131 Iowa 340 | Iowa | 1906
Lead Opinion
1 The plaintiff’s petition at law alleges that, while in the service of the defendant railway company as brakeman and while in the exercise of reasonable care for his own safety, he was seriously and permanently injured by reason of the negligence of a co-employé in the management of the train on which he was employed, and he asks to recover damages in the sum of $2,000. As a bar to the plaintiff’s right of recovery the defendant alleges that at the time of the accident in which plaintiff was injured he was a member of the Burlington Relief Department, an association organized by the defendant and its employes (the rules and regulations of which are made a part of the answer), and that by reason of such membership the plaintiff became entitled to recover certain benefits, while disabled by physical injury and that he did in fact receive from the association on that account the aggregate sum of $822. It is further" alleged that by the terms of the contract embodied in the Relief Department regulations plaintiff had an election to accept said benefits, or to waive them and' insist upon his claim against the defendant for damages, but he was not entitled to both, and that by reason of his acceptance of such benefits he is now estopped to recover anything in this action. The answer further asserts that the provisions of Code, section 2071, as amended by the Twenty-Seventh General Assembly have no effect to bar or estop the defendant from relying upon the defence above stated, because said amendment is in contravention of the Constitution of the United States and the Constitution of the State of Iowa. A demurrer to the answer having been overruled, the plaintiff appeals.
I. As originally enacted Code, section 2071, was in words as follows: “ Every corporation operating a railway shall be liable for all .damages sustained by any person, including the employes of such corporation, in consequence of the neglect of the agents, or by any mismanagement of the engineers or other employes thereof, and in Consequence of the willful wrongs whether of commission or omission of such agents, engineers or other employes when such wrongs are in any manner connected with the use and operation of any railway on or about which they shall be employed, and no contract which restricts such liability shall be legal or binding.” The amendment to which reference has been made adds to said section the following: “Nor shall any contract of insurance relief, benefit or indemnity in case of injury or death, entered into prior to the injury, between the person so injured and such corporation or any other person or association acting for such corporation, nor shall the acceptance of any such relief, insurance, benefit or indemnity by the person injured, his widow, heirs or legal representatives after the injury, from such corporation, person or association, constitute any bar or defense to any cause of action brought under the provisions of this section; but nothing contained herein shall be construed to prevent or invalidate any settlement for damages between the -parties subsequent to the injuries received.” The events leading up to the adoption of this amendment are matters of common knowledge. Subsequent to the enactment of 'Code, section
So thoroughly are the courts committed to this theory of the law that in Stewart v. Supervisors, supra, it is said that “ a legislative act may be declared unconstitutional only when it violates that instrument clearly, palpably, plainly, and in such manner as to leave no reasonable doubt.” In this same case we approvingly quoted the language of Mr. Justice Baldwin of the federal court as follows: “ We cannot declare a legislative act void because it conflicts with our opinions of policy, expediency, or justice. We are not the guardians of the rights of the people of the State, unless they are secured by some constitutional provision which comes within our judicial cognizance. The remedy for unwise or oppressive legislation within constitutional bounds is by appeal to the justice and patriotism of the representatives of the people. If this fail, the people in their sovereign capacity can correct the evil; but the courts cannot assume their rights.”
Such, also, has been the uniform holding of this court with reference to the corresponding provision in our state Constitution. A leading case to this effect is McAunich v. Railroad, 20 Iowa, 338. As we there said: “Such laws are general and uniform, not because they operate upon every person in the State, but because every person who is brought within the relations and circumstances provided for is affected by the law. They are general and uniform in their operation upon all persons in the like situation and the fact of their being general and uniform is not affected by the number of persons within the scope of their operation.” Treating the same question, the Supreme Court of the United States by Field, J., in Railroad v. Mackey, 127 U. S. 205 (8 Sup. Ct. 1161, 32 L. Ed. 107), says: “ The greater part of all legislation is special, either in the objects sought to be attained by it or in the extent of its application. . . . Such legislation does not infringe upon the clause of the fourteenth amendment requiring equal protection of the laws because it is special in character. And when legisla
The police power of the state is the power to govern men and things within the limit of its dominions. ■ It comprehends all those general laws of internal regulations necessary to secure peace, good order, health,.and prosperity of the people, and the regulations and protection of property and property rights. State v. Harrington, 68 Vt. 622 (35 Atl. 515, 34 L. R. A. 100); State v. Reynolds (Conn.), 58 Atl. 755. It adapts itself to the changing conditions of society, and malíes it competent for the state to devise, adopt, and enforce any new regulation or restriction, not clearly forbidden by the Constitution, which it believes to be expedient under the peculiar circumstances with which it is sought to deal. The spirit which pervades the police power is closely related to that which is embodied in the common-law maxim, “ Sic utere tuo alienum non lsedas.” The liberty of the individual may always be restrained where its unregulated exercise becomes a source of danger or injury to the society of which
Of course, it must be kept in mind that the police power, like all other powers of the state, is subordinate to the Constitution, and if the Legislature, under the guise of police regulation, transgress the express or clearly implied limits drawn by the Constitution the courts will hold the act void and of no effect. But this authority of the court involves a duty of the most delicate and responsible character, and, as we have already said, is to be exercised in no doubtful case. The court is not to substitute its own ideas for those of the Legislature as to the propriety, wisdom, or justice of the statute. It must not arrogate to itself superior knowledge of the public needs, nor assume to prescribe remedies for public ills. Cases may perhaps be found where this fundamental distinction has apparently been overlooked, thus affording some measure of support for the proposition advanced by counsel that “ the validity of the statute depends upon the question whether it is a measure for the public good.” The adoption of such a rule would be to transfer the lawmaking power to the judiciary and work the utter elimination of the legislative department as a co-ordinate branch of the government. The courts do not sit to revise or review legislative action, and if they hold an act invalid it is because the Legislature has failed to keep within the express or clearly implied limitations of the Constitution. A court
