Lead Opinion
This is аn action by the administratrix of the estate of Roy Stadler, deceased, to recover damages for his injury and death. The deceased was injured on May 20,
The second amended petition alleged that employees of the defendant, Curtis Gas, Inc., had serviced the water heater in Mаrch at the request and authorization of the Board of Regents; that Curtis Gas, Inc., had notified the Board of Regents that the valve was defective but that each defendant had failed to repair the heater or notify the deceased of its defective condition; and that the Board of Regents was negligent in failing to keep the premises in a safe condition and in failing to warn the deceased of the defective valve.
The second amended petition further alleged that the Board of Regents had acquired the property in August 1947; that it had been leased to others sinсe May 1964; that it was leased to the deceased on or about February 27, 1965; that there was no relationship between the Board of Regents and the deceased other than that of landlord and tenant; that the leasing of the property by the Board of Regents “was in the same nature and capacity as that of private parties leasing dwelling houses for rent”; and that the Board of Regents “was acting beyond the scope of any governmental capacity for which it was created” in leasing the property to the deceased.
A general demurrer filed by the Bоard of Regents was sustained and the action dismissed as to that defendant. The administratrix has appealed.
The question presented is whether the Board of Regents of the University of Nebraska may be liable for the negligence of its agents and employees. The Board of Regents contends that it is an agency of the state and as such is immune from liability.
By statute, the Board of Regents of the University of
The plaintiff contends that the renting of the residence property to the deceased in this case was a nongovernmental or proprietary activity of the Board of Regents to which the immunity from liability does not extend. The Board of Regents argues that all of its activities are governmental in nature and the state engages in no activity of a nongovernmental or proprietary nature.
Although there is some conflict in the authorities, this court has recognized the doctrine that the state and its agencies may engage in proprietary activities and thereby incur liabilities from which they would otherwise be immune. In Sorensen v. Chimney Rock Public Power Dist.,
In this case the plaintiff has alleged that there was no relationship between the Board of Regents and the deceased other than that of landlord and tenant, and that the leasing of the property by the Board of Regents was in the same nature and capacity as that of private
The ultimate determination in this case, as to whether there is any basis for liability on the part of the Board of Regents to the plaintiff, will necessarily depend upon the facts. Upon the present state of the record, the demurrer of the Board of Regents should have beеn overruled.
The judgment of the district court is reversed and the cause remanded for further proceedings.
Reversed and remanded.
Dissenting Opinion
dissenting.
I find it necessary to respectfully dissent from the majority opinion. I fully agree that the rule of governmental immunity should be relaxed as it relates to the State of Nebraska. The obsoleteness of the rule was well pointed out by Justice Edwards in the case of Williams v. City of Detroit,
I disagree that the power to abolish the immunity doctrine in Nebraska should be exercised by the judicial
In this state we have a constitutional provision as follows: “The state may sue and be sued, and the legislature shall provide by law in what manner and in what courts suits shall be brought.” Art. V, § 22, Constitution of Nebraska.
