MILHAU et al. v. SHARP et al.
Court of Appeals of the State of New York
September, 1863
27 N.Y. 611
For the reasons already stated, I think the judgment should be reversed, and there should be a new trial, costs to abide event.
DAVIES and WRIGHT, Js., concurred; SELDEN, ROSEKRANS and BALCOM, Js., thought that the question whether the plaintiff in the attachment was a creditor in point of fact is open to inquiry until he has obtained a judgment; and ROSEKRANS, J., thought that the party defending under the attachment was bound to give evidence of the debt on which it professed to be founded. EMOTT, J., expressed no opinion on that question. All the judges were for reversal on the principal question.
Judgment reversed, and new trial ordered.
MILHAU et al. v. SHARP et al.
The corporate authorities of the city of New York have no power to confer upon individuals, by contract for an indefinite period, the franchise of constructing and operating a railroad in the public streets, for their private advantage.
The powers of the corporation, in respect to the control and regulation of the streets, are held in trust for the public benefit, and cannot be abrogated nor delegated to private parties.
A resolution of the common council, authorizing private persons to construct and operate a railroad upon certain conditions, without limitation as to time, or reserving a power of revocation, is not a license nor an act of municipal legislation merely, but a contract, which, if valid, it could not abrogate.
It is no answer to the application for an injunction, that the wrong complained of is a public nuisance, if it subjects the plaintiff to a special injury, not common to the public.
The finding of fact, that a proposed railroad “will be specially injurious to the property of the plaintiffs, and other property similarly situated,” construed as showing a special and direct injury to each of the plaintiffs in severalty, not a remote one, and not merely a common or public nuisance.
THIS action was brought by four persons, inhabitants of the city of New York, severally owning lots with valuable buildings thereon, situated upon Broadway in that city, and claiming to own the fee of the land in front of their several buildings to the centre of the street, subject only to the public easement, or right of way over it; the object of the action being to prevent by perpetual injunction, the defendants from laying a railway track in Broadway and running cars thereon for the carrying of passengers in pursuance of a resolution of the common council of that city.
The plaintiffs stated that their lots and buildings were very valuable, and that they had been accustomed to pay large taxes thereon; that Broadway is an ancient street, opened about 150 years ago by the then owners of the lands over and through which it passes, for their own convenience, and was by them allowed to be used by other citizens and travelers as a common public street or thoroughfare, and has ever since continued and still is, such public street or thoroughfare; that a large portion of the trading and commercial business of said city (greater than that of any other street) is transacted in said street; and that the street is constantly thronged with all kinds and descriptions of vehicles and passengers.
The resolution of the common council, passed on the 29th of December, 1852, declared that the defendants and those who might from time to time be associated with them, all of whom were therein designated as associates of the Broadway
The associates were required to place new cars on the road with all the modern improvements for the convenience and comfort of passengers; and to run cars thereon every day, both ways, as often as the public convenience might require, under such direction as the common council might from time to time prescribe. They were also required, in all respects, to comply with the directions of the common council, in the building of such railway, and in the running of the cars thereon.
It was provided that no higher rate of fare should be charged for the conveyance of passengers from any one point to any other point along said route, and such combined system of routes as might thereafter be adopted, by means of cars and transverse omnibusses, than five cents for each passenger.
The twelfth and thirteenth articles of the resolution were as follows:
“Twelfth. In consideration of the good and faithful performance of all these conditions, stipulations and requirements,
and of such other requirements as may hereafter be made by the common council for the regulation of the said railway, as aforesaid, the said associates shall pay, for ten years from the date of opening the said railway, the annual license fee for each car, now allowed by law, and shall have a license accordingly; and after that period shall pay such amount of license fee, for further licenses, as the corporation, with permission of the legislature, shall then prescribe; or, in default of consenting thereto, shall surrender the road, with all the equipments and appurtenances thereto belonging, to the said corporation, at a just and fair valuation of the same.
“Thirteenth. Within a reasonable time after the passing of this resolution, the said associates, or a majority in interest thereof, shall form themselves into a joint stock association, which association shall be vested with all the rights and privileges hereby granted, and shall have power, by the votes of at least a majority in interest of the associates, to frame and establish articles of association and by-laws, providing for the construction, operation and management of the said railway, the mode of admitting new associates, and of transferring the shares or interests of any of the associates to new associates or assigns, the number, duties, mode of appointment, tenure and compensation of officers, the manner of making contracts, amending the by-laws, and calling in assessments from the associates, and generally the means and mode of establishing the railway and carrying it on, and of controlling and managing the property and affairs of the said association.”