The duty to keep within the constitutional limits of its jurisdiction is no less binding upon the court than upon the Legislature. It is a settled proposition that the fourteenth amendment to the federal Constitution was not intended to limit or hamper the states in the exercise of their police powers. Mugler v. Kansas, 123 U. S. 623 (8 Sup. Ct. 273, 31 L. Ed. 205); In Re Kennler, 136 U. S. 436 (10 Sup. Ct. 930, 34 L. Ed. 519); Ex parte Converse, 137 U. S. 624 (11 Sup. Ct. 191, 34 L. Ed. 796); Powell v. Pennsylvania, 127 U. S. 678 (8 Sup. Ct, 992, 1257, 32 L. Ed. 253). Considering a statute like our Code, section 2071, the Minnesota* court declares it to he “ a police regulation intended to protect life, person, and property by securing a more careful selection of servants and a more rigid enforcement of their duties by railroad companies.” Mikkelson v. Truesdale, 63 Minn. 137 (65 N. W. 260). Nor is this protection confined to the employes alone. It tends as well to increase the safety of the millions of people and the vast aggregate of property daily transported by these companies, and the public interest is directly subserved and promoted by every reasonable rule or device by which negligence in such business is lessened or prevented. The Ohio court, discussing a similar statute of that state, has said that the liability is not created for the
(1) It should be kept in view at all stages of this discussion that the enactment, the validity of which is denied by the appellee, is an attempt by the Legislature to protect a right which Code, section 2071, in its original form; conferred upon railway employes; and we think it a rule, the soundness of which cannot be successfully denied, that where the Legislature, acting within its constitutional power, provides a right or confers a benefit which did not before exist, it may, in its discretion, also provide that no contract by which that right or benefit may be waived, lost, or impaired shall be of any validity whatever. Eor instance, having given homestead rights to heads of families and exemptions to debtors in execution, no one at this day will question the •power of the Legislature to provide that any contract which in its judgment may serve to defeat or lessen the value of the right so created shall be void. The authorities upon this and .kindred propositions are too' numerous and familiar to require citation. Congress, having provided pensions and bounties for the benefit of persons performing military service, may make invalid any contract by which the soldier agrees to pay more than a certain fixed sum to his attorney for assistance rendered in establishing his right .to the benefit thus created, and may even make it a crime for the attorney to demand or receive more than the statutory fee, even though
It was in view of this situation that our lawmakers sought, both in the original act and in the amendment, to fence against the frustration of its purpose to confer a substantial benefit upon a large class of citizens engaged in a hazardous quasi public employment. That the appellee’s Relief Department was devised to require or induce its employes to pool their contributions, and through the medium of an insurance or benefit fund, made up chiefly by deductions from their wages, pay their own losses, and thus in some degree relieve the corporation from the liability imposed by the statute, is not seriously disputed. Dnder the original statute this contract did not constitute a restriction upon the liability of the corporation because, as held by us in.the cases of Donald and Maine, the employe who became a member of the Relief Department retained the option to pursue his action for damages or accept the alternative relief afforded by the
(2) The relations between employer and employé are and always have been recognized as proper subjects of police regulation; but recent years, with the extraordinary changes wrought in industrial affairs, have given that phase of our law peculiar prominence. New social and economic conditions have demanded and received the attention of lawmakers and courts. Employer and employé do not stand in the same relative positions which they occupied before the various lines of industry became concentrated in comparatively few hands, and before workers were marshaled into such vast armies that employers must of necessity deal with them in masses rather than as individuals. These changes have not been accomplished without serious friction between wage payers and wage earners. Where the blame or respon
We cannot -undertake to collate the conflicting precedents, or determine the mere numerical preponderance of the authorities. After a thorough examination of the cases we are satisfied that the present current of authority tends to uphold all reasonable provisions for the protection of labor, and that Code, section 2011, is fairly within the scope of the powers of the state. We are not impressed with the suggestion, made by some courts which condemn such legislation on the theory that it is an offensive imputation upon the manhood and independence of the laborer to thus assume that he needs the special guardianship and protection of the law. This easy method of argument would wipe out most of our statutes. Generally speaking, all láw is made to protect man against undue advantage at the hands of other men, and the chief justification for legislation upon matters of personal and property right is the fact that men do not and cannot always deal on equal footing. Under no circumstances is this inequality more frequent than in the relations between em
In Holden v. Hardy, 169 U. S. 366, (18 Sup. Ct. 383, 42 L. Ed. 780,) the Supreme Court of the United States in sustaining a statute regulating the hours of labor in mines and making it a penal offense to disregard its terms, says: “The Legislature has recognized the fact,, which the experience of legislators in many states has corroborated, that the proprietors of these establishments and their operatives do not stand upon an equality, and that their interests are to a certain extent conflicting. The former naturally desire to obtain as much labor as possible from their employes, while the latter are often induced by the fear of discharge to conform to regulations -which their judgment, fairly exercised, would pronounce to be detrimental to their, health or strength. In other words, the proprietors lay down the rules and the laborers are practically constrained to obey them. In such cases self-interest is often an unsafe guide- and the legislature may properly interpose its authority. . . . But the fact that both parties are of full age and competent to contract does not necessarily deprive the state of the power to- interfere, where the parties do not stand upon an equality, or where the public health demands that one party to the contract shall be protected against himself. The state still retains ah interest in his welfare, however reckless he may be. The whole is no greater than the sum of all its parts, and when the individual health, safety, and welfare are sacrificed or neglected the state must suffer.”
