Toledo & Ann Arbor R. R. v. Johnson

21 N.W. 888, 55 Mich. 456, 1885 Mich. LEXIS 434
CourtMichigan Supreme Court
DecidedJanuary 7, 1885
StatusPublished
Cited by13 cases

This text of 21 N.W. 888 (Toledo & Ann Arbor R. R. v. Johnson) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Toledo & Ann Arbor R. R. v. Johnson, 21 N.W. 888, 55 Mich. 456, 1885 Mich. LEXIS 434 (Mich. 1885).

Opinion

Ohamplin, J.

This suit was commenced on the 24th day of February, 1879. It was brought to recover as damages the amount agreed to be paid by the terms of the following agreement:

“$100.00. Dundee; Mich., Oct. 4, 1871.
For the purpose of promoting and aiding the construction of the Toledo, Ann Arbor & Northern Railroad, and in consideration of the benefits to be derived therefrom, I do hereby pledge and agree to pay to the order of the Toledo, Ann Arbor & Northern Railroad Company the sum of one hundred dollars, payable in six months after the first cars run over the road from Ann Arbor to Toledo. Payable on or before the above time specified, without interest.
Miles B. Johnson.”

The declaration avers that jilaintiff has become, by assignment, transfer and delivery previous to the commencement of suit, the sole owner of the said contract, and all rights and benefits growing out of the same; avers that all the conditions in said contract have been fulfilled on the part of the said road and its assigns, and that the cars did run over said road six months previous to the commencement of this suit. The defendant pleaded the general issue, and gave notice of the statute of limitations; also that the contract declared on was obtained by the fraudulent representations of the agent of the Toledo, Ann Arbor & Northern Railroad Company, and also that the Toledo, Ann Arbor efe Northern Railroad Company was not, on the 4th day of October, 1871,. a corporation under the laws of this State, and has never been at any time since. The case was once before in this Court, and is reported in 49 Mich. 148.

The corporation named in the contract commenced to build the road, but before completion it was declared bankrupt in [458]*458tbe district court of the United States for the Eastern distinct of Michigan, in proceedings instituted for that purpose, and E. D. Bhnne was appointed its assignee. To prove title to the contract declared on, plaintiff offered in evidence a certified copy of a deed from the assignee in bankruptcy to Benjamin P. Crane. This was objected to for the reason that the record of a deed is not made by law evidence of the sale or conveyance of personal property, and because the said deed does not describe the contract in question or purport to convey i.t. Plaintiff then offered testimony tending to show that such a deed had been executed but had been lost, and showed by the deputy register of deeds that he recorded said deed and compared it with the record, and that the record was a true copy of said deed; and thereupon the court overruled the objection and admitted the certified copy of the deed in evidence. The plaintiff then offered a similar record of a similar conveyance from Crane to James M. Ashley, which was admitted against defendant’s objection.

This ruling of the circuit judge constitutes the ground of the defendant’s first and second exceptions. The testimony was admissible. It was material for the plaintiff to show that it had succeeded to the rights and franchises of the Toledo, Ann Arbor & Northern Bailroad Company, and had furnished the consideration upon which defendant’s promise was based, and the deeds were competent for this purpose. Although the certified copies of the deeds would not be competent evidence that the contract in question was conveyed by them, yet they were competent and admissible evidence to show that the plaintiff- was a proper person to perform 'the contract on the part of the promisee, as having succeeded to its franchises, rights and interests, and might in legal contemplation be said to be a proper party to perform it. The franchises and other property of the Toledo, Ann Arbor & Northern Eailroad Company were sold under a decree of the court of bankruptcy to Benjamin P„ Crane, and a conveyance was made by the assignee to him on the 6th day of October, 1815. Crane made no attempt to organize a railroad corporation, but on the 9th day of June, [459]*4591877, sold and conveyed all tlie property, assets and franchises so purchased by him to James M. Ashley, of Toledo, Ohio, who on the 23d day of November, 1877, filed with the Secretary of State a declaration of incorporation; and plaintiff claims that.this declaration was filed in pursuance of and was authorized by section 2 of Article I of Act 198 of the Session Laws of 1873.

The plaintiff also gave evidence tending to prove that the contract in question was assigned and delivered to Kinne under the proceedings in bankruptcy; that Kinne sold and delivered it to Benjamin P. Crane; that Crane sold and delivered it to James Ashley; and that Ashley sold and delivered it to plaintiff. This testimony was independent of the several deeds before mentioned, and was sufficient to create an equitable assignment of the contract and to authorize the plaintiff as equitable assignee, to maintain a suit upon if in its own name. How. Stat. § 7344; Cook v. Bell 18 Mich. 387; Draper v. Fletcher 26 Mich. 154. Plaintiff also showed that at the time this suit was commenced it was a corporation doing business in this State.

The plaintiff then gave evidence tending to show demand by the plaintiff upon the defendant for the sum claimed by the plaintiff upon said contract, after the road had been in operation six xnonths from Ann Ai’bor to the State line and city of Toledo, in Ohio, and that the payee named in said contract expended about twenty per cent, of its capital stock in grading and preparing the line of the road and in the purchase of ties, before it was declared bankrupt, and that the road as finally built from the State line to Ann Arbor, was constructed by plaintiff upon the identical line as originally ' surveyed and located by the Toledo, Ann Arbor & Northern Railroad Company, and was coxnpleted on the 18th day of May, 1878, and that the said road has since been and now is operated as a railroad between said points, and on the 8th day of July thereafter commenced running regular trains of cai-s over the entire road between Toledo and Ann Arbor, and doing a regular freight and -passenger business, and at the time of the beginning of this suit, and for some [460]*460time before, the plaintiff was doing business in Michigan as a railroad corporation, running cars in. that name under the laws of the State of Michigan.

The defendant introduced in evidence a certified copy of the articles of incorporation of the Toledo, Ann Arbor & Northern Railroad Company, dated the 23d day of October, 1869, and filed in the office of the Secretary of State on the 26th day of November, 1869. The termini named in the articles were “some point on the line of the states of Ohio and Michigan, in the county of Monroe, at or near the northern terminus of the Toledo & Northern Railroad” and Owosso, in Shiawassee county. We do not consider it necessary to discuss the question of the legality or regularity of the incorporation of the plaintiff. As was stated when this case was before this Court on a former occasion, such question could not be raised between these parties, and could only be inquired of by the State. The question is not an open one since the rulings of this Court in the cases of Toledo & Ann Arbor R. R. Co. v. Johnson, 49 Mich. 148; Wilcox v. Toledo etc. R. R. Co. 43 Mich. 584; Detroit, L. & L. M. R. R. Co. v. Starnes 38 Mich. 698; Michigan M. & C. R. R. Co. v. Bacon 33 Mich. 467.

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Cite This Page — Counsel Stack

Bluebook (online)
21 N.W. 888, 55 Mich. 456, 1885 Mich. LEXIS 434, Counsel Stack Legal Research, https://law.counselstack.com/opinion/toledo-ann-arbor-r-r-v-johnson-mich-1885.