People ex rel. Loughran v. Board of Railroad Commissioners

32 A.D. 158, 52 N.Y.S. 901, 1898 N.Y. App. Div. LEXIS 1724

Opinion

Putnam, J.:

It is urged by the learned counsel for the relators that the contract entered into- in 1881 between citizens of the city of Kingston and the Hon. Thomas Cornell,' then president of the Ulster and [161] Delaware Railroad Company, was clearly proved,- undisputed, valid and in force in 1897, and hence, that the' consent of the Railroad Commissioners that the Fair street station might be discontinued, in violation of the provisions of said contract, was improperly given.

It will be observed that the contract in question contains no provision as to how long it should continue in force. And the deed of the lot on which the station was erected contains a clause that the conveyance was made “ for the purpose of a depot building and grounds, and when it ceases to be used as such, it is to revert to the party of the first part.”

It is certainly questionable whether, under the agreement, the railroad company was compelled to continue the use of the depot in question perpetually, and whether its use for the period of fifteen years was not a performance of the contract. In Texas, etc., Railway Co. v. Marshall (136 U. S.. 393) it appeared that the city of Marshall had agreed to give to the Texas and Pacific Railway Company $300,000 in county bonds and sixty-six acres of .land, in consideration of the agreement of the company to jpermanently establish its eastern terminus and Texas office in said city, and to construct therein the main machine shops and car works of the company. Notwithstanding the word “permanently” used in the contract between the railroad company and the city, it was held that the covenant on the part of the company was performed when it had established a depot and office and operated car works and machine-shops in the city, and kept them going for eight years. It was determined that the word “ permanently ” did not mean forever, orlas ting forever.

In the contract relied upon by the relators the word “ permanently ” was not used. Nothing therein contained indicated how long the contract was intended to remain in force, or that the parties expected it to continue operative after' the lapse of fifteen years under changed circumstances and conditions. In the case cited it was said, of the contract there considered : “ It did not amount to a covenant that the company would never cease to make its eastern terminus at Marshall; that it would forever keep up the depot at that place; that it would for all time continue to have it's machine shops and car shops there, and that whatever might be the changes [162] of time and circumstances, of railroad rivalry and assistance, these things, alone should remain forever unchangeable; Such- a contract,, while we do not say that it would- be void, on. the ground of public' polióy, is undoubtedly so far objectionable as obstructing improvements and changes which might be for the public interest, and is so far a hindrance in the way of what .might be necessary for the advantage of the railroad itself and of the community which enjoyed its benefits, that we must look' the whole contract o.ver critically before we decide that, it bears such an.imperative and such a remarkable meaning.”, The language quoted was applied to a contract wherein the railroad corporation had agreed to “ permanently ” establish its eastern terminus in the. city of Marshall. In the contract under consideration the word“ permanently ” was not used, and there Avas no covenant as to how long it .should continue in force. It is certainly doubtful whether, the Ulster and Delaware Railroad Company — in 1887 —having for fifteen years complied with its covenant- contained in such -contract, was compelled to continue the use of the Fair street station.

Again, however, the contract may he construed. It is questionable whether, under all the facts and circumstances. shown, the case is one in which a performance should be enforced. (See Texas, etc., Railway Co. v. Marshall, supra, 405; Conger v. N. Y., W. S. & B. R. R. Co., 120 N. Y. 29.)

In the last case cited it was held that the enforcement of Specific performance-of a contract is discretionary,, and performance will not be decreed where it will result in great hardship to one party without any considerable benefit to the other, or in cases where the public interests Would be prejudiced thereby. Whether -this is a case where specific performance under well-settled principles should be .-awarded to the relators, depended upon questions of fact and law upon which different vie-ws might be entertained. '

The relators, therefore., asking the Board of Railroad Commissioners to determine the Aralidity and to enforce the performance of the -contract of 188.1,. the questions sought to be raised were .: Was the contract made by Mr. Cornell and certain citizens of the'city of Kingston a valid and subsisting one; did it bind the corporation to stop the trains at the Fair street station perpetually, or was it performed.by the observance of the agreement by the company for fif[163] teen years, and, under the facts and circumstances shown, were the relators entitled to enforce a performance thereof ?

Free access — add to your briefcase to read the full text and ask questions with AI

People ex rel. Loughran v. Board of Railroad Commissioners, 32 A.D. 158, 52 N.Y.S. 901, 1898 N.Y. App. Div. LEXIS 1724 (N.Y. Ct. App. 1898).

32 A.D. 158 (People ex rel. Loughran v. Board of Railroad Commissioners) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Conger v. N. Y., West Shore & Buffalo R. R. Co.
23 N.E. 983 (New York Court of Appeals, 1890)
In re Amsterdam, J. & G. Railroad
33 N.Y.S. 1009 (New York Supreme Court, 1895)
State v. New Haven & Northampton Co.
43 Conn. 351 (Supreme Court of Connecticut, 1876)