Sparrow v. Dixie Leaf Tobacco Co.

61 S.E.2d 700, 232 N.C. 589, 1950 N.C. LEXIS 590
CourtSupreme Court of North Carolina
DecidedNovember 8, 1950
Docket378
StatusPublished
Cited by19 cases

This text of 61 S.E.2d 700 (Sparrow v. Dixie Leaf Tobacco 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
Sparrow v. Dixie Leaf Tobacco Co., 61 S.E.2d 700, 232 N.C. 589, 1950 N.C. LEXIS 590 (N.C. 1950).

Opinion

BaeNHill, J.

The lessor railroad acquired its right of way under and by virtue of Sec. 27, Chap. 136, Laws 1852. It thus acquired and possesses nothing more than an easement for railroad purposes, with the right of actual possession of so much thereof as is necessary for the operation of its road and to carry on its business as a common carrier of freight and passengers with dispatch and convenience. R. R. v. Sturgeon, 120 N.C. 225; Shields v. R. R., 129 N.C. 1; R. R. v. Olive, 142 N.C. 257; Coit v. Owenby, 166 N.C. 136, 81 S.E. 1067; R. R. v. Manufacturing Co., 229 N.C. 695, 51 S.E. 2d 301; Anno. 94 A.L.R. 525, 149 A.L.R. 380.

It may devote the right of way to any use which is indispensable to, or which will facilitate the fulfillment of, the objects of its corporate existence as a common carrier, or which is reasonably in aid of those purposes. 44 A.J. 338. Ownership of the easement carries with it the right to use the property within the bounds of the right of way for any purpose the primary object of which is the furtherance of the business of the railroad. So long as the use to which the easement is subjected comes within this rule, the owner of the servient estate has no cause to complain, for the grant of the easement was for such purpose and constitutes a part of the dominant estate. The use, however, must be reasonably necessary for or convenient to the operation of the railroad. Hodges v. R. R., 196 N.C. 66, 144 S.E. 528; R. R. v. Manufacturing Co., supra.

*593 On the other hand, the railroad company possesses no right or authority to use or to let the property for private or nonrailroad purposes. Anno. 94 A.L.R. 524, 528, 535, 149 A.L.R. 380. It cannot erect or permit the erection of warehouses, factories, and the like, not necessarily connected with the use of their franchise, within the limits of their right of way. When property is taken for railroad purposes, the fee remains with the owner and, outside of the authorized use, the proprietary right is in the original owner. Lyon v. McDonald, 14 S.W. 261; Bond v. Ry. Co., 160 So. 406; Lance’s Appeal, 55 Pa. 16; Rock Island & P. R. Co. v. Brewing Co., 51 N.E. 572; Anno. 94 A.L.R. 528, 149 A.L.R. 378.

The reason underlying the rule which prohibits the use of the railroad right of way for nonrailroad purposes or purposes which are not primarily in furtherance of the business of the corporation as a common ■carrier is twofold:

(1) A railroad is a gtiim'-public corporation and its right to acquire ■a right of way by condemnation is founded upon the fact that the property thus acquired is to be used for the benefit of the general public. It is acquired for the public use and so its use must be confined to that purpose.

(2) To subject the property to an additional use of a private nature, not incident to or in furtherance of the operation of the railroad, imposes ■on the servient estate an additional burden for which the easement was not acquired and the owner has not been compensated.

It is argued here that the uses to which the right of way may be subjected rest within the sound discretion of the corporate authorities. But the rule is not quite so broad. While the railroad is the judge of the necessity of extending the use of its right of way, the proposed additional use must be incidental to or in furtherance of the business of the railroad as a common carrier — a gwasi-public use. Only so long as the use is in furtherance of the business of the railroad does the extent of that use rest with the railroad authorities, and the mere decision of the officers of the railroad that a proposed use is a railroad use does not make it so.

The only limit upon the use which the railroad company may make of the land within the bounds of its easement is that it shall be a use authorized by its incorporation as a common carrier. Within that limit the manner in which the land shall be used or occupied is in the discretion of the corporation. R. R. v. Lissenbee, 219 N.C. 318, 13 S.E. 2d 561; Peirce v. R. R., 141 Mass. 481. The right to use, however, is definitely limited to railroad purposes. Any use of the land for other purposes is not protected by its authority. Anderson v. Interstate Mfg. Co., 36 L.R.A. 512; Lyon v. McDonald, supra.

When the use by third parties is primarily for the benefit of the railroad as a common carrier, then it is for railroad purposes, even though *594 incidental benefits flow to the private user. On the other hand, if the use is primarily private in nature, the fact that the railroad is incidentally benefited thereby, through the acquisition of a new customer or increased shipments, does not convert it into a railroad use. Coit v. Owenby, supra; Sturgeon v. Wabash Ry. Co., 17 S.W. 2d 616; In re Chicago & N. W. Ry. Co., 127 Fed. 2d 1001; Anno. 94 A.L.R. 928; 149 A.L.R. 378.

Every new or enlarged business within a municipality served by a railroad enhances the probability of additional freight business for the railroad. Rut if the mere fact the user of railroad property is a customer, or potential customer, and the use tends incidentally to enhance the expectation of obtaining additional freight business, converts the use for private business into a use in furtherance of the business of the railroad as a common carrier, the railroad could let its right of way to all types of private enterprises to the complete exclusion of the owner of the fee. Lance’s Appeal, supra; Rock Island & P. R. Co. v. Brewing Co., supra, Anno. 149 A.L.R. 378, 94 A.L.R. 529.

The concrete question, therefore, is whether the use of the building in question as a tobacco redrying and storage plant is, under the facts agreed, a misuse of the railroad company’s easement in the land occupied by the said buildings.

A careful appraisal of the facts in the light of the controlling principles of law to which we have referred leads to an affirmative answer.

The tobacco company was already engaged in the business of processing and storing tobacco at the time it acquired the lease in question. Tobacco is stored for the purpose of curing over a period of years. Its plant was located on property adjoining the railroad right of way. It leased the property in question for the purpose of enlarging and extending its plant by the erection of an additional storage warehouse. The purpose for which the property was leased to it is spelled out in the lease contract: “The said premises shall be used for conducting a general tobacco storage and curing business.” The tobacco company did not, as in Coit v. Owenby, supra, and Anderson v. Interstate Mfg. Co., supra, contract, as a part of the consideration for the lease, to ship its merchandise, or any part thereof, over the line of defendant railroad. It is free to patronize, or to withhold its patronage from, the lessor line. All the railroad acquired in this respect was the enhanced probability of additional freight business.

The tobacco company is engaged in private business in no way connected with the railroad.

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Bluebook (online)
61 S.E.2d 700, 232 N.C. 589, 1950 N.C. LEXIS 590, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sparrow-v-dixie-leaf-tobacco-co-nc-1950.