Judges: DANFORTH, J.
Filed Date: 10/4/1881
Status: Precedential
Modified Date: 4/15/2017
[EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 109 [EDITORS' NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.] *Page 111 This appeal has been elaborately argued, both upon the facts and the law; and while many of the propositions present questions of difficulty, there is, I think, no doubt upon the case stated that the plaintiff failed to bring it within any rule or principle which justifies the interference of a court of equity. This conclusion makes it necessary to state with some fullness the circumstances disclosed by the trial court.
In 1852 or 1853, The Albany Northern Railroad Company was organized under the General Railroad Law (Laws of 1850, chap. 140), for the purpose of building a railroad from Albany to Eagle Bridge. The termini of The Rensselaer Saratoga railroad were Troy and Saratoga. The two roads intersected each other at Waterford. The Troy Boston railroad began at Troy and extended northerly beyond Eagle Bridge to the State line, but at no point intersected with the Albany *Page 113 Northern railroad, nor were its termini the same; but the lines of the two roads were not far apart, were substantially parallel, accommodated the same public with railroad facilities for passengers and freight, and were competing roads. In 1857, the Albany Northern railroad being insolvent, its road, together with its franchise, was purchased on mortgage foreclosure by the Albany, Vermont Canada Railroad Company. In 1859, they being in the same condition, the road under like process was sold to the Albany Vermont Railroad Company. This corporation was organized October 6, 1859, and operated the road about twenty days. On the 12th of June, 1860, they leased to the Rensselaer Saratoga Railroad Company, for the period of its corporate existence, so much of the road as lay between Albany and a point one thousand feet north of the intersection of the two roads at Waterford, with all rights and franchises necessary to its full enjoyment; also its rolling stock, engines and machinery, for an annual rent of $20,000, with a proviso in the lease that in case any part of the Albany Vermont railroad situate east of the Hudson river "shall be used or operated by" that company, "or its grantees, lessees or agents, or under its authority as a railroad, for the transportation of persons or freight, then" the Rensselaer Saratoga Railroad Company, lessees, might terminate the lease by notice. Negotiations were at the same time pending in behalf of the plaintiff for the control of that portion of the Albany Vermont railroad thus referred to, and prior to September or October, 1860, it had acquired such control as enabled it in those months to remove the rails from so much of its road-bed as was not embraced in the lease to the Rensselaer Saratoga Railroad Company. The rails were sold, and the money ($47,500) arising therefrom, with $2,500 more, making the sum of $50,000, was paid over by the plaintiff or in its behalf to the Albany Vermont Railroad Company. In pursuance and further fulfillment of these negotiations, the plaintiff received a lease from the Albany Vermont Railroad Company dated Jan. 1, 1862, in which the lease to the Rensselaer Saratoga Railroad Company is recited, *Page 114 and that the portion of the line so leased is operated by that company, that "the residue thereof has for a time ceased to be used for the transportation of persons or property upon the same;" then demises to the plaintiff as party of the second part thereto, so long as the companies shall continue to be railroad corporations, the said "residue" of the railroad of the Albany Vermont Company lying north of that already leased to the Rensselaer Saratoga Railroad Company, described as "beginning at a line drawn across the same at right angles, at a distance of one thousand feet northerly from its intersection at Waterford Junction with the railroad from Troy to Saratoga Springs, and extending from said line northerly and easterly to Eagle Bridge aforesaid, and all the lands upon which said demised part of said railroad and its said appurtenances are or were constructed, and all the other property thereon," and also, except as hereinafter otherwise provided, "all the alienable rights and privileges of said party of the first part (the Albany Vermont Railroad Company), pertaining to said demised premises, and the use thereof, for the yearly rent of one dollar on each first day of January, during said term," and also provides as follows:"Second. The said party of the second part hereby hires and takes the above-demised premises for the term aforesaid at the rent aforesaid, and covenants and agrees that at all times hereafter during the aforesaid term of this demise, the said party of the second part shall and will do and perform every act and thing which is or may be required of, or binding upon either party hereto, to be done or performed upon, or in relation to the operation, maintenance, condition or use of the said demised line or part of said railroad and property, or any part thereof, or in relation to the roads, highways and highway bridges adjacent to or crossing the said demised part of said railroad, and shall also fully indemnify and save harmless the said party of the first part against any and every non-performance thereof, and also against any and every act or neglect of the said party of the second part, in relation to any of the said demised premises and property and said roads, highways and highway bridges, but such indemnity *Page 115 shall not extend to any damages to the said party of the first part accruing to its capital stock or franchise from the mere neglect of the said party of the second part to repair or operate said hereby demised line of railroad, unless such repair or operation shall be required by some judgment or order of court, peremptory or alternative, requiring the same, or conditioning thereon, the continuance of such purchase or the full enjoyment by said party of the first part of any of its other property not hereby demised. Third. The said party of the first part hereby expressly reserves to itself at all times the right to abandon the said demised railroad, or any part or parts thereof, in case the same shall be or become requisite in order to protect the said party of the first part and its lessees thereof (the Rensselaer Saratoga Railroad Company) in the full enjoyment of that part of the railroad of said party of the first part not hereby demised, and also reserves the right to change the line or route of said hereby demised railroad, or any part thereof, in case it shall be requisite as last aforesaid, and also reserves the right to terminate the railroad of said party of the first part at its intersection with the railroad of said the Rensselaer Saratoga Railroad Company, in case it shall be requisite as last aforesaid. But it is hereby agreed that in case said party of the first part shall exercise or assume, or undertake to exercise the said rights as reserved, or either or any thereof, without the same being requisite to protect the said party of the first part as aforesaid, the said party of the first part shall not thereby incur any liability whatsoever to the said party of the second part. Fourth. This indenture is executed entirely at the risk of the party of the second part as to the estate or title of the said party of the first part in or to said demised premises, property, etc.; and without any covenant or agreement, express or implied, on the part of said party in relation thereto."
