Peavy-Wilson Lumber Co. v. Loftin
Peavy-Wilson Lumber Co. v. Loftin
Opinion of the Court
Seeking the specific performance of a written, trackage operation agreement
On this motion, the district judge entered its order (1) dismissing the intervention without prejudice, (2) granting intervener leave to sue the trustees in any court of competent jurisdiction, State or Federal, with respect to the matters set up in its intervention, and (3) dissolving the order requiring the trustees to permit intervener to continue to operate its trains with its own crews and restraining them from placing Railway crews thereon.
Intervener is here complaining that in thus dismissing its complaint, though without prejudice, upon the motion of the Brotherhoods, and refusing to take jurisdiction, obliging it to go elsewhere for the relief it sought against the trustees, the district judge misapprehended the nature and effect of its claim and of the relief sought. Pointing out; that the allegations regarding the awards and the order of the Arbitration Board were only by way of explanation and inducement; that no relief was sought against the Board or the Brotherhoods and that the only relief prayed for was a judgment declaring the agreement valid and binding on and requiring the trustees to specifically perform it, appellant insists that the court of the reorganization proceedings, which had appointed the trustees, had custody of the property and was responsible for its operation, was the proper court to determine all questions affecting the property and its operation.
We agree with appellant. Whatever may be said as to the right of the Brotherhoods to be dismissed from the action, it is quite clear that plaintiff’s intervention presented matters between it and the trustees properly for the decision of the court. Indeed, in view of the relief sought, control of the operations of railway properties in reorganization proceedings, the jurisdiction of no other court could properly have been invoked. It was reversible error then for the court to dismiss the intervention though without prejudice and with leave to proceed elsewhere. It should have retained it and proceeded to judgment on the pleadings against plaintiff on its claim for specific performance. For it is quite clear upon them that intervener is not entitled to the relief it seeks. The written agreement, which it pleads that the trustees adopted, on its face authorized the action the trustees propose to take, and there is no pleading that the trustees were authorized to malee, and made, any agreement other than the written one. In addition, in view of the provisions of the agreement for termination on notice and the letter of the trustees notifying appellant that they will not proceed with the agreement or malee a new one except in strict accordance with its written terms for manning the trains with Railway crews, no basis exists for a decree compelling the trustees of the debtor railway to specifically perform an agreement made doubtful as this one is by the effort of appellant to import into it a parol agreement in direct contradiction of its terms. The judgment is reversed and the cause is remanded for judgment on the pleadings as they now stand against plaintiff’s claim but with the right to plaintiff, If so advised, to replead and for further and not inconsistent proceedings.
In substance it gave the lumber company the right to operate its trains over the tracks of the railroad between Wewhotee and Holopaw, a distance of 19 miles, for the purpose of transporting the timber, logs, workmen, employees and supplies only between the timber lands of the lumber company and its mills located at Holopaw, obligated it to furnish all cars, fuels, supplies and other necessary materials and equipment for the operation, and required it to maintain the engines, cars and equipment in a condition satisfactory to the railway and conform to all lawful laws and regulations, State or Federal, as to inspection, etc. Providing that the lumber company shall, at its own expense, employ and furnish the necessary enginemen, firemen, trainmen, brakemen, flagmen and all necessary employees for the safe operation of the trains, all of whom shall be competent and acceptable to the Railway Company “and their employment or continuance in employment shall be subject to the Railway’s approval”, it contained these further significant provisions: (1) “The Railway reserves the right to provide a pilot for said engines and trains of the Lumber Company, and if it should become necessary so to do, or at its own option, the Railway may provide a full crew, or crews, to man the said train or trains, or engines, the expense of said pilot, and any crews so furnished by the Railway, to be borne by the Lumber Company”. (2) “In the event it should become necessary, in the judgment and opinion of the Railway, that the train or trains to be operated hereunder shall be manned by a full crew or crews of the Railway’s selection, then and in that event the said Lumber Company agrees to pay the entire cost and expense of such Railway crew or crews”. (3) “The trains and engines of the Lumber Company shall be operated by the order of the proper representatives of the Railway, and the crews thereof shall receive orders and instructions from the officers and agents of the Railway Company, and shall be in all respects subject to and shall obey the rules and regulations of the Railway governing the operation of trains on its tracks and duties and responsibilities of its employees of similar class”. (4) “Any alteration, amendments or other changes required or made necessary by authority of any law or order of any competent court, commission or other governmental authority having jurisdiction over the parties hereto shall not be deemed to be a violation of or departure from the terms of this contract”. There was the following provision fixing the term and providing both for the renewal and for the termination of this agreement :
“This agreement shall continue in full force and effect for a period of two years from the day and year first herein writ-, ten, subject to termination as hereinafter provided. Unless either party more than ninety days prior to the expiration of the initial term, or any renewal term shall give notice, in writing, of intention to terminate this agreement at the expiration of such initial or renewal term, this agreement shall be considered as renewed and extended for one year, and shall continue in effect from year to year, subject to the same terms and conditions as herein contained, until terminated as hereinafter provided: (a) This agreement is terminable (with prior notice to lessee) by the Receivers, or their successors, or the assigns of the receivership estate, at their option, upon the discharge of the Receivers as such, any fixed period of time or any other thing herein to the contrary notwithstanding and in the absence of such cancellation, all right's of said receivers hereunder shall inure to the benefit of their successors or the assigns of the receivership estate, (b) This agreement may be terminated by either party, at any time during the initial two year term and during any yearly renewal term by the giving of ninety days prior notice in writing to the other party of intention to so terminate.”
The letter referring to conferences had with plaintiff in regard to the Railroad Labor Board’s awards and order, conceded that plaintiff’s train crews had been competent and the operation of its trains entirely satisfactory. It stated: “Wo also recognize merit in your contention to the effect that when the track-age agreement of July 21, 1SXS7, was executed it was understood by both the receivers and representatives of your Company that the Florida East Coast Railway would not exercise any right to man with Florida East Coast Railway crews tlie trains of the Peavy-Wilson Lumber Company, Inc., operating on the Okeechobee branch so long as your crews were competent and your operations were satisfactory, unless the Florida East Coast Railway was compelled by some outside agency to so man your trains while operating on the Florida East Coast Railway Okeechobee branch.”
It then declared that though the trustees had been advised by their counsel that the awards and order directing them to be pnt in effect are invalid, the trustees have no right to review these awards or order and since their review must await enforcing actions of the Labor Organizations, properties may be subjected to heavy damages through the delay unless the awards are put into effect on the date ordered. It advised that the trustees feel that no such risks should be taken and that the awards should bo put into effect. It concluded with a notice of their intention to man plaintiff’s trains with the Lumber Company’s crews and of their inability to renew the present trackage right contract except upon the basis of so manning them.
Reference
- Full Case Name
- PEAVY-WILSON LUMBER CO., Inc. v. LOFTIN
- Status
- Published