A majority of the states still adhere to the immunity doctrine and many of those which have abrogated it as to charitable and municipal corporations have refused to abrogate it insofar as the state is concerned. Wisconsin announced complete abrogation of the doctrine in Holytz v. City of Milwaukee,
A number of other states having similar constitutional provisions have likewise refused judicial abolition of the doctrine on the ground that the constitution vested
The import of such constitutional provisions is well" summarized in 81 C. J. S'., States, § 215 a, p. 1304, wherein it is said: “Although a state’s consent to be sued in its own courts may be expressed in the state constitution, constitutional provisions authorizing or requiring the legislature to direct by law the manner and courts in which the state shall be sued are generally regarded as not being self-executing, and no suit may be maintained against the state until the legislature has properly provided therefor.” This rule has been recognized in Nebraska for many years. See, Gentry v. State,
Even in many of the states which apparently do not have such constitutional provisions, the courts have held that the matter is one for legislative and not judicial action. In Simpson v. Truesdale Hospital,
There is one factor regarding the doctrine of governmental immunity which sometimes leads to confusion. The doctrine consists of two different and readily distinguishable principles. See 81 C. J. S., States, § 130, p. 1137, § 214, p. 1300. The first is immunity from suit, and the second, immunity from liability. Thе Nebraska constitutional provision, adopted when the immunity rule was universally recognized, incorporated the first principle, but not the second, in our Constitution. This left governmental agencies in the position best demonstrated by our law pertaining to counties. Section 23-101, R. R. S’. 1943, authorizes counties to “sue and be sued.” Yet Nebraska courts have always held that a county is purely a creation of the Legislature and has no powers and is charged with no duties or liabilities except such as are conferred or laid upon it by the Legislature. “Counties are not liable in damages rеsulting from the negligent or tortious acts of their officers in the discharge of their official duties, in the absence of a statute creating such liability.” Dawson County Irr. Co. v. Dawson County,
Regarding the present case, the Legislature by passage
In the present case, the majority opinion is based on the assumption that the Board of Regents was engaged in a “proprietary” function. Such assumption is unwarranted. How the house was acquired does not appear, but since the law of Nebraska does not authorize the Board of Regents to engage in the real estate business, it must be presumed that it was acquired in its governmental capacity. There is certainly a distinction between the renting of an isolated or single property so acquired in pursuit of its governmental functions and the engaging in a business or industrial activity of the nature generally denominated as “proprietary.” This is not a case of operation of a utility or similar enterprise by a municipal corporation.
Dissenting Opinion
dissenting.
In my opinion, the сourt itself is embarking on a “private enterprise” in abrogating the Legislature’s power to control and limit the state’s basic immunity to liability for tort. The majority opinion cites Shear v. State (1929),
Beyond the other considerations of public policy inherent in the sovereign immunity doctrine, the reason for the special rule as to nonliability for tort is tersely expressed in Robertson v. Sichel,
There is no statute whereby this state has assumed' a liability for the negligence of its officers or agents; and I can find no established principle of law sustaining such liability in the absence of such statutory assumption.
While I agree with the other dissents filed herein that the renting of this house was in no sense a business enterprise or a “proprietary” function, I point out that the Legislature has not authorized the Board of Regents, as a state agency, to embark on a private or commercial enterprise or engage in a “proprietary” capacity. Its control and management of property is incidental to and a part of its performance of its governmental function of operation and management of the University of Nebraska. As Judge Newton’s dissent points out, the analogy to our cases holding counties free from liability unless provided by statute would seem to be contrоlling.
The majority opinion cites Sorensen v. Chimney Rock Public Power Dist.,
By judicial fiat today we sever from the Legislature the power to determine the state’s liability for tort. But we cannot sever its power to determine whether such a judgment can be enforced. The Legislature can still pay all or any part of such a judgment and formulate any criteria for payment as it sees fit, which рower it has now. Would anyone suggest that the Legislature could be mandamused to appropriate the necessary
The University has no profits or funds from a business or industrial activity to pay such a judgment and the Legislature might or might nоt appropriate funds for such payment. The conclusion from all of this is
Now that this uncertain course is created, does the Legislature’s power under the constitutional provision still prevail? Is a legislative act limiting the rule adopted today merely advisory in nature? Is the Legislature’s power to create political subdivisions and state agencies and define their power and liabilities limited? In the wilderness of the nebulous doctrine of “proprietary” functions, can this court and the Lеgislature avoid conflict and confusion?
The power of restraint imposed on the judiciary is the power of self-restraint. The tendency to usurp power to achieve a laudable policy objective is all too prevalent. The principle of division of power should not be crucified lightly. It is our solemn and perhaps paramount duty to preserve it. How can we preserve it by honoring it in the breach? And if there is doubt, judicial self-restraint requires resolution against the exercise of that very power. What we are doing today is responding to the “felt necessities of the time,” under the guise of judicial power. The end does not justify the means and an objective born of judicial impatience should not be accomplished by judicial usurpation.
Dissenting Opinion
dissenting.
