City of St. Louis v. St. Louis Gaslight Co.

82 Mo. 349
CourtSupreme Court of Missouri
DecidedApril 15, 1884
StatusPublished
Cited by17 cases

This text of 82 Mo. 349 (City of St. Louis v. St. Louis Gaslight Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of St. Louis v. St. Louis Gaslight Co., 82 Mo. 349 (Mo. 1884).

Opinion

Martin, C.

This was a proceeding by motion to assess damages on account of an injunction granted by the St. Louis circuit court upon final hearing and afterwards dissolved by reversal in the Supreme court.

The city of St. Louis instituted a suit in the circuit court, the object of which was to compel the St. Louis Gaslight Company to convey all its works to the plaintiff, to obtain an accounting of the rents and profits of the works and property subsequent to January 1st, 1870, with [352]*352decree of payment of the net balance thereof over expenses, and an order enjoining the company from any further prosecution of its business and for the appointment, of a receiver to take charge of the works and carry on the-business until the further order of the court. No temporary injunction was asked or granted, and for that reason no injunction bond or stipulation by the plamtiff to pay damages consequent upon a dissolution of the injunction appear in the case.

Alter a final hearing of the case upon its merits, there medy as prayed for by plaintiff was granted, and the-property was taken from the control of the company, and all further prosecution of its business enjoined. Upon appeal to the St. Louis court of appeals, this decree was affirmed,from which action of said court the company appealed to the Supreme Court. In this court the judgments of the lower courts were reversed and the cause was remanded, with directions to the circuit court to enter a rule requiring-the receiver to restore to the company all the gas-works and property held by him in virtue of the decree, together with the profits derived therefrom, and to report his action thereon to the court; and upon approval of said report to dismi s the bill. City of St. Louis v. St. Louis Gaslight Co., 70 Mo. 69. After the mandate of this reversal was received by the circuit court, the defendant filid a motion with the view of having it carried out. In this motion the court was asked to ascertain and assess damages suffered by dclendant by reason of the injunction before dismissing the bid. The damages claimed were stated in the bill off particulars as resulting from the reduction in the price of gas during the litigation, from reduction in the cost of lighting, extinguishing and cleaning public lamps, from expenditures incurred by the receiver and from attorney’s ■fees, aggregating in all the sum of $549,475.23. Soon after the filing of this motion the court entered a final decree dissolving the injunction and dismissing the cause without [353]*353taking any notice of that part of the motion which asked for an assessment of damages.

The application to assess damages being again brought to the attention of the court, the plaintiff moved to discontinue all further proceedings thereon, on the ground that the final decree dismissing the cause terminated the jurisdiction of the court in the premises, and on the further ground that the court had no rightful authority to assess damages against the plaintiff, in the absence of an injunction bond and interlocutory order of injunction that no damages could be assessed upon the dissolution of an injunction adjudged only at a final hearing. The motion to discontinue was sustained by Judge Adams of the -circuit bench, who gave his reasons in an able and elaborate opinion, which has been furnished in the briefs of counsel. From this action of the circuit court the defendant appealed to the court of appeals in which the judgment was affirmed pro forma; thence it comes before us on appeal. The matter in issue involves a question of equity practice and jurisdiction as affected by our statutes relating to such questions. For a proper understanding of the issues it will be necessary to allude to the jurisdiction and practice of courts of equity in respect to damages consequent upon the dissolution of injunctions, as it existed prior to and independent of statutes.

When temporary injunctions were granted, as they frequently were upon the naked petition and ex parte showing of the applicant, and were afterwards dissolved on a final hearing of the cause, neither law nor equity furnished any remedy to the defendant for the damages consequent from them, however serious they might be. Such damages were regarded as flowing from the judgment and order of the court, and not from the plaintiff, if he did nothing more than to sue in good faith for the process awarded him. The injustice which so often resulted from hasty and unfounded orders of injunction, for the consequences of which the courts alone were responsible under the law, in[354]*354duced them to adopt as far as was in their power such measures and safeguards as might afford the defendant an indemnity against L ss and injury from injunctions which 'ought never to have been granted. Hence arose the doctrine which recognized in courts of equity the inherent power of exacting conditions, deposits and bonds from the plaintiff before awarding him an injunction, which should in one way or another indemnify the defendant for damages suffered by him in consequence of the process discontinued or dissolved by the court at final hearing. These safeguards were originally exacted in ex parte hearings, but came to be required in all interlocutory injunctions, whether .granted upon notice to defendant or without a hearing from him. These conditions, deposits and bonds were all in the nature of voluntary obligations on the part of the plaintiff to pay damages to the defendant in the event of a dissolution at final hearing. The method of enforcing them depended upon their nature; some were enforced by the courts of equity, while others were more appropriately enforced by an independent action at law. Bein v. Heath, 12 How. 168. Thus it will be seen that the liability of the plaintiff in an injunction suit to respond to the defendant for damages after dissolution depended upon his voluntary undertaking contained in the conditions of the decree, or in his separate agreement and bond given to the court or defendant for that purpose. Of course, when the process has been sued out maliciously there .may be a right of action in favor of the defendant. But this right depends upon the law governing malicious prosecutions, and has no relation to the claim for damages urged by defendant in this case. In Palmer v. Foley, 71 N. Y. 106, Judge Eolger expresses this condition of the law :

“It seems that without some security given before the granting of an injunction order, or without some order of the court or a judge, requiring some act on the part of the plaintiff which is equivalent to the giving of security such as a deposit of money in court — the defendant [355]*355luis no remedy for any damages which he may sustain from the issuing of the injunction, unless the conduct of the plaintiff has been such as to give ground for an action for malicious prosecution.” In Russell v. Farley, 105 U. S. 438, Justice Bradley, in alluding to the practice of courts of chancery in granting injunctions, says : “And if the legal right is doubtful, either in point of law or of fact, the court is always reluctaut to take a course which may result in material injury to either party, for the damage arising from the act of the court itself is damnum, absque injuria, for which there is no redress except a decree for the costs of the suit, or in a proper case, an action for malicious prosecution. To remedy this difficulty the court, in the exercise of its discretion, frequently resorts to the expedient of imposing terms and conditions upon the party at whose instance it proposes to act.”

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Bluebook (online)
82 Mo. 349, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-st-louis-v-st-louis-gaslight-co-mo-1884.