Cedar Rapids & Iowa City Railway & Light Co. v. Chicago, Rock Island & Pacific Railway Co.

145 Iowa 528
CourtSupreme Court of Iowa
DecidedJanuary 18, 1910
StatusPublished
Cited by2 cases

This text of 145 Iowa 528 (Cedar Rapids & Iowa City Railway & Light Co. v. Chicago, Rock Island & Pacific Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cedar Rapids & Iowa City Railway & Light Co. v. Chicago, Rock Island & Pacific Railway Co., 145 Iowa 528 (iowa 1910).

Opinions

McClain, J.

In 1893 the Cedar Rapids Electric Light & Power Company was engaged in the business of furnishing light and power and steam heat for the city of Cedar Rapids, and the Illinois Central Railway Company and the Burlington, Cedar Rapids & Northern Railway Company were operating lines of railroad to Cedar Rapids, over which, as well as over other lines of railroad, cars of coal were transported for delivery to said electric light company. The power plant of the electric light company was situated near the main track of -the Illinois Central Company, which owned in the neighborhood of said plant a • considerable tract of land used for switches and other railroad purposes. The principal line and the switchyard of the Burlington Company were situated at some distance from said power plant. The Illinois Central Company at this time maintained no switch engine and crew at Cedar Rapids, and did the switching necessary in the operation of its road by its regular road engines and crews. Under [531]*531.these circumstances, and as a result of some prior correspondence between C. J. Ives, the president of the Burlington Road, and also the president of the electric light company, and J. T. Harrahan, second vice president of the Illinois Central Company, the latter made to the former as president and general manager of the Burlington Road the following proposition: .

If the electric light works will do the grading and furnish any right of way necessary, in addition to the ground now owned by this company, for a spur track on or near the line marked track ‘A’ on the blueprint herewith, this company will build the track at its expense on condition that the Burlington, Cedar Rapids & Northern Railroad Company will pay to the Illinois Central Railroad Company forty cents for each car that shall be brought from the B., C. R. & N. R. R, Co., and placed on the said Illinois Central track ‘A’ by B., C. R. & N. engines as rent for the use of track between the tracks of the B., C. R. & N. and the said track ‘A,’ and also the use of the said track ‘A,’ the payment for such use of tracks to be made on or before- the fifteenth of each month for the cars so placed in the preceding month. In- case this company should desire to remove the track, it reserves the right to do so, on giving thirty days’ notice in writing to the electric light works and your company of its intention to do so. If your company is satisfied with the terms, please note your acceptance hereon, and return one of the duplicates, retaining the other for your file.

Mr. Ives indorsed on this proposition his acceptance of the terms and conditions thereof for the Burlington Road, and a spur track connecting the track of the Illinois Central Railway Company with the power house of the electric light company was constructed. Bor about fourteen years the terms of this agreement were acted upon and complied with by the Illinois Central Company, the Burlington Company, and the defendant Chicago, Rock Island & Pacific Railway Company, succeeding to its rights and franchises, and the electric light company, and this plain[532]*532tiff succeeding to the property rights and franchises of said electric light company. In accordance with this arrangement cars of coal destined for the power plant of the electric light company, or the plaintiff as its successor in business, arriving at Cedar Rapids over any line of railroad, were switched to the power plant by the switch engines and. crews of the Burlington Company or the - Rock Island Company as its successor, and payment at the rate of forty cents per car was made by the electric light company or the plaintiff to the Illinois Central Company.

In 1907 the Illinois Central Company, through its general manager, notified the Rock Island Company that, inasmuch as the Illinois Central Company was maintaining a switching organization at Cedar' Rapids, that company wished to terminate the arrangement above referred to, and advised the Rock Island Company that, after September 5th, the. Illinois Central Company would cease to abide by the terms of the agreement made with the Burlington Company in 1893, and would thereafter handle the switching, placing all cars at the plant of the plaintiff. After negotiations, ■which were extended beyond the time fixed in the communication last above referred to, the Illinois Central Company locked its switches against the use of its tracks by the Rock Island Company to transfer cars to-the power plant, and the Rock Island Company refused to deliver cars destined for the power plant to the Illinois Central Company for switching, and after some proceedings before the State Board of Railroad Commissioners, which need not be specifically referred to, this action was instituted im effect to compel the Illinois Central Company to allow the use of its tracks by the Rock Island Company in switching cars to plaintiff’s power house, as it had previously done under the arrangement made in 1893. After hearing the evidence, the court entered a decree against the Illinois Central Company, enjoining it from in any manner interfering with the use by the Rock Island [533]*533Company of such portions of the main line and'spur tracks of the Illinois Central Company as may be necessary in the switching of cars of coal from the tracks of the Rock Island Company to and upon the spur track of the Illinois Central Company which serves the power house of plaintiff, and from tearing up or removing, or causing to be torn up and removed, its spur track which serves the power house of the plaintiff without giving the plaintiff thirty days’ notice of its intention to do so.

1. Contracts: parties:, who may enforce. The appellant complains of this decree' because it in effect, euforces at the suit of plaintiff contract obligations between the Illinois Central Road and the Rock Island Road arising under a contract or arrangement to which neither plaintiff nor its predecessor •in interest was a party. Without entering into ■ a discussion of the authorities cited for appellant in support of the proposition that a third party for whose incidental benefit or advantage a contract is made between contracting parties negotiating in their own interests can not have relief for breach of such contract or arrangement, it is sufficient to say that, while the electric light company was not formally a party to the negotiations in 1893, its acceptance of and compliance with the terms of the proposed arrangement were essential-before such arrangement could go into effect, and we think it clear that, when the electric light company accepted the terms of the arrangement by grading and furnishing right of way for the spur track, it became a party to the agreement or arrangement. That the electric light company was recognized by the other two parties to this arrangement as acquiring rights under it should it proceed in accordance with the terms of its provisions is made apparent by the stipulation that, if the Illinois Central Company desired to remove this spur track, it could do so only by giving thirty days’ notice in writing to the electric light company.

[534]*5342. Same: notice of [533]*533It is contended, however, for appellant that the ar[534]*534rangement formally entered into was between the Illinois Central Company and the Burlington Company, and that, as no provision for its termination was máde, there was an implied right to terminate it . . . ? at least on the giving ox reasonable notice.

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Bluebook (online)
145 Iowa 528, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cedar-rapids-iowa-city-railway-light-co-v-chicago-rock-island-iowa-1910.