Walter S. Peaslee and E. A. C. B. Hibbard, for the plaintiff. The plaintiff's
position is that his injuries were not caused by the
omission of the defendants to perform a duty imposed by general laws upon all cities
alike; nor by the negligence of any of their public officers, elected to perform
their public duties and not under their control; but by the negligence of the defendants
in conducting the business of their water department, which, by virtue of a special
act of the legislature, accepted by the defendants, was maintained by them for the
purpose of distributing water for toll; that all the property comprised in their
water department is owned and held by the defendants, not in their public and governmental
capacity, but in their private corporate capacity, and that their business of distributing
water is a private business, in conducting which the defendants have the same rights
and are subject to the same liabilities as a natural person; that the officers in
the water department are not public officers, elected or appointed under general
laws for the performance of public duties, but are the defendants' own officers,
employed by them in their private capacity for conducting their private business
of distributing water, and over whom they have full power of direction and removal;
and that, therefore, the defendants are liable for negligence, as a private water
company would be.
The contention that the action should have been brought against the water precinct
is disposed of by Brown v. Concord, 56 N.H. 375 , 379 , 381 . The precinct is
not a corporation and cannot be sued. If in some sense the city is a trustee for
the precinct, and if the circumstances of this case are such that the cestui que
trust ought to reimburse the trustee for any amount recovered, that is a matter
for future adjustment between the parties concerned, but is not involved in the
present case. A trustee cannot escape liability for his own torts, whether they
are or are not of such a character that he ought to be reimbursed for what he has
to pay as damages.
The defendants' statements in their plea, that by virtue of the statute and ordinances
the water commissioners are an independent board and that the defendants could not
direct or control them in the discharge of their duties, is at variance with the
terms of the ordinances as set up in the plea itself. Not only have the defendants
not undertaken to set up an independent board of commissioners, not removable by
them nor under their control, but they have no authority to do so. The fact that
they in practice do leave various matters to the commissioners and other agents,
and do not interfere with or direct them as to their every act, is no more than
in almost every case of agency. It is rare that an agent employed for general purposes
is vested with no discretionary powers, however it may be with an agent for a single
definite purpose.
A sovereign state has immunity from suit in its own courts, unless it permits the
suit. Whether the suit be on a contract or for a tort, whether it grow out of public
or private business of the state, whether the moral obligation be strong or weak
or there be none at all, whether there be a liability that would be enforced by
any court having jurisdiction or no liability at all, — all these points are
entirely immaterial. The only remedy of a party having a claim against the state
is an application to the legislature. If there is anything in Wooster v. Plymouth, 62
N.H. 193 , Sargent v. Gilford, 66 N.H. 543 , or Doolittle v. Walpole, 67 N.H.
554 , or in any of the cases that state that a town is not liable to suit unless
the action is given by statute, which might be thought by one not acquainted with
the law to hold that a town has the same immunity from suit, is the state, it was
evidently not intended to bear that construction. Leavitt v. Dover, 67 N.H. 94 Osgood
v. Conway, 67 N.H. 100 Jones v. Chester, 67 N.H. 191 , and Rider v. Portsmouth, 67
N.H. 298 , are cases in a single volume in which Judgment was rendered against the
defendant town or city, but which the most ignorant practitioner would not have
thought of bringing against the state. No one of them was authorized by any statute.
No statute authorizes a suit against a town on its bonds or notes; for the statutes
giving authority to issue them (P.S., c. 40, s. 17; Ib., c. 43, ss. 20, 22) are
similar to those authorizing state bonds and notes (P. S., c. 15, s. 10; Ib., c.
16, ss. 6, 7), which certainly do not authorize a Suit against the state. If section
1, chapter 40, of the Public Statutes, providing that a town "by its corporate name
may sue and be sued," is a waiver of immunity as a sovereign, instead of merely
a part of the definition of a. corporation, it is a complete waiver, and leaves
nothing to discuss on the point.
Whether the exemption of a town from suit in cases in which it acts merely as a
public agency, or in which it does not even act at all, but merely has officers
who act as public agents, can be derived from the immunity of the state from suit
in its own courts, or whether it is wise to apply the principle to cases in which
the state, though exempt from suit, would be under a moral obligation to make compensation,
or even a legal obligation if there were any court having jurisdiction, need not
here be considered; for in New Hampshire, as elsewhere, the exemption of a town
from liability as a part and an agency of the state extends only to its public functions.
