116 Tenn. 594 | Tenn. | 1906
delivered the opinion of the Court.
Complainant railway company, claiming the right under a grant from the city of M’emphis to the use and' occupation of a portion of the public landing situated upon the banks of Wolf river, exhibited this bill for the purpose, first, of having rescinded and annulled certain leases of said land by the city to the Chickasaw Cooperage Company, and to declare the use and occupation of said landing by the cooperage company a nuisance, and for the removal of its houses, improvements, sawmill, and lumber from said public property. The second object of the bill is to enjoin the further prosecution of a condemnation suit of the Union Railway Company against the Chickasaw Cooperage Company, pending in the circuit court of Shelby county.
The cooperage company answered the bill. On the final hearing, the chancellor sustained the bill of complainant, canceled the lease of the city of Memphis to the Chickasaw Cooperage Company, and ordered the removal of all obstructions from said public landing, so that the same might be used and enjoyed by the public for the purpose for which it was. originally dedicated.
(1) That at the time of the laying out of the city of Memphis originally upon the west part of the Rice 5000-acre tract the proprietors of said town site set aside, and dedicated to the public use, as a wharf and public landing for all time, a strip of land situated upon the banks of Wolf river, a navigable tributary of the Mississippi river, and more particularly described as follows : “Beginning at a point 150 feet west of the intersection of the west line of Chickasaw or Front street with the south bank of Bayou Gayoso; thence down its south bank to Wolf river, and along and with the east bank of Wolf river to where the line of Auction street, if extended, would strike Wolf river; thence east along said extension of Auction street to a point within 150 feet of the west side of Chickasaw or Front street; thence north on a line parallel to Front street or Chickasaw street to the south bank of the Bayou Gayoso.”
It is further charged in the bill that, because of the fact that some question had arisen as to the absolute dedication of said above described land to the public for a wharf and landing place, the original proprietors of the city of Memphis and their successors did on the 18th day of September, 1828, execute an instrument to put at rest forever any such doubts, and among other things there appears in said instrument the following language and declaration of trust with reference to said above-described wharf and public landing: “In relation to the
(2) The bill further charges that said land was accepted by the public and by the city of Memphis for the purpose for which it was dedicated, and was for some years devoted to that use, and was used exclusively as a landing for public purposes of navigation and trade; but with the growing needs of the city of Memphis and its greatly increased commerce, requiring a larger public landing and more river front than had been originally set aside for that purpose, the strip of land appearing upon said plat of the original town site as the “Public Promenade” was also used for a public landing place and public wharf, in conjunction with said public landing above described.
(3) The bill further represents that said public landing is of especial and peculiar value to the city of Memphis and the public and to your complainant, in that it affords the only means of connection between the various carriers by rail entering the city of Memphis and the carriers by river; that it is only upon this landing, here-
It is then stated that by reason of the peculiarly fortunate situation of the public landing and Wolf river a direct connection can be made between the carriers by river and the carriers by rail in a cheap, practical, and convenient manner, which' will be of incalculable benefit and importance to the city of Memphis, and especially to complainant.
(4) Complainant further represents that, recognizing the great need of the city of Memphis for a railway which would engage in the industrial or terminal business, and more especially the great need of the. commercial interests of the city for a direct, practical, and convenient connection of the common carriers by rail and the common carriers which ply upon the Mississippi river, which had not theretofore existed, your complainant, the Union Railway Company, did on the 5th day of June, 1902, enter into a contract with the city of Memphis whereby it was granted the right to intersect with and run upon said public landing above described, so that it might properly serve the interests of the public and of the city of Memphis by receiving freight from the carriers by river at that point for transportation to the various industries located and to be located along
(5) It is further stated that complainant did on the 10th day of August, 1903, purchase what is known as lots 444, 443, 442, 441, and 440 of the original plan of the city of Memphis, fronting upon Chickasaw or Front street, and also upon said public landing, and that it is the owner in absolute fee simple of said above-described lots, with the right to use said public landing in conjunction with the same, and that in the purchase of said lots it acquired this easement and right, and that this public landing was one of the appurtenances, privileges, and easements of and to said lots belonging, which were acquired by your complainant, the Union Eailway Company, and that it was and is the purpose of said Union Eailway Company to use all of said lots in conjunction with its line of railway for the purpose of receiving, handling, and exchanging freight with the carriers by river by means of said public landing, and that said lots are valuable only for this purpose and are valueless to complainant if they cannot be so used.
