Majority — Shiras J.
Syllabus
APPEAL FROM THE CIRCUIT COURT OF THE UNITED STATES FOR THE WESTERN DISTRICT OF WISCONSIN.after stating the Case as above, delivered the opinion of the court.
So far as those portions of the lands, described in the bill of complaint, consist of parcels held and used by the. railway company for the necessary and useful purposes of their road as a public highway, it is obvious that the title and possession thereof cannot be successfully assailed by the appellants. The
It is well settled that where a railroad. company, having the power of eminent domain, has entered into actual possession of land necessary for its corporate purposes, whether with or without the consent of the owner of such lands, a subsequent vendee of'the latter takes the land subject to the bun then-of the railroad, and the right to payment from the railroad company, if it entered by virtue of an agreement to pay, or to damages, if the entry was unauthorized, belongs to the owner at the time the railroad company took possession.
In Schuylkill Nav. Co. v. Decker, 2 Watts, 343 , Where there was a claim for damages caused to land by the construction of a canal, and where .the land had been subsequently, conveyed to a third person, it was held by the Supreme -Court of Pennsylvania that such purchaser was not entitled to recover. ' The court said, per Chief Justice Gibson to this-claim : “ It is.a decisive objection that the plaintiff has not a title to the damages, which, being in- compensation of an injury in the nature of a trespass,-could not pass by mere conveyance of the land. •In like, manner the conveyance of a party wall does not entitle the grantee to contribution from the adjoining owner, it being held in Hart v. Kucher, 5 Serg. & Rawle, 1 , that the claim is satisfied by payment, to the first builder, though the- purchaser had not notice of it; and, on the same principle, it was held iff' Commonwealth v. Shepard, 3 Penn. 509 , that the claim to compensation un'der the act adjusting 4he titles to land in , . . Luzerne and Lycoming counties is personal, and does not pass by a conveyance • of the land. Granting the compensation her<vto be, what it certainly is, the price of a perpetual easement, it is impossible to imagine a title to it in a subsequent grantee of "the landsubject to the easement.”-
And in McFadden v. Johnson, 72 Penn. St. 335 , the same court held that the, damages to land, occasioned by the construction of a railroad, were a personal claim by the owner
Numerous authorities to the same effect may be found collected in Wood on Railroads, vol. 2, p. 994; and the conclusion established by the decisions is there said to be that the damages belong to the owner at the time of the taking, and do not pass to á grantee of the land under a deed made subsequent to that time, unless expressly conveyed therein.
So, too, it has been frequently held that .if a land owner, knowing that a railroad company has entered upon his land and is engaged in constructing its road without having complied with the statute, requiring either payment by agreement or proceedings to condemn, remains inactive and permits them to go on and' expend large sums in the work, he will be estopped from maintaining either trespass or ejectment for the entry, and will be regarded as having acquiesced therein, and be restricted to a suit for damages. Lexington & Ohio Railroad v. Ormsby, 7 Dana, 276 ; Harlow v. Marquette, &c. Railroad, 41 Michigan, 336; Cairo & Fulton Railroad v. Turner, 31 Arkansas, 494; Pettibone v. La Crosse and Milwaukee Railroad, 14 Wisconsin, 443; Chicago & Alton Railroad v. Goodwin, 111 Illinois, 273.
It is not pretended that Roberts, the subsequent purchaser, acted in ignorance of the railroad company’s title. On the contrary, in the answer it is alleged that “ the defendant, Roberts, purchased said lands from said county in good faith and for the consideration named, which was the actual value of the title to said lands, the value of such title having been greatly impaired and rendered almost valueless by the cloud upon the same created by said resolutions of the county board and such conveyance by the county clerk and such legislative act.” So far, then, from being a purchaser for a valuable consideration without notice, Roberts actually avows that he bought lands worth over two hundred thousand dollars, and upon which, as alleged in the bill and not denied in the answer, the railroad company has expended, in the construction of its road and the erection of depots and docks and piers, several hundred thousand dollars, for the nominal sum of three hundred ■ and.