In most cases, and we think in all where a is held exempt from suit, the real point
of the decision is, not merely that the action cannot be maintained, but that there
is no liability, no obligation of any kind, no right to pay; that payment by the
town would be a mere illegal gratuity, which the court would
enjoin at the suit of taxpayers, as in Merrill v. Plainfield, 45 N.H. 126 , Brown
v. Concord, 56 N.H. 375 , and Osgood v. Conway, 67 N.H. 100 .
The fact that one object of the defendants' water-works is to provide themselves
with water for the public purpose of extinguishing fires, is immaterial. The following
authorities show that a town is not exempt from liability for an injury occasioned
by the negligent management of its private business, merely because that business
has some connection with, or aids in, the discharge of public function. Eastman
v. Meredith, 36 N.H. 284 , 293 ; Rowe v. Portsmouth, 56 N.H. 291 , 294 , 295
; Edgerly v. Concord, 62 N.H. 8 , 19 , 22 ; Clark v. Manchester, 62 N.H. 577
; Oliver v. Worcester, 102 Mass. 489 ; Aldrich v. Tripp, 11 R.I. 141 .
"A municipal corporation, owning water-works or gas-works which supply private consumers
on the payment of toll, is liable for the negligence of its agents or servants the
same as like private proprietors would be." 2 Dill. Mun. Cor., ss. 954, 981; Eastman
v. Meredith, 36 N.H. 284 ; Grimes v. Keene, 52 N.H. 330 ; Rowe v. Portsmouth, 56
N.H. 291 , 294 ; Edgerly v. Concord, 59 N.H. 78 , 80 ; Edgerly v. Concord, 62
N.H. 8 , 19 , 22 , 23 ; Clark v. Manchester, 62 N.H. 577 , 579 ; Aldrich v.
Tripp, 11 R.I. 141 ; Oliver v. Worcester, 102 Mass. 489 , 500 ; Emery v. Lowell, 104
Mass. 13 , 15 ; Hill v. Boston, 122 Mass. 344 , 359;Murphy v. Lowell, 124 Mass.
564 ; Hand v. Brookline, 126 Mass. 324 . The foregoing were all cases in which
either the liability for personal injuries was distinctly in question, or in which
language including such injuries was employed. The liability for an injury to property
is established in numerous Massachusetts cases, and in the following New Hampshire
cases: Eaton v. Railroad, 51 N.H. 504 ; Gilman v. Laconia, 55 N.H. 130 ; Rowe
v. Portsmouth, 56 N.H. 291 ; Parker v. Nashua, 59 N.H. 402 ; Vale Mills v. Nashua, 63
N.H. 136 . All the foregoing cases were for the diversion of water. In Nutt v. Manchester, 58
N.H. 226 , and Willey v. Portsmouth, 64 N.H. 214 , the plaintiffs recovered without
exception being taken to the liability.
All the statements made in Gross v. Portsmouth, 68 N.H. 266 , were true of the
water commissioners of Portsmouth, under the act creating them. Laws 1891, c. 209,
s. 6. None of them is true of the water commissioners of Concord. Whether the circumstance
that the city of Portsmouth, though the owner of water-works, cannot control them
in the way it controls its ordinary property and business, — through the city
councils, — but that with respect to the water-works it can act only through
a board of water commissioners, should have had controlling weight, is a question
on which a difference of opinion exists among the courts; but that
question is not involved in the present case. Accepting the decision as correct,
it settles the law for this state that the control of the principal over the supposed
agent is necessary for the application of the maxim respondeat superior. But the
defendants have the same control over their water board and superintendent that
a private water-works company has over its superintendent or other officers, and
they can exercise it in the same way they exercise all their other powers —
through their city councils. Their city councils can entrust as much or as little
as they choose to a superintendent or board of commissioners, can attend to as much
or as little as they choose themselves. The superintendent and board are no more
independent of their employers than a. janitor of a business block would be because
he received no directions about making fires or sweeping the floors, or a railroad
engineer because his railroad had never instructed him which way to turn his levers.
Sargent Niles, for the defendants. The question for the consideration of the court
is whether the city of Concord is liable for the negligence of the superintendent
of the water-works, who is an employee of the board of water commissioners.