- Sustaining the validity of an act requiring certain corporations to pay off their laborers in money and at specified short intervals, the Supreme Court of Rhode Island uses this language: “ If it be said that, however rich and powerful corporations may be and however poor and weak- their
The state of Tennessee has a statuté by which employers of labor who issue store orders or script in payment for labor are required to redeem the same in money if demanded, any agreement or contract to the contrary notwithstanding. This provision was upheld by the Supreme Court of that state in an able and exhaustive opinion as within the proper limits of the police power. Among other reasons stated in support of this view the court says: “ The Legislature evidently deemed the laborer at some disadvantage under the existing laws and customs, and by this act undertook to ameliorate his condition in some measure by enabling him, at his election and at a proper, time, to- demand and receive his unpaid wages in. money, rather than in something-less valuable. Its tendency, though slight it may be, is to place the employer and employe on equal ground in the matter of wages, and so far as calculated to accomplish that end it deserves commendation.” Harbison v. Iron Co., 103 Tenn. 421 (53 S. W. 955, 56 L. R. A. 316, 76 Am. St. Rep. 682). On appeal to the Supreme Court of the United States this judgment was affirmed. The opinion written by Shiras, L, expressly quotes from and readopts the opinion of the Tennessee court as being “ so full and satisfactory ”
Following the same line of thought, the Supreme Court of Vermont upholds a statute which in effect forbids a railway employe to contract for the assumption of risk of a hazardous appliance or unsafe place to work, saying: ' “ If it be objected that the statute, when thus read, deprives the laborer of his right to make his own contracts, the answer is to be found in the principle that the state has the right to protect its poor and helpless, even to that extent if need be. Such is the basis of the decisions that uphold the Utah labor law restricting the hours of mining work to eight hours per day, statutes that forbid the employment of children in certain callings, the store order acts, and the statutes against usury, in defense of the last-named of which this court held, some 20 years ago, that even a release under seal given by the borrower at the time of the loan did not bar his right to recover the unlawful rate, declaring that the statute was intended for the protection of the weak against the strong, and public policy requires that it should not be evaded nor its force abated. Everybody knows that there are large classes who get their living from day to day in such service as that in which plaintiff was engaged, who must work where they are working and keep their job at all hazards, if they would not bring themselves and their families to want. To say to such, ‘ If you do not like the conditions, you may quit,’ is often only a heartless mockery.” R. R. v. Kilpatrich, 74 Vt. 288, (52 Atl. 531, 93 Am. St. Rep. 887.)
Mr. Freund, addressing himself to the objection that such statutory restrictions deprive the laborer himself of liberty of contract, says the “ argument is fallacious in the case of wage contract where the voluntary assumption by. one may, through stress of competition, force others to assume the same burden against their will.” Freund on Police Power, section 500-503. See, also, Keating, J., in Archer v. James, 2 Best & S. 73; and Byles, J., in same case, page
In recognizing the soundness of the views expressed by the cited authorities, we do not say, nor is it necessary to believe, that the employer is actuated by a wanton or oppressive spirit. It is enough to say that he is human, and as such is therefore only humanly and naturally inclined to exact a' profitable bargain if the opportunity offers, just as the laborer himself is ready to take advantage of favoring circumstances to exact the highest wage. But the opportunities are not equal. The employer, as a rule, has some store of capital to stand between him and immediate want if business grows slack or suspends, while the average laborer has little or no reserve for the proverbial “ rainy day,” and sooner or later must accept the terms which are offered him. It is with this condition in view that the Legislature has enacted the statute under consideration for the purpose of preserving as near as possible that equality of advantage to both parties which is essential to the general good, and, as is well said in the Harbison case, supra, “ this alone commends the act as a valid police regulation.” To same effect, see Hancock v. Yaden, 121 Ind. 366 (23 N. E. 253, 6 L. R. A. 576, 16 Am. St. Rep. 396).
It is true that in some of the foregoing cases special
The same question was broached in the first case carried to the Supreme Court of the United States to test the validity of a statute abolishing the fellow-servant rule in actions against railway companies. To the objection that the statute was in violation of the fourteenth amendment, Field, J., speaking for the court, replies: “ The plain answer to this contention is that the liability imposed by the law of 1874 arises only for injuries subsequently committed. It has no application to past injuries, and it cannot be successfully contended that the state may not prescribe the liabilities under which corporations created by the laws shall conduct their business in the future, where no limitation is placed upon its power in this respect by their charters. Legislation to this effect is found in the statute books of every state.” Mackey v. Railroad, supra; Virginia D. Co. v. Crozer, 90 Va. 126 (17 S. E. 806, 44 Am. St. Rep. 893).
