Harmony Way Bridge Co. v. Leathers

187 N.E. 432, 353 Ill. 378
CourtIllinois Supreme Court
DecidedOctober 21, 1933
DocketNo. 21888. Decree affirmed.
StatusPublished
Cited by11 cases

This text of 187 N.E. 432 (Harmony Way Bridge Co. v. Leathers) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harmony Way Bridge Co. v. Leathers, 187 N.E. 432, 353 Ill. 378 (Ill. 1933).

Opinion

Mr. Chief Justice Orr

delivered the opinion of the court:

Erom a decree of the circuit court of White county-rendered in February, 1933, in favor of the Harmony Way Bridge Company, appellee, upon a bill in chancery filed by the bridge company, Edgar Leathers and Nellie Leathers, his wife, have appealed.

By its bill appellee sought to establish a constructive trust, or in the alternative asked that a certain deed conveying right of way to the State of Illinois for Bond Issue Route 139 be reformed so as to correctly describe all of the land desired by the State. In addition to various affirmative defenses, appellants in their answer denied holding the land in trust, averring that they purchased it for their private use and benefit alone.

The Wabash river, a portion of which is the boundary between Illinois and Indiana, flows approximately north and south between White county, Illinois, and the city of New Harmony, Indiana. For many years a ferry had been operated between New Harmony and the opposite Illinois shore. The land in Illinois opposite New Harmony is bottom land several miles wide, subject to inundation by the periodic rises of the waters of the Wabash river. A gravel roadway traversing these bottom lands to the ferry landing is subject at those times to overflow. Under the one hundred million dollar bond issue, Route 139 was to be constructed from Crossville, in White county, easterly across the river bottom to the river’s edge. Various efforts were made to construct a highway bridge connecting the Illinois shore with New Harmony. One Illinois corporation, the Harmony Way Bridge Company, succeeded in having all but one of the concrete piers for the bridge built by the Nashville Bridge Company, which had the contract for the building of the piers and bridge. As the bridge company organized under the laws of Illinois did not sell its bonds the pier work could not be paid for when completed. An agreement was reached with the Nashville Bridge Company and the Illinois corporation which provided for the incorporation of the Harmony Way Bridge Company under the laws of Delaware, the Nashville Bridge Company taking preferred and common stock of the Delaware corporation in payment for the pier work and first mortgage bonds for the steel work. This scheme was carried out, with the result that the Nashville Bridge Company owned the majority of the stock of the new corporation and nearly all of the company’s bonds. The State of Illinois insisted that Route 139 should terminate at the edge of the river rather than at the west approach of the bridge. On the other hand, it was to the financial interest of appellee that Route 139 should terminate at the west approach of the bridge and not continue on to the river’s edge, for if it could divert all of the traffic across the bridge the corporate income would be greater. From the record it appears that the ferry was an active competitor for traffic because of tariffs approximately one-half of those established by appellee. Access to the ferry was had by turning north at the west approach of appellee’s bridge and then proceeding east to the water’s edge. This was the old established route, existing long before the bridge was built. However, after work was started to erect the bridge a flood stage of the Wabash river washed out some of the Illinois shore, including a public highway along the river bank, so that a new approach to the river’s edge was deemed necessary by the State at a point south of the bridge. It was over this new way to the river’s edge that this dispute is centered.

Appellant Edgar Leathers (who will hereafter be separately referred to) was elected a director of appellee in November, 1929, when it was chartered under the laws of Delaware. He continued to serve as such director until in March, 1931. Ulys Pyle has been secretary and director and Roy Clippinger president and director since appellee was organized. B. B. Askew and R. W. Williams, of Nashville, Tennessee, were members of the board of directors of appellee as representatives of the Nashville Bridge Company. O. P. Vincent was for a time treasurer of the bridge company, holding such office at the time of the execution of a certain escrow agreement dealt with at length later in this opinion. Appellant was also vice-president of the bridge company for a time prior to the annual stockholders meeting in March, 1931, and had also acted as superintendent in charge of the bridge.

The evidence clearly discloses that it was to the immediate financial interest of appellee that the amount of traffic over the bridge be brought to as great a volume as possible within the shortest available time. This could best be accomplished by obtaining the constfuction of the hard road from the then terminus of uncompleted Route 139 across the bottoms on an elevation, to the west approach of appellee’s bridge. The accomplishment of this would give all-thé-year-round access to the bridge over a concrete slab elevated above the periodic high waters of the Wabash river. To further this road construction appellee contributed $10,000 for the purchase of the right of way required by the State. A strip of land along the Illinois bank of the Wabash river starting north of the bridge, running then south under the bridge and to a point south thereof, was used by the operator of the ferry as a landing place on the Illinois shore. The exact spot of landing was not a fixed one but shifted from-time to time along the shore line of this strip, as required by the stage of the river and other conditions. The land involved was in 1929, after the incorporation of appellee, owned by a family named Gamy. It was roughly 300 feet in width and extended about 1000 feet along the river bank. On June 28, 1930, appellant purchased this strip of land from the Camy family for $740, the deed running directly to him as grantee. Inasmuch as the high water in the spring of 1930 had washed out the public highway along the Illinois bank of the Wabash river, the public authorities of White county attempted to condemn another road some distance back from the river bank, on the land afterwards deeded by the Camy family to appellant. This attempt to condemn was ultimately defeated, and in April, 1931, the Department of Public Works and Buildings of the State abandoned the public highway to the river and ferry landing on the north side of appellee’s bridge and made the new location from the west bridge approach down to a point on the river bank south of the approach, to a point where the original ferry highway parallel to the river had terminated. This established a physical situation whereby the contemplated right of way crossed the south end of the strip of land deeded by the Camy family to appellant in order that the’river could be reached. Appellee, while desiring that Route 139 be completed to the west approach of its bridge as soon as possible, was just as solicitous in not wanting the route extended to the river bank, thereby aiding its competitor, the ferry. With other deeds, a dedication deed was prepared by the Department of Public Works and Buildings for a portion of the right of way over the tract of land purchased by appellant from the Camy family. In this particular dedication deed the engineers for the department erroneously described the land desired for the State, this erroneous description placing the land too far to the east, putting a portion of the wanted right of way in the river, consequently leaving a strip about 112 feet long on the west side of the land in question that was not covered by the deed.

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Bluebook (online)
187 N.E. 432, 353 Ill. 378, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harmony-way-bridge-co-v-leathers-ill-1933.