The plaintiff has never operated the road; nor have the premises so demised been used or operated as a railroad since the 4th of April, 1860. They consist of a large number of separate parcels of land, the title to most of which was acquired by "The Albany Northern Railroad Company" under *Page 116 statutory proceedings (Laws of 1850, supra) or deeds conveying the same, and no other right or interest than the company was authorized to take under that statute, or, in a few instances, by warranty deed. As to some parcels no title appears to have been acquired by that company, or either of its successors. After the abandonment of the road for railroad purposes, the former owners of the property so acquired or taken resumed possession, restored the fences, and by themselves or grantees or tenants, subdued and used the land for farming purposes. The defendants were shown to be a railroad corporation, organized under the laws of this State, and to have entered upon the land for the purpose of preparing it for rails in the construction of a railroad; and it was this entry of which the plaintiff complained. The defendants offered evidence to show that the entry was by consent of the persons then in possession and occupation of the land, and the court excluding it, they excepted. The judgment asked was that the defendants be enjoined from entering upon the property and premises so demised to the plaintiff, and from repairing or grading the same or any part thereof, or laying down rails or operating the same as a railroad. The defenses, among others, were: (1) That the plaintiff had no title; (2) that by judgment of the Supreme Court in an action where the People were plaintiffs and "The Albany Vermont Railroad Company" was defendant, so much of the charter of "The Albany Vermont Railroad Company" as embraced the road beyond the Waterford Junction was vacated; (3) that by amendment of the articles of association of that company, filed Feb. 9, 1878, that part of its road leased to the plaintiff was abandoned; (4) that the lease under which the plaintiff claims is void; (5) that no case was made for equitable relief. The trial court ordered judgment in pursuance of the prayer of the complaint, and also that the defendant railroad company deliver to the plaintiff possession of the property referred to, and that the plaintiff be restored to its possession.
The territory in question has been fruitful of litigation, in which the rights and obligations and exemptions of parties in *Page 117
respect thereto have come before the courts (19 How. Pr. 523; 12 Abb. Pr. 171; 37 Barb. 216;
It is well settled that, unless authorized thereto by statute, a railroad corporation organized under our General Railroad Act has no authority to transfer or lease its road. (Abbott v.Johnstown, etc., R.R. Co.,
In Wood v. B. B.R.R. Co. (8 Phila. [Pa.] 94) it is held that an act which empowers the leasing of a completed railroad will not authorize the transfer of the franchise for building a railroad. When the road now in question was leased, it was incomplete; intentionally made so. Whether we look, then, at the subject of the contract — incapable of use; or the terms of the contract — not providing for or contracting for its use, we find it is not within the object for which the corporation was organized, is not authorized by statute, and is void, and therefore unavailable as the foundation of an action.