(5) Considered from the standpoint of precedent alone, we think the weight of the better reasoned cases supports the conclusion, at which we have arrived. Such is the manifest force and effect of most of the cases already cited. The following additional precedents, selected from the many found among the decisions of recent date, indicate something of the extent to which the power to regulate and restrict the right of contract, and more especially between employer and employé, has been upheld. In citing them, it is proper to suggest that the decision of the question before us does not require us to adopt all the conclusions reached in these cases or all of the reasoning on which they are based. They are in point, however, as illustrating the trend of judicial thought, and the gradually extending application of the police power in the interest of the general welfare.
In Maryland a statute requiring operators of coal mines to pay the wages of employes in money and at stated intervals, and restricting the right of operators to contract for payment' of such wages in merchandise, has been upheld. Shaffer v. U. M. Co., 55 Md. 74. A similar statute in Indiana has been held valid. Hancock v. Yaden, 121 Ind. 366 (23 N. E. 253, 16 Am. St. Rep. 396). The same court, in a very recent ease, sustains the validity of a statute which prohibits the assignment of claims for wages not yet earned. International Co. v. Weissinger, 160 Ind. 349 (65 N. E. 521, 65 L. R. A. 599, 98 Am. St. Rep. 334). A statute of the United States making it unlawful to pay any seaman wages in- advance, or to pay such wages to any other person on a seaman’s account, and providing that such payment in advance shall not absolve the employer from full payment after the wages have been earned, is held not to invade
Statutes have been sustained which invalidate contracts to waive homestead and exemption laws. Curtis v. O'Brien, 20 Iowa, 376; Kneettle v. Newcomb, 22 N. Y. 249 (78. Am. Dec. 186); Maloney v. Newton, 85 Ind. 365 (44 Am. Rep. 46). A debtor cannot waive stay of execution by contract. McLane v. Elmer, 4 Ind. 239. Parties may be required to insert the words “ given for a patent ” in promissory notes given upon such consideration. New v. Walker, 108 Ind. 365 (9 N. E. 386, 58 Am. Rep. 40); Herdie v. Roessler, 109 N. Y. 127 (16 N. E. 198). Parties may be prohibited from contracting to pay attorney’s fees for the collection of a claim against them. Churchman v. Martin, 54 Ind. 380. In Vermont it has been held that a statute which forbids a railway employe to contract to assume the risk of hazardous appliance or unsafe place to work is hot unconstitutional. Kilpatrick v. Railroad Co., 74 Vt. 288 (52 Atl. 531, 93 Am. St. Rep. 887). Stafford, J.,
Massachusetts having already a statute requiring certain corporations to pay their employes in money in weekly installments, its Legislature submitted to the Supreme Oourt of that state the question whether such provision could be constitutionally extended to private persons and partnerships. To this inquiry the court responded, and, after citing approvingly many of the cases we have already mentioned and the many statutes regulating and restricting liberty of contract, announced the conclusion that such legislation is not a violation of any constitutional guaranty. Re House Bill No. 1,230, 163 Mass. 589 (40 N. E. 713, 28 L. R. A. 344). A provision prohibiting all sales of corporate stocks to be delivered in the future is not a violation of the fourteenth amendment, although its prohibition includes bona fide as well as gambling transactions. Otis v. Parker, 187 U. S. 606 (23 Sup. Ct. 168, 47 L. Ed. 323). In support of this holding it is said: “ Even if the provision before us should seem to us not to have been justified by the circumstances locally existing in California at the time when it was passed, it is shown by its adoption to have expressed a deep-seated conviction on the part of the people concerned as to the policy
From a general review of the authorities Mr. Freund says (Police Power, sections 502, 503): “ The general principle of police regulation of the liberty of contract may perhaps be formulated as follows: When a contractual relation is voluntarily entered into, rights and obligations which are conformable to the nature of the relation may be defined by law and made conclusive upon the parties, irrespective of the stipulations attempting to set them aside, especially where such stipulations involve the waiver of valuable present rights, or where they are virtually imposed by one party without power of choice on part of the other.” The case of Peel Splint Coal Co. v. West Virginia, supra, affirms the validity of a statute prescribing the manner of weighing coal in determining the amount of a miner’s earnings and forbidding payment in scrip or store orders. It is true that this affirmance was by a divided court, but the opinion is so well argued and so well supported by reason and authority that no one desiring to master the learning of the law on this subject should fail to examine it. Moreover, the principle there upheld, having since been fully settled as authoritative by the Supreme Court of the United States in Harbison v. Tennessee, supra, the opinion is entitled to rank as authority, notwithstanding the division of the court by which it was .pronounced.
