Baltimore & Ohio Railway Co. v. Winslow
Baltimore & Ohio Railway Co. v. Winslow
Opinion of the Court
delivered the opinion of the Court:
The question principally argued before us in the case is, whether, in the execution of the lease of August 1, 1872, and of its subsequent renewals, the trustees of the estate of Catherine Pearson acted within the scope of their authority as such trustees, when they inserted, or caused to be inserted, therein the provision that the railroad company should have the right thereafter to purchase the property in fee-simple, with a good and valid title, at a certain specified sum. of money; and this question we deem it unnecessary to determine. We may say, however, that such an arrangement entered into with a railroad company, armed with the power of the State to prosecute a great public enterprise, and em
We find no merit in this contention. There is no ground whatever in law for the assumption that the signature or formal execution of the railroad company was necessary to the validity of any of the leases; and as to the other objections it is sufficient to say that the life tenant of the property and the beneficiary of the trust during her life, who was and is the sole substantial party in interest, ratified and sanctioned all the leases in question, and has received for upwards of twenty-five years all the rent specified in them to be paid by the lessee. Neither she nor her trustees can now be permitted to repudiate them. Least of all, will a court of equity 'allow such repudiation. In equity at least, if not at law, the leases were her leases rather than those of her trustees; and we are not sure that she was not entitled to deal with the property without the intervention of any trustees, and to rent and lease the same at her pleasure, so as to render it productive of income. She was the life tenant, entitled to the use and occupation of the property in her own right, and to receive the income therefrom directly for her own use and upon her own acquittance or receipt, without the intervention of trustees, and for most of the time she was
It is of no consequence, therefore, that Mr. Winslow alone executed the last formal lease that was given, that of 1892. He was then to all intents and purposes the sole trustee acting in the execution of the trust. Mr. Justice Cox had been relieved and discharged from the trust by decree of court of June 13, 1892; and Mr. Jay would seem to have become a nonresident of the District of Columbia and of the United States, and to have abandoned all active part in the administration of the trust, if, indeed, it required action on his part. Under these circumstances, Winslow’s lease of the property, ratified by the life tenant and for the time being the sole beneficiary, who received and who has continued to receive to this day the consideration for it, which was the income contemplated by the will of Catherine Pearson, cannot now be questioned. Certainly it cannot be questioned in a court of equity, after the term created by the lease has expired and the beneficiary has derived from it all the consideration required in it to be rendered by the appellant.
Omitting from our consideration the clause of the lease of 1892 which provides for the privilege of purchase by the lessee of the property, which provision may for all present purposes be segregated from the instrument, we find no reason for holding that this lease is not a valid lease binding on the trustees of the estate and binding on the beneficiary and life tenant. The covenant for renewal therein contained is not an unreasonable or improper covenant; and we understand it to be conceded on behalf of the appellees that
But there is another and a higher ground upon which our conclusion in this case can be based.
That the appellant entered upon the use and occupation of the property in controversy with a view to its purchase when such purchase could properly be effected, we think is very clear. And that this purchase was postponed for a time merely on account of some alleged or supposed deficiencies in the title, which could be removed, and which, if Mr. Winslow’s statement in 1899 be correct, were in fact removed at or before that year, we think to be a fair inference from the record. What the character of the use and occupation of the land by the company was to be, and was understood by all the parties to be intended to be, we think also to be entirely clear. Over and through this land the railroad company constructed what is known as its Metropolitan branch, part of a great highway between Washington city, the adjoining States and the great West. This, great highway is not a merely private enterprise, nor a matter of purely private concern; it is a public road, constructed for public purposes, under sanction of the public authority, and over which the public have rights, which cannot be permitted to be obstructed, much less destroyed, either by the company itself to which the franchise has been granted as a public trust to construct and operate this road, or by antagonistic parties claiming the ownership of the land upon
Assuming that there is grave doubt whether the trustees under the will of Catherine Pearson had authority under that will to enter into the contract of sale to the railroad company, which they incorporated into their several leases, we do not think that the contract is one of which specific performance should be decreed in equity under the circumstances of this case. Even when a contract is free from doubt, it is well-settled law that specific performance will not
The case of Railroad Co. v. Stanley, above cited, is directly in point. There the owners of land, on which a railroad company proposed to construct its railroad, entered into an agreement with the company for the use and occupation of the land by the latter, in consideration of the establishment of a depot or station thereon by the company, and certain arrangements for the running of trains. The company took possession of the land and constructed its railroad, but failed to build the station. It became insolvent, and ifs property and franchises were sold under foreclosure, and another company, organized under the general laws of the State, became the owner and possessor of them. Ejectment was instituted by the owners of the land against this latter company to recover possession of the property; and the company thereupon filed a bill in equity to stay the proceedings. The Court of Errors and Appeals of the State of New Jersey held that the complainant company was entitled to the injunction which it prayed.