By the fourteenth article it was provided, that the association should not be deemed dissolved by the death or act of any associate, but his successor in interest should stand in his place; and the rights of each associate should depend on his own fulfillment of the conditions imposed on him, by the restrictions of the resolution, of the articles of association and by-laws of the association; and in case of his failure to fulfill the same, after twenty days’ notice in writing to him to do so, his rights should be forfeited to, and devolve upon the remaining associates. Also, that said associates should incorporate
By the fifteenth article, the associates whose names were set forth in the resolution, were required, by writing, to be filed with the clerk of the common council, to signify their acceptance thereof, and agree to conform thereto; and all new associates or assigns, duly admitted according to the provisions of the articles of association and by-laws, should be deemed parties to such agreement.
The foregoing are the leading features of the resolution; but there were other provisions containing more minute directions in regard to the laying of the track, and the structure and management of the cars.
The plaintiffs alleged that the defendants, immediately after the passing of the resolution by the common council, signified their acceptance thereof, and agreed to conform thereto, by writing, filed in accordance with the resolution. That the defendants, under color of the authority contained in said resolution, threatened to enter upon Broadway, and take up the Russ and other pavements, and dig up and subvert the soil in that part of Broadway between Whitehall and Fifty-ninth streets (including the portion thereof belonging to the plaintiffs), to take possession of said street, and lay down and establish a railroad therein, and run cars thereon, for their own private interest and emolument, to the great injury and damage of the plaintiffs and other property owners on and in said street, and to their and each of their property; and without making to them or either of them any compensation therefor; and without paying or providing for the payment to them or either of them, of the damages resulting to them and their property, arising from the taking of their land lying in the street, and from laying said railway thereon.
That the laying of the railway would require at least four months, during all which time the street would be rendered almost wholly impassable, to the great injury of the plaintiffs and others having occasion to travel in said street. That the street was too narrow (its average width not exceeding forty
That if the defendants were allowed to take up the pavement, and establish such railway, not only would the Russ pavement, lately laid in the street at great expense to the plaintiffs, be destroyed, but the lots owned by the plaintiffs would be seriously and irreparably injured and damaged, by means of the obstruction caused by the cars to the passage of vehicles, &c., in the street, and the consequent diversion of travel and business to other streets. That the effect would be to take from Broadway the large commercial trade carried on therein, thereby causing a depreciation of the value of all the lands and buildings located on said street, and the rents and income thereof. The title of the corporation of the city to the fee simple of the streets, and the power of the common council to pass the resolution, were denied, and it was insisted that the resolution and the acceptance of it were of no binding force, and conferred no power on the defendants to construct or establish the contemplated railway.
It was also charged that the common council acted corruptly in passing the resolution; that they rejected propositions from responsible persons, to pay to the corporation from $100,000 to $250,000 per annum for the privilege of building the railway, and of conveying passengers on the same or more favorable terms; and that the resolution was passed in violation of an injunction previously issued by the Supreme Court, and served upon many of the members of the common council by whose votes it was passed, forbidding its passage.
The defendants, in their answer, insisted that the street belonged to the corporation in fee simple absolute; and alleged that the common council had power to regulate the streets, to lay down rails, and to pass the resolution in question. They denied any knowledge of the plaintiffs’ title to the street or to lots situated upon it. They denied the fraud alleged in the passing of the resolution; stated that the propositions mentioned by the plaintiffs were made in bad faith, and intended
The trial was had at the October special term in New York, in 1853, before Mr. Justice HARRIS, without a jury, who found that Broadway was opened as a street at different periods, commencing prior to 1695, all below Union place having been opened before 1813. That the plaintiffs were severally owners and occupants of buildings fronting upon said street, and of the lots upon which the buildings were erected, as particularly set forth in the complaint, and had been such owners for several years; and had, during such time, severally paid taxes upon such property to an amount exceeding $250 per annum, as stated in their complaint. That the establishment of a railroad in Broadway would be specially injurious to the said property of the plaintiffs, and other property similarly situated on the same part of Broadway.
There were other findings of fact, but they are not essential to the determination of the questions presented on this appeal. It was also decided, as a matter of law, that the resolution
Exceptions were taken to the several findings, and, on appeal to the court at general term, the judgment of the special term was affirmed, and the defendants brought the present appeal.
David Dudley Field, for the appellants.
William Allen Butler, for the respondents.
SELDEN, J. In the present aspect of this case, there are but two material questions presented for consideration:
1st. Had the common council authority to grant to the defendants the right to construct and maintain a railway through Broadway, upon the terms specified in their resolution of December, 30th, 1853?
2d. If that grant was not valid, have the plaintiffs shown such prospective special injury to their rights as entitles them to the relief granted by the Supreme Court?
