Taylor v. Florida East Coast Railway Co.
Taylor v. Florida East Coast Railway Co.
Opinion of the Court
— The cause of action alleged is, in brief, that Fred F. Taylor and the appcriee in 1892, entered into an agreement by which in consideration of the conveyance of certain described lands by Taylor to defendant on which to build a portion of defendant’s main line, and also a designated spur track, “Y,” depot and platforms, at Rockledge, Florida, and the payment 1 - Taylor of $2,500.00 towards the erect, on of the track and depot, and the idease of claims for damages amounting to $2,500.00 to the defendant by Taylor, the defendant agreed to construct a “Y,” and a spur track from its main line to a point near where a hotel owned by Taylor was being re-constructed, to erect a depot and platform ■there and to maintain said spur track, depot and platforms at said point, and to operate all its regular passenger trains upon the spur track to the depot during what is known as the winter tourist season in that locality; that the defendant constructed the spur track and erected the depot; that Taylor was in possession of said land and ■on said understanding and agreement permitted defendant to construct its track upon the land, and to take possession thereof under said understanding and agreement; that relying upon said agreement and the great advantages to accrue therefrom and from1 the construction of the spur track near his hotel on Indian River then being re-constructed, said Taylor changed his plans from simply reconstructing the then existing hotel and built a large,
Upon the application for a temporary injunction on bill and evidence the complainants filed several affidavits and other evidence in support of the allegations of the bill. The defendant presented a time card schedule of its passenger trains and also an affidavit of its general manager stating that defendant did not agree with Fred. F. Taylor to permanently and perpetually maintain the spur track constructed by it into the Rockledge hotels, regardless .of the exigencies of its future business or the interests of the public interested in the operation of such railroad, 'but simply to “maintain said
In a proceeding for the specific performance of a contract a temporary injunction will not be granted unless the allegations of the bill of complaint warrant a decree of specific performance, nor unless it also appears that an injunction is appropriate and just. Knox v. Spratt, 19 Fla. 817. The granting or denying of a temporary
The allegations of the bill of comp’aint are, as shown herein, prima facie sufficient to warrant a decree of specific performance.
The matters set up in the affidavit offered by the defendant, if available to it, are not sufficient as a defense under the facts as they now appear. If the public interests in the service being rendered by the defendant railroad company as a common carrier would be injuriously affected by a performance of the agreement made between the railroad company and Fred. F. Taylor, or by an observance of the conditions of the deed conveying the land to the defendant, relief from the contract should be sought by the proper plaintiff in the courts.
It is the duty of a common carrier railroad corporation to have regard for the rights of the public in the service it engages to perform under the franchises the state permits it to use primarily for the benefit of the public. This requirement embraces the duty to render a service adequate to meet all the just requirements of the public, including reasonable dispatch, 'convenience/ regulaiiity and promptness in the transportation of passengers, provision and maintenance of adequate depot facilities suited to the business and convenience of the communities along the load, and the performance of the duties^and the rendering of the service due to the public, without unjust discriminations of any character as to persons, localities or conditions. This duty, however, does not relieve the corporation from its contract obligations to individuals
If the defense interposed here can avail the defendant in this proceeding, the proofs in this case do' not clearly show that the substantial interests of the public are necessarily, directly and materially affected injuriously. The running of all passenger trains into the depot near the hotel was continued for years, and there is ample and undisputed testimony that the public in and around the town of Rockledge was better served by the depot near the hotel than at the new point. It does not appear that through travel on the main line of the railroad was unreasonably hindered and delayed by operating the passenger trains into the depot over the spur, or that any public authority or any part of the public has complained of inconvenience occasioned thereby, or
The defendant appears to have asked for and received in kind the property and advantages from the complainants under the contract and promised in consideration thereof to perform its'stated undertakings. Relying upon the promise of defendant, Taylor incurred great expenditures and is damaged by the defendant’s breach in a way that cannot be adequately compensated in damages. Under the facts alleged it is prima facie equitable that the complainants should have the benefit of a performance by the defendant of the agreement on its part in the manner and to the extent agreed on, at least in the absence of a proper showing of superior rights of the public against the corporation as a common carrier.
The contention that the contract of the defendant with the complainants had been fully performed cannot be sustained. The agreement and consideration for the deed was “to maintain said spur track, depot and platform, and to operate all its regular passénger trains upon said spur tracks to said dépot during what is known as
The prayer for an injunction to restrain the defendant from running its trains over the portion of its main line built on the land conveyed to the defendant by the complainant should be denied in view of the rights of the public to transportation service over the main line of the railroad. See Pensacola & A. R. R. Co., v. Jackson, 21 Fla. 146.