I. In Gross v. Portsmouth, 68 N.H. 266 , it was held that the city of Portsmouth
was not liable for the negligence of employees of the water commissioners, upon
the ground that the water commissioners were "not the city's agents, but an independent
board." That decision is conclusive against the plaintiff. The water board of Concord
has the same authority as the water board of Portsmouth, the only difference in
the relation of the boards to their respective cities being that the Portsmouth
board derives its authority directly from the legislature while the Concord board
takes its existence and powers from the legislature through the medium of the city
councils of Concord, acting under the legislative authorization. In the one case
the legislature acted directly, while in the other it delegated its legislative
functions to a legislative body, which, from its more intimate acquaintance with,
and more direct interest in, the subject of the proposed legislation, was better
qualified to deal with it. That legislative body having acted, by the adoption of
an ordinance, that ordinance has the same force and effect as the act of the legislature
in the case of the Portsmouth board. The principle that an ordinance of a municipal
legislative assembly, adopted by authorization of the state legislature, has the
same force and effect as an act of the legislature itself, is universally recognized
(1 Dill. Mun. Cor., s. 308; St. Louis v. Boffinger, 19 Mo. 13 , 15 ; Taylor v.
Carondelet, 22 Mo. 105 ; Hopkins v. Swansea, 4 M. W. 621, 640; Gould v. Raymond, 59
N.H. 260 , 276 ; Kelley v. Kennard, 60 N.H. 1 , 6 ), and has received a very
full discussion
by Chief Justice Doe in State v. Hayes, 61 N.H. 264 , 314-320 .
Applying this principle to the facts under consideration, we reach this result:
The charter of the city of Concord merely gives the city the alternative of managing
the works, or entrusting the management to commissioners. The legislature leaves
to the city councils the legislative power in this particular, instead of exercising
that power itself, as it did in the case of Portsmouth. That power has been exercised
by the city councils acting in their legislative capacity, the legislative act establishing
the two boards and conferring upon them the entire management of their respective
works being in essential particulars practically the same, and the authority conferred
upon the commissioners being in each case subject to amendment or revocation by
the legislative body conferring it — that is, in Portsmouth by the legislature,
and in Concord by the city councils. The fact that the complete control conferred
by the city councils upon the commissioners is subject to modification or revocation
does not detract from the independence the board, in the absence of amendment or
repeal, and has no more tendency to make the city liable for the acts of the board
than the reservation in the act constituting the water board of Portsmouth of the
power of amendment or repeal has to make the political body whose legislative assembly
reserves this power, i. e., the state, liable for the misfeasance of the Portsmouth
water board. The fact that the water boards of Concord and Portsmouth received their
complete and independent powers from different legislative bodies does not tend
to differentiate between the quality of their independence, or between their relations
to their respective cities. Both are independent boards, though liable to have that
independence taken away by the legislative body which conferred it.
II. There is another consideration which is conclusive against the claim of the
plaintiff, and which, so far as we can ascertain, is peculiar to this case. It appears
that the city has, under legislative authority, established a water precinct which
includes only about two thirds of the area of the city, outside of which citizens
reside and taxable property is situated. These citizens have no beneficial interest
in the water-works system, and are not liable to be taxed for its support. The moneys
received on account of the water-works are "kept and applied exclusively for the
uses of said water-works." The inhabitants of the city living outside the precinct,
and the city, as such, have no beneficial interest in the system. The city, so far
as it has anything to do with the administration of the affairs of the water-works,
does it for the benefit of the precinct, at the command of the legislature.
III. It would be unprofitable to discuss the authorities bearing upon the involved
question of the responsibility of municipalities for the torts of agents or servants,
in the absence of a statute creating a liability, in view of the fact that this
question, so far as it relates to this case, has been fully discussed, and the position
of this court stated in clear and unmistakable terms, in Edgerly v. Concord, 62
N.H. 8 . In that case it is said (p. 23): "On principle, and by a very great weight
of authority, a municipality cannot be made liable, in the absence of a statute
giving the remedy, for an injury arising from a negligent use of its property, from
which it receives, in its corporate capacity, no special benefit, or from a negligent
use of its property by its officers not acting as agents or servants of the corporation,
but as public officers whose duties are defined by general law." Moreover, we do
not admit that in New Hampshire the distinction is recognized between negligence
in the performance of governmental duties and negligence in the transaction of business
carried on by the city or town in its private corporate capacity. It is true that
this distinction has been suggested, but it is in direct conflict with the utterances
of the court in later cases, is unsound in principle, and impracticable in operation.
The plaintiff's counsel say that if there is anything in any of the cases which
might be thought by one not acquainted with the law to hold that the town has the
same immunity from suit as the state, it was evidently not intended to bear that
construction. Some of the statements in Wooster v. Plymouth, 62 N.H. 193 , "which
might be thought by one not acquainted with the law to hold that a town has the
same immunity from suit as the state," are as follows:
"The state possesses certain powers over municipalities because the state and its
subdivisions are indentical [identical] in essence, and a private right, not granted
or reserved for the state, is not granted or reserved for its municipalities. .
