31 Wash. 445 | Wash. | 1903
— The Seattle & Montana Railroad Company is a corporation organized under the laws of the state of Washington for the purpose of constructing, owning, and operating railroads and telegraph lines within the state. As such corporation it is vested by statute with the right to exercise the power of eminent domain. The lands and premises involved in this controversy are situated on the shore of Elliott Bay, in the harbor of Seattle, and ai*e “tide and shore lands,” hounded on the north by King street, on the east by Oriental avenue, on the south by Connecticut street, and on the west by Occidental avenue. The record title to the easterly ten feet of the above-described tract is in William Pitt Trimble, hut it seems to be conceded that that part is in fact the community property of Trimble and wife. The title to the remainder of said tract is still in the state of Washington, but possession thereof is held by the Trimbles under a contract made by the state, through its duly constituted agent, the commissioner of public lands, on March 10, 1897, agreeing to convey the same by patent to one C. E. Remsberg in consideration of the sum of $925.34:, to be paid in ten equal annual installments, the first at the time of the execution of the agreement and the others annually thereafter, with interest thereon at six per cent per annum, payable annually with each installment on all unpaid installments. This contract is in the usual form of such contracts, and provides, among other things, that the conveyance shall be “subject, however, to any lien or liens that may arise or be created in consequence of0 or pursuant to, the provisions of an act of the legislature of the state of Washington entitled ‘An act- prescribing the ways in which waterways for the uses of navigation may be exea
The railroad company, in pursuance of the provisions of the statute, filed a petition for condemnation in the superior court of King county, in which it substantially set forth the state’s contract above mentioned, and annexed a copy thereof as an exhibit, and alleged that after the making of the said contract said Kemsberg and his wife, for a valuable consideration, made and delivered to one C. K. Webb their warranty deed, which was duly recorded, conveying to her, the said Webb, all the tide lands embraced
It thus appears that the petition set forth all facts necessary under the statute to give the superior court jurisdiction of the subject-matter of the proceeding. Bemsberg' and wife and Trimble and wife were duly served with notice of the application for condemnation. The first-named parties failed to appear, but Trimble and wife appeared, and thereafter a hearing was had before one of the judges of the superior court of King county for the purpose of determining whether the alleged use for which the lands and property were sought to be appropriated was really a public use, and whether the same were required and necessary for the purposes of the petitioner, as set out in said petition. On this “preliminary hearing” the fact set out in the petition, as above noted, relative to the contract by the state for the sale of the tide lands in question, and the subsequent transfers of the vendee’s interest therein, were clearly established by documentary evidence; and we think the petitioner also satisfactorily proved that the premises were required and necessary for the purposes specified, namely, a right of way for its tracks and a site for a passenger station and for platforms, warehouses, etc. But it was shown by the testimony of the petitioner’s engineer that the petitioner is not the owner of any locomotives or cars, and that it does not operate its railroad, but the same is operated by the Great Northern Bailway Company, under some kind of an agreement between them, the terms of which were not disclosed by the evidence. It further appeared that neither the state of Washington nor the Seattle & Lake Washington Waterway Company was made a party to or served with notice of the proceeding.
It follows from what we have already said that the objection to the findings of the court as to the public use and necessity of the appropriation is without merit, and it must be conceded that, if the particular property sought
■ But we are clearly of the opinion that counsel are in error in assuming that the relators have, as between them
“The term ‘land,’ in statutes conferring power to condemn, is taken in its legal sense, and includes both the soil and buildings and other structures on it, and any and all interests therein. An easement may be taken under authority to take land.” 1 Lewis, Eminent Domain (2d ed.) § 285.
In Fish v. Fowlie, 58 Cal. 373, the supreme court of California, having under consideration the interest of the vendee under an executory contract of sale of land, said: “The words ‘real property’ are co-extensive with lands, tenements, and hereditaments. Wand’ also embraces all titles, legal or equitable, perfect or imperfect, including such rights as lie in contract — those which are executory as well as those which are executed. Any interest, therefore, in land, legal or equitable, is subject to attachment or execution, levy and sale.”
And this court has held that under § 5200, Pal. Code, which provides that “all property, real and personal, of the judgment debtor, not exempt by law, shall be liable to execution,” equitable as well as legal estates may be sold on execution. Calhoun v. Leary, 6 Wash. 17 (32 Pac. 1070).
