Chicago, Rock Island and Pacific Railway v. Denver and Rio Grande Railroad

143 U.S. 596, 12 S. Ct. 479, 36 L. Ed. 277, 1892 U.S. LEXIS 2044
CourtSupreme Court of the United States
DecidedFebruary 29, 1892
Docket1095, 1109
StatusPublished
Cited by56 cases

This text of 143 U.S. 596 (Chicago, Rock Island and Pacific Railway v. Denver and Rio Grande Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicago, Rock Island and Pacific Railway v. Denver and Rio Grande Railroad, 143 U.S. 596, 12 S. Ct. 479, 36 L. Ed. 277, 1892 U.S. LEXIS 2044 (1892).

Opinion

Mb. Justice Bbowb

delivered the opinion of the court.

(1) A preliminary question is made with regard to the rights of the Rock Island Company as the successor of the Chicago Company under the contract of February 15, 1888. By art. Ill, § 9, of this contract it was provided that it should “ attach to and run with the railways of the respective parties during the corporate existence of each, and of all extensions of such existence, by renewal or othérwise, and shall be binding upon the lessees,, assigns, grantees and successors of each, during the continuance of their several corporate existences; provided, however, that the Chicago Company, can assign its interests in this contract only by sale, lease of consolidation of its own property.” The original companies, of which the Rock Island Company claims to be the successor, appear to have been the St. Joseph and Iowa Railroad Company, a Missouri corporation, and the Chicago, Kansas and Nebraska Railway Company, a Kansas corporation. On May 15,. 1886, the latter company leased its property and franchises to the former, which entered into possession under such lease, -which is still in force. On June 13, 1888, after this contract was made, the Chicago, Kansas and Nebraska Company and the Chicago, Rock Island and Colorado Company were consolidated under the name of the Chicago, Kansas and' Nebraska Railway Company, which consolidated corporation is admitted by the answer to have succeeded to and become vested -with all the property and property rights, and all the corporate-rights, powers, franchises and privileges of the-said two constituent companies, including the contract between the Chicago Company and the defendant, and thereby entered into possession and enjoyment of the same.

It is unnecessary to set forth at length the numerous steps by way of assignments, leases and consolidations by which *608 the Rock Island Company became the assignee of the Chicago Company under this contract. It is sufficient, for the- purposes of this case, that it assumed to take the place -of the Chicago Company; that it entered into open possession of the property of that company, and upon the performance of this contract, on the first of January, 1889; •phut it was recognized by the Denver Company as taking the place of the Chicago Company'; that'this was done with the consent of1 that company, and that no question was ever made by the Denver Company of its rights under this contract until its answer was filed in this case: and in its cross-bill the Denver Company prayed for the specific performance of the contract against it. From the time of the consolidation in June; 1888, business was transacted with the defendant in the name of the Chicago, Kansas and Nebraska Company, the consolidated company; and the defendant in issuing its time-cards, at the time connection was made and trains began to run, upon the information furnished it by the officers of that road, designated its trains as the Chicago, Kansas and Nebraska Express,” etc. In May, 1889, upon the request of plaintiff’s officers, the caption was changed to the Chicago, Rock Island and Pacific.” On May 16, a notice was issued stating that plaintiff had assumed the operation of the Chicago, Kansas and Nebraska Railway. Upon this coming to the hands of the law department of the defendant in July, some correspondence was had, by which the defendant was apprised that the Rock Island Company was operating the line of the other under .a lease. Upon this information, the managing officers of the defendant recognized the plaintiff as the^ successor in interest under the contract, and made no question of its rights for more than a year thereafter. Had the Denver Company...refused to recognize the plaintiff as the legal successor of the Chicago Company,. and refused to acknowledge its contract with the Chicago Company as importing any obligation or liability on its part towards the plaintiff, a serious question might have arisen as to the rights of the latter, under this alleged assignment, as the successor of the Chicago Company. But, under the circumstances of this case, a court of equity will treat the as- *609 signee in fact as the legal assignee, possessed of the rights and charged with the obligations of the original party to the contract. Wiggins Ferry Co. v. Ohio & Mississippi Railroad, 142 U. S. 396. In short, we find no difficulty in holding that the plaintiff was entitled to file this bill.

