Anderson v. Dent
Anderson v. Dent
Opinion of the Court
A bill was brought by certain bondholders and other creditors against the Birmingham, Columbus & St. Andrews Railroad Company and the Central Trust Company of New York, 'to impress a lien upon the property of the railroad company, and' to enforce the lien by sale of the property, there being also a prayer for a receiver pendente lite and for general relief. The Central Trust Company of New York was the trustee named in the bonds of the railroad company. A receiver was appointed. Pending litigation interested parties were permitted to intervene. On petition of intervenors a sale of the property of the railroad company was ordered. The master appointed to make the sale reported that the railroad property was duly offered for .sale and that “no' bid was made or received.”
The Central Trust Company of New York and two intervenors petitioned the court for an order requiring the master to “dismantle the railroad and to remove the materials comprising the same” to some convenient place and to sell said material upon such terms and conditions as the court may direct. The petition of the two intervenors endorsed by the Central Trust Company states that the former decree of sale “contemplated that the purchaser or purchasers of said railroad properties should continue to run or operate the railroad as a going concern, and should not have the right or privilege of dismantling the railroad and selling the material, rolling stock, equipment, or personal effects thereof. That as is well known' to the court, said railroad is but a fragment, without connections or termini of any importance and has never been operated, either by the railroad company or by receiver, at a profit; that said railroad begins at Chipley, Florida, and runs some nineteen or twenty
A demurrer to the petition was interposed on the following grounds:
“1st. That petitioners have not in or by their said petition made or stated such a cause as entitles them in equity to the relief prayed or to any relief.
“2nd. That the court is without authority or power to grant the prayers of the petition.
“3rd. That the relief prayed in the petition can only be granted by the State Legislature.”
On this demurrer the court made the following order:
“This cause coming on to be heard before me on petition of J. L. Anderson and W. M. Gordon and Central Trust Company of New.York, praying an order directing the Receiver of the Birmingham, Columbus & St. Andrews Railroad Company to dismantel said railroad and remove all its property, rolling stock, iron rails and other physical properties to Chipley, Florida, for sale under a decree of foreclosure made herein on the petition of the above-named parties and other intervenors, upon demurrer to said' petition, filed by W. S. Reyburn, Executor of the estate of J. E. Reyburn, deceased, the owner of the majority of the bonds issued by said company under a first mortgage foreclosed as aforesaid, and counsel for said .parties .having argued same before this court on March 30th, 1918, and submitted briefs on the question raised by said demurrer, and’ the court having duly and*855 fully considered same and now being advised of its judgment to be given on said demurrer, it is, therefore, considered, ordered and adjudged that said demurrer be. and the same is hereby sustained.
“It is further ordered that the relief prayed be, and the same as hereby denied.
“Done and ordered at Chipley, Florida, this the 15th day of June, A. D. 1918. D. J. Jones, Judge.”
From this order the two intervenors, J. L. Anderson and W. M. Gordon, and the Central Trust Company of New York appealed.
In State ew rel. Railroad G’om’rs. v. Bullock, 78 Fla. 82 South. Rep. 866, this court announced the following propositions of law:
“The operation of a common carrier railroad is a business so affected with a public interest that when once undertaken and begun it cannot be discontinued and the road so operated abandoned and authorized to be dismantled by a proceeding in which the State and the public are not represented, when such discontinuance and dismantling has not been consented to by the State.
“A Circuit Court in this State has no jurisdiction in a suit brought by a trustee against a common carrier railroad company to foreclose a trust deed upon the properties of such railroad company given to the trustee to secure the payment of the indebtedness of the railroad company without the assent of the State to order the railroad dismantled, its properties sold and removed, and its operation as a common carrier discontinued.”
While courts will not by mandamus undertake to compel the continued operation of a railroad that does not
The State was not made a party and did not appear in the proceedings and there was no error in sustaining a demurrer to the petition asking for a dismantling of the railroad.
Order affirmed.
Reference
- Full Case Name
- J. L. Anderson, W. M. Gordon and Central Trust Company of New York, Intervenors v. George H. Dent
- Status
- Published
- Syllabus
- While courts will not by mandamus undertake to compel the continued operation of a railroad that does not and cannot pay operating expenses, yet a court of equity in enforcing contract liens upon railroad property for credits obtained upon the faith of thei railroad as a going concern, has no authority to order the operation of the road discontinued and the road 'dismantled to be sold as junk, at least when the State, who is interested in the continued use of the franchise granted to operate the railroad as a common carrier, is not a party to the proceedings.