Document: 379 U.S. 497 85 S.Ct. 577 13 L.Ed.2d 446 CITY OF EL PASO, Appellant,v.Greenberry SIMMONS. No. 38. Argued Nov. 17, 1964. Decided Jan. 18, 1965. Rehearing Denied March 1, See 380 926, 879. William J. Mounce, El Paso, Tex., for appellant. Greenberry Simmons, Louisville, Ky., appellee. Mr. Justice WHITE delivered the opinion of Court. 1 Under applicable statutes existing in Texas 1910, year which contracts this case were made, State Land Board was authorized to sell public lands allocated Permanent Free School Fund on long-term calling a down payment oen-fortieth principal and annual interest principal. The time extended periodically never called due. In event nonpayment interest, however, termination contract forfeiture without necessity reentry or judicial proceedings, land again become part domain be resold account school fund.1 provision chiefly issue provided: 2 'In any cases where have been forfeited non-payment purchasers their vendees may claims reinstated written request, by paying into treasury full amount due such claim up date reinstatement; provided, that no rights third persons intervened. all original obligations penalties shall thereby as binding if had ever occurred.' Tex.Gen.Laws 1897, ch. 129, art. 4218f. 3 1941, foregoing provisions amended. Among other things, offering sale subsequent made permissive instead mandatory added stating right reinstate thereafter 'must exercised within five (5) years from forfeiture.' Tex.Gen. & Spec.Laws 191, § 3, Vernon's Ann.Civ.Stat., 5326. 1951, reinstatement limited last purchaser his heirs. 59 2, 5326.2 4 certain predecessors title appellee, executed installment purchase Texas. one-fortieth payments. assigned several times payments fell arrears during forties. On July 21, 1947, after notice f request payment, interest. A copy 1941 Act allowing sent record, but returned unclaimed. Appellee citizen Kentucky, took quitclaim deeds question filed applications reinstatement, tendering required denied because they not statute. 1955, pursuant special legislation, sold City Paso. Simmons then suit Federal District Court determine question. its answer relied upon statute barring Simmons' also pleaded adverse possession laches additional defenses. granted City's motion summary judgment ground statute.3 Appeals reversed, 320 F.2d 541 (C.A.5th Cir.), ruling vested contractual prohibition against impairment contained Art. I 10, Constitution United States prohibited application here We noted probable jurisdiction. 377 902, 84 1165, 12 174. reverse. I. 5 Although neither party has raised issue, we deal at outset with jurisdictional matter. appeal is under 28 U.S.C. 1254(2) (1958 ed.).4 Appeals, holding unconstitutional, remanded defenses possession. prior interpretation 240(b) Judicial Code, predecessor 1254(2), final decree necessary exercise our jurisdiction over way appeal, Slaker v. O'Connor, 278 188, 49 158, 73 L.Ed. 258, followed comment South Carolina Electric Gas Co. Flemming, 351 901, 76 692, 100 1439 questioned put rest Chicago Atchison, Topeka Santa Fe R. Co., 357 77, 78 1063, 1174, being deemed one. These questions briefed nor argued it appropriate resolve them here. 6 1962 Congress expanded scope 2103 apply appeals courts appeals.5 That section now provides an improvidently taken court well state dismissed reason alone, papers regarded acted petition writ certiorari. restriction ed.) providing 'shall preclude review certiorari instance appellant' bar treating For means only proper taken, will available; proper, still consider timely certiorari.6 Bradford Light Clapper, 284 221, 52 118, 254. No instant case. But ed., Supp. V) requires treat whereon Accordingly dismiss grant II. 7 turn merits. seeks bring long line recognizing distinction between obligation remedy permitting modification there substantial value obligation. Sturges Crowninshield, Wheat. 122, 200, 529; Von Hoffman Quincy, Wall, 535, 553 554, 18 403; Honeyman Jacobs, 306 539, 702, 83 972. More specifically, invokes three Court, two Texas, held constitutionally permissible private when law did provide permitted order. Wilson Standefer, 184 399, 22 384, 46 612; Waggoner Flack, 188 595, 23 345, 47 609; Aikins Kingsbury, 247 484, 38 558, 62 1226.7 those reasoned considered exclusive remedies available purchaser's default since promise, express implied, enlarge another breach. 