(2) The most important question in this case relates to the proper construction of art. 1, § 1, wherein the Denver Company “ lets the Chicago Company into the full, equal, joint and perpetual possession and use of all its tracks, buildings, stations, sidings and switches, on and along its line of railway, between and including Denver and South Pueblo, excluding its shops at Burnham, meaning and intending hereby to include in the description aforesaid all and every portion of its railway and appurtenant property between and at the points aforesaid, and all improvements and betterments thereof, and additions thereto, which may be jointly used by the parties, as hereinafter provided.”' The question is whether this general language is controlled or limited by the facts existing at the time the contract was executed, or by the subsequent provisions of the contract itself. If thjs be -in fact a lease, without qualification, of the entire róad and appurtenant property between Denver and South Pueblo, then the Rock Island Company has a right to make use of as much or as little as it pleases, and to introduce its trains upon the tracks of the Denver Company wherever it may choose to do so. It may not only make use of the terminal facilities at Denver for its traffic over the Union Pacific, but it may contract for trackage over any road running to Denver, Pueblo, or the intermediate stations, and demand the use of the defendant’s terminals for its entire'business over such roads.

.There can be no doubt whatever of the general proposition that, in the interpretation of any particular clause of a contract, the court is not only at liberty, but required, to examine the entire contract, and may also consider the relations of the parties, their connection with the subject matter of the contract, and the circumstances under which it was signed. Prior to the execution of this contract, the Chicago Company had determined to construct a road into the State of Colorado *610 from its eastern boundary. Its officers bad not, however, settled upon the particular route ■ — ■ whether they should build an independent road from the Kansas State line to Denver, with a branch to Pueblo, or build a connection with the defendant’s road at Colorado Springs, thence reaching Denver and Pueblo over defendant’s line.' This connection had not been made at the time the contract was entered into, though there, is a preliminary recital .that “the Chicago Company owns a railway which is being constructed from the western boundary of the State of Kansas, at which point it will connect with the Chicago, Kansas and Nebraska Kailway, to the city of Colorado Springs,” indicating very clearly that this ■was the road within the contemplation of the parties. Indeed, there was an express provision in the body of the contract (art. Ill, § 10) that the Chicago Company should, on or before the.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Seneca Nation of Indians v. State of New York
988 F.3d 618 (Second Circuit, 2021)
Holland v. United States
57 Fed. Cl. 540 (Federal Claims, 2003)
American Insurance v. Freeport Cold Storage, Inc.
703 F. Supp. 1475 (D. Utah, 1987)
National Bank of Alaska v. J. B. L. & K. of Alaska, Inc.
546 P.2d 579 (Alaska Supreme Court, 1976)
Glen Cove Marina, Inc. v. Vessel Little Jennie
269 F. Supp. 877 (E.D. New York, 1967)
Choctaw Nation v. United States
121 F. Supp. 206 (Court of Claims, 1954)
Green's Dairy, Inc. v. Chilcoat
89 Pa. D. & C. 351 (York County Court of Common Pleas, 1953)
Elrod v. Heirs in the Estate of Gifford
55 N.W.2d 673 (Nebraska Supreme Court, 1952)
Pavlantos v. Garoufalis
89 F.2d 203 (Tenth Circuit, 1937)
Manatee County Growers Ass'n v. Florida Power & Light Co.
152 So. 181 (Supreme Court of Florida, 1934)
De Laval Steam Turbine Co. v. United States
284 U.S. 61 (Supreme Court, 1931)
Tidewater Coal Exchange, Inc. v. American Surety Co.
143 A. 34 (Superior Court of Delaware, 1928)
Shepherd Hardwood Products Co. v. Gorham Bros.
196 N.W. 362 (Michigan Supreme Court, 1923)
American Realty Co. v. Curran
258 F. 118 (Second Circuit, 1919)
Houston & T. C. R. v. City of Ennis
201 S.W. 256 (Court of Appeals of Texas, 1918)

Cite This Page — Counsel Stack

Bluebook (online)
143 U.S. 596, 12 S. Ct. 479, 36 L. Ed. 277, 1892 U.S. LEXIS 2044, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-rock-island-and-pacific-railway-v-denver-and-rio-grande-railroad-scotus-1892.