As a fitting conclusion to this examination of authorities we quote from the opinion in Atkin v. Kansas, 191 U. S. 207 (24 Sup. Ct. 124, 48 L. Ed. 148), sustaining an act making it unlawful for any contractor engaged upon a work of public improvement to require or permit an em
Whether the appellee’s Relief Department is in the nature of a scheme for insurance, and therefore peculiarly subject to supervision and regulation by the state, has been suggested, but not argued by counsel. In the Donald and Maine cases we held that said department was not an “ insurance company” within the meaning of our laws governing such corporations, and expressly refrained from any further expression of opinion. That an organization may'do an insurance business without being an “ insurance company ” within the meaning of the statute is settled, as is also the further proposition that it is the nature of the business rather than the form of the organization by which it is carried on, which justifies the stat.e in exercising supervision over it. Martin v. Stubbing, 126 Ill. 387 (18 N. E. 657, 9 Am. St. Rep. 620); Burlington, etc., v. White, 41 Neb. 662 (59 N. W. 747, 43 Am. St. Rep. 701); Grimes v. Legion of Honor, 97 Iowa, 315; Sttate v. Miller, 66 Iowa, 26. But
We are aware that the courts are not in entire unison as to the extent- to which the police power of the state may properly be exercised, and that cases are quite numerous which lend color, if not support, to views advanced by the appellee herein. The lack of harmony is in some instances more apparent than real. For instance, the cases from Pennsylvania have been decided under a state Constitution differing very widely from our own. See Const. Pa. 1874, article 3, section 7. With a single exception, none of the cases in which courts have sustained the validity of relief department contracts has involved the question whether such contracts may be regulated or prohibited by statute. They have simply considered the general proposition whether in the absence of statute the contract should be held void on grounds of public policy, and upon that question they coincide with the views of this court in Donald v. Railroad and Maine v. Railroad, supra. The exception to which we have referred is Shaver v. Railroad (C. C.) 71 Fed. 931, where a trial court held a statute of Ohio to be unconstitutional. The statute there considered differs in material respects from our oym, and we may further say that, if the argument employed by the court in support of its conclusion is to be construed as announcing the doctrine in support of which it is here cited by counsel, we think-it is not to be approved. Moreover, the Shaver case is in effect overruled, or at least discredited, by Pierce v. Van Dusen, 78 Fed. 693 (24 C. C. A. 280, 69 L. R. A. 705). But we freely concede that after eliminating all merely apparent conflict in the cases, not a few others remain which no amount of ingenuity can reconcile, and only confusion could result from the attempt. This court has not before been called upon to consider the central question in the form now presented, and, while recognizing the divergence in the authorities, we feel at liberty to follow the precedents which appear to us most
It is urged upon our attention that the relief fund contract is not unfair in its terms, and that the practical working of the plan is beneficial to the employés. All this may be true, but it is a consideration to be addressed to the Legislature, and not to the court. The contract is not assailed because of its oppressive character, but because the statute forbids its use as a defense in an action to enforce a statutory liability. Nor need we dispute the proposition that a plan of economical insurance against sickness, injury, and death is much to be commended, and we can readily conceive that members of the Relief Department may find it a valuable resource under many circumstances. We may also admit that, in the absence of a statute forbidding it, the company is not to be censured for making any legal contract which it is able to negotiate with its employés to protect itself from liability for damages. But none of these are controlling considerations. The Legislature does not in this act forbid or place any qbstacle in the way of such insurance, nor does it forbid or prevent any settlement of the matter of damages with an injured employé fairly made after the injury is received. On the contrary, the right to make such settlement is expressly provided for in the amendment to Code, § 2071. The one thing which that' amendment was intended to prevent was the use of this insurance, or relief, for which the employé has himself paid, in whole or in part, as a bar to the right which the statute has given him to recover damages from the corporation. And this, as we have already said, is clearly within the legislative discretion. Nor does it work any hardship to the railway company. The hardship, if any exists, is in the creation of the- liability (the validity of which legislation is now beyond question), and not in the statute which prevents its circumvention.
We do not attempt the review of any of the foregoing questions with special reference to our state Constitution.
The dissent from this conclusion, prepared by Ladd, J"., and filed herewith, rests in its final analysis upon two propositions: First, that although it would have been within the constitutional powers of the Legislature, in originally enacting Code, section 2011, to have protected the right thereby created by a provision such as is contained in the amendatory act of the Twenty-Seventh General Assembly, yet, the right having been in fact created without it, the subsequent addition of such protection is an unconstitutional discrimination against the railway company; and, second, that the classification by which railway companies alone are made subject to such statutory restrictions is arbitrary and unreasonable, and is therefore unconstitutional and void.