8 rejected contention. cases, according hold confers subject legislative alteration.8 From concluded five-year limitation mere change contract. Relying theory determines parties, found abrogated thus violated Contract Clause Constitution. 9 do pause further whether correctly ascertained these chart dividing federal 'remedy' 'obligation,' extent controlled decisions, decisions often rendered contexts involving considerations.9 every promise impairs law, more than alteration violates Clause. Stephenson Binford, 287 251, 276, 53 181, 77 288; Stone Mississippi, 101 814, 819, 25 1079; Manigault Springes, 199 473, 26 127, 50 L.ed. 274. Assuming State's obligation, think repose contravenes 10 'put beyond absolute one read literal exactness like mathematical formula,' Chief Hughes said Home Building Loan Assn. Blaisdell, 290 398, 428, 54 231, 236. Blaisdell opinion, amounted comprehensive restatement principles underlying Clause, makes quite clear '(n)ot constitutional qualified measure control retains remedial processes, continues possess authority safeguard vital interests people. It does matter legislation end 'has result modifying abrogating already effect.' 189, 288. Not are laws order fix reservation essential attributes sovereign power postulate legal * This principle harmonizing residuum progressive recognition Court.' U.S., 434—435, S.Ct., 238—239. Moreover, 'economic justify continuing dominant protective notwithstanding interference contracts.' Id., 437, 239. 'sovereign protect general welfare people *. Once reserve must respect 'wide discretion legislature determining what necessary." East New York Savings Bank Hahn, 326 230, 232—233, 66 69, 71. As Johnson Ogden Saunders, '(i)t motive, policy, object, characterize act, affect imputation violating 213, 291, 606. 11 Of course, modify limit. '(W)hatever reserved consistent fair intent power. cannot construed so destroy limitation, aspects. They harmony each other. precludes construction would permit adopt policy repudiation debts destruction denial enforce them.' supra, 439, 240. objects make abundantly protected III. entering Union, entire domain, one-half set aside 1876 finance universal system free education.10 lands, 42,000,000 acres, quickly practicable revenues encourage settlement vast domain. terms undemanding designed accomplish widespread development price, interest.11 frequently modified favor purchasers. Periodically, course almost century, nominal extended.12 1919, requirement settle adjoining lifted,13 forfeiting first opportunity repurchase newly appraised thrice added,14 forgiven acts,15 reclassification deprive purchasers, mineral land.16 eventually evolution frontier society modern State, attended discovery oil gas deposits led speculation exploitation changes use forth amendments conditions State. Beside increasing one-fifth price,17 restricted assigns forfeiture. circumstances behind amendment described Reports Commissioner General Office. purpose enacted restore confidence stability integrity titles enable administer property businesslike manner. 1938—1940 Rep. 5. '(T)he records (of office) show through many thousands contracts, covering, aggregate, millions acres land, failure meet small requisite maintenance 11—12. 1939, 15,000 sales delinquent about 600,000 unsold surveyed major portion produced revenue decade. Ibid. affairs principally attributable unlimited gave rise. Forfeited remained dormant could became potentially productive oil. Where purchased minerals early purchases before extensive wealth reverted owner claims, regardless later attempts share Gulf Production 231 S.W. 124 (Tex.Civ.App.). Hence majority resales requiring highest bidder18 buying 'speculative option,' 'taken possible profits surface owners lease gas.' bid highly inflated prices who expected keep afford offer.' 1940—1942 assure some acts preferential buy reappraised value, and, accumulated arrears, proved unsuccessful, expensive. regard quiet 1925 expressed belief 'owners can realize returns (the lands) pay thereon recurring resale indefinitely.' 1924—1926 new 1,872,326 1,195,993 repurchased acts. net loss repurchases 1,661,980 plus $418,000. 12. 