Port of Mobile v. Louisville & Nashville Railroad

84 Ala. 115
CourtSupreme Court of Alabama
DecidedDecember 15, 1887
StatusPublished
Cited by65 cases

This text of 84 Ala. 115 (Port of Mobile v. Louisville & Nashville Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Port of Mobile v. Louisville & Nashville Railroad, 84 Ala. 115 (Ala. 1887).

Opinion

SOMEBYILLE, J.

The present bill is filed by the Louisville & Nashville Bailroad Company against the Port of Mobile to enjoin the enforcement of an ordinance of that municipality, which declared it unlawful for any person or corporation to load or unload cars in the public streets of the city, under a penalty of not less than twenty-five dollars for each and every violation of the provision. The ordinance excepts cotton, coal and ice in certain localities, but this exception has no material bearing' on the present controversy.

The bill claims for the complainant a vested franchise to exercise the right of loading and unloading freight along the line of its track constructed through Commerce street in said city, and that the enforcement of the ordinance in the manner which has been threatened by the municipal authorities, will operate as a total destruction of this valuable franchise, which the company had been peaceably exercising for about eighteen years. It is averred that the ordinance in contro[118]*118versy is the exercise of unauthorized municipal power, and is, therefore, void; and that the defendant corporation,'the Port of Mobile, is insolvent, and the public officers áhid others who have undertaken to enforce the ordinance, by the threatened arrest of the complainants’ employees, are pecuniarily irresponsible, and facts are stated from which it is made clear that the injury which will be suffered by the complainant in the abrogation of this right, and the consequent paralysis of its business, will be irreparable, and can not be recompensed by suits for damages at law.

We, first, inquire as to the origin and nature of the right ' or privilege claimed by the complainant; second, whether the ordinance in question operates as an illegal interference with it; and third, as to the jurisdiction of a court of equity'to interfere by the aid of injunctive relief.

1. The basis of the alleged right in the complainant is, a grant by the City of Mobile, in the form of an ordinance, passed in September, 18(59, for the particular purpose, as the bill alleges, of enabling the railroad to reach the stores and warehouses situated on Commerce street — this grant being made under the authority of the charter of the railroad company created by legislative enactment. The complainant, as the owner of the charter of the New Orleans, Mobile & Chattanooga Eailroad Company, is shown to be entitled to all the rights vested in that corporatipn. The charter of the latter company, enacted in November, 18(5(5, expressly authorized the construction of its road across or through any street or highway, the only limitation upon the right being that the usefulness and convenience of such street or highway to the public should not be unnecessarily or' materially impaired. Acts 18(5(5 — (57, pp. (5-15, sec. 13. An amendment to this charter, approved February 12, 18(57, contained the following provision: “That the said company is hereby authorized and empowered to obtain, by grant or otherwise, from any incorporated city or village within the State, that may be situated upon or at the intersection or termini of any of its railroads, any rights, privileges, or franchises that any of said corporated cities or villages may choose to grant in reference to the construction, maintenance and management of the railroad of said company, its depots, cars, locomotives, and its business -within the limits of such incorporated city or village, as hereinbefore named, is hereby authorized and empowered to grant to said company any such rights, privileges and franchises as it may deem proper and advisable; and [119]*119such privileges and franchises when granted to and. accepted by said company from any such incorporated city or village, shall be deemed and taken as rights, privileges and franchises vested and confirmed in said company, and not liable thereafter to be revoked, changed, injured or impaired, except with the consent of said company.” — Acts of 1866-67, p. 400, sec. 5.

That the legislature, under the general police power inherent in the State, had the constitutional power to authorize the city of Mobile to grant the right to construct a railroad track, upon which steam engines are operated, across and through the streets of that city, must be conceded. And after such permission it would lie in the mouth of no one to complain that the changed use of the street would per se be a nuisance. — Perry v. New Orleans, Mobile & Chat. R. R. Co. 55 Ala. 413.

Under the authority thus conferred in the charter of the company, the city of Mobile, on September 7, 1869, passed an ordinance by which it “granted” to the railroad the right of way through certain streets, including “also the right to lay a single track, with the necessarry sidings arid turn-outs from the northern boundary of its depot . . . through Commerce street . ■ . . in such manner as said company may deem expedient and necessary for its business and interests.”

Upon the faith of this grant the track of the road was constructed through Commerce street, with the necessary sidings and turn-outs, for the purpose of loading and unloading freight and merchandise into and from the various stores and warehouses located upon said street; and has been ever since continuously used for this purpose from day to day, without complaint or objection from any source, for a period of seventeen or eighteen years, until the attempted revocation of the ordinance in December, 1886.

The privilege thus granted is obviously' a franchise of the most valuable kind — being one of the most common examples of such a grant or privilege. — Davis v. Mayor, 67 Amer. Dec. 186, 193. It is certainly a “right, privilege or franchise” within the meaning of the company’s charter, having reference, as it does, to the construction and management of the -railroad, and the conduct of its business of transportation within the limits of the city of Mobile. Such a special privilege conferred directly by legislative enactment, or in a mode provided for by such enactment, [120]*120becomes a contract between the State and tbe corporators, and, as such, has always been protected from impairment by legislative action by virtue of both the Federal and State constitutions, each of which prohibits the passage of any law by which the obligation of existing contracts is impaired or lessened. — City of Burlington v. Burlington St. Railway Co., 49 Iowa 144, s. c. 31 Amer. Rep. 145. “A grant, in its own nature,” observes Chief Justice Marshall, in Fletcher v. Peck, 6 Cr. 87, 137, “amounts to an extinguishment of the right of the grantor, and implies a contract not to re-assert that right” — a principle which has been held in this State to be applicable to franchises lawfully granted by municipal corporations. — Stein v. Mayor &c. of Mobile, 49 Ala. 302, s. c. 20 Amer. Rep. 283. The charter itself declares, moreover, that when once granted, in the mode provided for, such privilege should become a vested and irrevocable right, not liable to be revoked or impaired in any manner. — Acts 1866-67, p. 400, sec. 5. It was not until the present constitution of 1875, now in force in this State, went into operation that irrevocable grants of special privileges, of this nature were prohibited. — Birmingham Street Railway Cases, 79 Ala. 469.

2.

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Bluebook (online)
84 Ala. 115, Counsel Stack Legal Research, https://law.counselstack.com/opinion/port-of-mobile-v-louisville-nashville-railroad-ala-1887.