South Carolina & Georgia Railroad v. Augusta Southern Railroad

36 S.E. 593, 111 Ga. 420, 1900 Ga. LEXIS 554
CourtSupreme Court of Georgia
DecidedJuly 13, 1900
StatusPublished
Cited by13 cases

This text of 36 S.E. 593 (South Carolina & Georgia Railroad v. Augusta Southern Railroad) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
South Carolina & Georgia Railroad v. Augusta Southern Railroad, 36 S.E. 593, 111 Ga. 420, 1900 Ga. LEXIS 554 (Ga. 1900).

Opinion

Lewis, J.

This case was before this court at the October term, 1898, and is reported in 107 Ga. 164. The contract upon which the plaintiff’s action wasbased isset forth fully in that volume; which renders it unnecessary to copy the same again in the report of the case now before us. After that decision, when the case came on again to be heard before the court below, a motion was made by defendant’s counsel orally to dismiss the petition (“ the Supreme Court of Georgia having held that said petition did not presentany grounds for equitable relief ”),on thegrounds, first, because there were no proper pleadings to support an action at law; second, because a legal cause of action is not set out. The court after argument took the motion under advisement, and on January 16, 1900, rendered judgment refusing [422]*422said motion to dismiss. On this judgment of the court error is assigned in the bill of exceptions.

1-3. It was simply decided in this case, when it was first here, that the contact entered into by these railway corporations was one of lease and not of partnership, and did not establish any trust relations between the parties thereto. The petition seems to be mainly in the form of an equitable proceeding. It was evidently filed under the uniform procedure act of 1887, now embodied in the Civil Code, § 4937. The petition prayed for a decree declaring the lease forfeited, for damages, for a receiver pending the litigation, for an accounting, and for general relief. At the first preliminary hearing had in the case, the trial judge appointed receivers to take charge of the road and operate it- until final decree. The lessee excepted to that decision, and the case was brought here for review. In order to obtain the equitable relief sought in the petition, it was contended that, under the contract between the parties, a partnership was created, or at least a trust relation existed between them, and, therefore, equity had jurisdiction. This court held that that was not a correct construction of the contract, and, therefore, equity had no jurisdiction to grant the relief sought; and inasmuch as the judgment excepted to granted equitable relief purely, it was reversed. This court, however, did not decide, nor is there any such intimation in the opinion written by Chief Justice Simmons, that the petition set forth no valid cause of action at law. On the contrary, at the conclusion of the opinion, it was recognized that under our system legal and equitable causes may be joined in one action; yet if the petition contain no equitjq the court can not award equitable relief. The - further idea is conveyed in the decision in that case that the plaintiff’s petition was predicated solely upon matters over' which courts of law have jurisdiction. This court has not held, therefore, that no cause of actioir whatever was set forth in this case; but simply that the facts alleged did not entitle the plaintiff to the equitable relief-sought. The decision was to the effect that the plaintiff made a case at law only, and was not entitled to the extraordinary remedy of a receiver. ‘ We think it a well-established doctrine, b}r the decisions of this court, that a petition brought under the uniform procedure act of 1887 may em[423]*423brace both equitable and legal causes of action; but, because the equitable rights prayed for are denied, it does not follow that the legal rights set forth will not be enforced. We will, therefore, consider briefly the main question involved in the present issue before us, as to whether or nota legal cause of action is set forth in plaintiff’s petition upon which the court can grant adequate relief in law.

We call attention to that provision in the contract which is set forth in the petition to the following effect: “In case the South Carolina Company shall at any time fail to pay such sums of money as may be payable by it to the Augusta Company, when the same shall have become payable according to the terms hereof, and such default shall continue thirty days after written demand for payment of the same, or shall fail to perform any other covenant herein, and such default or failure to perform shall continue for thirty days after written notice requiring such performance, then and in every such case it shall be lawful for the Augusta Company, at its option, to re-enter into and upon its said line of railway and other property hereby leased, and every part thereof, and take possession thereof and have and hold such property, together with all additions and improvements which shall have been made to the same, and all the right, title, and interest whatsoever of the South Carolina Company in and to said property shall upon such reentry thereupon wholly cease and determine.” Among the charges in the petition it was alleged that the covenant under Article II of the contract was violated by the defendant, in that the rolling-stock and engines of the company had been allowed to get out of repair and run-down without renewing the same, and are in such condition that the business handled has to be done at greatly increased cost and risk to the company; and, in addition to this, good engines and coaches from the Augusta Southern have been taken and put on the main line of the South Carolina & Georgia Railroad and inferior engines and coaches substituted for them, which were unfit for hauling and handling the business of the Augusta Southern to advantage and with economy and safety, etc. The petition also alleges that the agreement under Article III of the contract has been violated, in that the defendant has failed to keep said accounts [424]*424therein mentioned in the manner required, and has failed to' keep the same open at all times to the inspection of the officers' of the Augusta Company, and has failed and refused them the privilege of taking copies and memoranda of them, though so requested to do by petitioner and its officers duly appointed for that purpose; that defendant failed to furnish to' the president of the Augusta Company, on the 15th day of September, 1897, and 15th day of March, 1898, a complete statement,' as stipulated for, of all the receipts and disbursements received and paid out for the Augusta Company, during the preceding current half years ending June 30 and December 31 respectively; that defendant failed to furnish such a statement at other times, when the same was called for by resolution of the board of directors of the Augusta Company, and failed in compliance with such resolution to submit to the inspection of persons designated by said board vouchers which said board asked to be inspected, in connection with the statement of accounts in the traffic department; and failed and refused to allow said persons so designated to take memoranda and copies thereof, to the injury and damage of petitioner-dollars.

There were a number of other breaches of the contract alleged against the defendant just as specifically as we have pointed out in the above cases; for instance, in charging a higher rate of interest than was agreed upon for carrying the floating indebtedness of plaintiff company, as provided for in Articles IV, V, VI, and VII of the contract; and by charging interest hot paid on bonds. And again, for violating the agreement in Article VIII to make fair and just division of freight and passenger rates; and also by violating a provision in the same article by charging expenses of agents working for both roads, and by allowing the plaintiff to have no voice in fixing insurance upon its property.

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Bluebook (online)
36 S.E. 593, 111 Ga. 420, 1900 Ga. LEXIS 554, Counsel Stack Legal Research, https://law.counselstack.com/opinion/south-carolina-georgia-railroad-v-augusta-southern-railroad-ga-1900.