14 less significant imbroglio shadow cast perpetual rise spate litigation See, e.g., Weaver Robison, 114 Tex. 272, 268 133; Anderson Neighbors, 94 236, 543; Mound Oil Terrell, 99 625, 92 451. same times, case, vendees. Hoefer 104 159, 135 371. Cf. Faulkner Lear, 258 S.W.2d 147 situation Legislature addressed itself light judge validity amendment. 15 render powerless take effective measures above. note substantive, central undertaking seller primary consideration buyer's undertaking. 1226. agreement promised transfer buyer price; obliged price maintain breached practically contract, back fund, Boykin Southwest Tex.Com.App., 256 581, arose, conditioned refusal dispose lease. believe seriously contended substantially induced enter basis defeasible perform, he interpreted everlasting effect. At entered possible, steps induce sales. Becton Dublin, 163 907, 910 Thus, example, reclassify next day publicize widely sale. 133. clearly indicates conceived endless privilege conferred defaulting buyer. contrary illusory while obliging whenever decided comply payment. We, Faitoute Iron Steel Asbury Park, 316 502, 514, 1129, 1135, 86 1629, '(t) 'intended preserve practical rights, theories.' Davis Mills, 194 451, 457, 24 695, 48 1067.' 16 quick prove entirely successful; defaulted bought intention complying unless discovered. market contracted depression. developments hardly foreseen, operated confer considerable advantages successors costly difficult burden Court's given imposes unforeseen burdens contracting immunity change. 972; Gelfert National Bank, 313 61 898, 1299; 90 34. Laws restrict gains reasonably attack technically alter allows bona fide reasonable reinstate. need allow speculative remain retaining cloud title. 17 clouds arising significance administering produce maximum utilizing properties ways best suited needs growing population. uncertainty titles, massive rise, pattern fund use. Timeless prevented maintaining orderly resultant confusion impeded disposition utilization them. feasible desirable, subdivisions utilize possibility might unknowable future assert reinstatement. very act reserving '(t)he fact Paso urgent expanding sources water protecting wells previously drilled,' 278. invalid absent Act. program adopted century sale, settlement, forfeiture, wholly effectual serve objectives decades later. Settlement longer objective, efficient compliance viable important goals, relieving hardships temporary adversity. Given impediments posed fulfillment timeless necessary. years, mild indeed, burdensome wanted adhere purchase, nonetheless forbid measure. 19 reversed. 20 Reversed. 21 BLACK, dissenting. number occasions dissent judgments balancing away First Amendment's unequivocally guaranteed speech, press, assembly petition.1 am compelled plain guarantee 'No pass Law impairing Obligation Contracts *,' results Texas' taking man's compensation violation equally Fifth Amendment, Fourteenth, '* (shall not) use, just compensation.' respondent, loser ultimate beneficiary action. 27 1910 obligated involved, cash, balance unnamed dates, 3% unpaid paid succeeding year. approved behalf provided 'in accordance of' statutes.2 relating incorporated assumed spelled out word contracts. One due, should 'forfeited State,' even 're-instated intervened.'3 29 Some 37 execution involved declared forfeited. Five days having valid assignment, tendered due4 asked carry land. Since owned admittedly intervened, unquestionably entitled nevertheless refused honor tender much higher received honoring selling price.5 brought action establish reversing Constitution, I, repudiating 30 reverses holds justified dishonoring passed attempted others unconditionally parties off 'exercised forfeiture.'6 says making voluntarily eagerly drug market, enact impaired flatly repudiated former greatly increased value. And strange sounds, reasons gives justification turned bad bargain lost dollars past. If hope realization profit breaker hereafter either partial sufficient weight cancel unequivocal command nullified most common cause breaking subscribe devitalizing doctrine. 31 deny bound honor.7 carefully kind 'obligation' protect. not, oblique reference footnote 9, my judgment, escape enforcement. Instead relying grounds, thinks good motives, except 'reasonable,' therefore allowed ignore There follow citation dicta past bit skillful 'balancing,' arrives conclusion: although here, seem serious evil, 'The measure.' 