Reter v. Davenport, Rock Island & North Western Railway Co.

54 N.W.2d 863, 243 Iowa 1112, 35 A.L.R. 2d 1306, 1952 Iowa Sup. LEXIS 549
CourtSupreme Court of Iowa
DecidedSeptember 16, 1952
Docket48017
StatusPublished
Cited by26 cases

This text of 54 N.W.2d 863 (Reter v. Davenport, Rock Island & North Western Railway Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Reter v. Davenport, Rock Island & North Western Railway Co., 54 N.W.2d 863, 243 Iowa 1112, 35 A.L.R. 2d 1306, 1952 Iowa Sup. LEXIS 549 (iowa 1952).

Opinions

[1115]*1115Smith, J.

On February 12, 1947, defendant and Clinton Industries, Inc., united in an application to tbe Iowa State Commerce Commission for a certificate of necessity permitting condemnation of a sixty-foot right of way over plaintiffs’ premises for additional switching and storage trackage to the Clinton Industries plant pursuant to chapter 481, Iowa Code 1946 (1950) I.C.A. (All Code citations refer to this Code.)

Over objections by plaintiffs and after due notice and hearing the commission (June 17, 1947) ordered that a “Certificate of Authority to condemn real estate be issued * * * certifying that the parcel of land * * * is essential for railroad purposes in connection with the providing of an industrial service track to the Clinton Industries, Inc., Clinton, Iowa.” Any taking for “storage track” was denied and the width of the proposed right of way accordingly limited to thirty feet instead of sixty as asked.

Thereafter defendant instituted condemnation proceedings under the provisions of Code chapter 472 and the amount of the resulting award ($4500) was deposited with the sheriff. Plaintiffs’ petition on appeal to the district court, August 15, 1947, named both defendant railway company and Clinton Industries as defendants.

After a long and involved series of procedural moves— motions, rulings and amendments to and recasting of pleadings— plaintiffs, on March 9, 1950, filed a “second amended and substituted recast petition” naming defendant railway company as sole defendant. Count I (our only concern here) prays that both the proceeding before the commerce commission and the subsequent condemnation proceeding “be voided and held to be of no force and effect in that it be adjudged there was and is no necessity for the condemnation of plaintiffs’ said property.” It also alleges the proposed taking “was.intended for purely private and not for public use.”

The matter went to hearing August 14, and 15, 1950, on defendant’s application (under rule 105, Rules of Civil Procedure) for “determination of points of law” raised in plaintiff’s Count I. After some discussion among court and attorneys as to the issues and the nature of the hearing — whether de novo or otherwise— the weight to be given the commission’s ruling and certificate of [1116]*1116necessity, tbe admissibility of extrinsic evidence and tbe burden of proof, tbe court, with apparent approval of counsel, expressed a tentative opinion that two- issues were bere presented, one constitutional and- tbe other the validity of the commission’s action under the evidence presented before it. To this plaintiffs’ counsel added “one other related question * * * whether or not the land being condemned bere is for private or for public purposes.”'

Plaintiffs offered a transcript of the commerce commission hearing and the various objectors’ exhibits in connection therewith. Defendant offered the commission’s decision, order and certificate of authority or necessity and the blueprints submitted by defendant railway company and Clinton Industries at the héaring before the commission.

In addition plaintiffs called witnesses to show there was no necessity for the proposed taking and that it was in fact for a private and not a public purpose. The testimony was received subject to objection as in equity.

The trial court voided the- condemnation proceedings, squarely holding the proposed taking of plaintiffs’ property was for a 'private use and therefore rmconstitutional, and that it was unnecessary to determine the question of necessity or the admissibility of testimony'on that point. Defendant appeals from the decision. The adequacy of the award (Count II) has not yet been litigated.

I. An' extensive statement of the physical facts is unnecessary. Clinton Industries, Inc. (now Clinton Foods, Inc.) was and is a large industrial concern engaged in processing corn and manufacturing various food products from com and soybeans. Its plant is located in Clinton along a branch of the Mississippi River known as Beaver Slough.

Plaintiffs own a smaller area also hying along Beaver Slough, and surrounded on all other sides by the Clinton Industries property. Plaintiffs’ property was originally used in the conduct of a business of selling wood and ice and more recently coal. There is testimony they were contemplating sale of gravel to be brought up the Beaver Slough from other land owned by them farther downstream.

Both Clinton Industries and plaintiffs were served by spur tracks of the defendant railway company but Clinton Industries [1117]*1117bad, in 1946, planned an extensive enlargement and rearrangement of its plant to meet its expanding business. The company claimed its then existing track connection with defendant was inadequate. The planned new right of way crossed plaintiffs’ premises. Hence the joint application to the commerce commission and the long litigation leading to this appeal.

II. The power of eminent domain is inherent in the sovereign state and is not dependent on express constitutional grant. 29 C. J. S., Eminent Domain, section 2. The right to exercise the power is delegable to railroads because the use to which they devote the property is inherently public. Stewart v. Board of Supervisors, 30 Iowa 9, 19-26, 1 Am. Rep. 238; 29 C. J. S., Eminent Domain, section 37.

Code section 481.3 authorizes a railroad to acquire necessary light of way “by condemnation or purchase” for “a reasonably adequate and suitable spur track * * * required for the successful operating of any existing * # * industry.” It expressly provides “No such track is required to be constructed until * * * the state commerce commission, after hearing, shall have declared the same to be necessary.” There are some other qualifying provisions not material here.

Later sections (481.4, 481.5 and 481.6) provide that the one “primarily to be served” may be required to pay the cost of acquisition and construction. Section 481.7 furnishes a method by which the one “primarily to be served” may go to the commerce commission, which “after reasonable notice to the railroad company shall investigate and determine all matters in controversy and make such order as the facts * * * will warrant.” Section 481.8 provides that any subsequent user of the track shall repay “the one primarily to be served” an equitable proportion of the primary cost “to be determined by the commission.”

In addition to these provisions of chapter 481, Code section 471.6 gives railroads the right to condemn for general railroad purposes and section 471.9, subsection 2 expressly authorizes condemnation for purposes of acquiring right of way for spur track:

“Any such corporation * * * may, by condemnation or otherwise, acquire lands for the following additional purposes: * * *

[1118]*1118“2. For the purpose of constracting a track or tracks to any * * * manufactory, warehouse, or mercantile establishment.”

The provisions of Code chapter 481 clearly purport to authorize condemnation by a railroad company of right of way for a spur track even though it be originally intended to serve but one private industry. Code section 481.7 surely contemplates that a reluctant railroad could be compelled, upon application to the commission, to acquire such right of way in an appropriate case. Chicago & N. W. Ry. Co. v. Ochs,

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Bluebook (online)
54 N.W.2d 863, 243 Iowa 1112, 35 A.L.R. 2d 1306, 1952 Iowa Sup. LEXIS 549, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reter-v-davenport-rock-island-north-western-railway-co-iowa-1952.