(6) It is then charged that on the 27th day of September, 1898, the city of Memphis executed to the Chickasaw Cooperage Company, an alleged lease, under and by virtue of which said company claims to have acquired the right to use and occupy a portion of said public land for a period of ten years with its cooperage plant and in the discharge of its private business, a use totally foreign and at variance with the use of said land for a
(7) Complainant further represents that the Chickasaw Cooperage Company is a private corporation engaged in the manufacture of barrels, staves, kegs, and in a general cooperage business, for the profit of its stockholders ; that, claiming to be authorized so to do by the above-described so-called leases, it has taken full, complete, and absolute possession of said public landing hereinbefore described; that it has erected upon the same a cooperage plant, dryhouse, and warehouse, and
(8) The complainant alleges that, being thus especially and peculiarly damaged and in a manner different from that suffered by the public generally, it is entitled to come into a court of chancery to seek redress for its wrongs by the removal of the obstructions on said public landing, and the specific execution of the trust by the city of Memphis to which said land was given and dedicated for the enjoyment, use, and benefit of the public as a public landing and wharf, by requiring said city to develop and improve the same, and by canceling the aforesaid leases under which defendant claims the right to maintain the nuisance hereinabove set out, to the
Complainant therefore alleges and charges that said alleged leases under which the defendant, the Chickasaw ' Cooperage Company, is claiming to hold and occupy said public landing, are absolutely null and void, for the reason that it is the granting of the property of the public to a private corporation to be used for private purposes; that it is the conversion of the public property to a private use, to the great detriment of the public, and to the exclusion of your complainant, who has a right to use the same in the service of the public and for the public’s service; that it is the diverting of the use of said land from the use for which it was originally dedicated and set aside, and devoting the same to a private, different, and unlawful use, and permitting it to be used, not only in a manner different from the purpose for which it was originally intended, but in such a manner as to hinder its use, or the use of any part of the same, for the original purpose absolutely impossible; and that its use also renders valueless the above described lots owned in fee simple by the Union Railway Company fronting upon said pnblic landing.
The above allegations present the main controversy in this litigation. It appears however, from the record, that on the 20th day of August, 1902, and prior to the filing of the bill therein, the Union Railway Company filed its petition in the circuit court of Shelby county
“That portion lying south of the south line of lot 4B5 as extended to Wolf river, the Chickasaw Cooperage Company holds under a lease from the city of Memphis, dated September 27, 1898, for a term of 10 years beginning the 17th day of October, 1900, for which it pays the city an annual rental of $855.87.
“That portion lying north of the south line of lot 485 extended to Wolf river, excepting part of lot 439, the defendant cooperage company holds under a lease made by the city of Memphis April 14, 1899, for a term of 10 years from October 17, 1900,. to April 17, 1910, to Williams & Co., for which Williams & Co. were to pay $572.04 per year rent; and Williams & Co. subsequently assigned said lots to defendant. Lot 439, across the corner of which this right of way extends, is owned in fee by the Chickasaw Cooperage Company.”
It thus appears that the Union Eailway Company, at the time it instituted its condemnation suit, had knowledge of the contract of the cooperage company with the city of Memphis, and yet proceeded to condemn said land and take possession of a part thereof. The cooperage company appealed to the circuit court, and pending that appeal the present bill was filed, in which complainant seeks to be relieved of an alleged mistake in seeking a condemnation of said land as the property of the coop
The foregoing extracts from the bill are sufficient to state the case made by the complainant and to raise the questions of law which are presented on the record. The defendant cooperage company first interposed a demurrer to the bill and afterwards filed an answer incorporating therein the original demurrer. During the pen-dency of the cause, counsel entered into the following stipulation of agreed facts: (1) That the property in question was originally dedicated as a wharf and public landing place; that the dedication for those purposes was accepted by the city and the land for some years was exclusively devoted to that use. (2) The complainant, the Union Railway'Company, is a commercial railway, engaged in the transportation of freight and the exchange of freight between connecting carriers and between the various industries and carriers. (3) The Union Railway has secured from the city of Memphis a right of way upon the public landing in question. (4) The Union Railway Company is the owner of lots 440 to 444, inclusive, of the original plan of the city of Memphis, contiguous to and fronting upon said public landing, and possessed of the right to use said public landing in conjunction with said lots. (5) Said public landing is of special and peculiar value to the city of Memphis and the public, and of especial and peculiar
The cause was finally heard by Hon. P. H. Heiskell March 29, 1905, when he adjudged void the leases executed by the city of Memphis to the Chickasaw Cooperage Company and to Williams & Co.; the lease to the latter having been assigned to the cooperage company. The chancellor further enjoined the prosecution of the condemnation suit in the circuit court of Shelby county to the extent that it involved the property of the city of Memphis described in the bill.
