Majority
Headnote
1. Injunction—Adequate Remedy at Law—Waiver.On the bank of the Hudson river, on the west side of the city of New York, is situated Riverside Park, and upon an eminence at the upper end of that park stands a building, with stables and other outbuildings, which has been fitted up for a place of rest and refreshment for persons who have occasion to use the park. For some years, and certainly as far back as 1892, the department of parks had granted the right to keep a restaurant in the park either for a rental paid monthly or for a certain proportion of the receipts. In the month of March, 1896, the person who had been in possession of the restaurant left it for some reason, and an agreement was made between the authorities of the city, by the department of parks on the one hand, and the plaintiff here on the other, by which there was granted to the plaintiff the right to keep this restaurant. That grant or license would, by its terms, expire on the 1st of April, 1897. On the 24th of February, 1897, the plaintiff applied for a renewal, and negotiations to that end were completed between the department of parks and the plaintiff in the month of November, 1897, at which time the department of parks, claiming to act for the city, granted to the plaintiff the privilege of selling refreshments in the building in the park which was known as “Claremont,” for the term of five years from the 1st day of April, 1897, unless the agreement be sooner revoked or canceled or annulled as therein provided. The plaintiff, on his part, agreed to enter upon the exercise of the privilege thereby granted, and to conduct the restaurant in a style and manner satisfactory to the department of parks, and under such restrictions, rules, and regulations as might be prescribed by them. He made further agreements as to the rates of charges and repairs and other matters, which need not be con
Upon the trial the foregoing facts were established, and it was made to appear that on the 29th of April, 1898, the park commissioner of the boroughs of Manhattan and Richmond notified the plaintiff that he had that day revoked, canceled, and annulled the license agreement under which he was conducting the hotel or restaurant in Riverside Park known as “Claremont,” and ordered the plaintiff to vacate the premises on or about the 15th of May, 1898. At the conclusion of the plaintiff’s case, no testimony having been offered on the part of the defendant, the court directed judgment to be entered restraining the commissioner of parks from interfering with the plaintiff in the conduct of said hotel, and from in any way preventing the said plaintiff from enjoying the privileges granted to him by the agreement of November 8, 1897. From that judgment this appeal is taken.
The defendant insists that as this action is in equity, to restrain the defendant from putting an end to the agreement between it and the plaintiff, it must be based upon the theory that he has no legal right, as against the defendant, to the possession of this restaurant. This contention is not well founded.' In view of the way in which the questions here are presented, it is not necessary to consider whether the plaintiff has a remedy at law for the grievance of which he complains. No such question was raised at the trial by motion, nor is there any allegation in the answer that the plaintiff has an adequate remedy at law. If the defendant proposed to rely upon that point, it should have raised the question in its pleading (Town of Mentz v. Cook, 108 N. Y. 504 , 15 N. E. 541 ), or, at least, should have taken the point.upon the trial of the action. As it has not done so, it must be deemed to have waived that point.
The question is then presented whether the plaintiff, by this agree
The department of parks acted, in making this agreement, in the exercise of the power given to it by the legislature to control and manage the parks. The building in question was the private property of the city. It was proper that it should be utilized for the purpose for which it was used, if, indeed, it were not actually erected for that purpose by the city authorities. That, in the control and management of the public parks of a great city, it is perfectly proper to furnish, not only such innocent amusements as may enhance the pleasure of those who resort to the parks, but such opportunities for rest and refreshment for themselves and their animals as may be required, will not be disputed. The doing of these things is no part of the public duty imposed upon municipal corporations as the agent of the state in the performance of its governmental functions, but rather a part of the business of the city, which it may or may not undertake in its private capacity, as the owner of the lands which have been, set apart for park purposes. Whether these things shall be done at all, and, if so, to what extent, is a matter with which the state, as such, has no concern whatever, and in no way affects the public duties of the city, and has no connection with any function of government, strictly so called. The legislature has imposed upon the city cer