The first of these propositions, that a provision which could have been constitutionally embodied in the original act cannot be constitutionally added.by amendment, is one for which we can find neither authority nor precedent, and is in our judgment indefensible in principle. Indeed, it would seem that the very statement of the doctrine is its own sufficient refutation. To adopt such a rule is to say that by the creation of any statutory right or liability the state exhausts its constitutional power to legislate upon the subject, save perhaps. to repeal the statute. Most assuredly this cannot be correct. .If.one -General Assembly may create a home
If the power to abolish or to take away a statutory right is an essential attribute of the legislative authority, is not the power to modify or amend equally broad and equally clear ? Under the reserve power of the state to regulate and control corporations and’ to amend charters, it has often been held that whatever regulation or restriction might lawfully have been included in the original charter may be imposed by subsequent legislation. Sinking Fund Cases, 99 U. S. 700 (25 L. Ed. 496); Railroad Co. v. Sioux City, 78 Iowa, 746; Railroad Co. v. Williams, 103 Ky. 378 (45 S. W. 229); Stanislaus v. San Joaquin, 192 U. S. 212 (24 Sup. Ct. 241, 48 L. Ed. 406). For still stronger reasons must we hold that, as respects a statute which contains no grant of franchise or other element of contract, and on which no claim of vested rights can be grounded, the power of amendment is no less broad and universal than is the power to create and repeal. When, therefore, the appellee herein employed the appellant, and at the same or subsequent time procured his agreement to the benefit scheme, this law was in existence in its present form, and, by an elementary rule of construction
Concerning the second proposition, that the amendment to Code, section 2071, makes an unreasonable discrimination against railway companies as employers, as well as between different classes of employes, it is to be said that this is neither more nor less than a revival of the objection which has been raised against every legislative measure which has ever been enacted for the benefit or relief of any special class of employes, and in practically every instance has been overruled by the courts of last resort. To hold with appellant on this proposition is to attempt to reverse the entire current of the decisions of our own court, of courts of sister states, and of the Supreme Court of the United States. Kane v. Railroad Co., 133 Fed. 681 (67 C. C. A. 653, 68 L. R. A. 790); Herrick v. Railroad, 31 Minn. 11 (16 N. W. 413, 47 Am. Rep. 771); Railroad v. Herrick, 127 U. S. 210 (8 Sup. Ct. 1176, 32 L. Ed. 109); Railroad v. Mackey, 127 U. S. 205 (8 Sup. Ct. 1161, 32 L. Ed. 107); Railroad v. Montgomery, 152 Ind. 1 (49 N. E. 582, 69 L. R. A. 875, 71 Am. St. Rep. 301); Railroad v. Paul, 173 U. S. 404 (19 Sup. Ct. 419, 43 L. Ed. 746); Holden v. Hardy, 169 U. S. 366 (18
The assertion .that the amendment to Code, section 2071, “ does not purport to deal with the company’s liability at all,” and that “ the contract contemplated has no bearing on the liability of the railroad company to its employé,” is irreconcilable with the clear and express language of the statute. The amended section provides in so many words that under certain circumstances the company shall be liable in damages to its employe, and that in such case no contract of insurance, relief, benefit, or idemnity, nor the acceptance of such insurance, relief, benefit, or indemnity, shall be available to the company as a defense to an action by the employe for the recovery of such damages.. How can it be said that this provision, which eliminates a defense which might otherwise be successfully asserted, has “ no bearing ” on the company’s liability ? Does not such a provision, which means all the difference between a right of recovery and no right of recovery, “ purport to deal with the company’s liability ” ? If, then, as has been settled beyond all controversy, the power
The demurrer to the appellee’s answer should have been
Dissenting Opinion
(dissenting). — r I cannot yield my assent to the conclusion reached by the majority. I am of the opinion that the amendment to section 20Yl of the Code, enacted by the Twenty-Seventh General Assembly, is in plain and palpable violation of those portions of the federal and state Constitutions prohibiting class- legislation, • and will in as brief a way as practicable state my reasons for so thinking. The general rules applicable to the' case are correctly stated in the opinion of the majority and need not be repeated. The difficulty arises in their application. The section before amendment read: “ Every corporation operating a railway shall be liable for all damages sustained by any person, including employes of such corporation, in consequence of the neglect of the agents, or by any mismanagement of the engineers or other employés thereof, and in consequence of the willful wrongs, whether of commission or omission, of such agents, engineers or other employés, when such wrongs are in any manner connected with the use and operation of any railway on or about which they shall be employed, and no contract which restricts such liability shall be legal or binding.” This statute merely does away with the common-law rule that the master is not responsible for the negligence of -a fellow servant engaged in the use and operation of a railroad, which results in damage to another employe injured, when his employment exposed him to the hazards of such use and operation. A cause of action is created in favor of a class of employés whose work exposes them to the perils peculiar to railroading. The legislation is not in the interest and for the protection of all railroad employés, but for one class of them, a mere fraction of the entire body. This was noted in Deppe v. Railroad Company, 36 Iowa, 52, where, in order to uphold the constitutionality of the law as it then stood, when as
The same thought was expressed by the Supreme Court of Minnesota in Johnson v. Railway Co., 43 Minn. 222 (45 N. W. 156, 8 L. R. A. 419), where, speaking through Mr. Justice Mitchell, in referring to a previous case, declaring that a similar statute in that state must be construed as designed exclusively for the benefits of those who would in the course of their employment be exposed to the peculiar hazards incident to the use and operation of railroads, it said: “ If the distinction is to be made as to the liability of the employers and employes, it must be based upon a difference in the nature of the employment, and not of the employer. One rule of liability cannot be established for railway companies merely as such, and another rule for other companies under like circumstances and conditions. Neither would it relieve the act from the imputation of class legislation that it applies alike to all railroads. It has been sometimes loosely stated that special legislation is not class, ‘ if all per
As the fellow servant law applies only to a certain well-defined class of railroad employés and excludes all others, the majority are certainly mistaken in suggesting that the mere fact that the employer must be a railway company is controlling in the matter of classification. The reason for sustaining the original section, as seen, was thé hazardous employment of those for whose protection it was enacted. It operated upon all who might be injured while engaged in an occupation of peculiar peril. A right of action is given when, but for the statute, none would have existed. All other employés of the railroad companies are excluded from its operation. The difference in their situation was thought to be such as to warrant separate legislation applicable to one class and not to the other. In creating this new liability the Legislature guarded against its impairment by adding that “ no contract which restricts such liability shall be legal or
If there is some present difference between causes of action which arise by virtue of the statute enacted thirty-six years before any protection was attempted, ¿nd those arising in favor of other employes of a railroad company by virtue of those natural principles of justice which have been recognized for so long a time that the memory of man runneth not to the contrary, or if there is anything in the genesis of either, or if there are such distinctions between the classes of employes entitled thereto respectively, these have not been pointed out, and I assert, without fear of successful contradiction, they cannot be. ‘ True, a statute may be amended, and when this has been done it will be read with the amendment, and both construed prospectively as though they had been enacted at the same time. This, however, is merely a rule of construction. Endlich on Statutes, section 297. But this in no way obviates the fact that the amendment may constitute distinct and independent legislation, to be construed in connection with the. original only from the time of its adoption. Ely v. Holton, 15 N. Y. 595. Its validity must be determined as of the time of its enactment and in the. light of circumstances and conditions then existing, or, if not existing, then having relation to the present and to the particular legislation.