32 discussion applying brief. discusses difficulties regret Government experienced entered. thing point support whatever history holdings decision reached Indeed, relevant precedents opposite way. 33 included forbids bills attainder ex post facto laws. All reflect strong Framers men peril, fearing always mind consequences lives, liberty property. James Madison explained 'weary fluctuating policy' legislatures safely rely faith justifiably promises. Federalist, 44, 301 (Cooke ed. 1961). 34 great construing present attempt relieve duty grants regretted made. Fletcher Peck, Cranch 87, 162, 1810, speaking John Marshall Georgia terminate Clause.8 Later 529, 1819, went say 'Without certainly wisdom nation direct,'9 drawing remedy, is, method enforcing obligation.10 latter emphasized done 35 'of Any releases must, sense word, impair it. 36 words constitution, then, express, incapable misunderstood.'11 prohibits tax exemption Gordon Appeal Tax How. 133, Jersey Wilson, 164, 303. purport overrule overruled require least little surprising find discuss quotes few abstract statements solid persuasive importance place along companion clauses forbidding 39 mentions reasoning. 413, seems actually thing, entirety shows careful out. resort 'balancing' simply extending period redemption mortgage mortgagee resulting delay established contract's it.12 Viewed old static. challenged foreclose mortgages rental foreclosure place. recognized total eminent West River Bridge Dix, 507, paid, mortgagees 'limited interpositions'13 give 'temporary relief'14 conditional restraint' remedy.15 rather person itself, 'One whose are, restriction, remove Hudson County Water McCarter, 209 349, 357, 531, 828. also, Dillingham McLaughlin, 264 370, 374, 44 362, 364, 68 742; Marcus Brown Holding Feldman, 170, 198, 41 465, 466, 65 877; Springs, 480, 130, 'permit That, held, merely delaying enforcement compensating creditor delay. implicitly recognizes placing reliance preferring technique.16 Hughes, author reiterated upheld restraint compensation, four months spoke striking not. W. B. Worthen Thomas, 292 426, 816, 1344. Other standard applied subsequently struck down. Kavanaugh, 295 56, 55 240, 79 1298; Treigle Acme Homestead Assn., 297 56 48, 80 575; Wood Lovett, 983, 1404.17 40 None passing altered rule adhered thereafter, injured parties.18 Especially true when, us, own. Compare Perry States, 294 330, 432, 912, Norman Baltimore O.R. 407, 885. To subvert protection Fourteenth Amendments' compensation,19 has, said, imported field insupportable process technique objected Due Process Clauses Amendments,20 safeguards Amendment freedoms. supra. says, 'Laws contract.' Otherwise stated, turns him renege time. 'reasonably contract' view, decide. Thus 'reasonableness' becomes Clause's protection. 42 formula, indefinable standard, weighs considers disadvantages provision, concludes scales tip side refuses provision. finds nothing much: 'central' 'primary'; viewed today generous buyers; buyers probably 'defeasible reinstatement.' tries downgrade volunteering 'was (Texas) undertaking.' Why guesses told. My guess different. particular bound, think, inducement prospective lots blocks understandably eager reasons. build population improve business increase values. surprising, therefore, willing oversupply liberal terms, suggest knew more, quickly, promising kept thinking demonstrates lack knowledge credit imply safeguarding forfeitures greatest, arguments promote surfeit lands. factual inference puzzling emphasizes purposes nearly attractive. 43 observes believes theories."21 agree that. deprivation 'theory' likely undoubtedly gained dollars, concededly, unconstitutionally, millions. appears odd me 'technically Much unaware until multi-million dollar windfall technicality; sounds technicality me, perhaps Let us look weights throws Texas: interest; 'if oil'; purposes; thwarted efforts resell value; rolled by, caused 'lose' dollars; arose purchasers; intervene, depression; resold; 'interest' 'necessity' prompted rights; carrying 'quite use'; ws breach "in water"; needed money get painlessly repudiate obligations, 'impediments' desire raise reselling price. 