Southern Ry. Co. v. Blue Ridge Power Co.

30 F.2d 33, 1929 U.S. App. LEXIS 2332
CourtCourt of Appeals for the Fourth Circuit
DecidedJanuary 14, 1929
DocketNos. 2781, 2785
StatusPublished
Cited by1 cases

This text of 30 F.2d 33 (Southern Ry. Co. v. Blue Ridge Power Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Ry. Co. v. Blue Ridge Power Co., 30 F.2d 33, 1929 U.S. App. LEXIS 2332 (4th Cir. 1929).

Opinions

WADDILL,. Circuit Judge.

These cases involve the same questions and subject-matter, that is to say, the costs of construction of a railroad bridge for the Southern Railway Company across the Green river in the state of North Carolina, on its road between Ashe-ville, N. C., and Spartanburg, S. C.; the work being in connection with the development of the power plant of the Blue Ridge Power Company at and below where the railroad crosses the Green river, known as “Site 8.”

In the first-named ease, No. 2781, an action at law was in December, 1922, instituted in the United States District Court for the Western District of North Carolina, at Charlotte, by the Blue Ridge Power Company, hereinafter referred to as the Power Company, to recover from the Southern Railway Company, hereinafter referred to as the Railroad Company, the sum of $253,924.06, being a portion of the cost of the construction of said railroad bridge and its approaches, claimed by the Power Company to be due it by the Railway Company, with interest thereon from March 24, 1920. The Power Company averred that the approximate cost of the bridge and approaches was $320,118.28,. which included the relocation and building of a mile of track, and that the Power Company •had an agreement with the Railroad Company that it was not to bear more than $66,194.32 of the expense, which, deducted from the total cost aforesaid, left the amount sued for, $253,924.06.

The Railroad Company answered, denying that it owed the plaintiff any such sum as that sued for, but averred that, on the contrary, its liability in connection with the construction of the bridge and tracks and all costs thereof was limited to $8,000, which sum the Railway Company claimed was all it had agreed to pay. The defendant Railway Company further claimed that there was due it $20,178:39 for work performed by it necessary to complete the construction agreed to be done by the plaintiff under the contract, and that there was also due it the further sum of $3,049.38, for expense incurred in the removal of the old bridge, which was also undertaken by the plaintiff.

Upon the respective claims of the parties thus stated, it will be seen that the dispute and issues in the ease arose in connection with the plaintiff’s enlarging and developing its power plant, at or near the point where the defendant’s railroad crosses the Green river, which, among other things, involved the building of a new bridge, the raising of the tracks of the defendant Railroad Company, the relocation and extension thereof, and the making of other alterations incidental thereto.

Many interviews were had between the officials of the two companies regarding the proposed work, but, as found by the trial judge, no agreement was ever actually consummated respecting the exact extent of the work to be done, or the respective proportions of costs to be borne by the parties, nor was there an actual meeting of the minds of the contracting parties in these particulars, though the District Judge found that the Railway Company, in the light of what occurred, bound itself to bear such part of the cost of construction as represented actual benefits received by the Railroad Company therefrom.

Two plans for the development were long under consideration, one of which contemplated that the Power Company should pay $66,000, and the Railway Company $8,000. This plan was, however, abandoned, and the plan of Major Wells, chief engineer of the Railroad Company, was suggested in lieu thereof. Before the Wells plan was finally [35]*35agreed upon, but after considerable work had been done thereunder by the Power Company, what was known as the Knoxville Plan was suggested and insisted upon by the Railroad Company, and substituted for the Wells proposition. In addition to this enlargement of the work, after the Railway Company had passed under federal control in January, 1918, further extensions thereof were ordered by the officials of the United States Railroad Administration, and were constructed by the Power Company under the threat by the Railroad Administration officials that the project would be abandoned and acceptance of the completed work refused by the Railroad Company unless such extensions were made to the bridge in the way indicated. The additional work involved in the substitution and adoption of the Knoxville Plan, and the construction of the extensions demanded by the Railroad Administration was performed by the Power Company under protest, as the extent and,cost of the work were thus greatly enlarged, at a time when plaintiff was in effect forced to proceed therewith, as it would have been disastrous to the Power Company to have had the work discontinued after having expended large sums on the project.

It was stipulated between the parties in writing that a jury trial be waived, and all issues submitted to the court, and that either party should have the right to have the judgment of the trial court reviewed by writ of error, as though a verdict had been rendered and judgment entered thereon. The trial court decided that, as the case involved the investigation and determination of complicated questions of fact, and lengthy accounts, a reference to a siJecial referee or auditor would greatly aid the court in reaching a correct conclusion, and accordingly so ordered; said referee’s findings of fact and law to be subject to final determination by the court.

Pursuant to the order of reference, the speeial master was duly appointed and took much testimony, and made a full and elaborate report in the case, and the learned District Judge fully considered all the questions of law and fact arising therein and made special and comprehensive findings of fact and conclusions of law in respect thereto. In his findings of law and fact the District Judge made an extended and lengthy review of the entire ease, making 69 specific findings of fact, which to set out in full would unduly lengthen this opinion. These findings, it may be said, strongly and clearly sustain his full and comprehensive summary and conclusions in regard to the issues involved between the parties on their merits, as set forth at the end of the 69 specified findings of fact, as follows:

“It will be seen from the foregoing findings of fact that there was never any contract or agreement or meeting of minds between Mr. Spencer and Mr. Law as to the amount that each should contribute towards the construction of this bridge and track relocation, and I so find. It is quite evident to the Court from all of the testimony in the ease that Mr. Spencer originally never agreed that the Railway should pay more than $8,-000 as its contribution, and it is equally evident that originally Mr. Law, for his company, never agreed to pay more than $66,000 as his company’s contribution. Mr. Spencer testified that he never agreed to pay more than $8,000, and his testimony is corroborated by his sending to Mr. Law on two different occasions the two proposed contracts in question, in each of which the Railway’s limit of contribution was set at $8,000.

“On the other hand, Mr. Law never orally or in writing agreed that his company should contribute more than $66,000 to this project, and this is shown by his own testimony to this effect, and his testimony is corroborated by his refusal to accept the first estimate of $119,000 cost as being prohibitive to his company, and further by his refusal to sign the two proposed contracts providing that the Power Company should pay all of the cost of the construction except $8,000. The truth, in my opinion, is that neither Mr. Spencer nor Mr.

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Bluebook (online)
30 F.2d 33, 1929 U.S. App. LEXIS 2332, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-ry-co-v-blue-ridge-power-co-ca4-1929.