Title: Taylor v. City of Devils Lake

State: north-dakota

Issuer: North Dakota Supreme Court

Document:

87 N.W.2d 401 (1958) Charles TAYLOR and Ruth Taylor, Plaintiffs and Respondents, v. The CITY OF DEVILS LAKE, a Municipal Corporation, Defendant and Appellant. No. 7700. Supreme Court of North Dakota. January 6, 1958. Rehearing Denied January 30, 1958. Clyde Duffy, Devils Lake, for appellant. Erickstad & Foughty, Devils Lake, for respondents. SATHRE, Judge. The plaintiffs in this case own and operate a Coast to Coast hardware store in the City of Devils Lake at 308 Fourth Street. In their business they carry a general line of hardware and other merchandise such as automobile tires, washing machines, package goods and many other items of different types and description. The basement of the building which they occupy is equipped with shelving and is used for storage of the general items of merchandise which they carry in stock for sale. They brought this action for damages against the City of Devils Lake alleged to have been sustained by reason of the negligent failure of the city to maintain the water mains in the water distribution system owned by the city in proper repair, and that on the 22nd day *402 of June 1956, a water main broke in front of the plaintiff's place of business permitting the water to seep through the ground into the plaintiff's basement and damaging and destroying a large quantity of merchandise stored therein. The complaint alleges that notwithstanding the plaintiffs gave due and timely notice to the city and its officers of the break in the water main the city negligently failed to shut the valves to stop the flow of water into the basement and that by reason of the negligence on the part of the city and its officers the basement of plaintiffs' place of business was flooded and that large quantities of merchandise stored therein were destroyed and damaged to the damage of the plaintiffs in the sum of $3,884.98. The defendant city answered by way of general denial, specifically denying that the damages sustained by the plaintiff were due to any negligence on the part of the defendant. It admits that a break occurred in one of the water mains as alleged in the complaint and that plaintiffs suffered some water damage but denies that such damage was due to any negligence on the part of the defendant. The answer further alleged that: The case was tried to a jury in the district court of Ramsey County in the City of Devils Lake, North Dakota, in December 1956. At the close of all the testimony, when both parties had rested, the defendant moved for a directed verdict in its favor upon the following grounds: 1. That the undisputed evidence establishes that the City of Devils Lake was at the time of the incident involved in this action and upon which liability is attempted to be predicated, engaged in a governmental function and is therefore exempt from liability of suit for damages. 2. That the evidence wholly fails to establish that the damages sustained by plaintiffs were the result of negligence on the part of the defendant, its officers, or employees. The trial court denied the motion and submitted the issues to the jury. The jury returned a verdict in favor of the plaintiffs, and judgment was entered thereon. Thereafter in due time defendant made a motion for judgment notwithstanding the verdict or in the alternative for a new trial. The motion was made upon the same grounds as was the motion for a directed verdict. The motion was denied and defendant appealed from the order denying its motion and from the judgment. It is the contention of the defendant that in operating and maintaining the water works of the city it was engaged in a governmental function, and that therefore it was not liable for the damages alleged to have been sustained by the plaintiffs. The first question for consideration is whether the City of Devils Lake was functioning in a governmental capacity when the plaintiffs sustained the damages complained of. The general rule is that if a municipality is engaged in a governmental function it is not liable for damages resulting *403 from negligence of its officers and employees. In the case of Holgerson v. City of Devils Lake, 63 N.D. 155, 246 N.W. 641, 642, this court said: In the case of Belt v. City of Grand Forks, N.D., 68 N.W.2d 114, 119, this court said: To the same effect is Burkard v. City of Dell Rapids, S.D., 72 N.W.2d 308, 309. We quote from the opinion: It appears from the evidence that prior to August 1, 1955 and for 50 years or more, the Otter Tail Power Co. of Fergus Falls, Minnesota, owned and operated the water distributing system of the City of Devils Lake. The city had dug and maintained several artesian wells which furnished water for the system. The water from these wells was not potable, at least was not desirable for domestic use, and the city authorities had on different occasions discussed the matter of obtaining potable water from other sources than from the artesian wells. However no official action was ever taken for such purposes. On August 1, 1955 and prior thereto the water system of the city consisted of the water mains and feeder pipes to the users, and an elevated storage tank with a capacity of 100,000 gallons. It is established by the testimony of the city commissioners and the superintendent of the water department that the system as it existed on August 1, 1955 was capable of furnishing water sufficient for the ordinary and necessary use by the residents of the city. The problem confronting the city commission, however was the matter of fire protection. The evidence shows that a survey conducted by the fire underwriters indicated that there was not sufficient water, or main capacity to provide adequate fire protection for the State School for the Deaf and Mercy Hospital which are located in the City of Devils Lake. On March 4, 1955 the city commission received a letter, defendant's exhibit 10, from Mercy Hospital stating that it would be unable to secure a license to operate for the current year unless a sprinkler system was installed at the hospital for fire protection, and that in order to be eligible for a license it had to be assured by the city that action would be taken to provide such fire protection. The City Commission thereupon employed a consulting engineer to make a survey and to make a report and recommendations as to the necessary steps to be taken to secure adequate fire protection. The consulting engineer, Mr. L. W. Burdick of Grand Forks, N. D. made a survey of the water system of the city, made his recommendations and prepared plans and specifications