But it is said by the defendant that the making of this agreement, by which the possession of this house was given to the plaintiff for a term of five years, put it out of the power of the department of parks to exercise the duty imposed upon it of making rules and regulations and enacting such ordinances as might be necessary for the government and protection of parks. The argument is that, if it should happen that the commissioners of parks concluded that it was not best to conduct a restaurant at Claremont, they were precluded by the agreement with the plaintiff from closing the restaurant during the term of five years, and this is the reason why it is said that the agreement was beyond the power of the department of parks, and therefore is void. In considering this point, it must be remembered that it is not claimed on the part of the defendant that the department of parks has determined that no restaurant should be kept at this place and in this building, nor is there any evidence or suggestion that the plaintiff is not a perfectly proper person to keep it, or that he, or any of his employés, have failed to observe all the rules and regulations that have been made for the government of the park. It does not appear that any regulation or ordinance has been made, or is intended to be made, by the commissioners' of parks, or by the commissioner in charge of this park, which would in the slightest degree be affected by the plaintiff’s continuing in this business at
In the case of Richmond County Gaslight Co. v. Town of Middletown, 59 N. Y. 228 , the defendant, the town of Middletown, had been authorized by the legislature to make a contract for the laying of pipes, and the supplying of certain streets of the town with gas. The contract had been made for the period of five years, although the statute authorizing the making of it did not provide any particular time during which it might continue. After the making of the contract, the statute by virtue of which it was authorized was repealed. The town refused to pay for the furnishing of gas after the passage of the statute taking away the power to make the contract, and an action was brought by the gaslight company to recover the amount claimed to be due for gas supplied after that time. The town set up in defense the repeal of the law which authorized the contract, and insisted that by virtue of it the contract had become inoperative. This position was sustained by all the courts. In the court of appeals it was held that the town auditors, while they were authorized to make the contract, could not do any act which would affect the power of the legislature to take away the authority which it had given to the town to enter into this bargain, and, if the legislature saw fit to take away the power, the contract, which up to that time had been valid, would at once become inoperative, and that the plaintiff could not recover.- It was said that the contract must be deemed to have been made in view of the power of the legislature to take away the authority to light the town with gas, and for that reason the exercise of that authority had put an end to the contract. Judge Grover, who delivered the opinion of the court, after having said this much, went on to say that it was in the discretion of the town auditors whether any, or what, portion of the town should be lighted with gas, that discretion was to be exercised at all times by them when the necessity arose, and that it was not competent for the board to make a contract for five years, and thus take away the discretion of its successors as to what portion of the town should be lighted by gas during that time; and therefore he insisted that the contract was void when signed. ' But this portion of the opinion was not concurred in by the remainder of the court. Three of the judges put their decision upon the ground that the action of the legislature had rendered the contract inoperative, and the other judges concurred in the result upon an entirely
“If at any time the plans of the authorities • in the control of the bridge, made in good faith, require a change in the location of the plaintiff’s tube line, or even a total abrogation of its privilege, the plaintiff must submit. Its con
Dissent
tract, and all similar contracts, must tie construed as made subject to what we may term the governmental or legislative power of the bridge authorities over its public use. But as long as similar privileges are granted, and operate in no way to the detriment of the public travel upon the bridge, they are properly the subject of contract, and cannot capriciously or unreasonably be taken away.”
This case is precisely in point in the case at bar. By the terms of the agreement between the plaintiff and the department of parks, he holds this privilege subject to all regulations and ordinances now prescribed or that may hereafter be prescribed by the department as to the general management and the government of the park. So long as there is no regulation which necessarily interferes with his conduct of this restaurant, or so long as it is deemed best that a restaurant should be kept up at Claremont, so long the plaintiff is entitled to the privileges of the contract which he has obtained, and for which he has spent a large amount of money; and the defendant will not be permitted, without reason and at its mere caprice, to interfere with his rights. But if, at any time in the future, it shall determine in good faith to take away the restaurant, the plaintiff must submit, because he takes his agreement subject to the power which the law has given him to make these regulations. Until, however, some such regulation is made, the plaintiff has the right to his contract, and to the protection of the court to prevent any capricious or unnecessary interference with it.
We have examined the exceptions taken to the rulings of the court in the rejection of evidence offered by the defendant, and we do not find that any of them are material in this case. Upon the whole case, we are of the opinion that the judgment was right, and should be affirmed. All concur, except BARRETT, J., dissenting.
