Lead Opinion
This is an action to recover from the defendant the value of eighteen lots conveyed by the plaintiff to the Lincoln and Northwestern Railway for depot grounds in Seward. A demurrer to the petition was sustained in the court below and the action dismissed. The following is a •copy of the petition:
“ Said plaintiff, James H. Harris, complains of John Roberts, defendant, and alleges that on the 10th day of •July, 1879, the Lincoln and Northwestern Railway company, a corporation doing business under the laws of the .state of Nebraska, was constructing a line of railway from Lincoln in said state to Columbus in said state, by the way of Seward in said county, and proposed to, and was under obligations to erect and maintain a freight and passenger depot at said city of Seward. Plaintiff further .alleges that said plaintiff and said defendant were at tliat time each the owner of a large number of city lots in the western part of said city, which would be enhanced in value by the location of said depot in the western part of said city. That on said 10th day of July, 1879, said plaintiff and .said defendant entered into a verbal agreement to this effect. That if said company located and established its depot in the western part of said city and required and requested the gratuitous conveyance to it of any lots owned by either said plaintiff or defendant, to be used for depot purposes, and said plaintiff would gratuitously convey to said company the lots owned by him, .and required by it for such purposes, said defendant would .also gratuitously convey to said company the lots owned by him and required for such purposes, and that if the
The contract set out in the petition amounts to this The plaintiff and defendant being the owners of a large-number of lots in severalty in West Seward, which would be materially enhanced in value by the location of a depot near them, agreed to convey the necessary lots for that purpose gratuitously if so required. In pursuance-of that agreement the plaintiff conveyed to the railroad company thirty-six lots, thus materially enhancing the value of the defendant’s lots, but he now insists that the contract was void, and refuses to perform the same. He,, by his demurrer, admits making the contract, and that-he retains the special value added to his lots from the-location of the depot and the transfer of the plaintiff’s property to secure the same, but pleads the statute of frauds as a protection. This defense would be available in an action for specific performance of the contract, but not'for the price of property conveyed to a third person at the request of a.promissor. Suppose the contract had been to convey to the defendant, could he after receiving a conveyance defeat the recovery of the consideration by pleading the statute ? Where a verbal contract is made-for the conveyance of land and the land is conveyed accordingly, the statute is no defense to recover an action to recover the price. Bracket v. Evans, 1 Cushing, 79. Preble v. Baldwin, 6 Id., 549. Linscott v. McIntire, 15 Me., 201. Thayer v. Viles, 23 Vt.,494. Morgan v. Bityenberger, 3 Gill, 350. Thomas v. Dickson, 14 Barb., 90. Gillespie v. Bartle, 15 Ala., 276. 3 Parsons on Contr., 35. And it seems to make no difference whether the land is conveyed to the person making the promise, or at his request to some one else.
But it is said that the contract is against public policy and void because it tends to make the officers of the railroad company disregard the rights of the public and
In the ease of St. J. & D. C. R. R. Co. v. Ryan, 11 Kansas, 602, the company had received a conveyance “ upon the express conditions following: Said railroad shall, immediately on the completion of their railroad through said lands establish a depot for freight and passengers on said lands and shall keep and maintain the same for all time; and shall not at any time have or use any other depot within three miles of said depot.” The court say (page 608): “ Is a contract not to build or use a depot within certain limits a valid and binding contract ? Railroad companies are private corporations; yet they are declared to be quasi public agencies, and their roads to subserve to a certain extent public purposes, so much so that the public may be taxed to aid in their construction. Leavenworth Co. v. Miller, 7 Kas., 479. It would seem to follow' that the public has a right to say that they shall not be permitted, though private corporations, to make any contract which would prevent them from accommodating the public in the iñatter of transportation and travel.” In that case it will be observed that the contract was not to build a depot within certain limits.
In Fuller v. Dame, 18 Pick., 472, Chief Justice Shaw', in delivering the opinion of the court, says : “ It is obnoxious that if one large landholder may make a valid conditional promise to pay a large sum of money to a stockholder, or influential citizen, on condition that a work of great public improvement may be so fixed as to enhance the value of his estate, all other great landholders may
Reversed and Remanded.
Dissenting Opinion
dissenting.
I fully concur in the foregoing opinion as to the first and main proposition discussed therein, but dissent from the last. I do not think the petition states a cause of action for want of an averment that the railroad company required a “gratuitous” conveyance of the lots by the plaintiff. This fact is not properly inferable from anything that is alleged.