Milhau v. Sharp

9 How. Pr. 102
Procedural entryThis page is a short order in Milhau v. Sharp. Read the opinion of the Court — 15 Barb. 193
New York Supreme Court·Decided October 15, 1853·Published

Opinion

Harris, Justice.

Whether the corporation of New-York has an estate in fee, either absolute or qualified, in the streets of that city, or a mere right of way held for the public use, is quite immaterial for the purposes of this action. In either case it must be conceded the corporation has the right of control over the streets. By the Dongan charter it was invested with “full power, license, and authority, to establish, appoint, order, and direct the establishing, making, laying out, ordering, amending, and repairing of all streets, lanes, alleys, highways, [105]*105&c., in and throughout the city, necessary, needful, and convenient for the inhabitants of said city, and for all travellers and passengers there.” This power has never been withdrawn, or essentially changed. The corporation yet has the exclusive right to control and regulate the use of the streets in the city. In this respect it is endowed with legislative sovereignty. The exercise of that sovereignty has no limit so long as it is within the objects and trusts for which the power is conferred. An ordinance regulating a street is a legislative act, entirely beyond the control of the judicial power of the state.

But the resolution in question is not such an act. Though it relates to a street, and very materially affects the mode in which that street is to be used, yet, in its essential features, it is a contract. Privileges exclusive in their nature, and designed to be perpetual in their duration, are conferred. Instead of regulating the use of the street, the use itself, to the extent specified in the resolution, is • granted to the associates of the Broadway Railroad. For what has been deemed an adequate consideration the corporation has assumed to surrender a portion of their municipal authority, and have, in legal effect, agreed with the defendants that, so far as they may have occasion to use Broadway for the purpose of constructing and operating their railroad, the right to regulate and control the use of that street shall not be exercised. That the powers of the corporation may be surrendered, I do not deny; but I think it can only be done by authority of the legislature. Thus it was provided by the charter of the Hudson River Railroad Company, that its railroad might be located on certain streets of the city of New-York, “ provided the assent of the corporation of the city be first obtained.” (Session Laws, 1846, p. 274, sec. 4.) Authority to give such assent is implied in the act itself; and the corporation, having, in pursuance of such authority, given its assent to the location of the railroad, and the railroad company having located their road accordingly, the assent became irrevocable. The company acquired a right to the use of the streets for the purposes of its road, and, to a corresponding extent, the corporation was deprived of its power to regulate [106]*106and control the use of the streets. So in the case of the Har lem Railroad. (Sess. Laws, 1831, p. 327, sec. 11.) That corpo ration was authorized by the legislature to construct their road across or upon any street in the city of New-York,- with the consent and approbation of the mayor, &c., of the city. The same provision is found in the General Railroad Act. (Session Laws, 1850, p. 224, sec. 28, sub. 5.) It is thus that the city corporation may, to the extent contemplated by the legislature, restrict its own power to control and regulate streets. (See Drake agt. the Hudson River Railroad Company, 7 Barb. 508.) But for the authority derived from the legislature, I am unable to see how a municipal corporation can grant permission to construct a railroad upon one of its streets, which, operating as a contract and vesting rights in the grantee which cannot be recalled, must limit the power of such corporation to manage and control the use of the streets. I think it canndt be done. It cannot be that powers vested in the corporation as an important public trust can thus be frittered away or parcelled out to individuals or joint-stock associations, and secured to them beyond control. It was asserted by the defendants’ counsel upon the trial, that the authority to construct a railroad, conferred upon the defendants by this resolution, may at any time be recalled. If this were so, if the resolution could be regarded as a mere revokable license, it would relieve the case from a fatal difficulty ; for I am not prepared to say that, in the exercise of the discretionary power with which the corporation is endowed, in the management and regulation of streets, it may not authorize an individual or association to lay down a railroad track even in Broadway. But this resolution goes farther : it authorizes the associates to construct the road, and reserves no right to rescind the grant. It licenses their cars to run upon the road for ten years from the time it shall be opened, at a stipulated fee for each car; and provides that if the parties fail to agree upon the amount to be paid for licenses, at the expiration of that period the railroad, with all the equipments thereto belonging, shall be surrendered to the corporation at a fair and just valuation. Can it be that a contract containing such pro[107]*107visions may be rescinded at the pleasure of the corporation 1 The very contingency, upon the happening of which alone the parties seem to have contemplated a termination of the contract furnishes the strongest evidence that the grant was intended to be perpetual. I agree with Mr..Justice Bosworth, that “it would be an anomaly if, after the grant had been made and accepted, and the road built in every respect in conformity with the terms of such a grant as is contained in the resolution in question, the common council may rescind the grant and divest the rights acquired under it, precisely as they may order a street to be widened or extended, or repeal any police ordinance or regulation.” The same view is expressed by Mr. Justice Strong in the opinion delivered by him upon the motion for an injunction in this cause. After referring to the prominent features of the resolution, that learned judge says: “ Surely all these provisions indicate something more than a mere revocable license. They convey a valuable right, which, upon the performance of the primary acts required from the defendants, would vest in them, and of which they could not be deprived by a repeal of the resolution.” Mr. Justice Duer, too, in the very able opinion recently delivered by him upon the decision of a kindred action, says: “ I am yet to learn that a contract, valid when made, can be rescinded by either of the parties, unless the power of rescinding it is expressly reserved, or was given by some constitutional or statutory provision in force when the contract was made. The license contemplated by •the resolution must, therefore, be regarded as perpetual and irrevocable. If it takes effect at all, the right of way now vested in the corporation, so far as it is necessary for the purposes of the defendants, will become vested in them. The exercise of the legislative powers of the corporation, in respect to that street, must be in subordination to the vested rights of the defendants. We have already seen that a corporation cannot, without the consent of the legislature, thus divest itself of its own powers. The resolution itself is, therefore, unauthorized and void.”

Again, the corporation has “full power and authority to [108]

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Milhau v. Sharp, 9 How. Pr. 102 (N.Y. Super. Ct. 1853).

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