In view of what has been said, we are of opinion that, under the provisions of the lease of 1892, executed by Francis Winslow, trustee, for and on behalf of the life tenant, Mrs. Eliza W. Patterson, the appellant was and is entitled to one renewal of such lease for the term of five years from and after the first day of August, 1897, upon the terms and conditions of said lease as to the rents to be paid therefor; and that during the continuance of such term no suit for the dispossession of the appellant can be maintained. We are, also, of opinion that, for the time subsequent to the determination of said renewed lease for which the appellant shall require the use and occupation of said land, the appellant is entitled, and it is its duty, to acquire the right to such use and occupation, under the exercise of the right of eminent domain conferred upon it by the act of Congress, by the ascertainment of the value of such use and occupation, and payment to the owners of the land of the just compensation so to be ascertained. And the bill of complaint in this cause may be retained for the purpose of such ascertainment of value and just compensation.
It follows that the decree of the Supreme Court of the District of Columbia dissolving the injunction granted in this cause and dismissing the bill of complaint, must be reversed, with costs; and that the cause will he remanded to that court, with directions to vacate said decree, to restore the injunction and malee the same perpetual, and for such further and other proceedings as may he just and proper, according to law and in conformity with this opinion. And it is so ordered."
An appeal to the Supreme Court of the United States was prayed by the appellees and allowed.
Reference
- Full Case Name
- THE BALTIMORE AND OHIO RAILWAY COMPANY v. WINSLOW
- Status
- Published
- Syllabus
- Trusts and Trustees; Leases; Estoppel; Condemnation of Land; Specific Performance. 1. Qucere, whether trustees to whom land has been devised in trust for the sole and separate use of a married woman for life with the right in her to have the use and occupation thereof, to receive and receipt for the income therefrom without the intervention of the trustees and to direct a sale thereof and investment of the proceeds, have the right with the assent of the life tenant, to provide in a lease of the land to a railroad company, that the company shall have the right thereafter to purchase the property in fee-simple, with a good and valid title, for a specified sum of money. 2. It is not necessary to the validity of a lease of land that the lessee should have joined in its formal execution by signing it. 3. Where, by a series of leases and renewals, land has been leased to a railroad company by trustees to whom it was devised in trust for the sole and separate use of a married woman for her life, and she has received the rent reserved, neither she nor the trustees, after the term created by the last lease has expired, will be permitted in equity to repudiate the leases because the life tenant failed to join in the execution of some of them, and because but one of the three trustees executed the last one, one of his co-trustees having been abroad and the other having resigned his trust and been relieved and discharged therefrom. 4. Where, under a lease of land to a railroad company, containing a provision which is not enforceable, giving the company the right to purchase the land for a specified stun, the company is given a license to enter upon the land and construct its road, and does so, an action at law by the lessor for the dispossession of the company will be enjoined in equity, if the company is willing to make compensation for the use and occupation of the land, such compensation to be fixed by condemnation proceedings. 5. Where trustees to whom has been devised land for the sole and separate use of a married woman for life have agreed in a lease thereof to a railroad company to sell the land to the company, for a specified sum, and it is doubtful whether they had authority to enter into the contract for sale, and the company has the power to acquire the land by condemnation, specific performance of the contract of sale will not be decreed.