45 things above relies unconditional keeping boil wisely ago,22 soared particularly discovered, euphemistically puts it, 'not *' among were. plainer language, unusual this. commonplace values steadily increases sharply valuable sellers richer happier go able welch plethora funds conceal easily whole easy now. increased, belongs equity sound agreed mistaken dealt example delusiveness 'test.' With deprecatory view equities claimants remarkable sympathy states inevitably destined bypass let break solemn demonstrates, adjudication deciding acceptable governmental facts considerations lead result. Even believed Justices country trying interpret language importantly, decide harmful country, 'reasonable.' Ferguson Skrupa, 372 726, 1028, 93; Power Comm'n Natural Pipeline 315 575, 599, 736, 749, 1037 (concurring opinion). intended 'fluctuating legislature. Today's legislature, IV. spite 'efficient utilization' real correct problems, limiting reinstatements following holders wants destory. Contractual property, compensation. Lynch 571, 840, 1434; see 912; cf. Motors Corp., 323 373, 89 311. Amendment. Griggs Allegheny County, 369 84, 85, 82 585; Pennsylvania Coal Mahon, 260 393, 415, 160, 67 322; Chicago, Q.R. 166 226, 241, 586, 979. stabilize sustain protects stand taken. Contributors Hospital Philadelphia, 245 20, ,S.Ct. 35, 124; Cincinnati Louisville N.R. 223 390, 267, 481; Long Island Supply Brooklyn, 685, 718, 1165; 535. upholds, 'necessary' took. suppose building highway house stood way, tear Until thought doubt Yet Amendments whom contractually obligated. seen mother regrettable invention law.23 Our schools highways purpose, tax-raised fairly contributed taxpayers, trusted too well. happiest wealthiest breaks Tuscarora Indian Nation, 362 99, 124, 543, 557, 584 (dissenting affirm Appeals. 1895 pertinent part: 'Sec. 11. November remains unpaid, Office endorse 'Land Forfeited,' entry effect purchaser, thereupon re-entry ascertainment, revert originally belonged, law: Provided, further, inhibit instituting proceedings recover occurred, suits instituted Attorney direction, county lies attached purposes: printed receipt.' 1895, 47. 5326 reads: 'If wrapper containing similar import, sign officially, offered date. heretofore forefeited vendees, heirs representatives, re-instated Treasury re-instatement, re-instate representatives. Such occurred. die, representatives (1) death, forfeit belonging deceased purchaser; time, proof death aside, Nothing Article land.' explicitly refer statute, judgment. accept interpretation. 'Cases reviewed Supreme methods: '(2) By repugnant treaties appellant, presented *.' appeals, mode certiorari, alone dismissal; duly granting competent adjudge respondent damages delay, single doubel costs.' 1254(1), 240(a) February 13, Judges Act) amended floor Senate 'as unrestricted error appeal.' 'unrestricted' immediately (now 1254(2)) introduced, sponsor both amendments, Senator Cummins, 'to question, ought extend controversy case,' envisaged review. Cong.Rec. 2919 (remarks Cummins). 612, 1879, proceed 1897 endorsement official documents decree. Neither 1879 default. 609, proceeding declare Here '(t)here implied.' 603, 348. Standefer controlling, seeing difference supplied none existed came California courts, declaring nonjudicial redeem controlling authority. unclear. Fristoe Blum, 76, 998, 1887 'any obligation' enactment vendor, perform rescind resume giving common-law rescission. Yates, 63 Tex.Civ.App. 6, 133 281, intervening third-party far perfected defeat rights. Cruzan Walker, 119 908, Freels 120 627, import. Hooks Kirby, 58 335, 156 timber itself; involved. (Tex.Civ.App.), decision, reclassifying retention meneral indicate arbitrarily interfere. faced right, limit right. 'could 1941.' 149. noted. addition rescission, insti- tuting 47, statutory sufficiently broad preserve, which, unlike dealing breach, cure operate concern dating placed critical remedy. enlarging mortgagor's redemption, characterized 420, 233. contravened clause. stated "Nothing material ideas inseparable, parts Constitution." 