Morey v. Terre Haute Traction & Light Co.

93 N.E. 710, 47 Ind. App. 16, 1911 Ind. App. LEXIS 17
CourtIndiana Court of Appeals
DecidedJanuary 25, 1911
DocketNo. 7,228
StatusPublished
Cited by4 cases

This text of 93 N.E. 710 (Morey v. Terre Haute Traction & Light Co.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morey v. Terre Haute Traction & Light Co., 93 N.E. 710, 47 Ind. App. 16, 1911 Ind. App. LEXIS 17 (Ind. Ct. App. 1911).

Opinion

Hottel, J.

— This was a suit instituted by appellants in the Vermillion Circuit Court to procure a decree of the court against appellees, and each of them, directing them specifically to carry out and perform certain covenants and agreements which appellants in their complaint allege are contained in a certain instrument of assignment in which all the appellants, except said city of Clinton, assigned certain franchise rights which had been conferred upon them by their coappellant, said city of Clinton.

The theory of the complaint and the contention of appellants’ counsel are that the covenants contained in the contract of assignment are binding upon and should be enforced against appellees. The complaint is in four paragraphs. To each paragraph of the complaint each defendant filed a separate and several demurrer, which was sustained by the court, to which rulings of the court appellants, and each of them, at the time severally and separately excepted. Appellants declined to plead further, and elected to stand upon their complaint, and the court rendered judgment on said rulings for appellees as on default, and adjudged that appellants recover nothing from appellees by reason of their suit, and that appellees recover from appellants the costs of the suit. Prom this judgment the appeal is taken, and appellants jointly assign errors, in substance, as follows: Plaintiffs William L. Morey, Prank L. Swinehart, William Kelley, David McBeth, Samuel J. Hall, John Harlan, James Osborn and the city of Clinton, Indiana, say that there is manifest error in the judgment and proceedings of the Vermillion Circuit Court in this cause, [18]*18in this: The court erred in sustaining the separate and several demurrer of defendant Terre Haute Traction and Light Company to the first, second, third and fourth paragraphs of plaintiffs’ complaint; and in sustaining the separate and several demurrer of defendant Terre Haute, Indianapolis and Eastern Traction Company to the first, second, third and fourth paragraphs of plaintiffs’ complaint.

The sufficiency of the complaint to withstand a demurrer for want of facts is the only question presented by this appeal.

The complaint and the instrument of assignment upon which each paragraph is based are lengthy, and counsel for appellants, in their brief, have made a fair and concise statement of the facts contained in each paragraph, which counsel for appellees admit to be correct, and we adopt the substance of it for the purposes of this opinion. On July 21, 1902, the common council of the city of Clinton passed an ordinance granting to William L. Morey, Frank L. Swinehart, William Kelley, David McBeth, Samuel J. Hall, John Harlan and James Osborn (the first four of whom reside in the city of Clinton, and the last three of whom reside in or near the town of Dana, Vermillion county, Indiana) a franchise to construct, maintain and operate an electric railway in certain streets of the city of Clinton. This ordinance is made a part of each paragraph of the complaint as exhibit A. On August 26, 1902, said plaintiffs, by a certain instrument in writing, which is made a part of each paragraph of the complaint as exhibit B, sold and transferred all the rights conferred upon them by such ordinance to Charles A. Stone and Edwin S. Webster, their successors, grantees and assigns. Said contract of assignment contained after the granting clause, the following provision:

“In consideration of the foregoing sale, transfer, assignment and conveyance, the buyers agree that they, their successors grantees and assigns will, within the [19]*19time prescribed by such ordinance [within twenty-four months from July 21, 1902], construct an electric street railroad line to, within and into contiguous territory beyond said city of Clinton, and also an electric interurban railroad between and connecting the city of Terre Haute and the city of Clinton. And it is the intention of said buyers to construct an electric railway line from said city of Clinton, north and northwest toward the city of Danville, Illinois, to and through the town of Dana, Vermillion county.”

Said Charles A. Stone and Edwin S. Webster, by an instrument in writing, subsequently transferred and assigned all said franchise rights to George E. Bruorton, and said Bruorton, his wife joining, by an instrument in writing, subsequently transferred said rights to the Terre Haute Electric Traction Company, an Indiana corporation, which company, by proper proceedings, later changed its name to Terre Haute Traction and Light Company, one of the appellees in this cause. Said Terre Haute Traction and Light Company, by an instrument in writing, subsequently leased and assigned to defendant Terre Haute, Indianapolis and Eastern Traction Company, for 999 years, all the rights, franchises, etc., given and granted by said city of Clinton by ordinance as aforesaid, in which instrument of lease and assignment said Terre Haute, Indianapolis and Eastern Traction Company agreed and covenanted to assume and fulfil all obligations and contracts obligatory and binding on said Terre Haute Traction and Light Company. Plaintiffs Morey, Kelley, Swinehart and McBeth reside in and own real estate and other property in the city of Clinton, the value of which would be materially increased and benefited by the performance of the covenants and agreements contained in said transfer and assignment to said Stone and Webster, and are otherwise pecuniarily interested in the fulfilment of the covenants and agreements contained in said contract of assignment by them and others to said Stone and Webster. Plaintiffs, [20]*20Hall, Harlan and Osborn reside and own real estate in or near said town of Dana, the value of which would he materially increased and benefited by the performance of the covenants and agreements contained in said transfer and assignment to said Stone and Webster, and are otherwise pecuniarily interested in the fulfilment of the covenants and agreements contained in said contract of assignment to said Stone and Webster. The city of Clinton, an appellee herein, is greatly and pecuniarily interested in, and would be greatly and pecuniarily benefited by, the performance of the covenants and agreements contained in said contract of assignment to said Stone and Webster.

It will he observed that the statement contains but one provision of the instrument of assignment, but inasmuch as it is conceded that this provision is the only one involved in determining the questions raised upon the demurrer to the several paragraphs of complaint, it will be unnecessary to copy further from this assignment.

We think, however, that one paragraph of the ordinance passed by the city of Clinton, which is made part of each paragraph of complaint, is necessary to a perfect understanding and interpretation of this assignment, and we therefore quote section three of the ordinance, which is as follows:

‘ ‘ Tho term of this grant, franchise and the authority to use said streets shall be for a period of fifty years from the passage of this ordinance, provided that the construction of said street railroad line in said city shall be commenced within twelve months from the date of the passage of this ordinance, and the same shall he completed and in operation within twenty-four months from the passage of this ordinance, otherwise this grant, authority and franchise shall become and he void and of no effect whatever.”

We have given the facts common to each paragraph of complaint.

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Cite This Page — Counsel Stack

Bluebook (online)
93 N.E. 710, 47 Ind. App. 16, 1911 Ind. App. LEXIS 17, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morey-v-terre-haute-traction-light-co-indctapp-1911.