Louisville Trust Co. v. City of Cincinnati

76 F. 296, 10 Ohio F. Dec. 112, 1896 U.S. App. LEXIS 2124
CourtCourt of Appeals for the Sixth Circuit
DecidedOctober 5, 1896
DocketNo. 426
StatusPublished
Cited by77 cases

This text of 76 F. 296 (Louisville Trust Co. v. City of Cincinnati) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Louisville Trust Co. v. City of Cincinnati, 76 F. 296, 10 Ohio F. Dec. 112, 1896 U.S. App. LEXIS 2124 (6th Cir. 1896).

Opinion

LTJRTON, Circuit Judge,

after making the foregoing statement of facts, delivered the opinion of the court.

The questions involved are as to the extent, validity, and duration of the contract rights of the Cincinnati Inclined Plane Railway Company under which it occupies, with its tracks, poles, wires, [299]*299and oilier equipment, certain streets of the city of Cincinnati, and upon which it maintains and operates a street-car line. That these street easements originate in certain statutes of the state of Ohio and certain ordinances of tin; city of Cincinnati does not affect their character as contracts entitled to the protection afforded by the constitution of the United States. The grant of a right to enter upon and occupy a public street with the necessary tracks, poles, wires, and equipment of an electric street railway is a grant of a typical easement in property, and as such is a contract right capable, in the absence of express restrictions, of being sold, conveyed, assigned, or mortgaged, and is, therefore, a right entitled to all the protection afforded other properly or contract rights. Such a grant, as we had occasion to decide in Detroit Citizens’ St. Ry. Co. v. City of Detroit, 22 U. S. App. 570-580, 12 C. C. A. 365, 372, and 64 Fed. 628, 635, may be for a term longer or shorter than the corporate life of the company receiving it, the duration of the estate being dependent upon the terms of the grant and the power- of the grantor to make it. We then said that there was “notiling in the nature of the property rights involved in a grant of an easement in the streets for street railway uses which distinguishes it from other property acquired by a corporation in the exercise of its franchises.” In Railroad Co. v. Delamore, 114 U. S. 501, 5 Sup. Ct. 1009, it was held that a grant try a municipal corporation to a railway company oí a right of way through certain streets of the city, with the right to construct its railway thereon and maintain and occupy them in its use, is a franchise which may he mortgaged, and would pass no a purchaser at a sale under a foreclosure of the mortgage. There is nothing in the law of Ohio which in any way contravenes the right of a railway company to mortgage its street easements, or which would prevent such easements from passing to a purchaser at foreclosure sale. It therefore follows that the complainant un-dei; the mortgage mentioned has acquired the substantial right in the street easements of the mortgagor company, and cannot be deprived of this security by a proceeding directly impeaching their validity and duration without bring made a party thereto. It is true that a grantor can transfer no greater estate or interest than he has, and that the title in the grantee’s hands must he subject to all the burdens and limitations wiiich rested upon it at the time of the conveyance. But in Keokuk & W. R. Co. v. Missouri, 152 U. S. 301-314, 14 Sup. Ct. 592, 597, Mr. Justice Brown in delivering the opinion of the court, said:

“While a mortgagee is privy in estate with a mortgagor as to actions begun before the mortgage was given, he is not bound by judgments or decrees against the mortgagor in suits begun by third parties subsequent to the execution of the mortgage, unless he or some one authorized to represent him, like the trustee of a mortgage bondholder, is made a party to the litigation, although it would be otherwise if the mortgage were executed pending the suit or after the decree.”

See also, Campbell v. Hall, 16 N. Y. 575; Hassall v. Wilcox, 130 U. S. 493, 9 Sup. Ct. 590; Trust Co. v. Folsom (decided by this court at this term) 75 Fed. 929.

[300]*300The mortgage under which the complainant is the trustee was executed before the suit in the state court was begun, and wé think there is no réason why a mortgage of property interests., such as the street grants claimed by the mortgaged' company, should be concluded by a decree to which only the mortgagor was a party, than if the mortgage had been on a different character of estate. Baltimore Trust & Guarantee Co. v. Mayor, etc., of City of Baltimore, 64 Fed. 153.

The learned counsel for the city have not relied upon the decree of the state court as an adjudication binding upon the complainant, but they have insisted that the opinion .of the Ohio supreme court in the case of City of Cincinnati v. Cincinnati Inclined Plane By. Co. is to have much the same effect, and as effectually prejudges the question here involved, as if the city of Cincinnati* had made the present complainant a party defendant to that suit. The contention is that it is the duty of this court to accept that opinion as a conclusive construction of the charter powers of the city of Cincinnati, and of the Cincinnati Inclined Plane Railway Company, and likewise a conclusive interpretation of the scope, effect, and duration of the various contracts or ordinances under which the mortgaged easements and franchises originated. If this be true, the constitutional right of the complainant, as a citizen of a state other than Ohio, to have its rights as a mortgagee defined and adjudged by a court of the United States is of no real value. If this court cannot for itself examine these street contracts, and determine their validity, effect, and duration, and must follow the interpretation and construction placed on them by another court in a suit begun after its rights as mortgagee had accrued, and to which it was not a party, then the right of such a mortgagee to have a hearing before judgment and a trial before execution is a matter of form without substance. The better forum for a suitor so situated would be a court of the state. Upon appeal to the supreme court its former opinion might be reconsidered, and judgment rendered according to right and justice, notwithstanding a former erroneous opinion interpreting the same legislative acts and construing the same contractual ordinances. But it is said that the questions here involved are as to the validity and proper interpretations of Ohio statutes, Ohio charters, and local city ordinances, and that the supreme court of the state is pre-eminently the proper tribunal for the determination of all such questions, and that the courts of the United States accept the interpretation of a state statute by the highest court of the state as settling its validity and meaning; and the cases of Leffingwell v. Warren, 2 Black, 599; Norton v. Shelby Co., 118 U. S. 425, 6 Sup. Ct. 1121; In re Duncan, 139 U. S. 449, 11 Sup. Ct. 573; City of Detroit v. Osborne, 135 U. S. 492, 10 Sup. Ct. 1012; Railroad Co. v. Roberson, 22 U. S. App. 187, 9 C. C. A. 646, and 61 Fed. 592; Nason’s Adm’r v. Railroad Co., 22 U. S. App. 220, 9 C. C. A. 666, and 61 Fed. 605; Sanford v. Poe, 37 U. S. App. pp. 379, 16 C. C. A. 305, and 69 Fed. 546, — as well as other cases of the same character, are cited to support this contention.

The general rule touching the duty of United States courts to [301]*301adopt and follow the construction of state statutes, announced by the highest court of the state whose statute is involved, is well settled, and the rule is over and over again stated in the cases cited, and in many others.

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Bluebook (online)
76 F. 296, 10 Ohio F. Dec. 112, 1896 U.S. App. LEXIS 2124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/louisville-trust-co-v-city-of-cincinnati-ca6-1896.