New Orleans v. Texas & Pacific Railway Co.

171 U.S. 312, 18 S. Ct. 875, 43 L. Ed. 178, 1898 U.S. LEXIS 1606
CourtSupreme Court of the United States
DecidedMay 31, 1898
Docket1
StatusPublished
Cited by34 cases

This text of 171 U.S. 312 (New Orleans v. Texas & Pacific Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Orleans v. Texas & Pacific Railway Co., 171 U.S. 312, 18 S. Ct. 875, 43 L. Ed. 178, 1898 U.S. LEXIS 1606 (1898).

Opinion

*331 Mr. Chief Justice Fuller,

after stating the case, delivered the opinion of the court.

The assignments of error relate to three subjects: First, the batture or space in front of the City Park, embraced in the lease made by the city to the railroad company in execution of the terms of the city ordinance ; second, the construction of a track on Claiborne and Canal, and the building on Claiborne near Canal of a passenger depot; and, lastly, the wharfage rights claimed by the railroad company at the foot of Thalia street in virtue of section 4 of Ordinance No, 6938.

The argument as to the first and second assignments is, that the right granted to the railroad company by Ordinances 6695, 6732 and 6938, to extend its track from the point designated as. its terminus, in the rear of the city along Claiborne to Canal, and there to build a passenger depot, as also the lease, which, to carry out the ordinance, empowered the railroad company to use the batture in front of the park, and to construct its railroad along the edge thereof through certain designated streets to the rear of the city, were.all granted to the railroad company as accessory rights, depending for their existence upon the crossing at Westwego and the location by the railroad company of its terminus in the fear of the city. In other words, that these rights were given to the railroad company, subject to conditions precedent, or to .use the language of the law’ of Louisiana, shbject to suspensive conditions. It is further contended: First, that in consequence of the failure of the railroad company to cross at Westwego and to locate its terminus as aforesaid, and its election, on the contrary, to continue its road down the river to Gouldsboro and there cross the river, it never acquired the right td enjoy the privileges above mentioned, and hence that the repealing ordinances are valid. Second, that even if the rights in favor of the company above mentioned were nos granted to it on a suspensive condition, they were clearly subject to a resolutory or dissolving condition, arising from the obligation to cross at Westwego and to locate the terminus in the rear of the city at the point designated in the-original *332 ordinance, the contention being that the failure to do so within the period named in the ordinance authorized the city to treat the contract as dissolved and pass the repealing ordinances in question. The railroad - company meets these propositions by denying that crossing at Westwego and the location of the terminus in the rear of. the city, at the point named in the original ordinance, was made a condition suspending the operation of the grant of the rights above stated, and argues that even if it be conceded that the location of the terminus at the point originally pointed out created a condition, it was r/ot a suspensive but a resolutory one. Although it is admitted that the happening of a resolutory condition dissolves the contract, yet such consequences, it is asserted, do not arise from the mere happening of the condition, and cannot be availed of by one of the contracting parties of his own will, since before the resolutory condition can be invoked it must be established by a suit brought that such condition has arisen and that the effect of its existence has been to dissolve the contract. That is, the claim is that under the law of Louisiana a dissolving or resolutory condition does not operate upon the -contract proprio vigore, but requires the judgment or decree of’a court to give it effect, and that before finding a contract dissolved in consequence of a resolutory condition, the court has the power to obviate the effect of the condition by giving further time to perform the act from which the condition is claimed to have arisen, if, in its judgment, the equities of the case so require.

The question which first arises is, was the right of the railroad company to the property in front of the park and to the track on Claiborne street, including the construction of a passenger depot on Claiborne near Canal, subject to suspensive conditions. The Louisiana Civil Code provides as follows:

“Art. 2021. Conditional obligations are such as are made to depend on an uncertain event. If ■ the obligation is not to take effect until the event happen, it is a suspensive condition ; if the obligation takes effect immediately, but is liable to be defeated when the event'happens, it is then a resolutory condition.
*333 “Art. 2022. Conditions, whether suspensive or resoluto^, are either casual, potestative or mixed.”
“ Art. 2024. The potestative condition is that which makes the execution of the agreement depend on an event which it is in the power of the one or the other of the contracting parties to bring about or to hinder.”

In defining the suspensive condition the Louisiana Code say's:

“Art. 2043. The obligation contracted on a suspensive condition, is that which depends, either on a future and uncertain event, or on an event which has actually taken place, without its being yet known to the parties.”

These provisions of the Louisiana Code are like those of the Code Napoleon on the same subject. Articles 1168, 1170, 1181.

In Cornell v. Hope Insurance Company, 3 Martin, N. S. 223, 226, the Supreme Court of Louisiana said, in respect of conditions precedent:

“ They are recognized and provided for by our system of jurisprudence, and by every other that has in view the ordinary transactions of men. The obligation is conditional, when it depends on a future or uncertain event, says our Code. The event then must be shown to make the obligation binding on the party against whom it is presented. For until it takes place, he is not bound to perform what he has promised. C. Code, 272, Art. 68. There is an exception to this rule in regard to the dissolving condition. But in relation to all others it is true, and it is a matter of no moment whether we say the obligation is suspended until the condition is performed — or that the performance of the condition must precede the execution of the obligation. C. Code, 274, Art. 81 and 3; Toullier, Droit Civil Francaise, liv. 3, tit. 3, chap. 4, No. 472; Pothier, Traité des Ob., No. 202.”
“The effect of a suspensive condition, as.its name necessarily implies, is to suspend the obligation until the condition is accomplished or considered as accomplished; till then nothing is due; there is only an expectation that what is undertaken will be due; pendente conditione nondum débetur sed spes est debitum iri.” (Pothier, Traité des Ob., 218.)

*334 The suspensive condition under the Louisiana Code is the equivalent of the condition precedént at common law.

The general principles in respect of conditions precedent are set forth sufficiently for the purposes of this case by Chief Justice Shawm Mill Dam Foundry v. Hovey, 21 Pick. 440, cited by appellant.

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Cite This Page — Counsel Stack

Bluebook (online)
171 U.S. 312, 18 S. Ct. 875, 43 L. Ed. 178, 1898 U.S. LEXIS 1606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-orleans-v-texas-pacific-railway-co-scotus-1898.