for improvement of the water system which included construction of feeder mains and an elevated tank of 500,000 gallon capacity which would be required to insure sufficient pressure for fire *404 protection. The Otter Tail Power Company declined to incur the expense of making these improvements, but was willing to sell the water system to the City of Devils Lake. After due consideration negotiations were completed for purchase by the City of Devils Lake of the water system for a consideration of $128,162.00 and the city took possession on August 1, 1955. The City Commission accepted the plans and specifications prepared by the consulting engineer and proceeded to advertise for bids and let contracts for construction of the improvements to the water system involving expenditures as follows: The 1955 Legislative Assembly of North Dakota appropriated $75,000 towards the project leaving the net cost to the city at $337,000. With reference to the purchase by the City Commission of the water distribution system, Mr. Dennis Kelly who had been chairman of the City Commission since 1950 testified as follows: Mr. Paul Oien, the Water Commissioner, testified as follows with reference to the reason why the city undertook to purchase and enlarge the water system: *405 "Q. I believe the evidence shows there isthat there was a tank holding, I believe 100,000 gallons of water, is that correct? A. Yes. It appears clear therefore that the main consideration of the city commission in purchasing and enlarging the water system was to secure adequate fire protection. The construction of the elevated water tank had been completed some time prior to June 22, 1956. On that day at about 1 o'clock P.M. Mr. Austin Chisholm, superintendent of the water department, decided to fill the tank in order to test it for leaks. The tank was located in the north section of the city. A pump with a capacity of 1,000 gallons per minute, located near the Great Northern tracks on the south side of the city was used to force the water through the system and into the tank, as greater pressure than ordinarily required for normal use was necessary to force the water into the tank. At about 4:30 in the afternoon a water main had broken in front of the Ramsey Bank, adjacent to plaintiffs' place of business, and water was coming up through the pavement. About the same time, Mrs. Taylor, one of the plaintiffs, discovered that water was seeping into the basement of their store, and she immediately notified her husband. She next called the city auditor's office, the city engineer, and the fire department. These calls were made between 4:30 and 5 o'clock. The street department had closed the main valves, but the water was still seeping into the basement. The fire department arrived at about 5 o'clock P.M. and immediately started pumping water out of the basement with a 1000 gallon per minute pump; and one Ted Kemis a contractor also arrived and began pumping out water with an 8,500 gallon per hour pump. Both of these pumps were operating at the same time. Some difficulty was experienced in getting the gate valves fully closed and one or two were not fully closed until 7:30 or 8 o'clock P.M. The place of the break in the main was located by the contractor Kemis at about 1:00 A. M. June 23 and he immediately proceeded to repair it. The plaintiffs introduced testimony from which it appears that during the eleven month period the water system had been owned and operated by the defendant city there had been sixteen breaks in the water mains which had been repaired by the city; that therefore the city was chargeable with knowledge of the deteriorated condition of the water mains and that the city was guilty of actionable negligence in failing to maintain the system in proper repair. The question before us is whether the City of Devils Lake was acting in its governmental capacity at the time the basement of plaintiffs' store was flooded. In 63 C. J.S. Municipal Corporations, § 1051, pp. 668, 669 it is stated: In McQuillin Municipal Corp. Vol. 2, 3rd Ed. Sec. 1005, page 585 appears the following enumeration of governmental powers of Municipalities: The case of Brush v. Commissioner of Internal Revenue, 300 U.S. 352, 359, 57 S. Ct. 495, 81 L. Ed. 691, 693, involved the question whether the salary of Brush, Chief Engineer of the Bureau of Water Supply of the City, is a part of his taxable income. His annual salary was $14,000. He exercised supervision over the engineering details connected with the supplying of water for public purposes and for consumption by the inhabitants of the city, and generally exercised control over the operation of the water system. The Federal Board of Tax Appeals held that his salary was taxable income, and its decision was affirmed by the Circuit Court of appeals. 2 Cir., 85 F.2d 32. On review by Writ of Certiorari to the Circuit Court of Appeals the judgment was reversed by the United States Supreme Court. In an opinion by Justice Sutherland the Court said [300 U.S. 352, 57 S.Ct. 498]: The opinion quoted with approval the following from City of Columbus v. Mercantile Trust & Deposit Co., 218 U.S. 645, 658, 31 S. Ct. 105, 109, 54 L. Ed. 1193, 1197: In conclusion the Court said: *407 The decision in the Brush case, supra, was followed by the Supreme Court of Virginia on a similar question in the case of City of Norfolk v. Board of Supervisors, 168 Va. 606, 192 S.E.2d 588. In the case of Montain v. City of Fargo, 38 N.D. 432, 166 N.W. 416, L.R.A.1918C, 600; this court held that disposing of garbage was a governmental function. We quote from the opinion, 38 N.D. at pages 442-443, 166 N.W. at page 417. See also Moulton v. City of Fargo, 39 N.D. 502, 167 N.W. 717, L.R.A.1918D, 1108. In the case of Hamilton v. City of Bismark, 71 N.D. 321, 300 N.W. 631, it was held that in constructing a sewer system a city acts in a governmental capacity, and is not liable for damages caused by an overflow of its sewers occasioned by extraordinary rains or floods. Upon the record before us, and the authorities cited we conclude that the City of Devils Lake was exercising an essential governmental function when it acquired ownership of the water distributing system and took steps to improve and enlarge it sufficiently to meet the needs of its inhabitants. It follows, that the defendant city could not be held liable for the damages sustained by the plaintiffs and was therefore entitled to judgment notwithstanding the verdict. The judgment of the district court is reversed and the case remanded with directions to dismiss the action. GRIMSON, C. J., and MORRIS, JOHNSON and BURKE, JJ., concur.