Hydraulic Power Co. v. Pettibone Cataract Paper Co.

112 Misc. 528
CourtNew York Supreme Court
DecidedJuly 15, 1920
StatusPublished
Cited by5 cases

This text of 112 Misc. 528 (Hydraulic Power Co. v. Pettibone Cataract Paper Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hydraulic Power Co. v. Pettibone Cataract Paper Co., 112 Misc. 528 (N.Y. Super. Ct. 1920).

Opinion

Wheeler, J.

These actions involve substantially the same facts in each case, and have, therefore, been tried together. The decision in one involves the decision of the other.

These actions were brought to restrain the defendants from interfering with the construction of a tunnel under the properties of the defendants for the purpose of carrying off and utilizing certain waste waters after the same had been used by the defendants for generating power for their respective plants, as provided in certain contracts with the defendants made January 1, 1900. The contract made with each defendant is practically identical so far as they relate to the tunnel in question.

The plaintiff is the owner of a hydraulic power system designed to develop hydraulic and electric power. It consists of a canal tapping'the Niagara river a distance above the falls of that name. The water received from the river is conducted through the canal to a basin on the high bank of the river below the falls, and from this basin dropped over the bank onto turbines below, which generate power. The water taken by each of the defendants drops upon wheels which by suitable shafting are mechanically connected with their machinery in their factory or mills above. Most' of the other water taken from said basin is conducted to turbines built at the edge of the river, and there converted into electrical power which is transmitted by wires and cables to the factories and plants using the power. The plants of the defendants are erected on land the title to which is bounded by the edge of the high bank of the river about 215 feet above the surface of the water in the river. Between the edge of the high bank and the margin of the river is a strip of land of somewhat varying width, which is owned by the plaintiff. The turbines or water wheels of the defendants [531]*531are located about 100 feet below the top of the high bank. After the water has been dropped' from the high bank onto these wheels it is discharged upon and flows over the plaintiff’s land until it flows into the river itself.

Prior to the making of the contracts of January, 1900, the defendants had each been taking and using certain quantities of water for power purposes from ' the plaintiff’s predecessor in title. Controversies had arisen as to the quantity of water the parties were entitled to draw from the hydraulic basin, and the duties each owed the other under their then existing agreements. Suits had been brought and were pending against defendants growing out of alleged violations of such agreements.

That being the situation, the defendants each entered into an agreement with the Niagara Falls Hydraulic Power and Manufacturing Company (the predecessor of the plaintiff), whereby the parties settled and 1 adjusted their disputes, determined anew the quantity of water each was to take, and the manner and method of ascertaining the quantity, the price to be paid, etc. These agreements further recited that whereas, 11 it is contemplated by the said party of the second part [i e., the power company] that it will sometime in the future construct a tunnel, flume or other conduit along or within the easterly bank of Niagara River for the purpose of collecting Avater discharged by the mills operating on the top of said bank, and otherwise flowing over said bank, and of accumulating such water and. making use of the same, in the development of power on the lower portion of said bank ” therefore said party of the first part does hereby grant unto said party of the second part, the right to enter on and construct, maintain, and operate in, through and across its said first party’s premises, located on the [532]*532easterly bank of Niagara Eiver, in the City of Niagara Falls, N. Y., where the mills of said Cataract City Milling Company and of the Pettibone Cataract Paper Company are now located, such tunnel, flume, conduit and cross tunnels and appurtenances as may be necessary or proper for the collection, accumulation and conveyance of the water discharged from the wheels in said mills of the Pettibone Cataract Paper Company, and of other mills on said bank, and from any other wheels which may hereafter be located or operated on said bank, and of any other water passing over said bank, and for conveying the same to such point where it can be conveniently used by said second party.” The agreement then goes on to specify how the work .shall be done and sets forth many things which it is not necessary to set forth beyond what is subsequently given in the course of this opinion.

The Niagara Falls Hydraulic Power and Manufacturing Company subsequently became merged into the plaintiff in this action, which acquired thereby all the rights, property and franchises of its predecessor.

In 1914 the present plaintiff determined to proceed with the construction of the tunnel and flume, and took steps toward that end, and submitted for the consideration of each defendant a plan of the proposed tunnel. Thereupon each defendant repudiated the right of the plaintiff to construct such tunnel, and refused to permit the plaintiff to proceed with its construction. As will more fully appear later on, the defendants and each of them declined to co-operate with the plaintiff or take any steps in relation thereto. The plaintiff thereupon, after having taken certain steps provided for in the agreements referred to, brought these actions for an injunction to restrain the defendants from in any manner interfering with or preventing [533]*533the construction of the tunnel as provided in said agreements.

Many objections have been raised by defendants against the relief asked. It will be impossible to discuss them all. We can only refer to the more important.

The defendants contend at the outset that the plaintiff cannot maintain these actions as the successor by merger of the Niagara Falls Hydraulic Power and Manufacturing Company with the Hydraulic Power Company of Niagara Falls. This contention is based on the decision of the Court of Appeals in Irvine v. New York Edison Co., 207 N. Y. 425, where it was held that when one corporation is acquired by and merged into another corporation under section 15 of the Stock Corporation Law, and the latter has not contracted to pay the debts of the former, a creditor of the merged corporation cannot maintain against the possessor corporation an action to collect a debt due to him from the merged corporation, since there is no provision in such statute making the possessor corporation liable for the debts of the merged corporation.

Under the provisions of section 15 of the Stock Corporation Law the successor corporation, upon a merger pursuant to the provision of the statute, shall acquire and become, and be possessed of all the estate, property, rights, privileges and franchises of such other corporation, and they shall vest in and be held and enjoyed by it as fully and entirely and without change or diminution as the same were before held and enjoyed by such other corporation, and be managed and controlled by the board of directors of such possessor corporation, and in its name, but without prejudice to any liabilities of such other corporation or the rights of any creditors thereof.”

[534]*534It is argued that the plaintiff, the possessor corporation, never assumed any of the liabilities of the contracts with the defendants of 1900, and, therefore, cannot seek an enforcement of any of the provisions thereof.

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Related

Hydraulic Power Co. v. Pettebone-Cataract Paper Co.
198 A.D. 644 (Appellate Division of the Supreme Court of New York, 1921)

Cite This Page — Counsel Stack

Bluebook (online)
112 Misc. 528, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hydraulic-power-co-v-pettibone-cataract-paper-co-nysupct-1920.