The conclusion, therefore, seems warranted that, as to those portions of the lands in question which are occupied.and used by the railroad company, .the county having stood by for years, and permitted the company to proceed in the construction of its l’oad and appurtenances at -a vast expense, and having accepted large sums as taxes, would be estopped from interfering with the possession of the railroad company. A fortiori, it follows that Roberts, buying with notice, could not maintain either trespass, or ejectment for suoh portions, nor' would he, as such purchaser, be entitled to recover damages for the occupation thereof.
The foregoing observations apply only to those portions of the lands in question which have been actually occupied and used by the railroad company for corporate purposes, or, in other words, to such lands as the railroad company could have condemned by the exercise of its right of eminent domain. .
But, as it appears in the bill and answer, that considerable portions, of the land in dispute are not held or occupied by the railroad company for its necessary public purposes; but for sale to others, and presumably could not have been procured by the company under its power of condemnation, other questions are raised for our consideration.
And, first, it is claimed that the county, in granting such lands to the company, made a donation of them, or, in other iWords, that the company became possessed of them without having given any legal consideration therefor, and that the county was disabled by law from so parting with its property.
A natural observation, when this proposition is presented, is, that the county does not appear to have ever attempted to rescind or withdraw from the transaction. As already said, the railroad company proceeded to construct its road and expend its money on tlje faith of the grant, during a period of several years, the .county not objecting, and, indeed, conti'n
Nor can it be said that these observations do not apply to Roberts and Ellis, who, as defendants in the equity proceedings, may claim to be regarded as involuntary parties, for, in their answer, they do not content themselves with denying the complainants’' title, but offer to do equity, to an insignificant extent, by offering to return the amount of the taxes paid, an'd themselves pray for tbe decrée that their title may be established, and for such other and further relief as may be proper and agreeable to equity.
Our argument has heretofore proceeded on the assumption that the grant by the county to the railroad company was ai donation, a mere gift, and, therefore, in view of cited decisions of the Supreme Court of "Wisconsin, beyond the power of the county, and invalid; and our conclusions, upon that assumption, and as respects those portions of the lands.which have been subjected to use as a public highway, are that the county, much less its subsequent, grantees with notice, cannot, in the state of facts disclosed by this record, disturb the possession of the railroad company; and that, as respects those other portions of the lands, which the railroad, company could not have taken by the exercise of its power of eminent domain, and as to which the company must depend upon the •validity of the county’s grant, the defendants, as purchasers with notice and upon an inadequate consideration, are in no position to invoke the assistance of a court of equity..
But it- is contended on behalf of the railroad company that the assumption that the county’s grant was'a1 mere’.gift, a donation without consideration, and therefore void as against the county and its subsequent grantees, is unfounded; that the transaction was really a sale within the legitimate powers of the county and the railroad company, and that the company, having performed its part of such sale by the payment of the consideration, is entitled to the protection of a court of equity against such a claim as is set up by Roberts and Ellis.
Our next inquiry, therefore, is whether the railroad company was entitled to that part of the decree of the court below which confirmed their title to such portions of the lands as they could not have .appropriated under their power of eminént domain. Was it within the power of the county to sell, and of the company to buy, such lands; and, if such powers were possessed,were they validly exercised ?
There is no room for doubt that the railroad company was
In September, 1880, the railroad company, having theretofore constructed its railroad and telegraph line to a point in the State of Minnesota, was about to select the point or points on Lake Superior to which their said line should be extended. In this condition of affairs the authorities of the county of Douglas, desiring to secure the extension of the railroad through their territory, and the' establishment of a lake terminus within the same, made a proposal to the company to transfer by sufficient deed or deeds to the company all the alienable lands or iots belonging to the ■ county 'Which had been acquired by deed, to .which the county had held undisputed .title for more than two years, if the company would construct their road upon a route desired by the county and establish a terminus, with sufficient • docks, and piers suitable for' the transfer of passengers and freight from the railroad cars" to and from lakegoing craft, within the limits of the county.
