City of Detroit v. Detroit United Railway

137 N.W. 645, 172 Mich. 136, 1912 Mich. LEXIS 894
CourtMichigan Supreme Court
DecidedOctober 1, 1912
DocketDocket No. 3
StatusPublished
Cited by22 cases

This text of 137 N.W. 645 (City of Detroit v. Detroit United Railway) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Detroit v. Detroit United Railway, 137 N.W. 645, 172 Mich. 136, 1912 Mich. LEXIS 894 (Mich. 1912).

Opinions

McAlvay, J.

This litigation has arisen from disagreements between the parties relative to the respective rights of each arising from their relations to each other under certain street railway grants made to defendant and its predecessors in title to occupy certain streets, all now included within the limits of said city, for the purpose of constructing and operating thereon a street railway.

Before the statement of the material facts in the case is made, a brief outline of the pleadings will be helpful to an intelligent understanding of the relation of such facts to the questions involved. The complainant, claiming to be entitled to relief in a court of equity, sets forth in its bill of complaint that the franchises and rights of defendant in that portion of its railway system in the city of Detroit called the “Fort Street Division” had expired, and, in view of that fact, before such expiration, certain resolutions were adopted by the city authorities declaring that such franchises would expire on dates named, and that defendant could continue to operate on said street only upon certain terms and conditions specified, including the payment of #200 per day to the complainant for the use of said streets. The bill shows that defendant denied such expiration of its franchises, and denied the right of complainant to impose such terms, and continued to occupy and use the streets with all its equipment thereon located, and to operate its street railway thereon in defiance of the demand of complainant. The bill of complaint prays that [139]*139the rights of the railway company in the streets be decreed to have expired on the dates specified in the resolutions ; that by operating after the expiration of its franchises it be decreed to have accepted the terms of the resolutions and be compelled to pay the charges fixed therein; that an accounting be had to ascertain the amount due and owing; that defendant be perpetually enjoined, unless conforming with the terms of such resolutions by payment of the full amount arising thereunder, from running and operating its street cars upon said streets, and be required to remove its railway equipment therefrom. There was also a prayer for general relief.

Defendant’s answer denies that its franchises had expired, a's alleged in said bill; insists that it still has the right to continue to operate upon said streets, notwithstanding the resolution and notices thereof from complainant. It admits its refusal to pay $200 per day for .the use thereof, and declares its intention to continue to occupy and use the streets in defiance of complainant’s claims and the action of the municipal authorities. Defendant charges that the sum of $200 per day is excessive as compared with the $300 per day previously fixed by the city for other lines where franchises had expired, and that the charge in proportion for the Fort street division should not exceed $40 per day, and denies the jurisdiction of a court of equity to grant relief. The cross-bill portion of the answer sets up that by agreement with the city, May 2, 1906, being an ordinance of that date, complainant, in effect, extended the company’s rights on the Fort street division until December 14, 1921; also that the sum of $200 per day, fixed by the complainant for the use of the streets, exceeds the net earnings of the Fort street line, and is unreasonable and confiscatory; that the resolutions mentioned constitute a cloud on defendant’s title, and are in violation of the Constitution of the United States; that to grant complainant’s claims and to discontinue such street railway service would greatly injure the people of the city of Detroit; that, notwithstanding the time limit [140]*140placed upon the franchises granted to the defendant, it was the contemplation of the parties that defendant should continue to operate until the agreements were changed by the mutual consent of both parties, and that, notwithstanding the grants from the city, defendant has the right to operate its railway and charge toll therefor to its passengers ; that defendant under its franchises was subjected to a public duty and obliged to continue its performance in perpetuity. The answer prays that complainant be restrained from collecting the $200 per day mentioned, and enjoined from interfering with the right of defendant to operate on the Fort street division and for general relief.

Three certain grants or franchises to operate a street railway, and the only ones involved, were given to those through whom defendant has acquired title, part of them within the city of Detroit, and part, at the time of the grants, beyond the limits of the city. By the addition of contiguous territory to the city of Detroit before this litigation was instituted, all of the streets upon which these franchises were granted were included within the limits of the city, and are now a part of the Fort street division of defendant railway. The first grant referred to was under date of January 31, 1865, and extended from the then western boundary of the city at Twenty-Fourth street easterly upon Fort street, and then through intermediate streets to the then eastern city limits. It was for a period of 30 years and was extended for a period of 30 years from June 30, 1880, expiring June 30, 1910. Another grant was given by the township of Springwells June 17, 1880, which connected with the terminus of the first grant at the intersection of Fort and Twenty-Fourth streets, thence south on Clark street to Jefferson avenue, thence west on Jefferson avenue to Artillery avenue. It was for the period of 30 years, expiring June 17, 1910. This was the franchise taken into the city in the territory annexed June 20, 1885. After this annexation to the city, the common council by ordinance on July 24, 1886, granted the right [141]*141to operate a street railway along Fort street from the western terminus of the first grant to the newly established city boundary, which was at the line of Artillery avenue. The life of the ordinance was fixed “for the term of twenty-four years from the date of the passage of this ordinance,” and therefore terminated on July 24, 1910. The order of dates of the expiration of these grants, by limitation, would occur June 17, June 30, and July 24, 1910, respectively. Another ordinance, and the one which is claimed by defendant to extend the three foregoing grants on the Fort street division to December 24, 1921, was passed by the common council of complainant May 2, 1906, and is entitled “An ordinance in relation to rates of fare on Fort street railway lines of the Detroit United Railway.” Its terms and provisions will be stated when its claimed relation to the expiration of these franchises is considered. On September 26, 1905, an ordinance was introduced in the said common council, which was amended and finally passed March 3,1908. It is entitled “ An ordinance providing for the operation of cars on or in any street on which the franchise right has expired.” This ordinance, by its terms, as indicated in its title, imposed on those portions of defendant’s system where the grants were about to expire regulations and requirements as to rates of fare and transfers, fixing three cent fares if purchased in strips of five tickets, with universal transfers; also as to maintaining pavement between the tracks and for a distance outside of same. It also required defendant to change its routes on request, and remove tracks and overhead equipment. It gave greater control to the council as to the kind and number of cars to be used and the kind of service, and required a change of grade when directed.

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Bluebook (online)
137 N.W. 645, 172 Mich. 136, 1912 Mich. LEXIS 894, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-detroit-v-detroit-united-railway-mich-1912.