Louisville & N. R. v. New Orleans Terminal Co.

45 So. 962, 120 La. 978, 1908 La. LEXIS 599
CourtSupreme Court of Louisiana
DecidedFebruary 17, 1908
DocketNo. 16,596
StatusPublished
Cited by5 cases

This text of 45 So. 962 (Louisville & N. R. v. New Orleans Terminal Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisville & N. R. v. New Orleans Terminal Co., 45 So. 962, 120 La. 978, 1908 La. LEXIS 599 (La. 1908).

Opinion

LAND, J.

“The plaintiff sues the defendant for the whole cost of the installation of an interlocking signal system constructed by the plaintiff on a public street in the city of New Orleans where the main lines of the two companies cross. The defendant admits liability for one-half of the cost of such installation. Judgment was rendered according to the contentions of the defendant,' and the plaintiff appeals.” The above is copied from the brief of the defendant as furnishing a clear and terse statement of the nature of the case under review.

The plaintiff company in 1867 and 1869 obtained from the city of New Orleans a license to lay and operate its tracks on a number of public streets of the municipality, including the intersection of Florida walk with Washington avenue. The plaintiff company has been operating a steam railroad on said streets and intersection for some 30 years.

In 1895 the New Orleans & Western Railroad Company, a steam railroad, obtained from the city of New Orleans a permit to lay and operate its tracks through the streets of said city, under the express proviso that nothing was given conflicting with previous grants. ■

The New Orleans & Western desired to cross the tracks of the Louisville & Nashville at Florida walk, and also to make two switches there connecting with its main line, and to that end entered on July 31, 1895, into a written contract with the Louisville & Nashville. Under the terms of this agreement, the right to cross and intersect was granted on the condition that the crossing and intersections were to be constructed and maintained without, any expense, damage, or injury to the property of the Louisville & Nashville Railroad Company, and solely at the expense of the New Orleans & Western Railroad Company; and on the further condition that the grantee, its successors and assigns, should supply and maintain free of all expense to the grantor, its successors and assigns, all such signals and watchmen as may be deemed necessary by the grantor, to guard against accidents or damages of all kinds liable to occur at or near said crossings; and on the further condition that the grantee would, at its sole expense, and without any contribution from the grantor, comply with all laws or ordinances which might thereafter be adopted providing for gates, signals,’ watchmen, or any device of any kind at said crossings. The contract further provided that if the New Orleans & Western Railroad Company should fail or refuse, when called upon by the Louisville & Nashville Company, or when required by any law or ordinance, to furnish and maintain all such appliances, including automatic signals, interlocking and derailing switches and watchmen, as said Louisville & Nashville Railroad Company might from time to time deem necessary, to properly guard said cross ings, or should fail to comply with any of the requirements of the laws of the state or of the ordinances of the city of New Orleans, then in such event the Louisville & Nashville Railroad Company might take up and remove such crossing or crossings as the New Orleans & Western Railroad Company, its successors or assigns might have put down or constructed, or might at its option furnish such appliances or comply with such laws or ordinances, and demand the cost thereof from the New Orleans & Western Railroad Company. This contract was never recorded.

The New Orleans & Western made the crossing provided for in the above contract, and complied with all of its obligations until April 8, 1901, when its property and rights were sold under a decree of the federal court to the New Orleans Belt & Terminal Company, whose officers were actually aware at [981]*981the time of said purchase of the existence and terms of said contract.

In December, 1903, it became necessary, and was required by law for the plaintiff company, to construct an interlocking signal system at the crossing of the main lines of the two companies. The New Orleans Belt <& Terminal Company, after due notice and demand made on December 3, 1903, refused to construct or pay for such appliances, and denied its obligation to do so.

On December 26, 1903, the New Orleans Belt & Terminal Company sold all of its property and franchises to the New Orleans Terminal Company, whose former name was the New Orleans & San Francisco Railroad Company.

After this purchase, the Louisville & Nashville Railroad Company made demand on the New Orleans Terminal Company to install an interlocking signal system at the crossing aforesaid. That company declined. The Louisville & Nashville Railroad Company then put in the system at a cost of $6,220.24 and demanded payment of the whole sum. The terminal company offered to pay half the cost. This offer was declined, and the present suit was brought.

The defendant company since its purchase has been using said crossing and also the interlocking system installed by the plaintiff company. There is nothing to show that the officers or agents of the defendant company had any notice or knowledge of the contract sued on prior to the sale of December 26, 1903.

The demand of the plaintiff is bottomed on the theory that the defendant is bound by the contract of July 31, 1895. The petition alleges that the defendant and its predecessor were fully aware and had knowledge and notice, actual and implied, of the terms of said contract. In the alternative, the petition alleges that the continued use of said crossing by the defendant and its predecessor made it necessary for the plaintiff company to furnish and install said appliances, which otherwise would not have been required, and that the defendant has been benefited thereby to the full extent of the cost of the same.

As already stated, the contract in question was never recorded, and it is not shown that the defendant company ever had any knowledge of this contract when it bought the property and franchises of the New Orleans Belt & Terminal Company. The contract in question was relative to and affected immovable property, and created a real .obligation and a real right. See Railroad Company v. Railroad Company, 44 La. Ann. 60, 10 South. 389. That a railroad track is real property is not disputed. All contracts affecting immovable property not duly recorded are null and void except between the parties thereto. Civ. Code, art. 2266. Hence the tracks of the New Orleans & Western Railroad Company, where they cross or connect with those of the plaintiff company, passed to the defendant free of the obligations imposed by the contract of July 31, 1895. Defendant is in the position of a railroad corporation which has already exercised the right to cross the tracks of another railroad corporation. The only contention left is the right of the plaintiff, as a matter of law, to impose on the defendant the entire cost of constructing and maintaining an interlocking signal system, which, according to the statement of facts, “was in fact necessary and required by law in order to properly guard the crossing aforesaid.” .

We learn from the argument of counsel that the “law” referred .to is a rule adopted by the Railroad Commission of the state, which, we assume, throws no light on the question of cost now under consideration.

The Legislature has not deemed it necessary 'to define the rights and obligations of railroads, whose tracks intersect, connect, or [983]*983cross. The Railroad Commission has no.t, so far as we are informed, made any rules on the subject.

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Cite This Page — Counsel Stack

Bluebook (online)
45 So. 962, 120 La. 978, 1908 La. LEXIS 599, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisville-n-r-v-new-orleans-terminal-co-la-1908.