. . A city is only a political subdivision of the state, made for the convenient
administration of the government. . . . . The municipal government is really but
a branch of the state. . . . A municipal corporation, while nominally a person,
is virtually a political power, a constituent element of one sovereignty, and its
local legislation and administration are the legislation and administration of the
state. . . . As it is a portion the sovereign power of the state, it is not subject
to federal taxation of its municipal revenues. . . . Its property is exempt from
state taxation, because, like the property of the state, it is public. . . . The
charter of a town is not a contract, because there is but one party. . . . Public
corporations are such as are created by the government for political purposes, as
counties, cities, towns,
and villages; they are invested with subordinate legislative powers, to be exercised
for local purposes connected with the public good, and such powers are subject to
the control of the legislature of the state."
We confess that we receive from these statements a very clear impression that the
court intended to lay down the doctrine that the liability of towns and cities rests
upon the same basis as that of the state, the state and its subdivisions being "identical
in essence," the one being at common law equally liable with the other for negligence
in the performance of the public duties for which alone it has been called into
being. The theory that towns are liable for the negligence of their agents in the
same manner and to the same degree as private individuals or corporations, is directly
negatived by the decision in Sargent v. Gilford, 66 N.H. 543 .
The court intended to hold in Doolittle v. Walpole, 67 N.H. 554 , "that a town
has the same immunity from suit as the state," — else why did they say: "Constituting
a portion of the sovereign power of the state, a municipal corporation is, therefore,
not subject to an action, unless a right of action is conferred by statute"? If
there is a distinction between what the court plainly say, and what the counsel
for the plaintiff declare the court evidently do not mean to say, it is too fine
for us to discover. We are obliged to take the court at their word, and assume that
they meant just what they said, particularly as their position with regard to the
non-liability of municipal corporations, in the absence of a statute creating the
liability, is the only position consistent with the theory of the relation borne
to the state by its municipal subdivisions, as elaborated in Wooster v. Plymouth.
These opinions leave no room for the doctrine that a city or town is sometimes a
private and sometimes a public corporation. Municipal corporations have no "private
capacity," but exercise only public functions. "The law regards municipal corporations
as agents and instruments of the state for the exercise of its governmental functions
in a certain district." Is the agent of the state liable to a suit based on the
manner of its performance of its governmental functions, while the state is not
liable in like circumstances?
The city of Concord is the "state" in the sense in which the word is used when it
is said in general terms that the "state" is not liable to suit, — that is
to say, the sovereign is not liable to be sued, — and within its limits the
city is as much a sovereign as that larger political body which by an unfortunate
confusion of terms is in this country known as "a state," the general term expressive
of sovereignty being here specialized and applied to each of a class of bodies politic
possessing in a limited degree the attributes of sovereignty. When we say the state
cannot be sued without its own consent, we do not refer particularly to those political
bodies which constitute the component parts of the United States of America; the
statement applies, not to the states of the Union, but to each and every body politic
exercising within certain territorial limits the attributes of sovereignty, whether
that authority be supreme or subordinate. When our courts announce the non-liability
of the state to suit, the declaration applies with equal force to the United States,
the state of New Hampshire, Merrimack county, the city of Concord, and the Union
school district in the city of Concord; each is "the state," the sovereign, though
with widely varying powers and jurisdiction. "Its local legislation and administration,"
declares Chief Justice Doe, in Wooster v. Plymouth, in speaking of a municipal corporation,
"are the legislation and administration of the state." The act of the city councils
of Concord in voting to establish a water precinct within its limits instead of
itself undertaking the proposed works, was as truly an exercise of the sovereign
power of legislation as the act of the legislature authorizing it; and the administration
of the affairs of the precinct by the city is "the administration of the state,"
an exercise of governmental functions, an act of sovereignty. The city, in the exercise
of its sovereign powers, created the precinct; and in the exercise of the same powers,
administers its affairs. To sue it for its negligence in that administration would
be nothing less than to sue the state, without its consent, for maladministration
in the exercise of its powers of sovereignty. No valid principle can be suggested
upon which the city can be held liable in such a case which does not apply with
equal force to the state. The only principle recognized by any of the authorities
is that municipal corporations are liable for the torts of their agents or servants
committed in the transaction of business carried on by them in their private corporate
capacity, or in the management of property in which they have a private beneficial
interest. To this theory, the reply of Chief Justice Doe is full and convincing:
"Public corporations are those which are created for public purposes, and whose
property is devoted to the objects for which they are created. The corporators have
no private beneficial interest either in their franchises or their property. The
only private right which individuals can have in them is the right of being and
acting as members. Every other right and interest attached to them can only be enjoyed
by individuals, like the common privileges of free citizens and the common interest
which all have in the property belonging to the state. . . . Public corporations
are such as are created by the government for political purposes, as counties, cities,
towns, and villages; they are invested with subordinate legislative powers, to be
exercised for local purposes connected with the public good, and such powers are
subject to the control of the state."