I concur fully with the dissent filed by Newton, J. The concurring opinion filed by McC'own, J., fails to distinguish between a business enterprise in competition with private business and transactions that are incidental only to the administration of governmental power. Many incidental acts of government are also done by private persons. It is completely’ illogical to say that general governmental powers shall be sеparated into distinct acts necessary to this accomplishment of the purpose-of the grant of governmental authority and hold that those which may be performed by private persons are beyond the - reach of the sovereign immunity doctrine. It is
The immunity of the state for the torts of its agents and employees rests on a much broader doctrine. It involves the right of the sovereign authority to be free of such liability except to the extent that it is waived or abrogated by the Legislature, the branch of government which determines matters of public policy. The Legislature has not waived or abrogated its immunity for tort, nor has it said in what manner and in what courts actions for tort may be brought against the state as required by Article V, section 22, Constitution of Nebraska.
The doctrine of sovereign immunity has been the law of the land in state and federal governments since our constitutional system of government has been established. It is true that many text and review writers have complained of the inequities of the doctrine and have advocated its abandonment or limitation, but in аlmost every instance they have conceded that such action is legislative and not judicial. I am firmly convinced that the majority opinion exercises a legislative function by judicial fiat.
The courts of this country have had the application of the doctrine before them on numerous occasions. In all the reported decisions no court has ever said, so far as I have been able to find, that a factual situation such as we have here, comes within the proprietary rule. The majority opinion relies upon Pintek v. County of Allegheny,
Here the Legislature has not authorized the Board of Regents to enter into a proprietary business, nor has the Legislature abrogated or limited the immunity of the Board of Regents from tort, or provided in what manner and in what courts such suits shall be brought. These failures alone defeat the plaintiff’s claim.
Concurrence Opinion
concurring.
The doctrine of governmental immunity from tort liability in the United States has beеn considered and challenged for decades. As foundation articles in the 1920 era, see Borchard, Government Liability in Tort, 34 Yale L. J. 1, 6, and Hamo, Tort Immunity of Municipal Corporations, 4 Ill. L. Q. 28, 42.
The governmental-proprietary distinction initially developed in connection with municipal corporations or quasi corporations of the state, as a means of constricting the area of immunity or broadening the area of liability, was extended to the state itself. See Annotation, State’s immunity from tort liability as dependent on gov
The rаtionale behind the “governmental-proprietary” dichotomy is that when a public entity is involved in a governmental function, it is immune from tort liability, but when involved in a proprietary function, it loses the cloak of immunity. The terms “public, sovereign, political, state, mandatory, essential, discretionary, legislative” have been used interchangeably with “governmental.” The terms “private, corporate, quasi-private, nongovernmental, nonessential, ministerial, commercial, permissive” have been used interchangeably with “proprietary.” See, Rebko, American Legal Commentary on thе Doctrines of Municipal Tort Liability, 9 Law and Contemporary Problems, 214, 218; 2 Harper & James, Torts, § 29.5, p. 1620. These terms might be called liability or nonliability labels.
During the past 10 years judicial opinions in increasing volume have shifted from a process of whittling away to a much sharper attack, including complete abrogation of the doctrine in several states, which, in most instances, has been followed by legislative reaction. See, Some Thoughts on the American Law of Governmental Tort Liability, 20 Rutgers L. Rev. 710 (1966); The Role of the Courts in Abolishing Governmental Immunity, Duke L. J. (1964), 888.
The governmental-proprietary distinction is unsаtisfactory. The consequences of immediate and complete abrogation of the doctrine, with all of its ramifications, is likewise unsatisfactory. The former, however, does provide a case-by-case modification of the doctrine of governmental immunity in the traditional pattern of solution.
The dissents here indicate the basic judicial conflict is no longer in the area of whether the old doctrine of governmental immunity from tort liability is obsolete, but only with the question of the responsibility and power of the courts to reform it. For a thorough dis
Justice Schaefer of the Supreme Court of Illinois has expressed the problem of precedent and policy most effectively. “Precedent speaks for the past; policy for the present and the future. The goal which we seek is a blend which takes into account in due proportion the wisdom of the past -and the needs of the present. Two agencies of government are responsible for the proper blend, but each has other responsibilities as well. The legislature must deal with the ever increasing details of governmental operations. It has little time and little taste for the job of keeping the common law current. The courts are busy with the adjudication of individual controversies. Inertia and the innate conservatism of lawyers and the law work against judicial change.” 34 U. Chicago L. Rev. 3, 24.
While the majority opinion here does- not constitute an immediate and complete abrogation of the entire doctrine of governmental immunity in Nebraska, its implications suggest the desirability of legislative action.
