Canda Realty Co. v. Carteret

42 A.2d 859, 136 N.J. Eq. 550, 1945 N.J. Ch. LEXIS 54
CourtNew Jersey Court of Chancery
DecidedJune 18, 1945
DocketDocket 148/150
StatusPublished
Cited by10 cases

This text of 42 A.2d 859 (Canda Realty Co. v. Carteret) is published on Counsel Stack Legal Research, covering New Jersey Court of Chancery primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Canda Realty Co. v. Carteret, 42 A.2d 859, 136 N.J. Eq. 550, 1945 N.J. Ch. LEXIS 54 (N.J. Ct. App. 1945).

Opinion

The events having pertinency to the present litigation are scattered over a span of more than forty years. All have been congregated and duly considered, but this memorandum will accomplish its practical purpose if subdued to a summary of those occurrences of predominant significance.

On January 8th, 1903, the complainant acquired the ownership of an extensive tract of land in the County of Middlesex in a vicinity then known as Chrome. The lands have subsequently been encircled by the territorial boundaries of the present Borough of Carteret. The undertaking to develop and elaborate the property for residential use was probably affiliated with the local enterprise of the Canda Manufacturing Company.

On May 25th, 1903, the complainant filed in the office of the county clerk a map upon which the division of the tract into lots, blocks, streets, and avenues was delineated, and simultaneously the complainant filed an indenture of even date, which in essential particulars reads as follows:

"KNOW ALL MEN BY THESE PRESENTS that, in dedicating the lands for Streets and Avenues indicated on this map for public uses as highways, the Canda Realty Company intends to make and does make only a qualified dedication of such lands for such uses, and has reserved, and hereby specifically and expressly reserves, to itself, and to its special and expressed assigns of the matters hereby reserved, the exclusive franchises, easements, rights and privileges in said lands so dedicated for Streets and Avenues, for each and all the following purposes, viz.: — To from time to time construct, maintain, repair and operate sewers, water mains, gas mains and other mains and subways, with the appurtenances; to from time to time construct, maintain, repair and operate horse railways, steam railways and electrical railways, the latter to be operated by the trolley system or by any other system, with the appurtenances; to from time to time construct, maintain, repair and operate electrical plants for lighting or for any other purpose or purposes, by means of supports and aerial wires to be placed in any of said Streets or Avenues, or by means of electrical conductors through subways therein, or otherwise, with the appurtenances.

"And notice is hereby expressly given to any and all persons who may become, or may desire to become, by purchase or otherwise, owners of any lands abutting on any of said Streets or Avenues, or of any interest or estate in any such abutting lands, that no deed to any such abutting land, or of any interest or estate in any such abutting *Page 552 land, is or will be intended to carry or convey, or will carry or convey, any right to, or to the exercise of, any of the franchises, easements, rights or privileges hereby reserved or intended to be reserved, in any of said Streets or Avenues, or in any part of either of them, but that every such deed is and will and shall be subject to the reservation hereabove referred to; and that no claim by any such abutting owner, or by any other person whatsoever, to have or exercise any of said reserved franchises, easements, rights or privileges, in or in any part of either of said Streets or Avenues, is or shall be available for any purpose whatsoever, unless or until such claim shall be established by a proper deed from the said Company to a grantee of the Company, granting, in clear, explicit and unmistakable terms, the franchise, easement, right or privilege particularly claimed, in addition to anything else granted by such deed or by any other deed."

Thereafter in the year 1903 and in 1904 the complainant caused a system of sewers to be constructed in certain of the streets and avenues so dedicated. This system has been called the "Canda sewer." Roughly described, the assemblage of pipes extends from Jackson Avenue along Carteret Avenue to Roosevelt Avenue (formerly known as Shore Road), with a diverting line at the intersection of Carteret Avenue and Cypress Street leading along Cypress Street into Terminal Avenue, thence along Terminal Avenue to the Kill Von Kull, with accessory projections, or laterals, along certain intersecting streets. The entire system is given a lineal measurement of about five miles, and its installation is said to have been accomplished by the complainant at a cost of approximately $150,000. It is acknowledged that the construction of the sewer was not legitimated by the sanction or approval of the appropriate municipal or state agencies.

The sales of lots during the succeeding years served progressively to populate that locality until twenty-two years later the Canda sewer seems to have become inadequate and for other reasons incapable of supplying the needs of the inhabitants and the requirements of the surface drainage. At the general election on November 3d 1925, a proposition to construct a municipal trunk sewer to be known as "Noe's Creek sewer" was indorsed by a majority of the legal voters of the borough.

A simple chronological account of the events thereafter ensuing is further enlightening. In April, 1926, an ordinance *Page 553 was duly adopted and approved by the mayor and council of the borough authorizing the proposed improvement and appropriating for the purpose the sum of $225,000 to be raised by the issuance of bonds of the borough. The cost of the sewer was to be produced by general taxation. This ordinance was, upon notice, first subjected to a public hearing and thereafter published as required by law. Plans and specifications had of course been prepared which disclosed the intention to unite the proposed Noe's Creek sewer with the Canda sewer at certain points, notably at Cypress Street and Carteret Avenue, at Cypress Street and the easterly side of Terminal Railroad, and at Linden Street and Carteret Avenue. On June 21st, 1926, the borough clerk was instructed to advertise for bids, which were received at a meeting of the borough council held on July 19th, 1926. All of the bids were in excess of the sum appropriated. After due notice of hearing and requisite advertisement, an ordinance increasing the appropriation to $250,000 was adopted and approved on August 16th, 1926. At a meeting on August 23d 1926, the contract was awarded to the lowest bidder for the sum of $235,248.30. By such publicly reported means, the Noe's Creek sewer was proposed, and thereupon constructed with the common knowledge of the taxpayers of the borough.

Another circumstance worthy of special mention is the uncontroverted fact that before the award of the contract by the municipal authorities the complainant received a complete copy of the prints and plans designed for the proposed construction of the Noe's Creek sewer which disclosed the anticipated integration of the two sewer systems, and on August 12th, 1926, following a conference between representatives of the borough and the Canda Company, the president of the complainant company submitted, subject to the approval of the borough and the board of directors of the company, the following proposal:

"1. Canda Realty Company to grant easement for sewer purposes to Borough of Carteret, pursuant to an ordinance passed by the Borough on April 5, 1926.

"2. Canda Realty Company to turn over to Borough the sewers constructed and owned by it. *Page 554

"3. Canda Realty Company to have right of connection with Borough sewers.

"4. Borough of Carteret to take over the streets and avenues dedicated by Canda Realty Company, as shown on its several maps, including the bridge crossing the tracks of Central Railroad of New Jersey at Carteret Avenue; Canda Realty Company to waive all restrictions now placed in dedication of said streets and avenues.

"5.

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Bluebook (online)
42 A.2d 859, 136 N.J. Eq. 550, 1945 N.J. Ch. LEXIS 54, Counsel Stack Legal Research, https://law.counselstack.com/opinion/canda-realty-co-v-carteret-njch-1945.