It was held by the supreme court of Wisconsin in Martin
“It has often been held that the relation between the parties to a contract for the conveyance of land is analogous to that of equitable mortgagor and mortgagee in fee of the land affected by the contract. And such is the relation the plaintiff and Mrs. Whitney [the vendor named in the contract] sustain to each other in respect to the land in question. . . . We have no difficulty, therefore, in holding that, when the logs were cut by Coppersmith, the equitable estate in the land upon which they were cut, and the possession and right to the possession of the land, were in the plaintiff. It follows, on the authority of Northrup v. Trask, 39 Wis. 515, that the plaintiff was the owner of land, and, of course, of any timber cut upon it, subject only to the right of Mrs. Whitney as mortgagee, and that he alone could maintain trover or replevin for timber and logs taken therefrom without his consent.”
“(2) That an agreement to give a party an option of purchasing certain land is a mere personal covenant or agreement, and not such an agreement as vests any interest, legal or equitable, in the land the subject of the contract; and that the defendant, claiming under such agreement alone, without any act of election previous to the sale-to the plaintiff, has no such title to the land as furnishes-the foundation of a defense to.an action of ejectment.”
The defendant held the land there in question under an-optional contract of sale, and the plaintiff claimed it as-owner by virtue of a conveyance made to him by defendant’s vendor, the holder of the legal title. Upon that state-of facts the appellate court held that the instruction above-set forth was erroneous. And the ground upon which the-court rested its decision is clearly and tersely stated in the-opinion delivered by Bell, J., in the following language r
“The ground upon which a chancellor executes an ex-ecutory contract for the sale of lands is that equity looks upon things agreed to be done as actually performed; consequently, when an agreement is made for the sale of an estate, the vendor is considered as a trustee for the purchaser of the estate sold, and the purchaser as a trustee-of the purchase money for the vendor. The vendee is,.*460 in contemplation of equity, actually seised of the estate, •and is, therefore, subject to any loss that may happen to it between the agreement and the conveyance, and will ■enjoy any benefit which may accrue in the same interval. As a consequence, he may sell or charge the estate before conveyance executed; and the death of either vendor or vendee, even before the time of completing the contract, is held to be entirely immaterial. As a result of this principle, which seems to be of general application, it is settled that an estate under contract of sale is regarded as converted into personalty from the time of the contract, notwithstanding an election to complete the purchase rests ■entirely with the purchaser; and, if the seller die before the election be exercised, the purchase money, when paid, will go to his executors as assets.”
In the case of Lysaght v. Edwards, L. R. 2 Chan. Div. 499, Jessel, M. R., speaking of the effect of a contract for the sale of lands, said:
“A valid contract actually changes the ownership in ■equity. ... It must, therefore, be considered to be established that the vendor is a constructive trustee of 'the purchaser of the estate from the moment the contract is entered into. . . . The fact of the purchaser’s being able to pay or not being able to pay is immaterial, tract is made, if valid.”
See, also, King v. Ruckman, 21 N. J. Eq. 599; Keep v. Miller, 42 N. J. Eq. 100 (6 Atl. 495); 1 Sugden on Vendors (8th Am. ed. by Perkins), p. 270 et seq.; Craig v. Leslie, 3 Wheat. 563; Haughwout v. Murphy, 22 N. J. Eq. 531, 546. In the New Jersey case last above cited, the court observed:
“In equity, upon an agreement for the sale of lands, the contract is regarded, for most purposes, as if specifically executed. The purchaser becomes the equitable «owner of the lands, and the vendor of the purchase money. After the contract, the vendor is the trustee of the legal*461 estate for the vendee. . . . Before the contract is executed by conveyance, the lands are devisable by the vendee, and descendible to his heirs as real estate; and the personal representatives of the vendor are entitled to the purchase money.”
And Warvelle, in his work on Vendors, vol. 1, p. 197-8, lays down the rule as follows:
“Where the purchaser has been let into possession, he is, in equity, the owner, subject only to the lien of the vendor for the unpaid purchase money. . He has a right to the free use and enjoyment of the property, and to the rents, issues, and profits thereof, so long as he is not in default under the contract. He may mortgage it for the-payment- of his debtsmay sell and assign his rights to another; or may create a privilege or easement upon any part of the premises which will be valid and binding, but liable to be defeated should there be a failure to pay the balance of the purchase money according to the terms and conditions of the contract of purchase.”