By an act, approved March 23, 1883, c. 150, Sess. Laws-1883, 113, the legislature of the State.of Wisconsin enacted as follows: “ Any conveyance heretofore made by the county of Douglas to the Northern Pacific Railroad, under and in pursuance and satisfaction of resolutions of the county board of said county, dated September 7, 1880, is hereby declared to be valid and effectual to vest in the Northern Pacific Railroad. Company the title to the lands conveyed or attempted to be conveyed by such conveyance; and any assignment of tax certificates heretofore made to the said railroad company, upon the property, or any part thereof, embraced in or conveyed by said conveyance, pursuant to and in satisfaction, of ánd in compliancy with said resolutions, is hereby declared to'be valid.”
Thereafter the railroad company sold and conveyed, for ivalue, portions of these lands to third parties.
So far then,, as it was within the power of the State of Wisconsin, through and by its legislature; to authorize the county of Douglas to make the contract in question, it must be regarded as -granted by or, at any rate, ratified by, said statute, and, if there, was any want of regularity in the pro
But it is contended that, despite the making of the contract between the county and the company, the fulfilment by the latter of the condition and terms prescribed,, the execution and delivery of a deed of • conveyance, and the ratification and confirmation of the transaction by án act Of the legislature, the contract and conveyance were nevértheless void, because the grant was a mere donation, without consideration, and hence forbidden by the constitution of the State of Wisconsin, as construed and interpreted by the Supreme Court of that State.
To maintain this position the appellants cite the case of Whiting v. Sheboygan & Fond du Lac Railroad, 25 Wisconsin, 167, in which it was held, by a divided court, that the erection and maintenance of a railroad, as a public highway, by a company endowed with the right of eminent domain, was not such a public use or purpose as will support taxation for raising money to be donated to such a corporation.
In so holding, that court reached a conclusion' different from that established in a long and almost unbroken line' of judicial decisions in the courts of most of the States. As is stated in Dillon’s Municipal Corporations, vol. 1, sec. 158, “the Supreme Court of the United States, following repeated intimations of its judges in previous cases, have directly sustained the .validity of legislative acts authorizing municipal aid' to railways. In view of the prior adjudications of that tribunal in the municipal bond cases, and of the almost uniform holding of the state courts, no other result could haye been anticipated. This ends judicial discussion if it does not terminate doubts. The Supreme Court, in reaching this result, places its judgment upon the ground that highways, turnpikes, canals, and railways, although owned by individuals under public grants, .or by private corporations, arspullici juris; that they have always been regarded as governmental affairs, and their . establishment and maintenance recognized as among the most important duties of the State, in order to facilitate transportation and easy communication among' its
It is contended, on.behalf of the plaintiffs in error, that where the question involves the powers of a state 'corporation, •and the meaning and effect of the constitution and laws of a State, it is the duty, of this court to adopt the decisions of the courts of such State. But we do not perceive that the doctrine of Whiting v. Sheboygan & Fond du Lac Railroad and of the cognate Wisconsin cases, is fairly applicable to the case before-us. There are two very important particulars in which the present case differs from those adjudicated.by the Wisconsin courts, and which, we think, warrant an opposite conclusion. In the first place, the transaction between the county of Douglas and the Northern Pacific Bailroad Company did not involve the exercise of the taxing power of the county. The county'did not issue bonds, or seek to subject itself to any obligation to raise money by taxation. The case, as already stated, was that of a sale. The county authorities had ample powers- to sell and convey such of its lands as were not Used or dedicated to municipal purposes. The ratifying act of the legislature of Wisconsin, alone considered, avails to remove any doubt upon that point. Nor can the plaintiffs in error consistently deny such a power in the county, as their only title is based on its exercise. It is, indeed, urged that the county authorities could only sell its lands for money. We do not accede to this proposition. If they possessed the power to sell for money, we are pointed to no express provision of law that restricts them from selling for money’s worth. Even" upon such a narrow view, it may well be contended that the consideration, received by .the county included a money payment. The deed recites the payment of money by the company to the county at the time of the conveyance, and it is a conceded fact that the lands since they came into the possession of the company have yielded. considerable sums as taxes to the county. It is straining no principle of law or of good sense to regard the payment of an ¿nnual tax as- equivalent, for the purpose of out present inquiry, to the payment of
The courts of Wisconsin have, in a series of decisions never overruled, held that it is competent for municipal corporations, if authorized so to do by the legislature, to aid the construction of railroads by subscribing to the stock of companies formed for that purpose, and paying therefor by bonds, and, of course, to raise the means of paying the latter by taxation. The task of reconciling this class of decisions with that holding that municipalities, even with legislative sanction, cannot promote railroads by donating money or credit to them, is not ours. It may, perhaps, be said that what is forbidden is a resort to the taxing power where the muncipality has received no consideration. But, as we have shown, the county iii the present case paid no' money and issued no bonds requiring any exercise of the taxing power. It was the case of a sale, in consideration of money paid down and to be paid in the form of taxes; in addition to' the great advantages to inure to the public..
