Kirby v. Union Pacific Railway Co.

51 Colo. 509
CourtSupreme Court of Colorado
DecidedSeptember 15, 1911
DocketNo. 5803
StatusPublished
Cited by32 cases

This text of 51 Colo. 509 (Kirby v. Union Pacific Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kirby v. Union Pacific Railway Co., 51 Colo. 509 (Colo. 1911).

Opinion

Mr. Justice Bailey

delivered the opinion of the court-:

This is one of eight cases, by as many railroad companies, operating in the state of Colorado, for injunctive relief, against some sixty-five defendants, railroad ticket brokers or scalpers, located at Denver, Pueblo, Colorado Springs, Trinidad and other Colorado cities, to prevent the alleged fraudulent and wrongful interference by the defendants with the lawful business of the plaintiff, in the issuance and sale of nontransferable signature tickets. The complaint charges in substance that the defendants are engaged in negotiating the sale of nontransferable tickets, or the return portions thereof, and in aiding and procuring other than the original purchasers to secure, or attempt to secure, passage upon the various trains of the plaintiff, on such nontransferable signature tickets, contrary to the express terms thereof; that the defendants have organized into associations for the purpose of carrying on such wrongful and fraudulent business, and that as a result the plaintiff is suffering great pecuniary loss, and is about to suffer still greater damage, unless such conduct be prevented; and that plaintiff has no adequate remedy at law, becaúse of the difficulty of detecting such frauds, because of the multiplicity of suits that would be required, because of the insolvency of practically all of the various defendants, and for other reasons specifically set forth in the complaint. It is definitely alleged that the defendants [512]*512have engaged, are now engaging and will continue to engage in dealing in this character of tickets. These allegations are not only not denied, but it is expressly averred by the defendants that they are now engaged in such practices and intend to continue the same in the future. At folio 158 of the answer it is expressly averred: “And these defendants admit that they have sold, and»are engaged in the business of selling, and purpose to and will continue in the business of selling and regularly dealing in, said nontransferable tickets, issued for transportation over plaintiff’s railway.’’ The defendants further, by answer, deny that they are engaged in an unlawful business, and aver that they have been dealing for years in the character and kind of tickets mentioned in the complaint without hindrance on the part of the railroad company, and allege connivance by it, in their conduct in this behalf, and laches and acquiescence. They deny any fraud, and allege that the railroad company has no legal right to embody stipulations of nontransferability in its tickets, and that such limitations are of no legal force and are not binding.

Not only is the principal fact admitted, but the various fraudulent devices adopted by the defendants, including forgery of tickets, the raising of the limit of tickets, the forging of the name of the original pur- . chaser by the broker, or by some other person through his procurement, the methods adopted for deceiving the conductors on the trains of plaintiff, and the instructions given to the purchasers of such tickets, in order that they may successfully impersonate the original purchasers, are all testified to by witnesses for the plaintiff, and no evidence is offered to refute this showing. The evidence establishes conclusively that these practices have resulted, and will result in enormous financial losses to the plaintiff, and will render it practically impossible for railroad companies to continue [513]*513to grant special rates for special occasions, and there is no evidence by defendants to the contrary. The evidence of persistent and continued interference by the brokers, in manner and form as alleged, with the business of plaintiff, in the issuance and sale of nontransferable tickets, causing and threatening to cause great financial loss, is overwhelming and convincing.

A temporary writ of injunction issued, enjoining the defendants from buying, selling, dealing in or soliciting the purchase or sale of tickets, or of the return or unused portions thereof, issued by plaintiff over its lines, which are by their terms nontransferable, and from soliciting, advising, encouraging, procuring, or attempting to procure, any person or persons other than the original purchasers to use such tickets. On final hearing the temporary writ was made permanent. Defendants bring the case here for review on error.

The grounds upon which the defendants rely for a reversal of the judgment and decree complained of are:

1. That the complaint states no cause of action cognizable by a court of equity, because, it is claimed, the railroad company could not lawfully impose the limitations contained in nontransferable tickets; that no actual damage has been shown; and that the defendants are guilty of no legal wrong;

2. That the plaintiff companies have, if entitled to any relief, a plain, speedy and adequate remedy at law;

3. That the court had no power or authority, by temporary or permanent injunction, to assume to govern and control the future acts of defendants in the purchase and sale' of so-called nontransferable tickets, or unused portions thereof;

4. That plaintiffs are estopped to maintain the action, because of laches, connivance and acquiescence in like conduct by the defendants covering a time prior [514]*514to the application for the injunction;

5. That the defendant company is precluded from maintaining this action' at all, because of its failure to pay the annual state license tax provided by statute;

6. That the court erred in refusing to discharge the temporary restraining order, issuéd without notice, and dismiss the action, upon the ground that it is not shown that any emergency existed for its issuance; and,

7. That it was error in the court to overrule the separate motions of two of the defendants for a change of venue.

Every fundamental and vital contention of the defendants has been adjudged against them by an overwhelming weight of authority. The following legal propositions are definitely settled and fixed in cases resting upon similar facts to those shown in the present record:

1. That a clear case of equitable jurisdiction, on the grounds of irreparable injury, inadequacy of a legal remedy, and of the necessity of avoiding a multiplicity of suits, is made out under circumstances and conditions such as are here alleged and proven. — Nashville C. & St. L. R. Co. v. McConnell, 82 Fed. 65; Delaware, L. & W. R. Co. v. Frank, 110 Fed. 689; Kinner v. Lakeshore & M. S. R. Co., 69 Ohio St. 399; Pennsylvania R. Co. v. Beekman, 30 Wash. L. Rep. 715; Illinois C. R. Co. v. Caffrey, 128 Fed. 770; Schubach v. McDonald, 179 Mo. 163; and Bitterman v. L. & N. R. Co., 207 U. S. 205.

2. That the contract evidenced by nontransferable tickets described in the complaint is a legal contract between the railroad company and the purchaser of such tickets, and binds the parties thereto and limits the benefits of the contract to the use of the original purchaser only; that no one other than such purchaser can become the beneficiary of such contract, and under its terms the railroad company is under no obligation [515]*515to carry as a passenger any person presenting such ticket, unless such person is in fact the original purchaser. — Mosher v. St. Louis I. M. & S. R. Co., 127 U. S. 890; Eastman v.

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Bluebook (online)
51 Colo. 509, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kirby-v-union-pacific-railway-co-colo-1911.