Memphis Street Ry. Co. v. Rapid Transit Co.

138 Tenn. 594
CourtTennessee Supreme Court
DecidedApril 15, 1917
StatusPublished
Cited by10 cases

This text of 138 Tenn. 594 (Memphis Street Ry. Co. v. Rapid Transit Co.) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Memphis Street Ry. Co. v. Rapid Transit Co., 138 Tenn. 594 (Tenn. 1917).

Opinion

Me. Justice Williams

delivered the opinion of the Court.

The-bill of complaint was filed by the Memphis Street Bailway Company to enjoin the Bapid Transit Company and the other corporate defendants from operating their vehicles, commonly called jitneys, on certain of the streets of Memphis, under conditions alleged showing and charging their operation to be a public nuisance.

Complainant alleged its ownership of a valid franchise and its operation thereunder of cars on the streets [597]*597for street railway purposes; that it was the largest taxpayer in the city; that the operation of the jitney trasses was to afford a service similar to that ordinarily furnished by complainant, thus competing for the passenger traffic over the same routes: that the defendants would inflict a special injury on and damage to complainant in thé above manner; also in the wear of the street paving which complainant had been required to put down along the routes by the terms of its own franchise, and in blocking or embarrassing and rendering more dangerous the operation of complainant’s cars; and, further, that the special damage to it would be irreparable.

It was alleged that the operation of jitneys by defendants was under a claim to franchises which were nonexistent, because the ordinances therefor had not been signed in approval by the mayor of the city, and that the franchises were invalid for numerous reasons, not necessary to be mentioned.

The defendants answered, denying that the ordinances were required to be signed, and putting at issue the other allegations.

The cause was heard by Chancellors Heiskell and Fentress who held that the ordinances were invalid because not signed by the mayor, and a perpetual injunction was awarded.

Upon appeal the.court of civil appeals affirmed the decree of the chancery court; and the defendants have filed a petition for certiorari in order to a review by [598]*598this court, and the cause has been elaborately argued before us.

A litigation between the Memphis Street Railway Company and the Rapid Transit Company and others was disposed of by this court in 1915, in an opinion reported under the name and style of Memphis Street R. Co. v. Rapid Transit, 133 Tenn., 99, 179 S. W., 635, L. R. A., 1916B, 1143, Ann. Cas., 1917C, 1045, in which opinion the contents of the bill of complaint, quite similar to the present one, are more elaborately outlined. At that time, however, the transit company had, and claimed to have, no franchise from the city. Following the termination of that litigation, it and the other defendants applied for and claim to have secured franchises ; and, when they attempted to operate thereunder, the present suit was commenced.

The legislative act (Acts 1915, 60, Th'omp. Shan. Code, section 3076A8 et seq), is set out in full in the former opinion. It authorizes incorporated cities to grant licenses to carriers, not operating on fixed tracks, etc., to operate over streets, upon terms and conditions prescribed in the act.

In the former opinion it was held that an injunction would lie at the instance of a street railway company possessed of a valid franchise, inhibiting defendants, who were operating without authority of law, upon complainant showing special damages to itself.

The first proposition presented by appellants for reversal of the decree is that, since each' of them now holds what is claimed to be a franchise, or what they [599]*599refer to as being, in any event, “color of autliority,” the existence or validity thereof may not be inquired into at the instance of complainant; that only the State through its designated law officer may question their attempted exercise of the granted, or purportedly granted, powers, or question whether the defendants have “authority of law” to conduct their business. We are not prepared to give recognition to the doctrine of authority by color. Authority must be by the law. The franchise involved here can exist only if there be in existence a creating ordinance.

The ordinance can exist only in event the ordaining power has complied with essential requirements embodied in the charter of the city, its fundamental law. A franchise such as that claimed by appellants, must’ emanate from the State, and the legislative mandate respecting its grant must be complied with. Citizens’ Street R. Co. v. Africa, 100 Tenn., 26, 43, 42 S. W., 485, 878, and cases cited.

If in fact the ordinance does not exist and the franchise be hut tissue paper, are we precluded from so declaring at the instance of any person, individual or corporate, who will be specially damaged by reason of the exercise of powers claimed under it? We reply in the negative. If the paper be blank we hold that we may decline to see color of any sort in it.

The courts of a few of the States have, to an extent at least, held with the contention of appellant; notably the supreme court of Illinois.

[600]*600In General Electric R. Co. v. Chicago, etc., R. Co. 98 Fed., 907, 39 C. C. A., 345, 58 L. R. A., 231, an injunction was sought by the Chicago Company against the General Company, forbidding it to enter upon Fourteenth street in Chicago for the purpose of constructing thereon a street railway, on the ground that there would be an interference with the complainant’s access to its freight house and with its use of its tracks on the street, and cause special and irreparable injury, for which there was no adequate remedy at law. The complainant attacked the validity of an ordinance, under which the General Company was proceeding, because passed without the requisite petition of the owners of one-half the abutting properties. The court, adverting to the claim that the decisions of the State courts of Illinois were adverse to complainant’s right to sue, said:

“Any suggestion that one so threatened may seek aid through the attorney-general, besides being in itself impracticable, is foreclosed by the decision of the supreme court of the State that a suit prosecuted by . the attorney general for private or individual benefit should be dismissed on that ground. People v. George Electric Ry. Co., 172 Ill., 129, 50 N. E., 158. If, therefore the resort of the individual to equity for relief against an irreparable wrong is forbidden in such cases, then there is no remedy whatever beyond what may be recovered in an action at law, confessedly inadequate in any event, and in supposable cases of insolvent or otherwise irresponsible defendants totally unavailing.
[601]*601“The contention that the ordinance partakes of the nature of an adjudication, and therefore its validity cannot he denied in such a suit, is only another way of asserting the inadmissible proposition that the in-j-ured party shall have no means of relief. The citations in favor of the proposition do not support it, and the precedents to the contrary, as well as the necessity for just and convenient, not to say possible, modes of procedure, warrant its rejection.”

In Atlanta R., etc., Co. v. Atlanta Rapid Transit Co., 113 Ga., 481, 39 S.

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Bluebook (online)
138 Tenn. 594, Counsel Stack Legal Research, https://law.counselstack.com/opinion/memphis-street-ry-co-v-rapid-transit-co-tenn-1917.