In view of this declaration of the nature of the purposes for which municipal corporations
are established, the inaccuracy of the plaintiff's description of the defendants
as "carrying on a private business, having a right to make a profit out of it the
same as a private company would," is at once apparent. Municipal corporations have
no authority to carry on a private business, or to tax their citizens for its support.
The only justification which can be found for allowing municipalities to carry on
the business of supplying water or gas to their citizens, to operate street railway
systems, and to perform similar services, to exercise the power of eminent domain
in behalf of these enterprises, and to tax their citizens for their support, is
found in the fact that they are not private business, but "public purposes," "local
purposes connected with the public good?" And when a private water company obtains
from the legislature a grant of the sovereign power of eminent domain, this grant
is upheld by the courts upon the ground that it is fulfilling a public purpose,
assisting the state in the performance of its governmental functions, precisely
as railroads are granted the same power to enable them to assist in the governmental
task of furnishing an adequate system of public highways. Private individuals and
corporations frequently carry on the business of maintaining public highways, such
as turnpikes, toll-bridges, and railroads, but no one has ever had the hardihood
to maintain that when the state assumed this duty it therefore became engaged in
a "private business."
These private corporations are not exempt from suit, because they are private corporations,
and not mere subdivisions of the state. The further distinction noted by Chief Justice
Doe is also worthy of comment, — that they are operated for the pecuniary
benefit of the incorporators, while the residents of a city operating system of
water-works have no private beneficial interest in them, any more than citizens
of the state generally have in the property of the state. It is an entire misapplication
of terms to speak of a municipality as engaged in business of a private corporate
capacity, or as having a private beneficial interest in any of its property, because
municipalities are established only for public political purposes, and cannot constitutionally
exercise the power of eminent domain, or expend money raised by taxation for any
other purpose, and because the interest of the municipality and its citizens in
its income-bearing property is in no wise different from the interest of the state
and its citizens in its similar property, — as, for instance, leased wild
lands. The citizens of the municipality may receive an indirect pecuniary benefit,
in the reduction of
taxes, from the prudent and economical management of the water-works; but they receive
a like benefit from the prudent and economical management of their highways by the
highway surveyor. Yet for the negligence of the highway surveyor they are not liable,
unless by statute. What valid ground of distinction can be suggested?
It seems impossible, if the criterion of the public or private character of the
enterprise in question is to be the test of liability, to establish any fixed rule
or standard by which this test is to be applied. Courts adopting this distinction
have generally held that in constructing and maintaining highways, conducting schools,
providing for police protection and the extinguishment of fires, and in taking precautions
for the preservation of the public health, the city or town is exercising purely
governmental functions; while in owning and managing water-works, gas-works, sewers,
and public parks, it is acting in its private corporate capacity. What clear line
of demarcation is to be discovered between these classes of acts? It certainly cannot
be found in the often suggested distinction that those acts are public in their
nature which affect the state at large, while those are private by which the citizens
of the municipality are alone benefited. Public highways cannot be put upon one
side of this line, while public parks are ranged on the other. Both are used mainly
by the residents of the town which maintains them, but both are equally open to
all the residents of the state.
In view of these principles, it would be unprofitable to consider at length the
query propounded by the plaintiff as to the foundation of the right of action against
towns upon their contracts. The court has again and again stated in unequivocal
terms that there is no such right of action unless conferred by statute, expressly
or by necessary implication. This right, in the case of contracts, may fairly be
implied from the statute giving towns the power to make all necessary contracts,
— together with special statutory provisions regarding municipal notes and
bonds, — contracts being, by definition, binding agreements capable of enforcement
by legal process. The statute making towns bodies corporate, capable of suing and
being sued, merely has the effect of endowing them with such a quality of personality
as to enable them to become parties to legal actions, but in no way affects their
general non-liability to action, in the absence of statutory permission. But however
the liability of towns to actions of contract may be explained, this is certain,
and sufficient for the purposes of this case, that while the general liability of
towns to such actions is established in this state by long usage, their non-liability
for their torts is almost equally well established.
