City of Albany v. United States Fidelity & Guaranty Co.

176 P. 705, 38 Cal. App. 466, 1918 Cal. App. LEXIS 182
CourtCalifornia Court of Appeal
DecidedOctober 17, 1918
DocketCiv. No. 2436.
StatusPublished
Cited by3 cases

This text of 176 P. 705 (City of Albany v. United States Fidelity & Guaranty Co.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Albany v. United States Fidelity & Guaranty Co., 176 P. 705, 38 Cal. App. 466, 1918 Cal. App. LEXIS 182 (Cal. Ct. App. 1918).

Opinion

LENNON, P. J.

In this case judgment was rendered for the defendant; plaintiff moved for a new trial; the motion was denied and plaintiff appeals from the judgment. The facts of the case, in brief, are as follows:

The city of Albany, proceeding under the provisions of the Broughton Act (Stats. 1905, p. 777) duly granted to E. A. Gowe, his heirs, successors, and assigns, a franchise for the construction and maintenance of a street railway over a right of way approximately one-half mile in length, all within the boundaries of that city. Gowe, as required, thereafter furnished a bond in the sum of five thousand dollars, executed by the respondent herein, a corporation for such purposes and receiving premiums therefor. This bond recited the grant of said franchise to the parties aforesaid, its terms and conditions, and guaranteed the faithful performance of each and every condition upon the part of said Gowe.

Gowe commenced work within the time limited and actually completed about one hundred feet. He died. Thereafter no further work was performed and the railway was never completed. At the expiration of the three-year period within which the work was to have been accomplished—no further time having been granted therefor—the city of Albany, appellant herein, brought this action against respondent to recover upon its bond.

Respondent contends that the giving of the bond was without consideration—not that it did not receive its premium therefor—but that the franchise itself was void for want of capacity in the city to grant a franchise which provided:

1. That the railway might carry freight, mail and express as well as passengers;
2. What the fare should be from the city limits of Richmond to the city of Albany if the owner of the franchise granted should ever operate a road to the former place as a connection or extension of the Albany road;
3. For the furnishing of electric lights of two thousand candle-power for each block of the streets covered by the fran *468 chise whenever required by the board of trustees of the city of Albany;
4. For the placing of poles used in connection with the railway inside of curb lines and of wires at sufficient heights to avoid obstruction of ordinary use of such streets;
5. For restricting competition and favoring one bidder over another.

Respondent also contends that the condition of the bond was not broken because Gowe died before he was required to begin work under the terms of the franchise.

The latter contention may be discussed and disposed of first. Gowe evidently took the franchise in good faith, went to work expeditiously, accomplished the laying of about one hundred feet of the road and died well within the period of time when, by the terms of the franchise, work upon the road was to have been commenced.

At the instant of the grant of the franchise, the franchise became an irrevocable contract and the property of E. A. Gowe, of which he could not be divested by the city of Albany for a period of four months, during which time he was to commence work. By his own activity in commencing operations, he made a forefeiture at the expiration of four months an impossibility and secured to himself, his heirs, successors, and assigns, the absolute right to a time limit of three years from the date of the grant to complete the work—a right which the city of Albany could not gainsay, and which effectually prevented any action on its part toward obtaining railroad accommodations for its citizens along those thoroughfares.

At Gowe’s death, his rights vested in his heirs and his estate. The work could have been completed by them, or by his legal representatives, or by his bondsmen. They elected not to do so. They are bound by that election. The franchise is lost to them, but the liability on the bond remains for the benefit of the city of Albany as a compensation for the damage it has suffered.

It cannot be considered that this contract was one personal to Gowe, or that it required his personal skill, and none other to complete it. It was made expressly running to himself, Ms heirs, successors, and assigns. At the time of the trial, respondent could not have seriously considered that the intention was to secure the individual services and particular skill of Gowe, otherwise, it is to be presumed that evidence would *469 have been introduced to show the need of a particular skill for that piece of work over, above, and beyond that required in the very ordinary construction of railways. No such showing having been made, we cannot conceive that the court should take it upon itself to supply that deficiency.

Considerable space has been devoted by counsel for both appellant and respondent in an attempt to make an exact and uncompromising definition of a street railway or street railroad and a railroad, and to draw a dividing line so sharply that further construction of the term will never again be necessary. Counsel have cited cases—each to sustain his own view. The courts have not been able to adopt a fixed rule of construction, and each case has, therefore, been decided upon its own particular set of facts and circumstances. We must do so in this case.

Counsel have cited the case of Railroad Commrs. v. Market St. Ry. Co., 132 Cal. 677, [64 Pac. 1065], wherein the carrier was determined to be a street railway and outside the province of the railroad commissioners, and, as a matter of fact, under its charter carrying only, passengers. Who will have the temerity to say that when it carried the United States mail, it ceased to be a street railway and became a railroad? Assuredly, not this court.

In that case, the question as to whether or not it could have been licensed to carry freight was not in issue. The fact was stated that it carried passengers only—and we may presume it was limited by the terms of its franchise to that alone. But in no sense can it be deemed to be a case in point except that one part of its reasoning is significant: “That the entire people of the state were interested in the great corporations engaged in the carrying of freight and passengers from one portion of the state to another, or from sister states into or through the state”; but that the entire 'people of the state were not “interested in the rates for carrying passengers within the corporate limits of a town or municipality. ’ ’ And the court said: “It was the policy of the constitution that such matters as concerned the inhabitants of a particular subdivision of the state or county should be governed, as far as practicable, by local laws”—not inconsistent with the state laws, of course. This same reasoning would lead us to the conclusion that if the city of Albany wished to have a railway within its confines which should carry passengers, freight, ex *470 press and mail, that so long as it did not contravene any statute of the state, it might with propriety do so.

It remains, therefore, only to be seen whether there is anything in our statutes which expressly prohibits such a railway service.

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Bluebook (online)
176 P. 705, 38 Cal. App. 466, 1918 Cal. App. LEXIS 182, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-albany-v-united-states-fidelity-guaranty-co-calctapp-1918.