The doctrine of equitable conversion has also been frequently invoked in determining upon whom should fall the loss, and who should be entitled to the insurance, if any, in case of destruction by fire of buildings situated upon land under an executory contract of sale. See Reed v. Lukens, 44 Pa. St. 200 (84 Am. Dec. 425); Marks v. Tichenor, 85 Ky. 536 (4 S. W. 225); Brewer v. Herbert, 30 Md. 301 (96 Am. Dec. 582); Taylor v. Holmes, 14 Fed. 498. In the well-considered case of St. Louis, etc., R. R. Co. v. Wilder, 17 Kan. 239, it was held that a vendee under a bond for a deed is regarded as the real owner of the land, even before full payment of the purchase price is made, and that he, and not the vendor, is entitled to receive the damages if part of the land is taken in a proceeding for condemnation. See, also, Kuhn v. Freeman, 15 Kan. 423; Pinkerton v. Boston & A. R. R. Co., 109 Mass. 527;.
“The vendee under an executory contract of sale is the 'equitable owner, entitled to a deed upon performance of h.is contract. If, therefore, pending that performance, a part of the land is taken by sovereign .authority, he still xemains liable to the vendor for the entire purchase money, is entitled to the entire damages, is a necessary party to the «condemnation proceeding, and may maintain the proceeding in his own name.” 7 Enc. PI. & Pr. 507.
It seems clear to us, in view of the authorities, that the xelators must be regarded as the real owners of the lots in question, subject only to the right of re-entry and forfeiture on the part of the state in the event of a failure on their part, or that of their successors or assigns, to pay the balance of the purchase price according to the terms -of the state’s contract. Indeed, this court said in Washington Iron Works Co. v. King County, supra, where the question under consideration was whether tide lands under .a contract of sale like the one now before us, were subject to taxation before the contract was fully executed by the vendee, that: “In equity, appellants are the owners, possessing a real and substantial interest, which they can assign, transfer, and dispose of as they choose; and the state cannot deprive them of this right. . . . The naked legal title is in the state, but for one purpose only — to •secure the unpaid purchase price.”
It is true that this case was distinguished in the subsequent case of State v. Frost, supra, where it was very properly held that only the interest of the vendee in a contract of sale of state lands can be charged with taxes, and that the state’s right to the purchase price, or its right to forfeit the contract for nonpayment thereof, cannot be divested by a tax sale of such lands. But the doctrine an
It is provided in § 5637, Bal. Code, that any corporation authorized by law to appropriate land, real estate, premises, or other property for corporate purposes may present to the superior court a petition describing the property sought to be appropriated and “setting forth the name of each and every owner, encumbrancer, or other person or party interested in the same, or any part thereof, so far as the same can be ascertained from the public records, the object for which the land is sought to be appropriated, and praying that a jury he impaneled to ascertain and determine the compensation to be made in money,” etc. And § 5638 provides that a notice stating briefly the objects of the petition shall be served on each and every person named therein as owner, incumbrancer, tenant, or others interested therein, at least ten days previous to the time designated in the notice for the presentation of the petition. But the same section further provides that want of service of such notice shall render the subsequent proceedings void as to the person not served, but all persons or parties having been served with notice as in this section provided shall be bound by the subsequent proceedings. Section •5640 provides, in effect, among other things, that if the court or judge thereof shall have satisfactory proof that all parties interested in the land, real estate, or premises described in the petition have been duly served with the prescribed notice, the court or judge thereof may make an order directing the sheriff to summon a jury to determine the compensation to be paid to the respective parties entitled thereto. .As we have seen, the state of Washington was not served with notice of the hearing of the petition,
It is also objected that the respondent, the Seattle & Montana Railroad Company, has no right to condemn this property for the purposes indicated in its petition, because it appears from the evidence that it has no rolling stock of its own, does not operate its road, and does and will permit the Great Northern Railway Company and other railroad companies to run their passenger and freight trains over its line into Seattle, and to use its depot and terminal grounds there situated. In other words, it seems to be claimed that the proof shows that the respondent company is seeking, through the exercise of the power of eminent domain, to take the property of these relators not for its own use and benefit, but for the use and benefit of other corporations. We think this objection is wholly untenable.
“This objection is not well founded, because it has been repeatedly decided that the leasing of the line of a railway corporation to another corporation does not deprive the former of the power to exercise the right of eminent domain.”
The Illinois case above cited (113 Ill. 156) is an
We see no prejudicial error in the proceeding in the superior court, and the order under review is affirmed.
Füllertow, O. J., and Hadley, Durbar, and Mount, JJ., concur.