State ex rel. Smith v. Duluth Street Railway Co.

150 N.W. 917, 128 Minn. 314, 1915 Minn. LEXIS 935
CourtSupreme Court of Minnesota
DecidedJanuary 29, 1915
DocketNos. 19,095—(20)
StatusPublished
Cited by1 cases

This text of 150 N.W. 917 (State ex rel. Smith v. Duluth Street Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Smith v. Duluth Street Railway Co., 150 N.W. 917, 128 Minn. 314, 1915 Minn. LEXIS 935 (Mich. 1915).

Opinion

Dibell, C.

Quo warranto on the relation of the attorney general questioning the right of the respondent, Duluth Street Railway Co., to occupy the streets of Duluth. There was judgment for the respondent. The state appeals from the order denying its motion for a new trial and from the judgment.

The street railway company claims the right to occupy the streets of Duluth by the grant contained in Sp. Laws 1881, (Ex. Sess.) p. 212, c. 200, approved November 17, 1881.

Section 1 grants to the Duluth Street Railway - Co. “during the term of its charter, the exclusive right and privilege of constructing [316]*316and operating a single or double track for a passenger railway line,” etc., in the streets of the village and its suburbs.

Section 2 is as follows:

“The aforesaid grant is upon the express condition that if the said Duluth Street Railway Company shall fail to construct, equip and have in. full operation one mile of said street railway within one year after the passage of this act, then and in that case the said Duluth Street Railway Company shall, without any act on the part of the state or the village of Duluth, forfeit to the village of Duluth all of the rights, privileges and immunities granted by this act, and is upon the further express condition, that said company shall build and operate a line connecting Rice’s point with the central parts of said village, as soon as there shall be an improved street available for that purpose.”

Section 3 provides that, under certain conditions, the village council may designate extensions or new lines, and if not constructed by the company it may grant an exclusive franchise to another company; and if the company neglects to keep a line in operation the council may grant an exclusive franchise to another company to build and operate on such line.

Section 16 provides that upon the company signing and filing an acceptance of the grant with the secretary of state and the village recorder the same shall operate as a contract between the state and the village and the company.

On November 8, 1881, prior to the grant of the franchise, the people had voted upon and adopted an amendment prohibiting the granting of such a franchise by special act. Const, art. 4, § 33. This amendment did not become a part of the Constitution until the January following. City of Duluth v. Duluth St. Ry. Co. 60 Minn. 178, 62 N. W. 267. At the time fixed for the performance of the condition of the grant the legislature was without authority to grant a franchise.

On December 5, 1881, the Duluth Street Railway Co. filed with the recorder of the village, and.on December 8, with the secretary [317]*317of state, its written acceptance in accordance with the provisions of section 16.

The village of Duluth was created by Sp. Laws 1881, p. 49, c. 11, .approved March 8, 1881. The authority delegated to it to grant Tights in its streets for street railway purposes is as follows:

“To authorize, control and grant the power to construct street railways in the streets and avenues of said village by any private ■company or companies, and to control and direct the operation of "the same by contract or ordinance.”

At the time of the forfeiture claimed the village, by virtue of this, charter provision, could grant a franchise. It could not grant .an exclusive franchise such as the 1881 statute granted. Long v. City of Duluth, 49 Minn. 280, 51 N. W. 913, 32 Am. St. 547; Detroit Citizens’ Street Ry. Co. v. Detroit Ry. Co. 171 U. S. 48, 18 Sup. Ct. 732, 43 L. ed. 67. And it may be conceded that it could not, under its charter, bind itself to a provision for fares such .as was embodied in the 1881 franchise.

By Sp. Laws 1883, p. 219, c. 80, § 3, approved March 5, 1883, the village charter was amended and the provision above quoted was ■omitted.

The Duluth Street Bailway Co. was incorporated under the ..general laws on October 17, 1881. The period of its corporate ■existence was fixed at 50 years from that date. By an amendment ■of its articles adopted on March 18, 1910, the period of its corporate ■existence was extended to 50 years from July 1, 1908.

The state does not attack the general franchise of the company —that is, its right to be a corporation and to exercise corporate powers. It attacks its right to use the streets of Duluth under the special grant of 1881; and the proceeding resolves itself into an inquiry into the validity of this grant.

In a general way the questions are these:

(1) Did the company perform the condition contained in its [318]*318grant to the effect that it should construct, equip and have in operation one mile of its street railway within one year from the date of the grant ?

(2) If it did not, was the forfeiture at once executed so that all rights were at an end, with no power in the village to waive strict performance or the right to claim a forfeiture?

(3) If the village had the power to waive, did its acts constitute a waiver ?

(4) What right, if any, has the company by virtue of its grant? The second is the fundamental question. The others are proper to a complete statement of the case.

1. The court finds that the railway company constructed one mile of track prior to November 18, 1882. The evidence justifies the finding. It was a shabby affair, but it was a track, and it was a mile long. It had been built in haste, commenced not very long before it was finished, and was relaid before practical use was made of it.

The court finds that the railway company “wholly failed to equip the said line of railway or to have the same in operation before said last-mentioned date, nor was said line fully equipped or in operation at any time prior to the sixth day of July, 1883.”

This conclusively appears. At the date stated it was complete, and ever since it has been in operation. The condition was not performed within the time specified in the grant.

2. The vital question is whether upon the failure to perform the condition prior to November 18, 1882, the forfeiture was at once executed with no power resting in the village to waive performance at the precise moment specified or to condone a forfeiture.

The state reaches the heart of the controversy when it rests its claim upon the proposition that the forfeiture clause in the franchise was self-executing; that there being a failure to build and operate within the time fixed by the grant, the franchise was at an [319]*319end; that there could be no waiver of a failure to operate on strict time; and that the street railway company could get rights in the street afterwards only by a new grant.

That a statute may create a self-executing forfeiture so that upon the failure to perform the condition upon which it depends all right ends is without question. Thus in Wilmington City Ry. Co. v. Wilmington & B. S. Ry. Co. 8 Del. Ch. 468, 46 Atl. 12, the court says:

“The reason why a forfeiture created by a statute is self-executing, while one raised by the common law is not, is that the legislature said so, and intends so.”

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

Related

State ex rel. Mathews v. Houdersheldt
186 N.W. 234 (Supreme Court of Minnesota, 1922)

Cite This Page — Counsel Stack

Bluebook (online)
150 N.W. 917, 128 Minn. 314, 1915 Minn. LEXIS 935, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-smith-v-duluth-street-railway-co-minn-1915.