The grounds of the demurrer to the bill of complaint are: (1) No equity; (2) adequate remedy at law; (3) full performance of the contract by the defendant.
The granting or denial of equitable relief for the specific performance of a contract rests within the sound judicial discretion of the court, and such discretion is controlled by the established principles of equity applicable to the facts of each case. See Asia v. Hiser, 38 Fla. 71, 20 South. Rep. 796; 20 Ency. Pl. & Pr. 389 et seq; 3 Page on Contracts, § 1624 et seq.
Courts of equity will not enforce the specific performance of a contract where the remedy at law by ac
While equity will not ordinarily decree the specific performance of contracts requiring continuous acts involving skill, judgment and technical knowledge, contracts relating to the operation of railroads have been specifically enforced in a number of cases. Where a railroad company in consideration of the conveyance to it of land, makes a reasonable agreement to perform' in return for such conveyance certain service that is fairly within its corporate powers and purposes and that is not essentially inconsistent with the company’s duty to the general public, such agreement, if not otherwise illegal or unenforcible, will be specifically enforced in equity upon proper allegations and proofs. See 6 Pomeroy’s Eq. Jur. §761; Union Pac. R. Co. v. Chicago, R. I. & P. Co., 163 U. S. 564, 16 Sup. Ct. Rep. 1173, S. C. 2 C. C. A. 174, 51 Fed. Rep. 309, 47 Fed. Rep. 15; Schmidtz v. Louisville & N. R. Co., 101 Ky. 441, 41 S. W. Rep. 1015, S. C. 38 L. R. A. 809; Joy v. St. Louis, 138 U. S. 1, 11 Sup. Ct. Rep. 243; Prospect Park & C. I. R. Co. v. Coney Island & B. R. Co., 144 N. Y. 152, 39 N. E. Rep. 17; Hood v. North Eastern Ry. Co., 8 L. R. Eq. Cases 666; Murray v. Northwestern R. Co., 64 S. C. 520, 42 S. E. Rep. 617; Lawrence v. Saratoga Lake R. Co., 36 Hun. 467; 2 Current Law 1682.
The bill 'of complaint alleges in direct terms an agreement between Fred. F. Taylor and defendant, underwhich 'Taylor was to convey to defendant particular lands
When the grantee accepts a deed and enters into possession of the land conveyed, he is deemed by such acts to have expressly agreed to do what is stipulated in the deed he should do, even though he did not sign the deed. Silver Springs, O. & G. R. Co. v. VanNess, 45 Fla. 559, 34 South. Rep. 884.
While a common carrier railroad corporation may not be bound by a contract which renders the corporation incapable of performing its duties to the public, yet where the subject-matter of a contract made by such a corporation is not foreign to the lawful purposes of the corporation, but is fairly within its authorized powers and purposes and the contract is not forbidden by statute and is not otherwise illegal it will not be nullified by the courts. See Union Pac. R. Co. v. Chicago, M. & St. P. R. Co., 163 U. S. 564, 16 Sup. Ct. Rep. 1173; Jacksonville, M. P. Ry. & Nav. Co. v. Hooper, 160 U. S. 514, 16 Sup. Ct. Rep. 379; Prospect Park & C. I. R. Co. v. Coney Island & B. R. Co., 144 N. Y. 152, 39 N. E. Rep. 17.
The agreement contained in the deed of conveyance of the right of way cannot be said to be in violation of the public policy of this state since chapter 4203, acts of 1893, section 2848 general statutes of 1906, authorizes the specific performance of contracts in the nature of this one, and if necessary the appointment of a receiver to perform the contract. See 1 Page on Contracts Sec. 326.
The contract is to be construed with reference to its subject matter and the circumstances under which and the purposes for which it was made. Its language so considered requires a continuance of the defendant’s agreement to maintain the spur and depot and to operate the trains- thereon as stated at least as long as the conditions and relations of the parties thereto continue sub-.