There is a second important feature that distinguishes this case from those relied upon now by the appellants, and that is the character of the railroad company, as • a corporation created for public and national purposes. The Wisconsin courts were dealing with corporations of their own State, and they went upon the proposition that the construction and maintenance of railroads did: not constitute a public purpose, because the corporations created to build and run railroads were strictly private corporations formed for the purpose of private gain. If the making and maintaining a railroad in Wisconsin by a state corporation was not a public use, it was thought to follow that such an enterprise could not receive municipal aid. And it may be conceded that, when we are-called upon to pass upon the legal rights of a Wisconsin railroad company, we should follow the law laid down by the state courts. But the question now arises whether such a
By an a,ct approved April 10, 1865, c. 485, the legislature
It is obvious that the effect of this legislation of Congress was to grant the power to' construct and maintain a public highway for the use of the people of the United States, and subject, in important respects, to the control of Congress. That portion of its road that lie.s-within the State of Wisconsin is of the same public character as the portions lying in other States or Territories. Whatever respect may be due to decisions of the court's of Wisconsin defining the character and powers of Wisconsin corporations owning railroads,' the scope of those decisions cannot be deemed to include the case of a national highway like that of the Northern Pacific Eailroad Company. All of the great transcontinental railroads were constructed, under Federal authority, through Territories which have.since become States. Such States are possessed of the same powers of sovereignty as belong to the older States. Hence, if the contention were true that the State of Wisconsin,-through its judiciary, can deprive that portion of the railroad within its borders of its national character, and declare the Northern Pacific Eailroad Company, to be a private corporation not engaged in promoting a public purpose, the same would be true of the other States through which the road passes. Such a contention, we think, cannot be successfully maintained.
Congress has power “to regulate commerce with foreign nations and among the several' States,” and to “ establish post offices and post roads.” Const. art. 1, sec. 8, par. 3 and 7. As was said in Pensacola Tel. Co. v. West. Union Tel. Co., 96 U. S. 110 : “ The government of the .Unitéd States, within the scope of its powers, operates upon every foot of territory.» under its jurisdiction. It legislates for the whole nation, and is not embarrassed by. state lines. Its peculiar duty is to protect one part of the country from encroachments by am
In Osborn v. United States Bank, 9 Wheat. 738 , 823, it was held that a suit by of against a corporation oí the United States is a suit arising, under the laws of the United States, and that, on jurisdiction thus attaching in the Federal courts, the judicial power is extended to. the whole case. In the course of the opinion Chief Justice Marshall observed: “The charter of incorporation not only creates it, but gives it every. faculty which it possesses. The power to acquire rights of any description, to transact business of any description, to make contracts of any description, to sue on those contracts, is given and measured by its charter, and that charter is a law of the United States. This being can acquire no right, make no contract, bring no suit, which is not authorized by a law of the United States. It is not itself the mere creature .of a law, but all its actions and all its rights are dependent on. the same law.”
