Opinion ID: 1188554
Heading Depth: 1
Heading Rank: 3

Heading: the limitation in consent statutes

Text: 13. Having considered the effect of war as suspending the operation of statutes which limit the remedy and of other statutes which ordinarily limit or terminate the right, we now approach one step closer to the immediate issue. The Oregon statute authorizing suit to recover escheated property within ten years presents a situation similar to both of the two categories considered above, but not identical to either. Since the escheat statute in legal effect authorizes a suit against the state, it is, of course, a consent statute. Being such, the legislature could impose terms and conditions upon those in whose favor it yielded the needed consent. The question, however, as to the scope of the conditions imposed, is one of statutory construction based on a consideration of the legislative intent and it is to be resolved in the light of the extraordinary conditions created by war. Unlike the cases under statutes such as the Workmen's Compensation Act in which a new right is both created and limited, the statute concerning petitions for refund of escheats does not create a new right or a new cause of action. Haley et al. v. Sprague et al., 166 Or 320, 325, 111 P2d 1031. The statute merely enables a purported heir to sue the state for recovery of property which he claims he owns. The construction of the limitation in the consent statute presents an issue more closely resembling that involved in the cases in which it is held that war tolls ordinary statutes of limitation. In both, the right exists. In one the remedy is limited by a legislative mandate; in the other, the period within which the state consents to be sued is so limited. No reason is perceived why the court should not adopt a uniform rule of construction for both statutes when the intervention of war is asserted as ground for suspension of the running of the limitation. It is true that there is no provision in the consent statute for the suspension thereof, but the same is true concerning the cases in which it is held that war suspends statutes which create rights unknown to the common law and which limit both right and remedy. When the state consents to be sued, and then by reason of its recognition of rules of international and common law, closes its courts to the litigant, thereby denying the privilege which it granted, some construction must be sought which will avoid absurdity. It is unbelievable that the same hand which gives should also be construed to take away. The law does not follow the precedent of the nursery rhyme, Hang your clothes on a hickory limb, but don't go near the water. 14-16. In construing the escheat statute it must be frankly conceded that the general rule is that the legislative intent must control; that such intent is ordinarily to be found from the phraseology of the statute; and that consent statutes, being in derogation of sovereignty, are generally construed with reasonable strictness. Cary v. Metropolitan Insurance Co., 141 Or 388, 17 P2d 1111; Title & Trust Co. v. Wharton, 166 Or 612, 114 P2d 140; Federal Land Bank v. Schermerhorn, 155 Or 533, 64 P2d 1337. However, the issue here must be determined by the application of other rules of construction equally well established. In the leading case of Fox v. Galloway, 174 Or 339, 148 P2d 922, this court in an opinion by Mr. Justice BAILEY, an authority on statutory construction, said:    The cardinal rule of statutory construction is to ascertain the meaning of the legislature and give it effect, if such meaning is constitutional. In determining the intent many things are taken into consideration: the language used, the object to be accomplished, whether a literal interpretation of the language will lead to an impossibility or an absurdity, the history behind the act, and numerous other matters, no one of which is absolutely controlling as to the legislative intent. It is from a combination of all these that the intent is deduced   .    When, however, a literal application of the language produces an absurd or unreasonable result, it is the duty of the court to construe the act, if possible, so that it is a reasonable and workable law and not inconsistent with the general policy of the legislature: Othus v. Kozer, 119 Or. 101, 248 P. 146; State v. Hay, 132 Or. 223, 283 P. 753; Portland Van & Storage Co. v. Hoss, 139 Or. 434, 9 P. (2d) 122, 81 A.L.R. 1136. `It is a familiar rule that a thing may be within the letter of the statute and yet not within the statute, because not within its spirit nor within the intention of its makers': Holy Trinity Church v. United States, 134 U.S. 457, 36 L.E. 226, 12 S.Ct. 511; Staples v. Senders, 164 Or. 244, 261, 96 P. (2d) 215, 101 P. (2d) 232. 17. When, in the process of statutory construction, the legislative intent is not manifest, courts may properly seek the intent by considering the subject matter, the necessity for the law, the circumstances under which it was enacted, the mischief sought to be remedied and the objective to be attained. Union Fishermen's Co. v. Shoemaker, 98 Or 659, 193 P 476, 194 P 854; State ex rel Hood River Hospital v. Employees' Hospital Ass'n et al, 157 Or 618, 73 P2d 693; Sunshine Dairy v. Peterson et al, 183 Or 305, 193 P2d 543. 18. This court has frequently held that a statutory construction which would lead to unreasonable or absurd results should be avoided. State ex rel v. Dobson, 169 Or 546, 130 P2d 939; Nanny v. Oregon Liquor Control Com., 179 Or 274, 171 P2d 360. We have also held that when the legislative intent, in enacting a statute, has been ascertained, it should be given effect, although the literal meaning of the words used is not followed.    The general language of the statute should be limited to the persons and subjects to which it is reasonable to suppose it was intended to apply, especially when a literal interpretation would lead to harmful and absurd consequences. Allen v. Multnomah County, 179 Or 548, 173 P2d 475. 19. It is not ordinarily necessary to inquire into the background matter relative to legislative intent when the language of the statute is clear. Nevertheless, this court, in a recent opinion by Mr. Justice ROSSMAN has pointed out that even this rule may be subject to exceptions.    The courts hold that even if an act is expressed in clear language, a conclusion may be warranted that an ambiguity exists if literal interpretation will produce an absurd result or one at variance with the policy of the legislation as a whole: United States v. American Trucking Assn., 310 U.S. 534, 84 L.Ed. 1345, 60 S.Ct. 1059; Fox v. Galloway, 174 Or. 339, 148 P.2d 922. Gouge v. David et al, 185 Or 437, 455, 202 P2d 489.