144 P. 468 | Or. | 1914
delivered the opinion of the court.
“The initiative and referendum powers reserved to the people by this Constitution are hereby further reserved to the legal voters of every municipality and district, as to all local, special and municipal legislation, of every character, in or for their respective municipalities and districts.”
Article XI, Section 2, of the Constitution is as follows:
*524 “Corporations may be formed under the general laws, but shall not be created by the legislative assembly by special laws. The legislative assembly shall not enact, amend or repeal any charter or act of incorporation for any municipality, city, or town. The legal voters of every city and town are hereby granted power to enact and amend their municipal charter, subject to the Constitution and criminal laws of the State of Oregon.”
3. We do not believe that the language of the charter of the City of La Grande quoted above warrants the conclusion that the people of the city intended to render the municipality immune from such an action. The provision in regard to the city suing and being sued is general in its terms, and embraces any action against the municipality that could be brought under the law as it then existed.
“When a special power or privilege is conferred upon or granted to a municipal corporation, to be exercised for its own advantage or emolument, and not as a mere governmental agency, it is liable to the same extent as an individual or a private corporation for negligence in managing or dealing with the property rights or franchises held by it under such grant.”
Action may be maintained against the City of La Grande for negligence resulting in the injury of an employee while engaged in laying a water-pipe as a part of its system of waterworks which is operated by it for profit. Such a system of waterworks belongs to the city in its private or proprietary capacity rather than in its governmental character, and it is liable as a private proprietor for negligence in the construction or maintenance thereof: Esberg Cigar Co. v. Portland, 34 Or. 282, 287 (55 Pac. 961, 963); Pacific Paper Co. v. City of Portland, 68 Or. 120 (135 Pac. 871); BlakeMcFall Co. v. City of Portland, 68 Or. 126 (135 Pac.
^It follows that the judgment of the lower court should be affirmed, and it is so ordered.
Affirmed. Rehearing Denied.