In Pacific Railroad Removal Cases, 115 U. S. 1 , 18, Osborn v. United States was followed, and it was held, that corporations of the United States created by and organized under, acts of Congress are entitled as such to remove into the Circuit -Courts of the United States suits brought against them in the state courts, on the ground that such suits are suits “ arising under the laws of the United States.” In that
We think, therefore, that when the Circuit Court, of the United States for the District of Wisconsin was called upon, in the present case, to pass upon the character, powers, and rights of the Northern Pacific Railroad Company, it was bound to regard that company as a corporation of the United States, created for .national purposes and as a means of interstate commerce, and not to apply to it the views- of the Wisconsin courts pertaining to their local railroads.
Upon the principle of these cases it is obvious ’that the State of Wisconsin, at-least after-it had given its consent to
The doctrine, then, of the courts of Wisconsin, that it is not competent for municipalities to donate money or lands or pledge their credit to promote the construction and maintenance of railroads, because the latter are not public in their character, is not applicable to the present case, for the reason that the transaction in question was not the case óf a donation or of a pledge of credit requiring, the exercise of-the taxing power, but was the case of a sale for a valuable and adequate consideration, and for the further reason that the. Northern Pacific Railroad Company is a corporation of a public character whose road is a highway and post road for national uses and to subserve interstate commerce, and, therefore, not within the scope and reason of the decisions relied on by the plaintiffs in error.
But it is further contended, on behalf of the plaintiffs in error, that whether the transaction between the county and the^company was that of a sale for a sufficient'consideration, or whether the Northern Pacific Railroad Company is a corporation invested with powers of a national origin and subjected to duties of a national character, were not questions open for consideration in the court below, because of the case of Ellis v. Northern Pacific Railroad, 77 Wisconsin, 114, 118.
That was a case wherein J. F. Ellis, one of the plaintiffs in error in the present case, had filed a bill of, complaint against the Northern Pacific Railroad Company in a Circuit Court of the State of Wisconsin, seeking to quiet his title to certain lots of land. These lots had been conveyed. to Ellis by Roberts, who claimed, to have purchased them from the’county
It is observable that the court’s attention, does not seem to have been drawn to those facts which are calculated to justify a. finding that the transaction was a sale , on consideration, and not a donation, nor to the' real character of the Northern Pacific Railroad Company as a national organization, and thus distinguished from a local railroad' company, which was dealt with by the Wisconsin courts in the Whiting case. This inattention by the Supreme Court of Wisconsin to such important particulars was probably occasioned by the fact that the -case was before them on a demurrer by the company to the •complaint of Ellis. It is further to be observed that no final judgment was entered by the Supreme Court of the State, but the cause was remanded to- the court below for. further proceedings'.
Afterwards, and before the final hearing in the state -circuit court, the present suit of the Northern Pacific Railroad Company against Roberts ánd Ellis came to a hearing, and resulted in the decree complained of in this appeal.
The record discloses that in their answer to the company’s bill Roberts and Ellis alleged that Ellis had brought an action in the circuit court of Douglás County against the railroad company, which was then pending and undetermined in the Supreme Court of Wisconsin, but they did not pray for any delay or withholding of decision to -await the result of such case. - The cause was put down for hearing upon the bill
The record also discloses that, at a date not distinctly disclosed, Eoberts and Ellis filed with the clerk a supplemental answer, setting up the decision of the Supreme Court of Wisconsin, affirming the order of the circuit court overruling the demurrer to Ellis’s complaint as a judgment in bar of the right of the Northern Pacific Eafiroad Company to proceed in its suit in the Circuit Court of the United States, and claiming that as to the questions so decided by the state courts they became and were by said judgment res judicata. The right to file this supplemental answer was not granted by the court, nor was it adverted to in its opinion.
Error could scarcely be imputed-to a court for refusing to allow an amendment or supplement to an answer after the case had progressed to a final hearing, nor to its judgment in disregarding the allegations of such proposed amendment. Put, waiving that suggestion, and regarding the matter set up in the supplementary as if it had been alleged in the original answer, we ¿re unable to see that the decree of the court below ought to have been affected by anything so alleged.
