MCCORMICK
v.
OKLAHOMA CITY

U.S. | 1915-03-15
No. 170
236 U.S. 657 Supreme Court of the United States (1915) Negative Treatment
Also reported at: 59 L. Ed. 771 · 35 S. Ct. 455 · 1915 U.S. LEXIS 1720 · SCDB 1914-192
Cited by 28 cases

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Synopsis

McCormick sought specific performance of eighteen street-paving contracts with Oklahoma City, alleging that the city violated his constitutional rights by refusing to permit him to perform the work. The Supreme Court dismissed the appeal, holding that the case involved only a simple breach of contract between diverse citizens and did not present a federal constitutional question, as the mere refusal of a municipality to perform a contract does not constitute a deprivation of property without due process of law or an impairment of contract obligations.


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Opinion of the Court
Mr. Justice McKenna,

Memorandum opinion by

Mr. Justice McKenna,

by direction of the court.

Suit for specific performance of eighteen contracts for the paving of certain streets in the city of Oklahoma City, Oklahoma.

A temporary restraining order was applied for and denied. The suit subsequently came on to be heard on the bill, answer and proofs, and a decree was entered dismissing it. The decree was affirmed by the Circuit Court of Appeals. 203 Fed. Rep. 921.

A question of jurisdiction arises, that is, whether an appeal lies from the decree of the Circuit Court of Appeals to this court, and that depends upon the ground on which the jurisdiction of the District Court was invoked and whether, as a consequence, the decree of the Circuit Court of Appeals was final.

The bill alleges that McCormick, whom we shall designate as complainant, is a citizen and resident of St. Louis, Missouri, and. that the city of Oklahoma City is a citizen and resident of Oklahoma, being a municipal corporation thereof, and that the other defendants are its officers.

'The gravamen of the suit is that under an ordinance of the city, resolutions were passed by the city council at different times providing for the paving of certain streets in the city and that under due and legal proceedings had . under such resolutions plans, specifications and estimates of the work were prepared by the city engineer. That in accordance with these and notices published complainant filed with the city clerk proposals and bids which were afterwards by the council duly accepted; that .they, there fore, became and constituted valid and binding contracts between the city and complainant for making such improvements and that he by reason of such contracts has a vested right of property in the same and is entitled to be permitted to perform the same. That subsequently the council attempted by resolution or motion to reconsider its action and to set aside the awards, in violation of complainant’s rights. That he tendered formal written contracts and requested the acting mayor to execute them, but that officer refused to do so or to approve the bonds presented therewith. That complainant has done in all other particulars the things required to be done and performed by him and had done some work under his contracts before, they were attempted to be set aside. That unless restrained the city will deprive complainant of the privilege of making the improvements and prevent him from making the profits thereon, which would amount to at least $45,000; that the attempt of the city to set aside the awards to complainant “is in violation of the Constitution of the United States and in violation of the constitution and laws of the State of Oklahoma, and is an attempt to deprive this complainant of property without due process of law.”

These are the general outlines of the bill and they are sufficient to show that diversity of citizenship was alleged and, in a general way, that the Constitution of the United States and of the State of Oklahoma were violated. The basis of the latter allegation is that complainant had binding contracts with the city which the city refused to permit him to perform. Their breach is alleged and nothing more, and the allegation gets no other quality or character by the assertion that complainant had a “vested right of property” in the contracts or their performance and that to take this away is a deprivation of property without due process of law. Nor would such be the result if complainant had averred that the circumstances amounted to an impairment of the obligation of his contract, a contention which he in effect urged upon the oral argument.

The case, therefore, falls under the ruling in St. Paul Gas Light Co. v. St. Paul, 181 U. S. 142, and subsequent cases.

In Dawson v. Columbia Trust Company, 197 U. S. 178, 181, it was said that the mere fact that a city is a municipal corporation does not give to its refusal to perform a contract the character of a law impairing its obligation or depriving of property without due process of law. St. Paul Gas Light Co. v. St. Paul, supra, was adduced.

In Shawnee Sewerage & Drainage Co. v. Stearns, 220 U. S. 462, 471, it was said: "The breach of a contract is neither a confiscation of property nor a taking of property without due process of law.”

It follows that the bill presents a case of diversity of citizenship only and the decree of the Circuit Court of Appeals was final.

We may observe that that court and the District Court decided that there were no contracts consummated by complainant with the city.

Appeal dismissed.


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Citator

Cited By

  • Brown v. Brienen, 722 F.2d 360 (7th Cir. 1983)
    …est we leave the impression that it is an insubstantial question. Until comparatively recently, the line between contract and property rights, for Fourteenth Amendment as for other purposes, was clearly drawn. In McCormick v. City of Oklahoma City, 236 U.S. 657, 35 S.Ct. 455, 59 L.Ed. 771 (1915), for example, the Supreme Court held that a city’s breach of a contract to pave its streets was not a deprivation of property. The basis of the contractor’s “allegation is that complainant had binding contracts wit…
  • Patterson v. Portch, 853 F.2d 1399 (7th Cir. 1988)
    …contracts clause of Article I, § 10. Until recent times courts assumed that the narrow meaning was the correct one. See, e.g., Taylor v. Beckham, 178 U.S. 548, 576-77, 20 S.Ct. 890, 900-01, 44 L.Ed. 1187 (1900); McCormick v. City of Oklahoma City, 236 U.S. 657, 659, 35 S.Ct. 455, 455, 59 L.Ed. 771 (1915); Bailey v. Richardson, 182 F. 2d 46, 57 (D.C.Cir.1950), aff’d by equally divided Court, 341 U.S. 918, 71 S.Ct. 669, 95 L.Ed. 1352 (1951). But by the centennial of the Fourteenth Amendment it was plain b…
    1 / 2
  • Manila Inv. Co. v. Trammell, 239 U.S. 31 (U.S. 1915)
    …and bring the case within the principles decided by this court in St. Paul Gas Light [*33] Co. v. St. Paul, 181 U. S. 142; Dawson v. Columbia Avenue &c. Co., 197 U. S. 178; Shawnee Sewerage Co. v. Stearns, 220 U. S. 462; McCormick v. Oklahoma City, 236 U. S. 657. Affirmed.…

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