R. E. E. De Montluzin Co. v. New Orleans & N. E. R.

118 So. 33, 166 La. 822, 1928 La. LEXIS 1967
CourtSupreme Court of Louisiana
DecidedJuly 2, 1928
DocketNo. 28916.
StatusPublished
Cited by14 cases

This text of 118 So. 33 (R. E. E. De Montluzin Co. v. New Orleans & N. E. R.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R. E. E. De Montluzin Co. v. New Orleans & N. E. R., 118 So. 33, 166 La. 822, 1928 La. LEXIS 1967 (La. 1928).

Opinion

OVERTON,' J.

Marie Alphonse Michoud, in 1883, was the owner of a large tract of land, in the parish of Orleans, fronting on Lake'Pontchartrain, and extending from near Little Woods to Chef Menteur. In that year defendant was building its railroad into New Orleans, and obtained a right of way 200 feet wide through the Michoud tract. In the same year, namely, on November 7, 1883, defendant acquired from Michoud, by notarial act, a narrow strip of land, 3,000 feet in. length, fronting on Lake Pontchartrain, and adjoining its right of way in the rear. The transfer of this strip was made for the sum of $500 cash, and for the following additional consideration, and upon the following terms, to wit:

“This sale is also made for and in consideration of the obligation formally assumed by said purchaser through its resident general agent, to build a station house and to locate and establish a regular station and stopping place of the said railroad company on the land herein conveyed.
“The parties hereto acknowledge and declare that the agreement for this sale was made with the understanding and on the absolute condition that the said New Orleans & Northeastern Railroad Company is buying for the purpose of erecting and establishing a permanent station and stopping place on said land, and that these presents are executed and signed under .the same condition and reservation, without which the vendor herein would not have consented to convey said property.
“And it is understood that in case the said station and stopping place should not be located and established as herein agreed upon, or if, at any time, after being established, the said railroad company should discontinue the same, tbe said vendor or his heirs and assigns will be authorized to claim and recover the property conveyed on returning the price of five hundred dollars therein paid.”

Michoud, after the foregoing act was executed, signed another act of sale, which, while it apparently included the strip conveyed by him to defendant, later on expressly excepted *825 the strip so conveyed from the sale, but which subrogated his vendee, as relates to this strip, to all of his rights and actions of every hind and nature, whether of redemption, reyersion, or rescission against defendant. This provision appears word for word in all of the transfers down to and including the one to plaintiff.

The station has not been built, nor during the 43 years that have elapsed between the date of the execution of the act, containing the provision to erect and maintain the station, and the institution of this suit, so far as appears, has any effort been made by defendant to build the station, or by Michoud or his subrogees to have defendant build it.

On December 1, 1926,'plaintiff tendered to defendant the $500 it had paid Michoud and demanded the conveyance of the property to it, but defendant refused to accept the tender. On the day following, the present suit was instituted to recover the property by reason of the failure of defendant to build and maintain the station. Chief among the defenses urged are prescriptions, both acquisitive and liberative. Defendant pleads the prescriptions of 5, 10, and 30 years, liberandi causa, and 10 and 30 years, acquirendi causa.

The provision in the contract relative to the recovery of the property in the event of the failure to build and maintain a statiqjr is properly a resolutory condition.'

Plaintiff does not question the legality of the obligation assumed by defendant, as part of the consideration, to erect and maintain a .station on the land in question. But nevertheless, before deciding the case, it is proper to inquire into the validity of that provision.

In Burney v. Ludeling, 47 La. Ann. 73, 96, 116 So. 507, it is broadly said that an agreement by a railroad to establish its stations or depots at particular points, in consideration of grants of land, was illegal, and in Louisiana Railway & Navigation Co. v. Railroad Commission, 121 La. 848, 859, 46 So. 884, which was a case in which the railroad company was seeking to establish a station at a point, where it was promised a part of the land to do so, over the protest of a large number of the residents of that locality, who desired the station located at a different point, and in whose favor the Railroad Commission had ruled, it was' also broadly said “that contracts binding the power to locate depots are against public policy,” and in the same case it was also said that a railway company, by contract with individuals, could not bind itself to maintain stations at particular points, but must be free to establish or re-establish them.

In 22 Ruling Case Law, § 90j p. 837, it is said:

“The broad rule is sometimes laid down that a railroad company has no authority to bargain away its right to locate stations in such manner as the public interests may require, and that any contract locating a station being in its nature something which might have the effect to hamper the company in the discharge of its duties to the public, every contract having for its purpose the permanent location of a station is by its very terms contrary to the policy of the law and unenforceable. * * * The view denying validity to a contract to locate a station has not, however, met with favor. On the con-' trary, the general rule is that a contract of a railroad company merely to locate a station at a given point is not per se void, but is binding upon the company so long as it is possible for the company to discharge the duties owing by it to the public and at the same time discharge the duties imposed by the contract.”

See, also, 33 Cyc., pp. 142, 177, and Atlanta & West Point Railroad Co. v. Camp, 130 Ga. 1, 60 S. E. 177, 15 L. R. A. (N. S.) 594, 124 Am. St. Rep. 151, 14 Ann. Cas. 439, and annotations thereto, published in 15 L. R. A. (N. S.) 594.

The principle under consideration is too broadly stated in the Burney and the Louisiana Railway & Navigation Go. Cases, and more broadly than there was even any occasion to state it. After mature reflection, we see no reason, why a railway company, in *827 establishing its stations, cannot acquire land in full or partial consideration of the obligation to erect and maintain a station at a particular point, whenever in doing so it does not interfere with the interests of the public in the location of the station, and whenever the contract is not inconsistent with the duty of the railroad, should that contingency arise, to re-establish the station elsewhere, when the public interests may so require, and not inconsistent with the rights of the state to determine that question. A contract merely to locate and maintain a station at a given point is not per se void.

The contract in this case recited, and nothing to the contrary appears, that the company was purchasing for the purpose of establishing a station.

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Bluebook (online)
118 So. 33, 166 La. 822, 1928 La. LEXIS 1967, Counsel Stack Legal Research, https://law.counselstack.com/opinion/r-e-e-de-montluzin-co-v-new-orleans-n-e-r-la-1928.