The suit in the Circuit Court of the State was brought by Ellis to quiet title to lots of land which were. not in contro-. versy in the Federal courts, nor was Eoberts a party therein. While! it may be conceded that the decision rendered in the state court was-decisive as between Ellis and the railroad company as to the title to the lots there in question, yet the Circuit Court of the United States, whose jurisdiction had been invoked as to other pieces of land, and with other parties involved, could not be expected to suspend its action, or to. adopt a conclusion of the state court reached after the case had been submitted on final hearing in the former court.
Nor do we feel bound to accede to the contention that this court ought now to test the correctness of the decree of the court below by applying to it the views of law upon which the state court proceeded in the case before it. As we have seen, the state Supreme Court did not seem to have before it
“ But where the second action between the same parties is upon a different claim or deinand, the judgment in the prior action operates as an estoppel only as to those inatters in issue or points controverted, upon the determination of which the finding or verdict was rendered. In all cases, therefore,where it is sought to apply the estoppel of a judgment rendered upon one cause of action to matters arising in a suit upon a different cause of action, the inquiry must; always be as to the point or question actually litigated and determined in the original action, not as to what might have been thus litigated and determined. Only upon such matters is the judgment conclusive in another action. The difference in the operation of a judgment in the two classes of judgments mentioned is seen through all the leading adjudications upon the doctrine of estoppel. . . . The cases usually cited in support of the doctrine that the determination of a question directly involved in one action is conclusive as to that question in a second suit between the
It was accordingly held in that case that a party plaintiff who had been defeated in one action upon coupons cut from county bonds because he failed to show that he was a bona fide holder for value, was not precluded from showing, in a subsequent action brought to recover on other coupons cut from the same bonds, that he was such bona fide holder for value of such other coupons. Under this contention the plaintiffs in error cite Johnson Co. v. Wharton, 152 U. S. 252 , but it is not inconsistent with Cromwell v. County of Sac, which, indeed, is approved and cited at length.
Error is likewise assigned to the decree because the bill of complaint was multifarious. This assignment is sufficiently disposed of by a reference to Gaines v. Chew, 2 How. 619 , 642, and the cases therein cited.
It is further argued that the court below erred- in sustaining a bill in equity for the title to land of vihich the complainant
It was therefore. conceded that the complainant was in aetuál possession of a portion of the lands, and that the defendants were not in possession of the balance, which are stated to be vacant and unoccupied. An actual possession of a part and a constructive possession of the rest would dearly bring the complainant’s case.within the remedy provided by the statute of Wisconsin, (§ 3186 Rev. Stat. 1878,) that any person having possession and legal title to lands may institute an action against another person-setting up a claim thereto to quiet, the title thereto. And' in Chapman v. Brewer, 114 U. S. 170 , we held, following previous cases, that, in such a case, a Circuit Court of the United States, having otherwise-jurisdiction ’in the case, will administer the same relief in equity which the state courts can grant. Nor -would the complainant, in the present case, have any remedy at law, on the defendants’ admission that the lands are vacant and that they are not, in possession of them. Holland v. Challen, 110 U. S. 15 ; Whitehead v. Shattuck, 138 U. S. 146 .
Upon the whole we are of opinion that the court below committed ho error, and' its decree is accordingly. Affirmed.
Cases cited
- 94 U. S. 352 94 U. S. 352 p. 2
- Olcott v. Supervisors 16 Wall. 678 p. 5
- Cromwell v. County of Sac 94 U. S. 351 p. 8, p. 27
- 96 U. S. 110 96 U. S. 110 p. 21
- Telegraph Co. v. Texas 105 U. S. 460 p. 22
- Osborn v. President of the Bank of the United States 9 Wheat. 738 p. 22
- 115 U. S. 1 115 U. S. 1 p. 22
- Johnson Co. v. Wharton 152 U. S. 252 p. 29, p. 30
- Gaines v. Chew 2 How. 619 p. 29
- 114 U. S. 170 114 U. S. 170 p. 30
- Holland v. Challen 110 U. S. 15 p. 30
- Whitehead v. Shattuck 138 U. S. 146 p. 30