Southern Investment Co. v. Postal Telegraph-Cable Co.

72 S.E. 361, 156 N.C. 259, 1911 N.C. LEXIS 169
CourtSupreme Court of North Carolina
DecidedOctober 18, 1911
StatusPublished
Cited by10 cases

This text of 72 S.E. 361 (Southern Investment Co. v. Postal Telegraph-Cable Co.) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Investment Co. v. Postal Telegraph-Cable Co., 72 S.E. 361, 156 N.C. 259, 1911 N.C. LEXIS 169 (N.C. 1911).

Opinion

Hoke, J.

On tbe trial it appeared that, on or about 1 February, 1909, plaintiff, a corporation “owning and operating a *261 telephone line and system” into and ont of New Bern, Washington, Farnrville, and Greenville, N. 0., being desirous of extending the same to Wilson and Ealeigh, N. 0., and intermediate points, entered into negotiations with defendant corporation, with a view of securing a right or license to use, for the purpose indicated, a line of poles to said points, placed along the right of way of the Ealeigh and Pamlico Sound Eailroad Company, and in which defendant had acquired an interest by contract with the latter company, and, on 1 May, 1909, a written contract, properly executed, was made between plaintiff and defendant, by which said defendant, in consideration of $376 per annum, payable semiannually in advance, granted to plaintiff, termed in the contract licensee, the right to attach to said poles along said route two wires, to be used only as telephone wires and for no other purpose, together with necessary brackets, insulators, etc. This agreement contained a further stipulation to the effect that the same could be terminated by either party on giving to the other thirty days written notice of such intent, and, in which case, the licensee should have the privilege of removing said wires, fixtures, etc.

It appeared, further, that the interest of defendant company, a corporation doing a telegraph business, was acquired and set forth in a written contract, duly executed, entered into between said defendant and the Ealeigh and Pamlico Sound Eailroad Company in August, 1905, by which the two contracting parties were to own said poles as tenants in common for twenty-five years, and on termination of the contract the telegraph company had the right to remove the wires and fixtures placed by that company, and the poles and such wires as the railroad company had placed to be and remain as the property of the railroad. This latter contract contained express provision for two wires to be used in the telegraph business, with the right and privilege of either to place additional wires and fixtures thereon as the said business might require, and also made minute specifications as to user of said wires in doing telegraph work for railroad business and for the general public and as to the different duties and burdens imposed upon the two contracting parties in the operation and maintenance of the line.

*262 It was further made to appear that the rights and interests of the railroad company in the railroad, its franchise, the right of way and the said poles thereon, were subsequently acquired and held by the Norfolk and Southern Railway, which last mentioned road, by proceedings had, was, at the time of the alleged breach of contract between plaintiff and defendant and at the time same was made, in the hands and control of receivers appointed by the Federal Court.

There was evidence on the part of plaintiff tending to show that as soon as the contract between plaintiff and defendant had been duly made and executed, payment of the first installment of rent having.been postponed by mutual consent of the parties, the plaintiff proceeded to purchase and distribute along the railroad line the necessary equipment and material to construct the plant and install the telephone system as contemplated and provided by the contract, and made an effort to affix the# wires to the poles, when it was interfered with and the work stopped by the receivers, claiming the right to do so, and plaintiff was forced to give over its purpose and dispose of the material purchased at considerable loss.

On this question, H. Susman, a witness for plaintiff, testified that the material and equipment, having been purchased, was fitted for the line to Wilson and Raleigh, could not be used on the portions of line already constructed, and he was forced to sell it at considerable loss, which, with the freight paid for its delivery along the route and preliminary work, reasonable and necessary in preparation, amounted to $1,398. It appeared further, that the receivers were resisting the right of defendant company to any other or further use of the poles, and had filed a petition in the cause, praying that the road be relieved of the stipulations of their contract with defendant, and, further, that when if was disclosed that the action of the receivers would operate to prevent plaintiffs from exercising the rights and privileges granted in the contract between plaintiff and defendant, said defendant, on 9 June, 1909, gave due notice in writing that it elected to terminate its contract in thirty days from said date, etc.

*263 On these, the controlling facts relevant to the inquiry, the defendant assails the validity of plaintiff’s recovery, contending: (1) That no breach of contract has been shown; (2) in any event, the damages should be only nominal. But in our opinion, neither position can be sustained. Undoubtedly, as insisted on by defendant, it is a correct general proposition that, in the absence of specific stipulation, where one has entered into the enjoyment of a right conferred by contract, an interference with such enjoyment on the part of a tort feasor is not imputable to the grantor. The authorities cited by defendant are apt in support of that position. Hurest v. Marx, 67 Mo. App., 418; Moore v. Webber, 71 Pa. St., 429; Underwood v. Birchard, 47 Vt., 305. But no such case is presented here. On the contrary, it appears that the receivers of the railroad are contending that the road should no longer be bound in any way by the terms of the contract between the defendant and the railroad, and have filed a petition that the same be set aside. But, without reference to the ultimate determination of the questions involved in that proceeding, and assuming that the defendant’s position is sustained and that their contract with the railroad holds, we find nothing in it which confers upon defendant the right to make the contract upon which plaintiff has brought suit. A perusal of that agreement will disclose that, under its provisions, this defendant and the railroad, or its successors and assigns, became tenants in common of these poles for the term of twenty-five years, for the purpose of operating a telegraph system along this route, to serve both the generál public and the railroad company. Specific stipulation is made for two wires, in the first instance, and the right and privilege of either of contracting parties to. affix additional wires as its business might require, interchangeable duties and burdens are provided for between the contracting parties, in reference to the operation of the system and the maintenance and repair of the line, its wires and fixtures, etc. In such case, and in the absence of specific provision conferring the power and without permission given by its cotenant, the defendant had no right to grant to plaintiffs, in furtherance of a disconnected and separate business, the privilege of affixing two telephone *264 wires to these poles and of imposing this additional burden upon the owners. Murray v. Haverty, 70 Ill., 318; Marshall v. Trumbull, 28 Conn., 183; Hutchinson v. Chase, 39 Me., 509; 4 Kent’s Commentaries, pp. 508-513. In Hutchinson’s case, supra, Bice, J.,

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Bluebook (online)
72 S.E. 361, 156 N.C. 259, 1911 N.C. LEXIS 169, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-investment-co-v-postal-telegraph-cable-co-nc-1911.