Pullman's Palace Car Co. v. Central Transportation Co.

171 U.S. 138, 18 S. Ct. 808, 43 L. Ed. 108, 1898 U.S. LEXIS 1593
CourtSupreme Court of the United States
DecidedMay 31, 1898
DocketNos. 141 and 496
StatusPublished
Cited by189 cases

This text of 171 U.S. 138 (Pullman's Palace Car Co. v. Central Transportation 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
Pullman's Palace Car Co. v. Central Transportation Co., 171 U.S. 138, 18 S. Ct. 808, 43 L. Ed. 108, 1898 U.S. LEXIS 1593 (1898).

Opinion

Mr. Justice Peckham,

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

The motion to dismiss the appeal in this case is now before the court.

Counsel for the Pullman Company took the appeal directly from the Circuit Court to this court on the theory that the case involved the construction or application of the Constitution of the United States, because of the holding of the court below- that the cause of action alleged by the Central Company in its cross-bill was, under the circumstances, a proper subject of equitable cognizance, and counsel claimed it was really nothing but a legal cause of action in regard to which the cross-defendant was entitled to a trial by jury under the Constitution of the United States. There being room for doubt in regard to the soundness of such contention, the counsel also took an appeal to the Circuit' Court of Appeals, and we think that by this action he did not waive any right of appeal which he would otherwise have had.- Whichever route may be the correct one, either directly from the Circuit Court or through the Circuit Court of Appeals, it is unnecessary to decide, because the case is now properly before us either by appeal or by writ of certiorari, and we therefore proceed to determine it upon the merits.

The Pullman Company, complainant in the original suit, insists that it had the right to discontinue that suit at its own-cost before any decree was obtained therein, and the refusal of the court below to grant an order of discontinuance upon its application is the first ground of objection to the decree herein.

The general proposition is true that a complainant in an *146 equity suit may dismiss his bill at any time before the hearing, but to this general proposition there are. some well recognized exceptions. Leave to dismiss a bill is not granted where, beyond the incidental annoyance of a second litigation upon the subject-matter, such action would be manifestly prejudicial to the defendant. The subject is treated of in Detroit v. Detroit City Railway Company, in an opinion by the Circuit Judge, and reported in 55 Fed. Rep. 569, where many of the authorities áre collected, and the rule is stated substantially as above. The rule is also referred to in Chicago & Alton Railroad v. Union Rolling Mill Co., 109 U. S. 702.

Froni these cases we gather that there must be some plain, legal prejudice to defendant , to authorize a denial of the motion to discontinue; such prejudice must be other than the mere prospect of future litigation rendered possible by the discontinuance. If the defendants have acquired some rights which might be lost or rendered less efficient by the discontinuance, then the court, in the exercise of a sound discretion, may deny the application. Stevens v. The Railroads, 4 Fed. Rep. 97, 105. Unless there is an obvious violation of a fundamental rule of a court of equity or an abuse of the discretion of the court, the decision of a motion for leave to discontinue will not be reyiewed here.

Upon an examination of the facts relating to the motion, we think the Circuit Court was right, in the exercise of its discretion, in denying the same. The original bill was framed really on two theories: One, that by reason of an election made under the eighth clause in the lease, the Pullman Company' had terminated the lease, and it was therefore bound under its provisions to return the property which it had received from thé Central Company. ' It stated in its bill the impossibility of returning a large portion of the property which it had received; it announced its willingness to make substantial performance of its contract contained in the lease, and it asked the court to aid it therein by decreeing exactly what it should do for the purpose of carrying out equitably and fairly its obligations incident to its termination of the lease under the clause above mentioned. The other theory rested upon what *147 was a substantial allegation of the invalidity of the lease as having been made without authority of law, and therefore in violation of the corporate duties of the Central Company, and on that account hot enforceable against the Pullman Company beyond the obligation of the latter company to make return of just compensation for the property demised. Upon that theory the bill asked, not that the court should set aside or cancel the lease, but that it should aid the parties by decreeing just what relief should be given by the complainant .to the lessor in the execution of its duty to make Some compensation for the property it received and which it stated its willingness to make, and to that end, that an. accounting might be had and the amount ascertained that should be paid to -the Central Company in discharge of the obligations of the complainant in that behalf. Thus the Pullman Company came into a court of equity and in substance alleged that the lease had been terminated by it under the eighth clause, and.it also alleged that the lease was void as- ultra vires, and in either event it tendered such relief as the court might. think. was proper and fair under the circumstances.

A large amount of proof had been taken under the issués made in this original bill and the answer thereto, and before the case was concluded the decision of this coiirt was made in which the lease was declared to be void. The only obligation left under the original bill of complainant after the decision of this court, was the obligation to return such portion of the property received by it as the court should determine to be right, or to make some compensation to the Central Company for the same. And this obligation it had offered in the original bill to carry out. ■ ■

The Pullman Company had also obtained an injunction in the original suit, restraining the Central Company from commencing further legal proceedings to recover rent under the lease, and after obtaining this injunction and taking the testimony relating to the subject-matter of the original bill, the complainant should not be permitted under these circumstances to dismiss that bill and thus withdraw the whole ■case from the jurisdiction of the court, and thereby blot out *148 its tenders of relief contained in its original bill grounded, among others, upon the allegation that the lease was void, and asking th.e aid of the court to decree the precise terms upon which its obligations to the Central Company might be fulfilled.

The denial of the motion was made in connection with the application of the Central Company to file a cross-bill in which it would seek to avail itself of the tenders made by the Pullman Company in the original bill. Such an application for leave to file a cross-bill seeking affirmative relief while at the same time availing itself of those tenders of relief made by' the original complainants, would furnish additional ground for the exercise.of the discretion of the court in refusing to grant the application for leave to'discontinue. We think there was no error committed by the court below in refusing the leave asked for. -

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Bluebook (online)
171 U.S. 138, 18 S. Ct. 808, 43 L. Ed. 108, 1898 U.S. LEXIS 1593, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pullmans-palace-car-co-v-central-transportation-co-scotus-1898.