119 Ala. 105 | Ala. | 1898
The bill of complaint in this
This case came before the court at a prior term-on an appeal from a decretal order overruling defendant’s demurrer to the bill. — S. & N. A. R. R. Co. v. H. A. & B. R. R. Co., 98 Ala. 400. It was then decided that it appeared from the face of the agreement that there were mutuality of obligation and equitable remedy for its enforcement, and adequacy of consideration, and that the agreement was such as a court of equity could specifically enforce. Since that decision an important amendment to the bill has been made: The original bill averred that the Elyton Land Company had the legal title to a strip of land thirty-five feet in width lying north of, parallel to, and adjoining the South & North Co.’s right of way, extending from Twenty-fourth street to Eighteenth street, and had a right of way over said strip, and that it was necessary in order to reach this strip, to build a track along defendant’s right of Avay as above described, and that it Avas for the purpose of reaching its OAvn right of way over this strip that it procured the agreement. It now appears from the amendment, that said company did not' own' this strip at the time the agreement avrs made, or at the time -the bill was filed, and it clearly appears from the evidence in the record, and the decisions of this court; rendered since the agreement was made and the original bill was filed, that it did not own a right of' Avay over it, but, on the contrary, that the defendant OAvned the exclusive right of way over the same. It does not appear, however, that any demurrer was interposed after this amendment was filed, and it is not, therefore, necessary to re-open the questions decided on the former appeal. The case now comes before us oh an appeal from a final decree on the pleadings and evidence granting the relief prayed for.
When this agreement was entered into, in July, 1887, the-Elyton Land Company Avas engaged in building a belt railroad in and around the crty of Birmingham, for the purpose of doing' a transfer freight business, that is, transferring freight cars from one railroad to another, or to and from manufacturing industries and the
It is important to give due Aveight and consideration to these matters, since they tend to show the motives of the parties, and serve to throAV light upon the objects sought' to be obtained, the inducements which led to the
In the further consideration of the case we will discuss only three questions: First, whether the want of power in the Elyton Land Company, to take or receive property for the construction and uses of a belt railroad, is a bar to a suit for the specific performance of the agreement, at the instance of the complainant, its successor, having such power conferred by its charter? Second, whether there has been such failure of the consideration upon which the privileges were granted to the Elyton Company, or such mistake or misapprehension, as bars the specific performance of contracts or agreements? Third, Avhether the inutility to the complainant of the specific performance of the agreement, and the hardship, injury and inconvenience it will cause to the defendant, renders a decree for specific performance inequitable?
1. The Elyton Land Company was originally a land corporation, and had no power, prior to the act .of .the - legislature, adopted February 4th, 1885, enlarging its powers and franchises, to construct or- operate, a railroad of any kind. By this act it was given'the power “to build, own and operate . street railroads,., and. .'use
It is a principle of universal application that if a corporation has acquired the title and possession of real
It results from what has been said that the agreement, with respect to the right to build a track along defendant’s right of way from Twenty-ninth street to Twenty-fourth street, could not have been specifically ■enforced at the suit of the Elyton Land Company, and it follows that the complainant, who succeeded to its rights,1 although it possesses the powers the lack of which incapacitated its grantor to take property of this character, .can not seek the aid of a court of equity to perfect its title to; or obtain the possession of such property, unless the defendant has recognized, or in some
2. In the granting or withholding of a decree of specific performance the court is invested with a discretion; not arbitrary or capricious, but a sound judicial discretion, controlled by fixed rules and principles. It moulds and tempers its action, or refusal to act, accord
That which constituted the most substantial part, if not the real consideration expressed in the agreement for the granting of the privileges claimed by the complainant, apart from the undisclosed motive which led to its execution by the defendant, was the reciprocal right given to the defendant to cross the thirty-five feet strip extending from Twenty-fourth street to Eighteenth street, and such tracks as the Elyton Company might build thereon. Of the other matters, agreed to be performed by the Elyton Company, some were such as statutes in force at that time required it to perform, and therefore constituted no valid consideration, such as the giving to defendant of preferential rights at the crossings. — Code, §1145. Others were the mere terms or conditions upon which it was to exercise the privileges granted; while the rest were, perhaps, actual, valuable considerations, such as the obligation to renew and repair the crossings under the superintendence and to the satisfaction of the defendant when called upon to do so, and to pay for the erection and maintenance of signals and the employment of watchmen. But these latter were not such as a court of equity could of would specifically enforce, since by the terms of the agreement, the failure to perform them would create only a money liability enforceable in a court of law. — Railroad Co. v. Railroad Co., 98 Ala. 407. In the case just cited, which was an appeal from a decretal order overruling the demurrer interposed to the bill in this case, it was said, in discussing the adequacy of the consideration expressed in the agreement: “Nor can we know the value of the