In this case the agreement is that defendant and its successors and assigns shall maintain a spur track and a depot thereon and operate trains thereon as agreed, and not to permanently establish a terminus of a common 'carrier railroad corporation and to merely establish' the main shops of the railroad at a particular town as in the case of Texas & P. Ry. Co. v. Marshall, 136 U. S. 393, 10 Sup. Ct. Rep. 846, or for damages for removing a depot built and used for 36 years under a void parol contract to establish a depot at a stated point as in Texas & P. Ry. Co. v. Scott, 23 C. C. A. 424, 77 Fed. Rep. 726; and the facts here are also quite different from those in Sherwood v. Atlantic & D. Ry. Co., 94 Va. 291, 26 S. E. Rep. 943, and Jones v. Newport News & M. V. Co., 13 C. C. A. 95, 65 Fed. Rep. 736, relied upon by the defendant. The last mentioned case accords to the directors of a railroad company the right to terminate a contract that in their judgment was against public interest. This doctrine cannot be maintained under our system of laws.
The conveyance containing the contract was accepted and used by the defendant. The contract is certain and definite in its terms. Possession was taken of the land by the defendant and retained. The contract was completely executed by Taylor and has been partly performed by the defendant. It is apparent from the contract itself that one of the controlling considerations for the conveyance by Taylor to the defendant corporation was “its agreement to maintain said spur track, depot and platform, and to operate all its regular passenger trains upon said spur track to said depot during what is known as the' winter tourist season, which consideration is binding upon the party of the second part, its successors and assigns.”
The defendant having* received in specie or in kind and used the property of complainant in consideration that certain things shall be done by the defendant, its successors and assigns, with reference to the particular property and peculiar business of the complainant, the successful use of which property and business was a controlling consideration for the conveyance, the complainant is in justice entitled to a performance of the defendant’s agreement according to its terms as far as it is legally within the power of the defendant to do, unless compliance therewith further, materially interferes with the defendant company’s duty to the general public
The bill of complaint alleges that the abandonment
It does not appear that a specific performance of the • agreement will work a hardship' on the defendant or be of little utility to the complainants; but on the contrary ■a serious injury to complainants appears and it is not shown that the performance of the agreement will be unduly burdensome to the defendant or result in material detriment to the public interests.
The peculiar damages alleged as accruing to the complainants by the refusal of the defendant to perform its part of the agreement are to' propertyt and business which were the only inducement for the agreement, and are not capable of being adequately compensated by an action for damages. See Joy v. St. Louis, 138 U. S. 1, 11 Sup. Ct. Rep. 243; Franklin Tel. Co. v. Harrison, 145 U. S. 459, 12 Sup. Ct. Rep. 900. The allegations as to the agreement and the subjects to which it relates appear to be sufficiently definite to' warrant a decree of specific performance if sustained by the proofs.
The terms of the agreement, the circumstances under which it was made and the purposes to be accomplished
Where a court of equity properly acquires jurisdiction of a cause to enforce specific performance of a contract, ihe court will proceed to administer complete justice by granting appropriate process and by adjudicating all matters properly presented and involved in the case. Injunctions may be granted upon proper showing, and damages awarded when necessary to complete justice in the case. See Lyle v. Addicks, 62 N. J. Eq. 123, 49 Atl. Rep. 1121; Worrall v. Munn, 38 N. Y. 137; Schmidtz v. Louisville & N. R. Co., 101 Ky. 441, 41 S. W. Rep. 1015, S. C. 38 L. R. A. 809; 2 High on Injunctions, (7th ed.) §1120 et seq.
The injury complained of was begun October 21, 1906, and the bill for relief was filed January 10, 1907, which appears to be reasonable promptness. Under the facts as they appear an appropriate mandatory injunction should be granted, unless the defendant by its answer and proofs to sustain it can show that the interests of the general public will be injuriously affected thereby, or that the duration of the contract was not to be indefinite as to time as alleged. See 4 Pomeroy’s Eq. Jur. § 1359; Wolverhampton and Walsall Ry. Co. v. London and Northwestern Ry. Co., 16 L. R. Eq. Cas. 433; 5 Words & Phrases Judicially Defined, 4332; Southern Ry. Co. v. Franklin & P. Ry. Co., 96, Va. 693, 32 S. E. Rep. 485, 44 L. R. A. 297.
In so far as the relief prayed for can be decreed without serious detriment to the public interests the prayer should be granted. From the allegations of the bill of complaint it does not appear that the rights of, the general public will be injuriously affected by granting the relief prayed for so far as it extends to the spur track
The decree dismissing the bill of complaint is reversed and the cause is remanded with directions to overrule the defendants demurrer, and to require the defendant to answer the bill, and for such further proceedings as shall be consonant with equity practice and not inconsistent with this opinion.