430, 237. While noting processes id., 430—431, 237, possessed people,' 434, 239, interests,' 'It 288.' Id. Further stressed 'affects incidentally, directly indirectly, legitimate end.' 438, Veix Sixth Ward Association Newark, 310 32, 60 792, 1061, investors loan association withdraw investment. classify remedial. Rather financial institution 'obligation respond withdrawal paramount police power.' 38, 794. upholding disallowing deficiency equals debt 972, confined securing satisfaction determinative, force recovered indebtedness. reaffirmed unanimous 235, 1299, substantive mortgagee's forced 234, 903. Similarly 34, remedy-obligation distinction. moratory postdepression suspending tenth succession immune people.' 232, 70. 7, Ann.St.; 1935, 312, 5416. perpetuate dream education minds Texans, Public Domain funds, apart schools, alternate sections railroads corporations, sums come same, constitute fund. regulations prescribed law. 'Under 42,500,000 160-acre tract Bowie 1874. 1905, sealed competitive bidding, endowment sum approximately $95,000,000 Fund.' Giles, History Disposition Domain. 14—15 (1945). E.g., 9; 163, 4. reduced assessed balance. Ann.Civ.Stat. 5312. 1; 59, 5320a; 1961, 5421c—9. 5, 1925, arts. 5306, 5311a. Report (hereafter cited Rep.). 94; 1926, 25, 5326a. April 1913, empower lapse specific tract. 111 240 300. Reappraisement board, ignored.' 103, 4; 5313, 5314. Giraud 102 1145. 'Congress respecting establishment religion, prohibiting thereof; abridging freedom press; peaceably assemble, redress grievances.' U.S.Const., Amend. Scales 367 203, 259, 81 1469, 1501, 782 opinion); re Anastaplo, 366 82, 97, 978, 987, 135, Konigsberg Bar, 36, 1009, 105 Braden 365 431, 584, 588, 653 Wilkinson 567, 576, 633 Barenblatt 360 109, 134, 1081, 1097, 1115 Uphaus Wyman, 72, 108, 1040, 1060, 1090 Beauharnais Illinois, 343 250, 72 725, 96 919 47; amended, 4218f, record how presented. 620.65 $1.50 per acre. 1955 appraised, 'but $6.50 acre.' dictum clearer. 131, Civil said: Kidd embraced purchased, consent write condition varying, restricting, thereof.' observed: object actual settlers derived secondary consideration, incident greater supplying homes sought lived faith. forefathers questioned, expression spirit policy. settled improved state's response invitation state, endured privations improvement, retrieve misfortunes consequent inability strict obligations. Forfeitures favored. cold scrutiny, injury wrought minimum. hand, rigors looked warmly liberally, relief. reciprocal applies humblest citizen.' S.W., 131. Walden, 325 705 Peck or, executory. Cranch, 136—137. Wheat., 200. 542, 703, cited; 238, n. 13; Oshkosh Waterworks Oshkosh, 187 249. 197—198. 237: 'Chief pointed 529. Said he: bar, exists nature things. Without direct.' Wall. 553, 403, statement quoted observation 'it form otherwise, fit, secured impaired. definitely alterations legitimate, Every determined own circumstances.' Later, approval joined Richmond Mortgage Corp. Wachovia Trust 300 128, 57 338, 339, 552: modify, doing, circumscribe restrictions right.' Jacobs referred numerous drawn distinction, including Blaisdell. 703. He reasoning Corporation governs decision.' 704. 439; 440, Brandeis discussing right' obtain Joint Stock Radford, 555, 854, 859, 1593. 597—598, 866—867. scholar study concerning Blaisdell: narrow existing. So emerged, apparently extension especially adequate left compliance, advance consists economic create emergency scrupulously drafted call wide relief debtors.' Wright, 119. Wright Vinton Branch, 469, 556, 565, 735: '(I)t urged limitations permissible. 88 A.L.R. 1481.' dissented 372, 987 because, out, though based deeds, prevailed, supported us. mentioned near suggesting implying so. equaled exceeded costs him, 'merely 544, 704, quoting 340, 552. Ass'n., issuing shares stock shareholders exchange cash refund company regulated prevent sue cited, 828, redefined sales; emphasizing regulatory laws, regulation 552; creditors municipal corporation adjustment 85% agreed, creditors' becoming worthless. moratorium Blaisdell; debtors taxes, insurance, installments principal, emphasized, citing Part IV, pp. 533—535, infra. Rochin California, 342 165, 174, 205, 210, 183 Quoting 1067. 131 bears uncanny resemblance once feared continued 'balancing.' Black, Bill Rights, N.Y.U.L.Rev. 865, 877—878, reprinted Cahn Great 57—59. evidently optimistically, 'Of today.'

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