The Union Railway Company appealed and has assigned errors as follows:
(1) The chancellor erred in not dismissing the amended and supplemental bills because the supreme court of Tennessee has conclusively adjudged by a series of decisions which constitute a rule of property that the city took the property as its own corporate property and has treated it as such, and on the faith of which the defendant’s rights have been acquired, and accordingly the plaintiff is not entitled to disturb the defendant’s leasehold on the ground that the city occupied the relations of a trustee, holding the land for a public landing.
(2) The chancellor erred in not holding that the
(3) The chancellor erred in not holding that the bill showed on its face that the complainant has no' especial ■ and peculiar interest different from any other inhabitant of the city of Memphis in the city’s contract alleged to have been executed between the city, Williams & Co., and the cooperage company, and accordingly complainant was not entitled to maintain its suit.
(4) The chancellor erred in not holding that the complainant on its own showing acquired its right long-after the execution of said leases with knowledge of the same and that it could not be heard to question their validity in said suit.
(5) The chancellor erred in not holding that the complainant was estopped by reason of the fact, shown in the bill, that it had brought a condemnation suit in the circuit court of Shelby county, alleging the validity of these leases, and showing its knowledge of their existence. The fundamental and controlling question arising on the record is in respect of the nature of the property described as the public landing and the city’s authority over the same, whether it holds it as private property, with unlimited power of disposition, or whether it holds it merely in trust for the use of the public.
The further inquiry is presented as a corollary from the proposition last announced, whether in the event it
It is claimed by the cooperage company that this question was settled in favor of its contention in the case of Wilkins v. Railroad, 110 Tenn., 442, 75 S. W., 1026. In that case the central question was whether under the charter of the city of Memphis and the dedication of the public promenade and the public landing on the map by the original proprietors, the city of Memphis was empowered to authorize the use of such promenade, and such public landing by railroads for depot purposes and terminal facilities.
In Memphis v. Wright, 6 Yerg., 498, 27 Am. Dec., 489, it appeared that the corporation of Memphis laid off a portion of the promenade in front of the city off the Mississippi river fora steamboat landing, and other portions thereof for a landing for flatboats and other craft. It was contended in that case that the corporation of Memphis had no power or right to change or divert the public dedication as designated on the map without the aid of a court of chancery from their indicated purposes. The court held: “The mayor and aldermen are the representatives of these corporators and have vested in them all the right to dispose of or apply to any use they may think proper the public promenade, public squares,
In Wilkins v. Railroad, supra, this court, in dealing with Memphis v. Wright, supra, said: “It is perceived that the occasion of the decision was the establishment by the city of a steamboat landing on one portion of the promenade and of a flatboat landing on other portions of it, and the regulation of these landings, uses foreign to the occupation of the ground merely as a promenade; and it is further perceived that in the broadest terms it was held by the court in deciding that case that the city was not bound by the designation upon the map indicating the uses for which the property was intended by the original proprietors; but, acting through its board of mayor and aldermen, it might apply to any new use deemed by them necessary or proper to promote the welfare of the city.”
Continuing, the court said: “We need not consider whether this case was erroneously decided at the time. Certainly it is opposed to the current of modern authority. But now, sixty-nine years after this decision was
Again the court said: “We must, therefore, adhere to Mayor and Aldermen of Memphis v. Wright as establishing a rule of property controlling the strip of land in controversy. It follows that the city does not in respect of that property sustain toward the complainant the relation of trustee, as alleged in the bill, and that the complainants do not sustain the relation of beneficiaries in such special trust, and that they cannot maintain the bill on that theory. And, further, it must be held under the authority of the case referred to that the city is the owner of the property and had the right to make any disposition of it authorized by its charter. This is true both as to the public promenade and the public landing, the principle being the same as to each piece of property.”