Let us examine this amendment, remembering that it is applicable to but the one class of employes. Eor convenience it may be set- out: “ Nor shall any contract of insurance, relief, benefit, or indemnity in case of injury or death, entered into prior to the injury, between the person so injured and such corporation, or any other persons or association acting for such corporation, nor shall the acceptance of any such insurance, relief, benefit, or indemnity by the
I shall not stop to discuss whether these are so germane to the subject of the section of the Code before being amended as that the title to the amendment was sufficient. It is enough for present purposes that the amendment does not limit in any way, nor add to the duties imposed or liabilities created by that section. It merely accepts the classification of that statute as the basis of legislation upon different subject-matter, namely, contracts with reference to insurance, etc., and the effect of accepting thereunder as constituting an estoppel. Surely these are not so connected with the object and purpose of the original act that the amendment can be upheld because based on the classification there recognized. The subjects covered by the amendment are just as important to railroad employes not exposed to the peculiar hazards of operating trains, and precisely as applicable to their situation and condition. . Why invalidate insurance or relief contracts of the former and enforce those of the latter? Why.give effect to the acceptance of benefits by the latter as an estoppel against the prosecution of a cause of action against the employer, and not do so when the acceptance is by the former ? If there is “ some apparent natural reason, some reason suggested by necessity, by such-a difference in the situation and circumstances of the subjects placed in different classes as suggests the necessity or-propriety of different legislation with respect to them,” it has not been mentioned in the opinion of the majority. The fundamental defect in the amendment is that it does not bring “ within its influence all who are under the same conditions.” The conditions under which the injuries are received can have no bearing on the question as to whether one shall be bound by a waiver of his right to maintain his cause of action by reason of some contract of insurance, relief, benefit, or indemnity, and another shall not. Both stand in the same relation to the company. Notwithstand
The facts of this case will very well illustrate the inequality of the law. The benefits of the defendant’s relief department are not restricted to any class of employes. All may become members. Nor are these limited to injuries for which the company might be liable. All manner of injury, as well as sickness, is included. “ In case of injury to a member, he may elect to accept the, benefits in pursuance of these regulations, or to prosecute such claims-as he may have at law against the company or any company associated therewith in the administration of their relief departments.” But acceptance of the benefits is made a bar to the maintenance of an action against the company, as is also the maintenance of such action a bar to any claim for relief. That is, a member must elect whether he will take the benefits stipulated by .the regulations of the department, or rely on redress in the courts for his injuries. The plaintiff, though he had contributed but 85 cents to the relief fund and had expressly agreed to all the conditions, accepted benefits to the amount of $492 andJ.$330 paid to his physicians, and then in disregard of said conditions instituted this action. As he had been exposed to the-peculiar hazards of railroading, taking this money did not bar his right to recover from the defendant, if the amendment to the statute is valid. Had he suffered like injury while engaged in some of the other employments of the company, the amendment would not apply, and under the decision in Donald v. Railway, 93 Iowa, 284, .election to take the benefits of the Relief Department would have been final, and he could not maintain the action.
