Pennsylvania Coal Co. v. Delaware & Hudson Canal Co.

3 Abb. Ct. App. 470, 1 Keyes 72
CourtNew York Court of Appeals
DecidedSeptember 15, 1863
StatusPublished
Cited by3 cases

This text of 3 Abb. Ct. App. 470 (Pennsylvania Coal Co. v. Delaware & Hudson Canal Co.) is published on Counsel Stack Legal Research, covering New York Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pennsylvania Coal Co. v. Delaware & Hudson Canal Co., 3 Abb. Ct. App. 470, 1 Keyes 72 (N.Y. 1863).

Opinion

By the Court.

Emoit, J.

It is not necessary in the present condition of this case and controversy to determine whether the plaintiffs, upon the facts proved, and assuming their construction of the contract to be correct, could maintain an action to enforce its performance, or to enjoin the defendants agamst its violation, and against unjustly excluding the plaintiffs’ boats from their canal. The preliminary injunction which was granted in this aspect of the case was vacated upon motion, and no appeal was taken from the order dissolving it. The supplemental complaint asked for damages for an actual breach of the contract, and the judgment responded to this demand, and gave the plaintiffs a money recovery only. If the plaintiffs had brought precisely and merely such an action as the defendants insist this should have been, it would have resulted in a similar judgment. The only difference in the case would have been in the mode of trial. The question of fact as to the amount of damages would in that event have been submitted to a jury. But upon the case before us the mode of trial was immaterial, since the case states that damages to the amount recovered were proved without dispute, if the plaintiffs were right in law and entitled to damages at all.

The defendants, however, are not in a position to avail themselves of any objection to the judgment founded on the mode of trial. They did not apply to have the issue of fact tried by a jury, but moved at the trial to dismiss the complaint and terminate the suit altogether. The complaint contained allegations and a prayer for both equitable and legal relief. Conceding that the plaintiffs were entitled to one and not the other, the defendants should have asked the court below to compel the plaintiffs to elect on which part of the case and for Avhich mode of trial and resulting relief they would go, or to strike out or dismiss that part of the complaint seeking merely equitable relief, leaving the residue presenting a case triable by jury.

Still, I deem it not improper to say that, in my judgment, this action could have been maintained in its equitable aspect, [474]*474assuming that the plaintiffs are correct in their construction of the contract. I understand the learned counsel for the defendants substantially to concede as much, provided the agreement upon such a construction of it be not unreasonable or unconscionable, as he insists that it is. And I allude to this aspect of the case more particularly to say that I do not perceive the unreasonableness or unfairness of such a contract between these parties as the plaintiffs claim that they have made.

The defendants, when this agreement was entered into, were the owners of a canal whose capacity was, or was supposed bj them to be, more than adequate to the transportation of all the coal which their own mines -could produce, or their own boats deliver. At the same time it was evident that the canal would never be required or used to any great or remunerative degree for the carriage of passengers or of any other article than coal. It was, therefore, eminently desirable for the defendants to secure additional coal' trade and transportation, and to induce other producers of coal to make use of their canal and to construct other communications connecting with it.

It might not have been an unreasonable arrangement for them, in order to secure such a business, to contract expressly that the payment of their tolls or charges should be postponed in all cases until the end of the year, or some period after the passage of the boats. At least, a court could not pronounce against such a contract, as so unfair as to be unfit to be aided or enforced. The counsel for the defendants assumes that his clients intended to make their tolls or charges payable in advance in all cases, and failed to do so, in the contingency which happened in 1852, if they have failed, from inadvertence or mistake. But there is no evidence upon which to found any such assumption. There is no proof of the intention of the parties except what is to be found in the instrument itself nor are there either allegations or proof that they have inadvertently or mistakenly made ic what it is. It might of course have been more to the interests of the defendants to have had a contract distinctly providing for the prepayment of toll in all cases, but so would a higher toll have been even more for their [475]*475interest. We cannot presume that they intended or supposed they had made, or that they could have made, an agreement more beneficial to themselves than that actually entered into. Its provisions do not, upon any interpretation contended for here, shock our sense of fairness and justice, and our duty is to enforce them when we have determined what they are.

It will he observed that there is no express or formal covenant or promise in this agreement by the Pennsylvania Coal Company to pay a toll, and, what is more important, there is no time stated when it is to be payable. There are three measures of the amount of toll given: First, when the Delaware and Hudson Canal Company sell or contract to sell before the first day of May in any year, coal to an amount equal to at least half their estimated sales for the year. In that case the rule is that two dollars and fifty cents is to be deducted from the average price of such sales, and one-half the residue is to be the toll per ton. Second, when the Delaware and Hudson Canal Company do not make sales of coal previous to May 1 to an amount equal to one-half their expected deliveries. In this event a similar computation is to be made to ascertain the toll, but the basis is to be the average of actual sales by the Delaware and Hudson Canal Company for the year. A third case is where the Delaware and Hudson Canal Company make no sales whatever during the year. In this event the toll is to be calculated on the sales for the year of the Wyoming Association, or of their assigns, the Pennsylvania Coal Company, in the same manner as in the second case upon those of the Delaware and Hudson Canal Company.

It may be conceded that in the first of these three cases, the tolls are demandable and payable at the time of the passage of the boats. But this is not altogether on account of the use of the words, “charging and collecting” by the canal company, nor from the effect of the word “tolls” in the contract, in describing the compensation for the use of the canal. Hor can these words or phrases control the context so as to compel a payment in advance, which would otherwise be deferred. The defendants’ canal was a public highway, constructed under authority of the State, and by an exercise of its right of eminent domain, and of course open to the use of all citizens [476]*476upon making suitable compensation to the company constructing and owning it. They were authorized to exact this compensation by tolls, to be paid at the time of passing or using the locks, and not to exceed a fixed rate or amount. The charter of the company (L. 1823, c. 238, § 12) authorized them “to demand and receive” of any boat passing their canal, such tolls and rates as the managers shall think proper, at any lock or other convenient place,” but not to exceed eight cents per mile per ton for coal, and half that sum for-other loads. The next section expressly authorized the company to stop and detain every boat until the master or owner should pay the toll. The length of the canal is ninety-five miles, and the toll or charge thus given by statute would be much larger than that stipulated by this contract could probably reach.

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Bluebook (online)
3 Abb. Ct. App. 470, 1 Keyes 72, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pennsylvania-coal-co-v-delaware-hudson-canal-co-ny-1863.