It is said on behalf of the Union Belt Railroad Company that Wilkins v. Railroad is not controlling in the present instance for the following reasons, viz.: (1) It was founded exclusively on Memphis v. Wright, and that case had established a rule of property in respect of the particular strip of land involved both in the Wright and
We are of opinion, however, that neither of these reasons is sound: First, because the property involved in the present litigation was in principle involved both in Memphis v. Wright and in Wilkins v. Railroad, since it is a part of the public landing which Avas dedicated oh the map by the original proprietors in 1819. It is true that the identical strip of land herein was not the basis of the litigation in the former cases; but the public landing was involved in both of those cases, and the property herein involved is a public landing, and as such property a rule of property was established, and it is immaterial whether the identical property was involved. Secondly, while it is true that neither of the former cases
As already, seen, it was adjudged in Wilkins v. Railroad. that the ruling in Memphis v. Wright, supra, established a rule of property both as to the promenade and the public landing, which must be adhered to by the court regardless of the merits of the original legal controversy.
The broad contention on .behalf of the Union Railway . 'Company is that property originally purchased or dedicated for public purposes cannot, even for a day, be used for private purposes, although not actually used or needed at the time by the public or any beneficiary of the •trust. But exactly the contrary of this proposition was ■decided by this court in June, 1874, in the case of Mayor and Aldermen of Memphis v. D. R. Grace, in an unreported opinion delivered by Judge Robert McFarland. The litigation in that case was between the city and its lessees of certain portions of the very land involved in the present suit. The facts of that case are thus stated in the opinion:
“On the 17th day of October, 1865, the board of mayor and aldermen of Memphis passed a resolution agreeing
“This bill does not show that the public or the city authorities for the public are seeking to enforce the right
An analysis of the above opinion will show that the court decided that portions of the public landing now in controversy, when not needed or demanded for the use of the public, might be leased to private individuals for private purposes, and that such leases were not ultra vires and void. It was further held that such leases could not be rescinded at the suit of the city unless it appeared that the land in question was needed for the immediate uses of the public. It was further adjudged that, if the premises were being so used as to deprive the ' public of their right to use them in accordance with the intention of the original proprietors, the public would not be remediless.
It was further said that the lessee would no doubt take the premises subject to the right of the public to reclaim it as a public landing, whenever the emergency might arise. It was further held that the defendants, having paid out their money in the erection of valuable improvements, relying in good faith upon the title made by the city, should not be disturbed until such time as the rights of the public appeared to be obstructed .or interfered with.
What, then, are the respective rights of the cooperage Company and the Union Belt Railway Company; it appearing that the construction of a railroad track of the latter on the public landing must result in the destruction of the leasehold interest of the cooperage company and the removal of its buildings and valuable improvements? It is practically conceded that the Union Belt Railroad Company, under its grant from the city, is empowered to occupy a portion of said public landing with its tracks and terminals, and the real question presented is whether the cooperage company is entitled to compensation from the railroad company for the loss of its property so appropriated.
The broad contention made on behalf of the railroad company is that the public landing is held for public purposes, that the railroad company is one of the beneficiaries of the trust, and as such is entitled to the use of the landing for the purposes of navigation and trade in accordance with the dedication of the original proprietors, without being compelled to make compensation therefor. As already stated, the Union Belt Railway Company, acting upon the theory that the cooperage company was lawfully in occupation'of the public landing, brought its condemnation suit in the circuit court of Shelby county for the purpose of appropriating
We are of opinion the decree of the chancellor was er- / roneous. First. The leases executed by the city of Memphis to- the Chickasaw Cooperage Company and to Williams & Co., under the authority of Wilkins v. Railroad and Mayor mid Aldermen v. Grace, supra, were valid and enforceable. Second. It does not appear that an
The case of Hardy v. Mayor, 10 Heisk., 129, relied on by counsel for the railway company as establishing a rule of property for this case, did not present the precise question with which we are here dealing. The only point adjudged in that case was that the public landing there
It is unnecessary to notice other questions so ably presented in the argument, since we are of opinion the. question already determined is conclusive of the whole case. The decree of the chancellor is therefore reversed, the demurrer is sustained, and the bill will be dismissed.