But apart from this construction of the instrument is the question whether it, or the case made under it, in any view which can be taken, entitles the plaintiff to the interference of a court of equity. The statute of 1850 (supra, § 47) shows clearly enough that the policy of the State requires the speedy beginning of the construction of a railroad and its completion within a reasonable time thereafter. Unless, it says, within two years after its articles of association are filed, the company begins the construction of its road, and completes and puts it *Page 122
in operation in five years thereafter, "its corporate existence and power shall cease." Note, it is to be finished and put in operation. This is due to the citizen, whose land has been taken for its construction, and to the public, whose necessities it was supposed required its taking. Here the road, although commenced and finished, has been dismantled, and for three times five years permitted to remain so. The plaintiff does not now pretend that it wants possession in order to restore its usefulness. It "was moved," the complaint says, "to enter into the lease by the anticipation that by the opening of new avenues of communication and the increase of its business therefrom, and other causes, its then line would become inadequate to the performance of its business, and the leased premises become available for operation in connection with its own line, and it then intended, has since intended," and now "intends, when occasion requires, to make use of the same for such purposes;" and such in substance is the finding of the trial court. Even if this allegation and this finding could be sustained upon the evidence, as we think it could not, it is needless to suggest that the land could not have been taken from the citizen for such a purpose. Shall a court of equity become a party to the transaction; by its decree put the plaintiff in possession of property, for which having no use, it substantially abandoned? If entitled to possession, what reason is there for passing by the legal action of ejectment? If any rights have been infringed, they are legal rights, and, for aught that appears, damages at law would give the plaintiff all the compensation it may fairly claim. It is argued that the injury caused by the defendant if unrestrained would be irreparable; but neither in the complaint or evidence, or finding of the court, does it appear how or why it would be so. The allegation of an apprehension is not enough; the facts must be stated, to show that it is well founded. The complaint seeks no damages, nor does it allege any. It is framed simply in furtherance of a suit in equity. The relief given goes beyond the special prayer of the complaint. It not only restrains the defendants "from interfering with or disturbing the possession of the plaintiffs *Page 123
to" the premises in question, as the plaintiff prayed, but as we have seen, directs the surrender to the plaintiff of possession. But the defendants, by answer and by motion at the commencement of the trial, insisted that the complaint stated no ground for equitable relief. Upon this appeal they take the same position, and also argue that the case in evidence is no more to the purpose. The cause of action, if any thing, is a trespass; and that alone will not authorize the interference of a court of equity. Without going further back, we may recall with profit the words of KENT, Ch., in Jerome v. Ross (7 Johns. Ch. 315): "The objection to the injunction," he says, "in cases of private trespass, except under very special circumstances, is, that it would be productive of public inconvenience, by drawing cases of ordinary trespass within the cognizance of equity, and by calling forth, upon all occasions, its power to punish by attachment, fine, and imprisonment, for a further commission of trespass, instead of the more gentle common-law remedy by action, and the assessment of damages by a jury;" and conceding the undoubted right of every man to be protected in the possession and enjoyment of his property, enforces the opinion I have quoted by an illustration pertinent to the case before us. "He may have," he says, "on his land a large mound of useless stone or sand which he may not deem worth the expense of inclosing, and yet it would be a trespass for any person to remove any portion of the stone or sand without his consent; and he would be entitled to his action, even though the damages were nominal." "But would it be proper," he asks, "for this court to assume cognizance of such a trespass, and lay the interdict of an injunction upon it"? And answers: "I think not." The same answer should be made in this case. For any present practical use to the plaintiff, the strip of land protected by the injunction has been regarded as of no more value than the supposed mound of sand. Its rights were acquired earlier than 1862. Its first act, by itself or in conjunction with the Albany Northern railroad, was to remove so much of it as would have made its use possible; or if we discover its object by the lease, we find it then without rails *Page 124
and disused; and in either case, it has permitted the territory so acquired to be converted for seventeen years to other than railroad use. Not deeming it worth the while by fences to preserve even the form and lines of a road, it has suffered others to destroy by their fences and mode of treatment for agricultural purposes all likeness to one. If the language of the statute (Laws of 1850, § 47, supra) does not, its evident spirit and policy does, apply to such a case. If a new road is required to be finished and put in operation within five years from its inception, as a condition of corporate existence, under what principle can a court of equity countenance by its judgment a substantial evasion of the terms of the statute? Its object is evident, to secure service to the public. And although its letter may be complied with, this object is defeated if after finishing and operating a road, its projectors disuse and abandon it. The court may not enforce operation, as was held in the case of the lessor (
A point of less importance, but bearing upon those questions already considered, relates to so much of the road-bed as was not conveyed to the Northern Railroad Company or its successors, or acquired by them. The quantity is not infinitesimal or beneath the attention of a court. It embraces parcels of land owned and in possession of many different persons, and is assumed by the respondent to be in all "a few hundred feet of the road-bed." It is found indeed that the companies occupied and operated their road thereon "until the operation of the same was discontinued in 1859." But it also appears in regard to some parcels, that soon after that event, and before the execution of the lease, the former owners re-entered and have since occupied, until by their consent the defendant took possession. The respondent claims that as to these, a grant, although not proved, should be presumed. No reason or authority for this position is given. If the plaintiff, or its grantor, had possession from 1853 to 1859, the defendants and those from whom they claim, the former owners and now owners of record, have had peaceful and uninterrupted possession for a much longer period, putting the land to uses inconsistent with the plaintiff's assumed rights. As to these parcels the plaintiff has shown no legal or equitable right.
