Oshkosh Water Works Co. v. City of Oshkosh

85 N.W. 376, 109 Wis. 208, 1901 Wisc. LEXIS 309
CourtWisconsin Supreme Court
DecidedFebruary 26, 1901
StatusPublished
Cited by11 cases

This text of 85 N.W. 376 (Oshkosh Water Works Co. v. City of Oshkosh) 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
Oshkosh Water Works Co. v. City of Oshkosh, 85 N.W. 376, 109 Wis. 208, 1901 Wisc. LEXIS 309 (Wis. 1901).

Opinion

Dodge, J.

The only assignment of error argued by appellant is that the court erred in holding that the charter of the city of Oshkosh (ch. 59, Laws of 1891) did not, so far as it relates to the contract of June 18, 1883, impair the obligation of the contract. It is contended that said char[210]*210ter does so impair, and therefore Contravenes sec. 12, art. I, of the constitution of Wisconsin, which provides: “No bill of attainder, ex post facto law, nor any law impairing the obligation of contracts shall ever be passed.”

At the time of making the contract of June 18, 1888, the city of Oshlcosh existed and operated under a charter known as ch. 183, Laws of 1883, the first section of w'hich constituted it “ a municipal corporation by the name of the city of Oshlcosh, and by that name capable of suing and being s.ued in all courts of law and equity.” That charter (sec. 1, subch. YII) provided that moneys shall be drawn out only upon the order of the mayor and city clerk, duly authorized by vote of the common council; ” and by sec. 10, sübch. YII, “ any account or demand against the city, before acted upon or paid, the council may require the same to be verified by affidavit, except salaries and amounts previously fixed or determined by law.” Except for these restrictions upon the payment of money, the city of Oshlcosh was subject to suits upon contract liability like any other person or corporation.

In 1891 was enacted a revised charter (ch. 59, Laws of 1891), continuing substantially the provisions formerly existing in the first section and in secs. 1 and 10, subch. YII. That charter, however, contained a subchapter XXI. It provided:

“ Sec. 4 No action shall be maintained by any person against the city upon any claim or demand until such person first shall have presented his claim or demand to the common council for allowance, and the same shall have been disallowed in whole or in part; provided, that the failure of such common council to pass upon such claim within sixty days after the presentation of such clafm shall be deemed a disallowance thereof.
“ Sec. 5. The determination of the common council disallowing in whole or in part any claim shall be final and conclusive, and a bar to any action in any court founded on such claim, unless an appeal shall be taken from the decision of such common council as in this act provided.”

[211]*211Sec. 6 provided for the appeal in case of disallowance in whole or in part, to be accomplished by serving a written notice of the appeal on the city clerk within twenty days after the disallowance of the claim, and. by executing a bond to the city in the sum of $150, with two sureties to be approved by the city attorney and comptroller, conditioned for the faithful prosecution of the appeal and payment of ■costs; whereupon the clerk is required to transmit the decision and a brief statement of the proceedings and all papers to the clerk of- the circuit court of the county, where “such case shall be entered, tried, and determined in the •same manner as cases originally commenced in said court,” costs to be recovered by plaintiff in case of an increase in the recovery.

This amendment of the charter of Oshkosh was but one •of many such amendments to city charters occurring at about that time, significant of a marked change of legislative policy with reference to enforcement of money demands against cities. That policy was signified by its adoption in the general city charter promulgated by the legislature of 1889 for cities thereafter to be organized. That policy has been considered by this court in a series of de•cisions which it is believed have fully recognized and emphasized it. We have held that the preliminary steps are jurisdictional, and that unless complied with the court fails to acquire jurisdiction of the subject matter; that the various steps are mandatory, and cannot be waived by the officers of the city, nor can jurisdiction be conferred by such ■officers (Telford v. Ashland, 100 Wis. 238; Oshkosh W. W. Co. v. Oshkosh, 106 Wis. 83); that the bond cannot be amended nor a new bond given after the expiration of the twenty days (Oshkosh W. W. Co. v. Oshkosh, supra).

It is, of course, obvious that the amendment of the charter does not expressly and directly affect the obligation of any existing contracts. It is a change, of the law regulat[212]*212ing the remedy, and obviously, too, with only that purpose in view. The question, therefore, which is presented before us, is whether, as to claims which have not been allowed by the council (for there is no- allegation that this has. been allowed), the change in the methods open to a creditor of the city for the adjudication and recovery of such claim is such that, although acting directly only on the remedy, it necessarily impairs the obligation of the contract itself.

We here enter a field redundant of learned discussion,, philosophy, and decision, in which, as remarked by Mr. Justice Shiiias, the very frequency of decision would appear to have rendered it difficult to apply the result of the-court’s deliberations to new cases, differing somewhat in their facts from those previously considered. Barnitz v. Beverly, 163 U. S. 121. Several general propositions are,, however, settled so as to require in new cases merely their application. First and most primary among these is that, an act which in any degree, no matter how slightly, modifies the obligation of the contract by attempting to relieve-the one party from any duty by the contract assumed, is-repugnant to the constitutional prohibition. This rule applies to “ legislation which affects the contract directly, and not incidentally, or only by consequence.” Von Hoffman v. Quincy, 4 Wall. 553. Another general,rule early established is that over mere remedial procedure the power of the legislature is absolute; that laws regulating it involve so, much the consideration of public convenience and welfare-that individuals cannot be conceded vested rights therein.. For example, it would be intolerable that new laws regulating place or frequency of the sitting of courts could not be-enacted and be effective generally, even as to pre-existing-rights of individuals, although remotely they affect those-rights by adding inconvenience or delay to their enforcement.

[213]*213It is obvious, however, that rights, whether contractual ■or other, are so dependent for their value upon the means •of enforcing them that for all practical purposes their, extinction may be accomplished by laws which, in form, affect •only the remedy. It matters little whether it be enacted that certain debts are extinguished or merely that they shall not be enforceable in any forum. In either case the legally binding obligation to pay is destroyed. One of the best actual illustrations of such a result is exhibited by Cornell v. Hichens, 11 Wis. 368, where was considered an enactment that in any suit on negotiable bonds and mortgages given to a railway company, although brought by an innocent holder for value, the defendant might answer, alleging misrepresentation in procurement or want of consideration; that such issue should then be tried by a jury; and that, if the jury found such fact to exist, judgment should be entered for the defendant.

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Cite This Page — Counsel Stack

Bluebook (online)
85 N.W. 376, 109 Wis. 208, 1901 Wisc. LEXIS 309, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oshkosh-water-works-co-v-city-of-oshkosh-wis-1901.