There may be some conflict of decisions; some of the earlier cases, such as Rowe
v. Portsmouth, 56 N.H. 291 , may be irreconcilable with the opinions in later cases,
such as Wooster v. Plymouth and Doolittle v. Walpole. But if the decisions cannot
be reconciled, the later presumably express the mature and deliberate judgment of
the court, and alone offer any rational and practicable basis of decision. Endless
confusion must result from the attempt to divide the functions of municipalities
into private and public, no sound principle being suggested upon which such a distinction
can be founded, and the decision in each case as it arises depending upon the impression
made upon the minds of the court lay a variety of trivial and inconsequential circumstances.
Grimes v. Keene, 52 N.H. 330 , presents no difficulties in the decision of this
case. The only question discussed in that case was whether the superintendent was
the agent of the town, or an independent public officer. So far as the question
whether the water commissioners of Concord are agents of the city or independent
public officers is of importance in this case, it may be remarked that the suggestion
found in some of the cases that public officers are those whose duties are prescribed
by general law is clearly incorrect. The duties of the Portsmouth water commissioners
were defined by the special act establishing the water-works; yet in Gross v. Commissioners, 68
N.H. 389 , they are expressly stated to be public officers. The police commissioners
of the various cities of the state are created and their duties defined by special
acts; yet they are not the agents of their respective cities, but independent public
officers.
Nor is the fact that an officer is subject to removal by the executive officers
or legislative body of the city or town a sure proof that he is not a public officer.
Officers of the peace, such as police officers and constables, are invariably held
to be public officers; yet under our statutes, marshals, assistant marshals, police
officers, and constables may be at any time removed for cause by the board of mayor
and aldermen, and the selectmen of towns are authorized to appoint special police
officers, having the powers of constables, but holding office only during the pleasure
of the selectmen. Firewards, held in Edgerly v. Concord, 62 N.H. 8 , to be public
officers for whose negligence the municipality is not responsible, are generally
appointed by the selectmen, their term of office being liable to be terminated at
any time by vote of the town in town meeting — the legislative assembly of
towns corresponding to the city councils of Concord, in whom is vested the similar
power of removing from office at will any member of the board of water commissioners.
The decision in Edgerly v. Concord is not dependent upon the fact that the duties
of the
engineer and other officers of the fire department are prescribed by general law,
but would necessarily, under the authority of Gross v. Portsmouth and Gross v. Commissioners,
be the same under the present constitution of the city's fire department, which
derives its authority from a special act of the legislature.
Public officers, under our New Hampshire decisions, are those who, in the performance
of their duties, act upon their own responsibility, under authority such that they
are for the time being independent of the control of the general executive officers
of the town or city, regardless of the questions whether that authority is liable
to be revoked or altered, and whether they can be removed from office at the pleasure
of the appointing power, and from whatever source their authority may be derived.
To sum up, then, our positions:
1. The water commissioners of Concord are a board of independent public officers,
for whose negligence the city is not responsible.
2. Even if a municipal corporation were liable for negligence in the performance
of business of a private corporate nature, in which it has a private beneficial
interest, the city would not be liable in this case, because in so far as it administers
the affairs of the waterworks it does so in a purely governmental capacity, as a
burden assumed for the benefit of the precinct. The city cannot be sued simply because
it has at its command a method by which it can reimburse itself, nor yet because
there is no one else to sue.
3. The distinction between public and private functions of a municipality is not
recognized by our latest and best-considered cases, which lay down in the clearest
terms the doctrine that a municipal corporation, being a mere subdivision of the
state and possessing the same attributes of sovereignty, is not liable to suit except
by permission of the legislature. This distinction is further unsound upon principle,
cities and towns being established solely for public purposes, and having no constitutional
right to invest their funds in private enterprises. It is also impracticable in
operation, because no clear line of demarcation is laid down in the reported cases,
or can be suggested, by which to distinguish the private from the public functions
of a municipality, and the question what a court will decide in a given case must
always remain a matter of guesswork, in the absence of decisions by the same court
upon exactly the same state of circumstances.
Walter S. Peaslee and E. A. C. B. Hibbard, for the plaintiff, cited and commented
upon: 2 Dill Mun. Cor. s. 974; Tied. Mun. Cor., s. 324; 1 Shearm Red. Neg., s.
290 et seq.; 1 Jag. Torts 173, 174; Cool Torts 742. 7 Thomp. Corp., s. 8144; Small
v.