The only difference which might support separate legislation which suggests itself is the public character of the common carrier and the possible tendency of the Relief Department, by - obviating burdens involved, to lessen the vigilence and care of the railroads essential to the safety of the public. If this were so (and it is to be said that in so far as indicated by the record it is purely imaginary), it would furnish no ground for the distinction between employes of the same company. The safety of the public is quite as dependent on the diligence and foresight of the great body of men doing the work of railroads in positions not exposing them to the dangers of moving trains as of those who are thus exposed. The inclusion of railroad companies only in a class to be affectéd by statute has sometimes been upheld, not because the subjects to be affected are railroad companies, but owing to the character of their business, the peculiar nature of the risks included, or the nature of their property. Thus special laws with reference to the assess
An instructive case is that of Gulf, Colorado & Santa Fe R. Co. v. Ellis, 165 U. S. 150 (17 Sup. Ct. 255, 41 L. Ed. 666). The Legislature of Texas had enacted a statute providing that where a claim in certain instances against a railroad company, not exceeding in amount $50, shall be presented to the company, supported by an affidavit, and if the company fail to pay the same within thirty days, a recovery may be had, and an attorney fee of $10 shall be “ assessed and awarded by the court or jury trying the issue.” This was denounced as class legislation, and the court, speaking through Mr. Justice Brewer, said:
No individuals are thus punished and no other corporations. The act singles out a certain class of debtors and-punishes them, when for like delinquencies it punishes no other. They are not treated as other debtors or equally with other debtors. They cannot appeal to the courts as other litigants under like conditions and with like protection. If litigation terminates adversely to them, they are mulcted in the attorney’s fees of the successful plaintiff; if it terminates in failure, they recover no attorney’s fees. It is no sufficient answer to say that they are punished only when adjudged to be in the wrong. They do not enter the court upon equal terms. * * * Before a distinction can be made between debtors, and one be punished for a failure to pay his debts, while another is permitted to become in like manner delinquent without any punishment, there must be some difference in the obligation to pay, some reason
This decision is not impinged by what was.said in St. Louis, I. M. & S. R. Co. v. Paul, 173 U. S. 404 (19 Sup. Ct. 419, 43 L. Ed. 746), where an act of the General Assembly of Arkansas, requiring railroad companies,' upon the discharge of employes, to pay the wages due on the day of such discharge, and providing as a penalty for nonpayment that wages shall continue at the same rate until paid, but not longer than sixty days unless action is begun, was upheld as amendment of the railroad charter. See same case reported in 62 Am. St. Rep. 154, and note. ' The Ellis case was again adhered to in Atchison, T. & S. F. R. Co. v. Matthews, 174 U. S. 96 (19 Sup. Ct. 609, 43 L. Ed. 909), which construed a statute of Kansas declaring the setting out of fires in the operation of a railroad shall be prima facie evidence of negligence, and upon recovery authorizing the assessment of a reasonable attorney’s fee. This was justified on the ground that its purpose was to secure the utmost care on the part of the railroad companies to prevent the escape of fires from their moving trains. The distinction drawn between it and the Ellis case is rather hazy, and the denunciation of the statute as class legislation by Mr. Justice Harlan, in which three other justices concurred, seems unanswerable ; yet the classification, in any event, included all companies or individuals operating- trains. The Ellis case was again approved in Fidelity Mutual Life Ass’n v. Mettler, 185 U. S. 308 (22 Sup. Ct. 662, 46 L. Ed. 922), in which a statute of Texas enacting that life and health insurance companies, upon failure to pay losses within the time speci
■ In my opinion there is no way by which to uphold the ■amendment to section 20 Y1 of the Code without disregarding the Ellis case and ignoring the necessity of material differences between classes of individuals or corporations to justify the application of different laws thereto. Attention to the question involved in the concrete, rather than the ab- ■ stract, can lead to no other result. The amendment nullifies agreements of one class of employes of railroad companies and permits those of another to be enforced. A “ square deal ” would exact that all employes, be included and each be accorded the same protection by the law. It singles out for protection the claims of a part of those in the service of railroad companies and excludes from its benefits the claims of the remainder and of all employes in the service of all other corporations in like - situation. The courts are open to the favored class, notwithstanding any contract of insurance, relief, benefit, or indemnity, and acceptance thereunder, but to all others they are closed. In the words of Mr. Justice Brewer, “ they do not enter court on equal terms.” What I object to is the discrimination by this statute between men when there is no. basis .for such discrimination. All in like situation should stand equal before the law. No favoritism should be tolerated. If it is a good law for an employé who operates an engine, it is equally good for the dispatcher who
Since submitting the foregoing, the majority have added to their opinion a rejoinder, which may be responded to briefly. The assertion that anything which might have been included in the statute as originally enacted may be added by way of amendment is not borne out by the illustrations cited. Thus, in case of an exemption or homestead, it is quite as essential to the protection of the family that these be preserved as that they be granted, and hence protective measures enacted by way of amendment are supported by the same classification as the original act. The vice in the reasoning lies in the assumption that protective measures have been enacted and sustained regardless of any present requirement of conformation to the provisions of the Constitution. In every instance cited, the subsequent statute, if challenged, has been sustained because the class for which enacted was such as to render special legislation appropriate. If the doctrine asserted were to be accepted, all necessary in order to avoid the constitutional prohibition against class legislation would be the enactment of a law by way of an amendment to some former statute of ten years or a century ago, instead of a new and independent act. Lapse of time and changes in conditions cannot be thus obliterated in determining whether a statute is open to the charge of unjust discrimination, and no authority is cited so holding. No one questions the legislative power to abolish, take away, or modify statutory rights. All insisted upon is that in doing so the Legislature is not independent of or superior to the Constitution, but must accomplish this in the way exacted by that instrument. Here is a cause of action created by statute. It has stood, with respect to the remedy, for thirty-six years on precisely the same footing as other causes of action, exist
Believing that the amendment to the statute is in conflict
Concurrence Opinion
I concur in the result reached by Ladd, J., upon the views expressed by him.