(dissenting). I regret my inability to concur with my .brethren in this case. The contract in question, so far as it attempted to confer upon the plaintiff the privilege of selling refreshments in the Riverside Park for a term of five years, was, in my judgment, an illegal exercise of power on the part of the department of parks. If ever there was a purely governmental power, we find it here. There is not in the purpose of this contract the slightest trace of private benefit. Indeed, there could be none. It is true that the plaintiff pays for the privilege conferred, and that the city receives the agreed compensation. That, however, does not affect the inherent character of the contract. Its sole object is to provide for the pleasure, comfort, and convenience of the public at large within the park area. That also is its declared object. It recites that it is made “in order to promote and increase the public enjoyment of the public park known as ‘Riverside Park,’ ” and that is a purely governmental function. The head of the park department cannot contract away his continuous duty to determine what will contribute to the pleasure, comfort, or convenience of the general public. He may provide music to-day, discontinue it to-morrow, and provide it again the next day. He may choose one musical director or a brass band one day; another musical director and an ordinary orchestra, another. And he can
These views are, as it seems to me, supported by a long and’ practically unbroken line of authorities. It has been repeatedly-held, not only that a municipality may not directly barter away its legislative or governmental powers, but that it may not enter into contracts the result of which is to control or hamper the-exercise of such powers. Gale v. Village of Kalamazoo, 23 Mich. 344 ; Milhau v. Sharp, 27 N. Y. 611 ; Britton v. Mayor, etc., 21 How. Prac. 251; Matthews v. City of Alexandria, 68 Mo. 115 ; Lord at. City of Oconto, 47 Wis. 386 , 2 N. W. 785 ; Rittenhouse v. Mayor, etc., 25 Md. 336 ; 1 Dill. Mun. Corp. (4th Ed.) § 97. If such is the-effect of a contract, it is void. In such a case it is quite immaterial whether it appeared to be reasonable and to subserve the publie interest at the time it was made. As was well said by Judge - Cooley in Gale v. Village of Kalamazoo, supra:
“It is impossible to predicate reasonableness oí any contract by which the governing authority abdicates any of its legislative powers and precludes itself" from meeting in a proper way the emergencies that may arise.”
The observations of Judge Grover in Richmond County Gaslight Co. v. Town of Middletown, 59 N. Y. 228 , are peculiarly applicable-to the case at bar, and I entirely concur in them, though they seem, not to have formed the actual ground of decision in that case-Speaking of an act which, in general terms, granted to the defendant’s board of town auditors the power to contract with the plaint-tiff to supply it with gas, the learned judge said:
“Under the act of 1865, the existing board of town auditors had no power, once for all, to determine that certain streets should be lighted for a great: number of years, and deprive those who should succeed to their places of alZ. control over the subject, by entering into a contract with the plaintiff for this long term. An examination of the act shows that it was intended to. vest &
discretion at all times in the hoard whether any, and which, of the streets should be lighted with gas. The board could therefore contract for a supply only during its pleasure. When a majority, either from a change of views of its existing members, or the opinion of some of their successors, thought it best to discontinue the light in some or all of the streets, they could not be devested of the power so to do by a previous contract entered into for a supply of gas.”
I cannot but think the conclusion arrived at in the majority opinion is a dangerous one, and that, if carried to its logical end, it may lead to an extensive farming out of these subjects of continuous governmental direction. The moment a vested private right is interposed between a public authority and the right to exercise its legislative or quasi legislative powers, the entire governmental system necessarily fails. But it is said that the plain-. tiff has no such vested right, and that the privilege conferred upon him is subject to regulation by the park department, or even to be abrogated entirely in case it is determined to have no restaurant in the park. It is, however, asserted in the prevailing opinion that, ■“so long as it is deemed best that a restaurant should be kept up .at Claremont, so long the plaintiff is entitled to the privileges of the contract.” If that is so, what becomes of the suggested power •of regulation? You cannot well regulate what you cannot change. And, so long as the plaintiff fairly performs his contract, he can-mot, under the majority opinion, be denied its privileges. But why not? Simply because—so it is held—he has a contract right ■ of which he cannot be deprived, and which can only be regulated by the terms of the contract itself, and not at all by the exercise -of. an independent governmental power. Thus, the commissioner is powerless to require, even when public taste demands it, a higher •order of service, or an agent more highly equipped to furnish that ¡.'service. The contract for the lower order of service, and for the particular, and, to the commissioner’s mind, inferior, agent who is to furnish it, must, at least for five years of good contract service, stand in the way. Thus, progress, under independent governmental power, is to be blocked by private contract right. It comes 'to this,—that if the commissioner is prevented by this contract -from removing the plaintiff, and substituting another and better ■restaurateur in his stead, he is simply prevented from performing his duty as park commissioner. If, however, he has the power of removal, then it seems clear that he has merely exercised that ¡power, The .dismissal of the plaintiff, like his original appointment,—for in this view it was in substance an appointment,—was ¡a governmental act; and neither the commissioner nor his predecessors could preclude him from thus proceeding within his jurisdiction. My conclusion is that the utmost that the park commissioners here could lawfully grant was a license revocable whenever they deemed that the public pleasure, convenience, or comfort would be promoted by a discontinuance of the service, or by a change, in the agent connected therewith. I think the judgment should be reversed, and the complaint dismissed.
Cases cited
- Town of Mentz v. Cook 108 N. Y. 504 p. 969
- Equitable Co-operative Foundry Co. v. Hersee 103 N. Y. 25 p. 972
- Richmond County Gas-light Co. v. Town of Middletown 59 N. Y. 228 p. 973, p. 977
- Corporation of Brick Presbyterian Church v. Mayor of New York 5 Cow. 538 p. 974
- Milhau v. Sharp 27 N. Y. 611 p. 977