The first question was distinctly presented to this court and decided adversely to the validity of the grant, in the case of Davis v. The Mayor, &c., of New York (14 N. Y., 506). The position of the defendants’ counsel, that the decision in that case is not to be regarded as an adjudication upon this point, may be correct, as the judgment of the court, as finally pronounced, did not necessarily involve that question. Five of the judges, however, declared the resolution void, and I entertain no doubt of the correctness of that opinion. It is not necessary now to decide the question, about which two of the judges in that case differed in opinion, involving the power of the common council, or of the corporation of New York, in any manner, or under any circumstances, to authorize the construction and use of railways in the streets of that city. This case involves, not the general power of the corporation
On other grounds, without reference to its character as creating a franchise, the resolution is equally objectionable. It was not, as has been insisted, an act of legislation, but on the contrary, it possesses all the characteristics of, and was in fact, a contract. It was held to be a contract in the case of The People v. Sturtevant (9 N. Y., 273), and but a slight examination of its provisions is requisite to show the correctness of that decision. Prior to its acceptance by the defendants, the resolution was only a proposition, having no binding force whatever. It was certainly not then a law, and since that time the common council have taken no action upon it. Upon its acceptance (if valid), it became a contract between two parties, binding each to the observance of all its provisions. It was something more than a mere executory contract between the parties. It amounted also to an immediate grant of an interest, and, it would seem, of a freehold interest in the soil of the streets to the defendants. The rails, when laid, would become a part of real estate, and the exclusive right to maintain them perpetually is vested in the defendants, their successors and assigns. I say perpetually, because there is no limitation in point of time to the continuance of the franchise, and no direct power is reserved to the corporation to terminate it. Indirectly such termination might, perhaps, be effected, after the expiration of ten years, by making the exercise of the privileges so burdensome through the increase of license fees as to compel their abandonment. This, however, could only be accomplished through the aid of State legislation; and if we assume that the laws of the State in that respect are to
The defendants’ counsel insists that the resolution is not a contract, but a license, revocable at the pleasure of the common council. This position cannot be reconciled with the decision in The People v. Sturtevant, supra, nor with the principle declared by the Supreme Court of the United States, in the Dartmouth College case (4 Wheat., 518), and other kindred cases, in substance, that grants of such franchises, though made by acts in form legislative, become, when accepted and acted upon, contracts, not subject to be recalled or modified, except in accordance with express reservations contained in the grants. No such reservation is made by the resolution in question, and the privileges which it grants, if within the power of the common council, are already beyond the control of any future act of that body. (Smith‘s Com., §§ 252, 253.) No reservation of that kind, however, would have been of any service, as it could not supply the defect of power. The resolution is, therefore, void, for the reasons that it purports to create a franchise which the common council had no power to create; to vest in the defendants an exclusive interest in the street, which the common council had no power to convey; and to divest the corporation of the exclusive control over the street, which has been given to it as a trust for the use of the public, and which it is not authorized to relinquish.
The remaining question is, whether the plaintiffs have shown
It is insisted by the defendants’ counsel, that the finding of the judge at the special term shows that the injury complained of was a public and not a private nuisance, and that, consequently, a private action to prevent or restrain it could not be maintained. It is not an available objection to actions of this nature, that the wrong complained of constitutes a public nuisance, provided the plaintiffs are subjected by it to any special injury, not common to the public, or to large classes of people. (Doolittle v. Supervisors of Broome county, 18 N. Y., 155; 6 Johns. Ch., 439; 2 Story Eq., § 924; Waterman‘s Eden on Injunctions, 267, 268.) This principle is not controverted, but it is insisted that the finding that the railroad “will be specially injurious to the property of the plaintiffs, and other property similarly situated in the same part of Broadway,” shows the case to be one of public nuisance only, without any special injury to the plaintiffs
ROSEKRANS, J. It has been decided in this court that the common council of the city of New York had no power to pass the resolution under which the defendants were about to construct a railroad upon Broadway in that city. (14 N. Y., 506.) In the case of The People v. Kerr, decided in this court in June, 1863, WRIGHT, J., delivering the opinion of the court, said that the power of governing and regulating the use of the streets in the city of New York is vested in the legislature; that it is a part of the governmental or political power of the State in no way held in subordination to the municipal corporation, and that if the legislature could not authorize the use of the streets for the purposes of a railroad, as prescribed
It certainly would have been no objection to the granting of relief to the plaintiff in that case that the property of a number of other persons upon the same street, similarly situated, was injured, and its value impaired by the same cause. In Lansing v. Smith (4 Wend., 10), the chancellor held that every individual who suffers actual damage, whether direct or consequential, from a public nuisance, may maintain an action for his own peculiar injury, although there may be many others equally damnified.
To entitle a party to relief by injunction who is sustaining or about to sustain a peculiar injury from a public nuisance, it is also necessary that the injury should be such as cannot be well or adequately compensated in damages at law, or such as, from its continuance or permanent mischief, must occasion a constantly recurring grievance, which cannot be otherwise prevented but by injunction. The injury to the property of the plaintiffs, to result from the unlawful act threatened by the defendants, brings the case within the rule, in every particular.
It would be extremely difficult, if not absolutely impossible, to determine the damages which the plaintiffs would sustain upon each successive day that the railroad should be in operation. They could not be well or adequately compensated in damages. But if this was not so, the case is clearly within the last clause of the rule, by reason of the injury being continuous in its nature, and constantly recurring.
The judgment should be affirmed.
Judgment affirmed.
