This case presents a question under the clause of the Constitution of the United States which prohibits a state from passing a law impairing the obligation of contracts.
The question arose upon demurrer by the defendant, the city of Oshkosh, to the complaint filed against it on the 16th day of June, 1900, by the Oshkosh Waterworks Company, a municipal corporation of Wisconsin. The principal ground of demurrer was that the complaint did not state facts sufficient to constitute a cause of action.
The complaint set forth two causes of action, on the first one of which the company claimed a judgment for $4,085, which was alleged to be due from the city under an agreement made between it and the company on June 18th, 1883, in reference to the building and maintaining by the company of a waterworks plant for supplying water for domestic and fire purposes, and the renting of public fire hydrants.
On the second cause of action the company asked a judgment for $1,060, which amount was claimed under an agreement of the 31st day of August, 1891, having reference to the company's extensions of its then-existing mains, and the rentals to be paid by the city for hydrants to be located on such extensions.
After the contract of 1883 was made, the charter of the city was amended and revised,-the revision taking effect March 23d, 1891. The revised charter contained certain provisions as to suits against the city, imposing on suitors conditions or restrictions that did not previously exist.
The company insisted that the revised charter could not be applied to this suit without impairing the obligation of its contracts with the city. This view was rejected by the state court, the demurrer was sustained, and the suit dismissed.
The general principles which must control in determining whether a state enactment impairs the obligation of contracts have become so firmly established by the decisions of this court that any further discussion of their soundness would be inappropriate. It is only necessary to recall them, and then ascertain their applicability to the particular state legislation now alleged to be repugnant to the Constitution of the United States.
It is well settled that while, in a general sense, the laws in force at the time a contract is made enter into its obligation, parties have no vested right in the particular remedies or modes of procedure then existing. It is true the legislature may not withdraw all remedies, and thus, in effect, destroy the contract; nor may it impose such new restrictions or conditions as would materially delay or embarrass the enforcement of rights under the contract according to the usual course of justice as established when the contract was made. Neither could be done without impairing the obligation of the contract. But it is equally well settled that the legislature may modify or change existing remedies, or prescribe new modes of procedure, without impairing the obligation of contracts, provided a substantial or efficacious remedy remains or is given, by means of which a party can enforce his rights under the contract. Green v. Biddle, 8 Wheat. 1, 85, 5 L. ed. 547, 568; Bronson v. Kinzie, 1 How. 311, 317, 11 L. ed. 143, 145; Planters' Bank v. Sharp, 6 How. 301, 327, 12 L. ed. 447, 458; Walker v. Whitehead, 16 Wall. 314, 317, 21 L. ed. 357; Murray v. Charleston, 96 U.S. 432, 438, 24 L. ed. 760; Edwards v. Kearzey, 96 U.S. 595, 601, 24 L. ed. 793, 796; Vance v. Vance, 108 U.S. 514, 518, 27 L. ed. 808, 810, 2 Sup. Ct. Rep. 854; McGahey v. Virginia, 135 U.S. 685, 693, 34 L. ed. 312, 314, 10 Sup. Ct. Rep. 972; Barnitz v. Beverly, 163 U.S. 118, 41 L. ed. 93, 16 Sup. Ct. Rep. 1042; McCullough v. Virginia, 172 U.S. 102, 104, 43 L. ed. 382, 383, 19 Sup. Ct. Rep. 134. The decisions of the supreme court of Wisconsin as to what are to be deemed laws impairing the obligations of contracts are in harmony with the decisions of this court. Lightfoot v. Cole, 1 Wis. 26, 34; Von Baumbach v. Bade, 9 Wis. 559, 76 Am. Dec. 283; Paine v. Woodworth, 15 Wis. 298; Northwestern Mut, L. Ins. Co. v. Neeves, 46 Wis. 147, 49 N. W. 832; Lee v. Buckheit, 49 Wis. 54, 4 N. W. 1077; Rosenthal v. Wehe, 58 Wis. 621, 17 N. W. 318.
Having these principles in view, we proceed to inquire whether the revised charter of Oshkosh so changed existing remedies for the enforcement of contract rights against municipal corporations as to impair the obligation of the contract made in 1883 between the waterworks company and the city.
