Suburban Construction Co. v. Naugle

70 Ill. App. 384, 1897 Ill. App. LEXIS 542
CourtAppellate Court of Illinois
DecidedJuly 15, 1897
StatusPublished
Cited by7 cases

This text of 70 Ill. App. 384 (Suburban Construction Co. v. Naugle) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Suburban Construction Co. v. Naugle, 70 Ill. App. 384, 1897 Ill. App. LEXIS 542 (Ill. Ct. App. 1897).

Opinion

Mr. Justice Sears

delivered the opinion of the Court.

This is an appeal from an interlocutory order of the Circuit Court granting an injunction.

Appellees, as contractors, had undertaken by their agreement of Hovember 28, 1896, to construct, equip for operation by electricity, and to operate for the period of two years, a certain system of railroad known as the Suburban Eailroad Company. By the same agreement the Suburban Construction Company, one of appellants, undertook to pay appellees for such construction, services, etc., in stocks and bonds of the railroad to be constructed. Certificates of the stock were to be issued and delivered to appellees in accordance with the terms of the agreement, by S. P. Shope, as trustee.

The bonds, executed by the Suburban Eailroad Company, were to be secured by a deed of trust to the Chicago Title & Trust Company. Both stocks and bonds were to be delivered to appellees as work progressed.

The bill alleges that certain of appellants, pretending to act for the Suburban Construction Company, have declared that this contract has been abrogated by said Suburban Construction Company; and prays for the following relief:

“ That the said defendants, and each of them, their agents, servants and attorneys, may be perpetually enjoined from interfering with, obstructing, or preventing the performance of the contract of your orators with the Suburban Construction Company, dated ¡November 28, 1896, and from interfering with, obstructing or preventing the certifying, issuing and delivery of the bonds of the Suburban Railroad Company, and the beneficial certificates issued, and to be issued, by S. P. Shope, trustee, to your orators, in accordance with the terms of said contract of ¡November 28, 1896, and from interfering with, obstructing or preventing said S. P. Shope, trustee, from carrying out and executing said trust agreement of March 16, 1896, and that said Charles S. Leeds, Herbert F. Hatch, Frank E. Hall, A. B. Leeds, C. C. Chandler, James B. Yredenburgh, Lyman A. Walton and Joseph A. Duffy, and each of them, their agents, servants and attorneys, may be perpetually enjoined from acting as officers or directors of the Suburban Construction Company in any matter relating to the rights, interests or contracts of your orators with said Suburban Construction Company, or from interfering, disposing of or encumbering, moving out of the State, or otherwise disposing of the property of the Suburban Construction Company, or its books and papers, or from making any contract, agreement or settlement relating to the construction or operation of the lines of railroad' of the Suburban Railroad Company or of the lines leased from the receiver of the ¡Northern Pacific Railroad Company by said Suburban Railroad Company, and that said Suburban Construction Company, its officers, agents, directors, servants and attorneys, may be directed to immediately transfer and deliver to your orators such bonds and beneficial certificates as shall from time to time be due to your orators under and by virtue of said contract of November 28, 1896, and that your orators may have such other and further relief in the premises as to your honors shall seem meet.”

A preliminary injunction was granted. Two reasons are urged by appellants why the injunction should be dissolved:

1. It is contended that the true scope and purpose of the bill is to enforce a specific performance of the contract of Hovember 28, 1896; that this contract is lacking in mutuality of possible enforcement; that it is such a contract as must come within the rule that courts will not specifically enforce railroad building contracts, and contracts for personal services; and that the prayer for injunction, being but ancillary to the main relief sought, can not avail, if the bill fails in its main purpose.

2. That the injunction was improvidently issued, because without notice to defendants and without sufficient showing in avoidance of notice.

If the contract in question could not be specifically enforced as against the complainants, it should not be so enforced against the defendants.

■ This doctrine of mutuality seems to be well settled. In Peto v. Brighton, etc., Ry. Co., 1 Hemming & Miller, 468, the vice-chancellor says : “ This case turns upon the question how far this court can interfere where a contract provides that the plaintiffs, in consideration of certain shares and other advantages, which the company engaged to give them, were to complete the construction of some ten or eleven miles of railway. * * * How, on this the difficulty at once arises, that if I restrain the transfer of these shares, I can only do so on an undertaking, on, the part of the plaintiffs, that they will perform their part of the agreement; a submission to do so is a necessary ingredient in the bill, and it is essential that that offer should be one over which this court should have complete control. * * * If these gentlemen, being under an undertaking, express or implied, to perform this agreement, should fail in doing so, I could not place the parties in the position in which both sides intended that they should be, and I should be driven to leave the defendants, when they came here to complain of such failure, to their remedy at law. Seeing,- therefore, that no arrangement could so deal with the case as to do complete justice to both sides, I think the only proper course for this court to take, is to leave both parties to their remedies at law.”

The same rule is declared in Cooper v. Pena, 21 California, 411:

“ In respect to the remedy, therefore, there is no mutuality, and it is universally admitted that equity will not enforce a contract when the party asking its enforcement can not himself be compelled to perform it.” And in Tyson v. Watts, 1 Maryland Ch., Sec. 13 :

“ And in addition to the elements of fairness, justice and certainty, the agreement must be mutual before the power of the court to order its specific performance can be successfully invoked.” And in Duvall v. Myers, 2 Maryland Ch., Sec. 401:

“ As I understand the decision, the right to a specific execution of a contract so far as the question of mutuality is concerned, depends upon whether the agreement itself is obligatory upon both parties, so that upon the application of either against the other, the court would coerce a specific performance.” And in Waterman on Spec. Perf., Sec. 19G: “ It is immaterial what constitutes the want of mutuality, whether resulting from personal incapacity, from the nature of the contract, or from any other cause. Whenever the absence of the essential element is ascertained to exist on the part of one of the contractors, and for that reason is incapable of being enforced against him, he will be equally incapable of enforcing the contract against the other party.” And in Fry on Spec. Perf., Secs. 440-441:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Pacific Etc. Ry. Co. v. Campbell-Johnston
94 P. 623 (California Supreme Court, 1908)
Ebann v. Brown
139 Ill. App. 213 (Appellate Court of Illinois, 1908)
Goldberg v. Laughlin
137 Ill. App. 283 (Appellate Court of Illinois, 1907)
Parish v. Vance
110 Ill. App. 50 (Appellate Court of Illinois, 1903)
Board of Trade v. Riordan
94 Ill. App. 298 (Appellate Court of Illinois, 1901)
Thurston v. Chott
86 Ill. App. 543 (Appellate Court of Illinois, 1900)
Saratoga European Hotel & Restaurant Co. v. Mossler
76 Ill. App. 688 (Appellate Court of Illinois, 1898)

Cite This Page — Counsel Stack

Bluebook (online)
70 Ill. App. 384, 1897 Ill. App. LEXIS 542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/suburban-construction-co-v-naugle-illappct-1897.