well settled usage” appears to have existed with incorporated towns to exercise the power to construct levees.

In Minturn v. Larue, 23 Howard, 435, the court said: “ It is a well settled rule of construction of grants by the legislature to corporations, whether public or private, that only such powers and rights can be exercised under them as are clearly comprehended within the records of the act or derived therefrom by necessary implication, regard being had to the objects of the grant. Any ambiguity or doubt arising out of the terms used by the legislature must be resolved in favor of the public.” Thomson v. Lee Co. 3 Wall. 320.

In Leonard v. Canton, 35 Miss. 189, a good reason is given for the rule that grants to corporations by the legislature should be strictly construed. It is because they ‘ ‘ are invested with a portion of the authority that properly appertains to the sovereign power of the State,” and the State never surrenders its just authority save by grants that are clear and unambiguous.

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Cite This Page — Counsel Stack

Bluebook (online)
24 S.W. 427, 58 Ark. 270, 1893 Ark. LEXIS 38, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newport-v-railway-co-ark-1893.