Danville, 51 Me. 359 ; Cumberland etc. Corp. v. Portland, 62 Me. 504 ; Woodcock
v. Calais, 66 Me. 234 ; Moulton v. Scarborough, 71 Me. 267 ; Bulger v. Eden, 82
Me. 352 ; Eastman v. Meredith, 36 N.H. 284 ; Grimes v. Keene, 52 N.H. 330 ; Gilman
v. Laconia, 55 N.H. 130 ; Rowe v. Portsmouth, 56 N.H. 291 ; Parker v. Nashua, 59
N.H. 403 ; Clark v. Manchester, 62 N.H. 577 ; Willey v. Portsmouth, 64 N.H. 214
; Winn v. Rutland, 52 Vt. 481 ; Welsh v. Rutland, 56 Vt. 228 ; Weller v. Burlington, 60
Vt. 28 ; Oliver v. Worcester, 102 Mass. 489 ; Emery v. Lowell, 104 Mass. 13 ;
Brooks v. Somerville, 106 Mass. 271 ; Hill v. Boston, 122 Mass. 344 ; Murphy v.
Lowell, 124 Mass. 564 ; Hand v. Brookline, 126 Mass. 324 ; Coan v. Marlborough,
164 Mass. 206 ; Norton v. New Bedford, 166 Mass. 48 ; Lynch v. Springfield, 174
Mass. 430 ; Aldrich v. Tripp, 11 R.I. 141 ; McCaughey v. Tripp, 12 R.I. 449 ; Wixon
v. Newport, 13 R.I. 454 ; Pomroy v. Granger, 18 R.I. 624 ; Jones v. New Haven 34
Conn. 1 ; Weed v. Greenwich, 45 Conn. 170 ; Norwalk Gas Light Co. v. Norwalk, 63
Conn. 495 ; Walsh v. Brooklyn Bridge, 96 N.Y. 427 ; Walsh v. New York, 107 N.Y.
220 .
Sargent Niles, for the defendants, in reply. We have, in our former briefs, taken
the position that municipal corporations are not liable in this state for their
torts, in the absence of a statute creating such liability; but that as to contracts
the common-law principle of non-liability has been modified, either by the statute
permitting towns to make contracts, or by virtue of a long established and well
recognized exception to the general rule. At the oral argument, we were asked by
the court, whether, if the city were considered the employer of the plaintiff, the
contractual relation of master and servant did not exist between the plaintiff and
the defendant, so that the liability in this particular case was of a contractual
nature, upon which, under the principle of municipal liability on contracts, an
action could be maintained against the city. To this suggestion we desire to reply
briefly.
This suit is an action on the case for negligence — an action of tort, not
of contract. It is based upon the general principle, summed up in, or derived from,
the maxim, Sic utere tuo ut alienum non laedas, — that one having the control
of agencies, forces, or property is responsible for injury to another, directly
resulting from his failure to exercise, in the control of those agencies or forces,
or of that property, such care as a reasonably prudent man would exercise under
the circumstances. One of the "circumstances" bearing upon the question of reasonable
care is the relation existing between the parties. Ordinary care toward a person
on one's premises in the course of a business transaction in which both are interested
may be greater than toward one
on those premises merely by license or tacit sufferance, or toward an unwelcome
and unexpected trespasser. But these various relations do not create the obligation;
they merely assist in determining the standard of care due from the owner of the
premises, in view of his relations with the persons injured.
A shopkeeper owes toward his customers the duty of keeping his shop in such reasonably
safe condition that they shall not be exposed to dangers undiscoverable by them
by the exercise of reasonable care. This duty is based on the principle stated above;
not on any contract, because there is no contract. His relations with them merely
serve to assist in fixing the measure of care which they have a right to expect.
He desires their presence, and knows that he must anticipate it. It is this knowledge
of their probable presence, with other circumstances, that determines the extent
of his obligation. Upon the same principle rests the obligation of a railroad company
to its passengers and those who visit its stations for the purpose of meeting persons
arriving on trains, or for similar purposes connected with no contractual relation.
To all such persons is due the exercise of reasonable care, because the company
knows that they are likely to be on its premises. Its contract with its passengers
cannot be regarded as the basis of an action of tort for negligence; a breach of
a contract as such is not a tort. The only value of the contract is as evidence
of the existence of such a relationship between the parties that the defendant should
have known that the plaintiff, acting as he would be expected to act in view of
that relationship, would be exposed to danger unless precautions were taken for
his protection. "The real value of the phrase [invitation] may not improperly be
said to be, that invitation imports knowledge by the defendant of the probable use
by the plaintiff of the article supplied, and therefore carries with it the relation
between the parties which establishes the duty." Brett, M. R., in Heaven v. Pender,
L.R. 11 Q.B. Div. 503, 512, 513.