Some other questions are presented for our consideration: *Page 129 (1) The effect of the amendment by the Albany Vermont Railroad Company of its articles of association. The amendment was filed in the office of the secretary of State February 9, 1878. If valid, its effect was to discontinue its line at the Waterford Junction, and so cut off that portion embraced in the plaintiff's lease. The appellants claim that this proceeding was warranted by statute. (Laws of 1854, chap. 282, § 13.) It seems to me otherwise. The line is the route of the road, and when adopted, designates its location. (Act of 1850, supra, § 14.) It necessarily includes the places from and to which the road is to be constructed. The Albany Vermont railroad terminated at Albany and Eagle Bridge; the Rensselaer Saratoga railroad at Troy and Saratoga; and the Troy Boston railroad at Troy and the line of the State of Vermont. These conditions do not bring the case within the first clause of the section cited, for the obvious reason that the location of the line of the Albany Vermont railroad is not the same as that of either of the others. Is it within the alternative clause, "or whenever by the connection of two or more railroads the same points of termination are reached by railroad communication * * * any road so connecting may alter and amend its articles of association so as to terminate at the point of intersection?" It is conceded that the Rensselaer Saratoga railroad and the Albany Vermont railroad do intersect each other at Waterford Junction; but the same reason which leaves them outside the meaning of the first clause applies here. There is no common location of line, nor are the same points of termination reached. The statute also contemplates an agreement between the connecting roads for the construction by one of them of so much of the line as is common to both roads. And if we apply it to a road already constructed, and extend the meaning so as to take in the maintenance of such a road, we find none here. But notwithstanding our construction that the statute does not apply, we think the plaintiff is not in a position to avail itself of the objection. The plaintiff's right of action depends upon the contract between the plaintiff and the Albany Vermont Railroad Company. *Page 130 It is one of the stipulations of that contract, a right reserved to the Albany Vermont Railroad Company, to terminate its line just where it has undertaken to terminate it by the amendment referred to. Not only in case such termination shall be necessary to protect the Rensselaer Saratoga Railroad Company in the enjoyment of privileges conferred upon it, but, in the language of the lease under which the plaintiff claims, and which it now seeks to enforce, "It is agreed that in case the party of the first part shall exercise, or assume, or undertake to exercise the said rights as reserved, or either or any thereof (that is, to abandon so much of the line as was demised to the plaintiff, or to terminate it at its intersection with the Rensselaer Saratoga railroad) without the same being requisite to protect the party of the first part, as aforesaid, the said party of the first part shall not thereby incur any liability whatsoever to the said party of the second part." A court of equity will not by injunction protect a naked legal right, which the complainant and those under whom he claims have covenanted not to exercise. (Bosley v. McKim, 7 H. J. 468.) The effect of the stipulation I have quoted is to limit the plaintiff's rights, and subject them to the action of the lessor. It is as if the lessor had written, I reserve the right, and you can have and hold until I abandon or terminate the line. Thus the lease is qualified, and the lessee cannot question the power of the lessor to withdraw the privilege granted. That is the effect of its amendment, as between the parties to the lease. Now, although the public have a right to say the line is not shortened, the plaintiff, having consented to the act of its lessor, cannot stand in the place of the public and deny its validity. The question is on the lease and the rights of the parties thereto under it. The right to terminate the line is in substance a right to modify or terminate the lease to that extent, or to withdraw the disused road from its operation. It is the result of a contract; and we find there the consent of both parties. The plaintiff can claim nothing against the exercise of this right, for with or without reason, the lessee agrees that no liability whatsoever shall be incurred *Page 131 by the lessor for its exercise. In face of this agreement there can be no foundation on which to rest an appeal to a court of equity. The ground of the jurisdiction of that court is the inadequacy of the remedy at law. When that remedy, and even any claim for liability, is disavowed by the party, of course the ground is taken away.
It seems unnecessary to inquire in regard to the validity of the judgment of the Supreme Court, which by its terms relieved The Albany Vermont Railroad Company of its obligations under its charter in respect to that portion of its road so leased to the plaintiff. The plaintiff here was not a party to the action in which it was rendered. Before trial the Special Term directed it to be brought in as defendant, and although its order was reversed by the General Term, it was affirmed here. (
Other questions are presented by the appellant upon which no opinion need be expressed, as those already considered have been so answered as to make it necessary to reverse the judgment. And as there is no aspect in which the case can be sustained, the complaint should also be dismissed.
Judgment reversed and judgment ordered that the complaint be dismissed, with costs.
All concur, except MILLER, J., not voting, and RAPALLO, J., absent at argument; FOLGER, Ch. J., concurs in result.
Judgment reversed.