Shackleford, C. J., and Cockrell, J., concur;
Taylor, Hocker and Parkhill, JJ., concur in the opinion.
Reference
- Full Case Name
- Henrietta W. Taylor, Albert A. Taylor, Blanche Taylor Peck and Samuel H. Peck, Her Husband v. Florida East Coast Railway Company
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- 51 cases
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- Syllabus
- 1. In a proceeding for the specific performance of a contract a temporary injunction will not be granted unless the allegations of the bill of complaint warrant a decree of specific performance, nor unless it also appears that an injunction is appropriate and just. 2. The granting or denying of a temporary injunction is largely within the discretion of the trial judge; but such'discretion is controlled by established principles of equity. If the allegations of the bill are sufficient and the evidence in support thereof is ample to warrant the granting of the temporary injunction, and no sufficient defense is made, an order denying an injunction will be reversed. 3. Whether the duty a common carrier a railroad corporation owes to the public is materially and injuriously affected by the contract obligations of the corporation to individuals cannot be arbitrarily determined by the corporation for itself. 4. Where a common carrier railroad corporation asks for anl receives land upon which to construct its road, and as a consideration therefor promises to maintain a spur track and depot at a certain place upon lands given for that purpose, and the party giving the land relying upon the promise of the corporation, incurs great expense in improving his property for use in connection with the advantages of the spur track and depot and the operation of trains thereon, and the breach of the promise results in an injury that cannot be adequately compensated in damages, equity may enforce performance of the promise in the manner and to the extent agreed, at least in the absence of a proper showing of superior rights of the public. 5. A deed conveying lands to a railroad company for its right-of-way by the owner of a hotel situated near to the proposed road containing an agreement on the part of the corporation “to maintain the spur track, depot and platform, and to operate all its regular passenger trains upon said spur track to said depot during what is known as winter tourist season, which consideration is binding upon the party of the second part, its successors and assigns,” taken in connection with the conditions that surround the parties and the purpose to be accomplished indicates an intention that the agreement should remain in force at least during a continuance of substantially the same mutual conditions and relations of the parties and their privies. 6. Where the owner of land conveys it to a railroad corporation for the right-of-way of its main line and the corporation violates its agreement contained in the deed of conveyance to maintain a spur track and depot on the spur track, the grantor of the land cannot enjoin the running of trains over the main line, since the public have rights requiring uninterrupted service over the main line. 7. While equity will not ordinarily decree the specific performance of contracts requiring continuous acts involving skill, judgment and technical knowledge, contracts relating to the operation of railroads may be specifically enforced. 8. While a common carrier railroad corporation may not be bound by a contract which renders the corporation incapable of performing its duties to the public, yet where the sub'ectmatter of a contract made by such a corporation is not foreign to the lawful purposes of the corporation, but is fairly within its authorized powers and purposes and the contract is not forbidden by statute and is not otherwise illegal it will not be nullified by the courts. 9. Where a railroad company accepts a deed conveying to it land for its right-of-way and so uses the land, any valid contract or agreement contained in the deed of conveyance is binding upon the railroad company, even though the company did not sign the deed, and, under proper circumstances, such agreement may be enforced in equity by specific performance. 10. Where the owner of a hotel conveys land to a railroad company upon which to construct its right-of-way for the main line, a spur track and depot, and the deed of conveyance contains an agreement upon the part of the railroad company to maintain the spur track and depot to a point near the grantor’s hotel and to operate all its regular passenger trains upon the spur track to the depot during a certain season of the year, and it appears that a controlling consideration for the conveyance was the maintenance of the spur track and depot thereon and the operation of passenger trains over the spur to the depot, which would be peculiarly beneficial to the' grantor’s hotel property and business, and extensive improvements of 'the hotel property are made upon the fact of the agreement to maintain the spur and depot and to operate the passenger trains a,s stated, such agreement may be specifically enforced in equity unless such enforcement will directly, materially and injuriously affect the rights of the general, public. This accords with the public policy declared in chapter 4203 acts of 1893, sec. 2848 gen. stats. 1906. 11. Where a court of equity properly acquires jurisdiction of a cause to enforce' specific performance of a contract, the court will proceed to administer complete justice by adjudicating all matters properly presented and involved in the case. -Injunctions, both mandatory and restraining may be granted and damages may be awarded upon proper allegations and proofs when necessary to do complete justice.