The obligation of the master to the servant is derived from no different source
than that of the shopkeeper to his customer, or of the railroad to its passengers,
the visitors at its stations, those who customarily cross its tracks at a particular
place with its knowledge and tacit consent, or even the casual trespasser on its
premises. There may be in some cases actions both of tort and of contract, —
as, for example, against common carriers; but the action of tort is not founded
on the breach of contract, but on the failure of one party to exercise reasonable
care, knowing that that failure would be likely to result in injury to the other.
When it is said that the master is under obligation to provide for the servant a
reasonably safe place in which to work, and reasonably safe machinery and appliances,
it is not
meant that he agrees to do this, so that for failure to do so an action of assumpsit
will lie; but rather that the master, because of the relationship between himself
and his servant, knows that the servant will be on his premises, and will use his
machinery and other appliances, and that those precautions are due, not by virtue
of any contract, but because they would be taken, under like circumstances, by men
of reasonable prudence. It must be apparent that the plaintiff in the present case,
assuming that the city was his employer, could not sue in assumpsit for his injuries,
alleging that they were due to a breach by the city of some term of the contract
of service, because there is no such term. His only remedy is necessarily by an
action on the case.
An attempt to sue in contract for an injury caused to a servant by the master's
negligence was made in Riley v. Baxendale, 6 H. N. 445. The declaration alleged
that the hiring of the plaintiff was "on the terms that the defendants should take
due and ordinary care not to expose the said [plaintiff] to extraordinary danger
and risk in the course of his said employment."
Held (MARTIN, B.): "There has been a series of cases in which the duty of the master
has been improperly declared upon as a contract. This, imposes a difficulty on the
defendant by making it impossible for him to demur, and all that he can do is to
deny the contract. I am of opinion that on the hiring of a servant no such contract
as this is to be implied; there is a mere contract of service. No such contract
as that stated in the declaration really existed, and liability of a master for
injury to his servant in the course of his employment is one of a different character."
(WILDE, B.) "It does not follow that wherever a duty is cast upon a person the law
will imply a contract on his part to perform it."
(POLLOCK, C. B.) "Generally speaking, a mere duty cannot be turned into a contract,
and great inconvenience would result if we were to permit it to be declared on as
such."
The fact that the liability of the master to the servant in cases of negligence
is not of a contractual nature, is clearly stated in the following authorities:
Busw. Pers. Inj. 4-6, 310; Big. Cas. Torts 706; Cool. Torts 549, 550; Bev. Neg.
313, 314. It must be plain, upon these authorities, not only that the liability
of the master to the servant for injuries caused by the master's negligence is
not contractual in its nature, so as to support an action of contract, but also
that the contract of service is in no respect the basis of the liability, which
is founded upon the broad principles of liability for the negligent management of
property, forces, or agencies, by persons having them under their control, which
obtain among men in general, regardless of contractual relations. So far as the
distinctions between invitation, license, and trespass are of any assistance in
determining the legal status of a plaintiff (they are probably worse than useless,
the defendant's knowledge of the plaintiff's probable presence in a place of danger
controlled by the defendant being the true test of liability, rather than any consideration
of the legal position of the plaintiff with regard to his presence on the premises),
the servant, under the narrowest possible definition of invitation is on the master's
premises by invitation, his presence being with the assent of the master, and upon
business in which both are interested. The master's duty to exercise care toward
him is founded on the same principles, and measured by the same standard, as the
duty of the common carrier toward its passengers, or of the shopkeeper toward his
customers. The contract of service is not the foundation of the master's liability
in tort, but is merely one of the circumstances tending to establish the standard
of care which he should exercise in the performance of the duty resting upon him,
as upon all persons within the jurisdiction of the common law, so to manage the
property, forces, and agencies under his control as to do no unnecessary injury
to the persons or property of others.
The liability of the city to the plaintiff for his injuries, assuming that the city
was his employer, is not a contractual liability, and he therefore cannot avail
himself of the liability of municipal corporations in New Hampshire to suits upon
their contracts; and there is no such liability with regard to torts, in the absence
of a statute creating the remedy. The liability of towns to suits upon their contracts,
viewed as based upon the statute authorizing them to make contracts, and containing,
by necessary implication, a provision for their enforcement, is not an exception,
opening the way to other exceptions, to the general rule that towns, as subdivisions
of the sovereign state, are not liable to suit in the absence of statutes creating
such liability, but is rather an illustration of that rule. There is no similar
statute with regard to the torts of towns, except as to accidents due to certain
defects in highways, and the plaintiff, having no right of action of a contractual
nature, is without remedy against the city.