Thus there has been a failure of a substantial part of the consideration for the grant of these valuable rights to the Elyton Company, such as materially affects the subject matter of the contract. The complainant, recognizing the maxim that “he who seeks equity must do equity,” has offered in' the bill to perform all the. obligations imposed by the agreement upon the Elyton Company, yet the evidence shows a total want of ability on its part to perform a material part of those obligations. It is true, the defendant would not now be benefitted by such performance, since it has been judicially decided that it already was entitled to the right for
3. But we think another, and perhaps stronger, reason' than any yet considered exists for refusing the relief prayed for.' Among the considerations which aid the discretion' of the court in determining the complainant’s :claim for specific performance, is that of the relative benefit to the complainant and injury or hardship tu the defendant that may be caused by the strict enforcement of the contract. Specific performance has been defined to be “the actual accomplishment of a contract by the party bound to fulfil it,” and the origin and main ground for the exercise of its jurisdiction by equity to require the strict accomplishment of the contract,' was that the failure to obtain the thing itself contracted for might not be' capable of compensation in money. But when the entire scheme and design of the party seeking specific performance in contracting for that which he seeks to have accomplished, and his sole purpose in procuring the execution of the agreement, have been frustrated and rendered incapable of accomplishment by circumstances subsequently occurring, not due to the conduct of the other party, or the disclosure of matters not previously known, so that specific performance would be useless or of little benefit to him, but of great injury to the defendant, the ground for the exercise of this jurisdiction is'taken away, and equity will leave the parties to their legal remedies. — Trustees v. Thacher, 87 N. Y. 311; Conger v. New York W. S. & B. R. Co., 43 Am. & Eng. R. Cas. 643; Murfeldt v. N. Y. W. S. & B. R. Co., 102 N. Y. 703. Since the execution of this agreement various decisions have been rendered by this court in litigation between the same parties, the effect of which is, to render of no avail to complainant for •the purpose for which it desired it, the accomplishment of that part of' the agreement by which it sought to acquire a right to use this right of way.
On April 21st, 1871, the Elyton Land Company, which was the founder of the present city of Birmingham, and owned all the land upon which it is built, conveyed to the Alabama and Chattanooga Railroad Co. and t’he South & North Alabama Railroad Co. a broad strip of land running through the city, upon the conditions that they would build their tracks, depots, shops, etc., thereon, and would give to the first two railroads entering the city a sufficient quantity of the land conveyed for like purposes; and that a portion of the land near the center thereof should “be appropriated and used forever as a general passenger depot for each and every railroad ending in the said city of Birmingham with a right of way to the sameand upon the further condition that the South & North Alabama Railroad Co. should have the perpetual and free use of the right of way over the Ala. & Chat. Railroad Co. “in a manner to be described by a deed,” and that two strips of land, each thirty-five feet in width, one of which is-the strip above mentioned, should be held- by the Elyton Company, “as a perpetual right of way for all railroad companies doing business in and through the said city as aforesaid.” On May 4th, 1872, the same company conveyed to this defendant, its present right of way, one hundred feet in width, by a deed containing the following proviso: “Provided, however, that any other railroads running into or through the city of Birmingham, shall have the right to run a parallel track upon and along the same right of way.” In the year 1881, t'he
Since the agreement in this case ivas executed, as stated above, this court has decided that the Elyton Company, by its act in procuring the decree above mentioned, and by the deed of April 28th, 1882, had lost all the right and interest it hád in the thirty-five feet strip described in the bill in this case, and that the defendant had acquired the exclusive right to occupy the same for railroad purposes. — Elyton Land Co. v. South & North Ala. R. Co., 95 Ala. 631-644. At the last term, on an appeal rendered in a suit between the same parties, we de-, c'ded that a belt railroad is not such a railroad as is entitled to the benefits reserved in the deed of. May 4th,-
Thus it is, that the complainant can neither construct its road on said thirty-five feet strip, nor obtain access to or entrance into the Union Passenger Station. These were the only objects it sought to accomplish by the agreement. Of Avliat benefit, then, would the specific performance of the agreement be to it? If none, or very little, or only such as it might derive from possessing the right for speculative purposes, then it would be more in accordance with justice to compensate it in money for any damage it may have sustained, by reason of the violation of the agreement and the loss of the specific thing for which it contracted, than to specifically enforce the agreement to the great injury of the defendant and the probable inconvenience of the public. That the granting of the relief sought will work hardship and injury to the defendant, appears clearly from the evidence. The agreement itself recites that the exercise
The result is the decree of the chancellor must be reversed, and the cause remanded.
Reversed and remanded.