American Metal Products Co. v. A. Geo. Schultz Co.

267 N.W. 19, 221 Wis. 291, 1936 Wisc. LEXIS 352
Wisconsin Supreme Court·Decided April 28, 1936·Published·Cited by 4 cases

Opinion

Fairchild, J.

Respondent made the agreement with appellant set out in the statement of facts. Under the stipulations of that agreement an easement over respondent’s land was provided for, and a sidetrack bringing switching facilities to the boundary of appellant’s land was to be constructed by respondent. The appellant is entitled to specific performance of the contract on respondent’s part: (1) If the time has arrived for the performance of this covenant; that is, if the clause “at such time as it [respondent] will begin building operations” can fairly be construed to refer to the time of building the sidetrack, and not to constitute a condition that the sidetrack will be built only if the respondent determines to improve its property; (2) if the contract is not too indefinite and uncertain, with respect to location of the sidetrack, to' be capable of specific performance; (3) unless the inconvenience and expense to respondent is so great compared to the benefits to be derived by appellant from the [296] building of the track as to make it inequitable to compel' specific performance.

As to time of performance, the trial court was persuaded that following literally the language of the contract, respondent was not bound to furnish the sidetrack until after the commencement of building operations by it upon the land secured through appellant, and that “neither the actual construction nor the preliminary planning and location of the sidetrack could possibly be commenced until the defendant had determined the location of its own proposed new buildings, which the sidetrack was clearly intended mutually to serve, along with the building of the plaintiff.” The time for performance of the covenant to build a sidetrack is expressed in the contract as being “at such time as it [respondent] will begin building operations.” These words alone do not constitute an expression of a definite time for performance of the agreement to build a sidetrack, but they do express a definite intention to “begin building operations.” After a consideration of the contract before us in its entirety, we are of the opinion that it was designed to and does express the intentions of the parties to arrange between themselves a plan under which each would meet what were then considered immediate and existing needs. That portion of the contract which states:

“As a further consideration, the said A. Geo. Schultz Company, party of the second part agrees that it will give the Chicago, Milwaukee & St. Paul Railway Company and Chicago & Northwestern Railway Company an easement for a sidetrack on its own land and over tracts Number One and Two up to the east line thereof, and agrees to construct said track on such easement to' the said east line of said property at its own cost and expense, at such time as it will begin building operations and it does hereby grant to said party of the first part, its successors and assigns, the right to connect or extend the said track at the cost and expense of said party of the first part on its own property just east, as well as the [297] right to use and enjoy the said sidetrack for such switching purposes as may be necessary to meet the needs of said party of the first part,”—

together with such phrases as: “Whereas, The A. Geo. Schultz Company . . . desires this tract of land to enlarge its own holdings to meet its needs, ...” and the words: “Whereas, The said American Metal Products Company ... to meet its needs, ...” too clearly evidence a then present purpose to proceed with the plans referred to, to permit the conclusion that the parties were arranging for contingencies to arise in the distant future. The word “needs,” as here used, unaccompanied by any suggestion that future developments were being considered, carries a meaning of preparation to encounter conditions at hand. As an inducement to appellant to give up its option on tract Number One and move to the land described as tract Number Three, respondent was agreeing to pay cash to cover the value of the option, some of the expense incidental to the preparing of tract Number Three, and to provide appellant with a sidetrack and switching facilities. In fact, the switching facilities were practically the inducing cause. Other arrangements made did not more than approximate in value the disadvantage suffered by appellant in the exchange of property. There was considerable of an element of accommodation in the transaction if the value to the appellant of the sidetrack is to be determined entirely by the respondent. There is no doubt of appellant’s intention to act immediately, and the considerations offered by respondent in cash and the agreement to build the sidetrack must be weighed with the relation in mind, of things incident to the accomplishment of the things stipulated for, and the expense incurred by appellant by releasing his interest in tract Number One, and building on tract Number Three.

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American Metal Products Co. v. A. Geo. Schultz Co., 267 N.W. 19, 221 Wis. 291, 1936 Wisc. LEXIS 352 (Wis. 1936).

267 N.W. 19 (American Metal Products Co. v. A. Geo. Schultz Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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