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BUTLER et al. v. TIFTON, THOMASVILLE AND GULF RAILWAY COMPANY

Supreme Court of Georgia1905-01-28
121 Ga. 817

Summary

Holding. The judgment dismissing the case is reversed because the doctrine of res judicata does not bar a new suit on a separate and distinct cause of action that could not have been added to the prior suit by amendment.

A railroad company entered into a contract with Huber & Stokes to build a spur track to their sawmill. When Bedgood & Co. later purchased the land and mill, they sought to enforce the contract based on an assignment from Huber & Stokes plus an independent agreement with the railroad company. The trial court refused to allow Bedgood & Co. to amend their petition to assert this new theory, ruling that it constituted a different cause of action from the original contract between Huber & Stokes and the railroad.

When Bedgood & Co. subsequently filed a new lawsuit asserting their independent agreement, the railroad company claimed the case was barred by the doctrine of res judicata based on the prior judgment. The trial court sustained this plea and dismissed the case. However, the court found that Bedgood & Co. never received a hearing on the merits of their new claim and that the matters in the second suit could not have been raised in the first suit because the trial court had prevented them from being added by amendment. Therefore, the prior judgment could not bar a suit on a completely distinct cause of action.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a railroad company may contract to build a spur track to a private enterprise
  • Whether an assignment of a spur-track contract can be enforced by an assignee without the railroad's consent
  • Whether res judicata bars a subsequent suit on a distinct cause of action that was prevented from being added by amendment to the original suit

Procedural posture

The trial court sustained a plea of res judicata and dismissed Bedgood & Co.'s action to enforce an independent agreement for construction of a spur track.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Lamar, J.

(After stating the foregoing facts.) The public has an interest in the location of depots, and the time and place at which trains must stop for the reception of freight and passengers. A railroad company’s power to contract in reference thereto is therefore not unrestricted, but public policy must be considered in determining the legality of such agreements. See the cases cited in 7 Rap. & Mack’s R. Dig. 201-204. But such limitation on its power to contract does not apply to a case where the railroad company covenants to build a spur-track from its main line to a sawmill or other private enterprise. The interest of the public can not in any way be seriously affected by the construction and maintenance of such track. Austin v. Augusta Co., 108 Ga. 692, 693; Graham v. Macon R. Co., 120 Ga. 757 (3). Indeed the validity of such contract was recognized in Tifton Ry. Co. v. Bedgood, 116 Ga. 949, 951. The allegations of the petition then under review were so nearly identical with those in the present case that it is unnecessary further to consider the demurrer, which the court properly overruled.

In the case last cited this court held, that while the .contract bound the railroad company to build a spur-track for Huber & Stokes, it could not be assigned to Bedgood & Co. so- as to give the latter a right of action for its breach. On the return of the remittitur the plaintiffs offered to amend the petition by alleging that they not only had an assignment from Huber & Stokes, but^ that the railway company assented to the assignment, and agreed that if Bedgood & Co. would buy the laud, build the mill, and ship the lumber over its lines, it would build the spur-track. In other words, the amendment averred that there was an independent agreement between Bedgood & Co. and the railway company in reference to the building of the spur-track. Instead of reducing this agreement to writing, however, the parties adopted terms which were already in writing; and, by reference or otherwise, parties can adopt the terms of a contract between others. American Co. v. Continental Co., 188 U. S. 107; International Co. v. Hardy, 118 Ga. 512 ; compare Town of Douglasville v. Johns, 62 Ga. 427 (3).

The amendment therefore set out a cause of action. But the court held that it “ set up a new and distinct cause of action; ” that the original suit was on a contract between Huber & Stokes and the railway company, while the amendment sought to recover for an entirely different cause of action arising out of a contract between different parties. Yielding to that decision Bedgood & Co. thereupon brought the present action, making therein most of the allegations contained in the amendment which had been thus disallowed by the court. To this the railway company filed a plea of res adjudicata, and upon the production of the record in the former suit the plea was sustained. It is evident that Bedgood & Co. have not had a hearing on the merits, and that the matters set up in the present suit were not passed on in the former. Civil Code, §§ 5095, 3744. It is further evident that the facts set out in the present case could not “ have been put in issue in the cause wherein the judgment was rendered.” Civil Code, § 3742. For when Bedgood & Co. endeavored to secure *a hearing on. the new matter, they were prevented from s.o doing by the order sustaining the company’s demurrer. Having secured a judgment sustaining their position, the railway company must be held bound by the ruling which it invoked, and.by the judgment in its favor which it secured. Brown v. State, 109 Ga. 571; Papworth v. Fitzgerald, 111 Ga. 55; Neal Co. v. Chastain, 121 Ga. 500. The very terms of the record offered in support of the plea of res adjudicata show that “the new cause” could not be barred by a judgment in an “ old ” and “ different cause ” — one so different that the new could not be added to it by way of amendment. This is not a second suit for the same cause of action, but a new suit for a distinct cause of action. That it is new and distinct from that formerly brought appears from the record attached to the plea. The case should not have been dismissed.

Judgment reversed.

All the Justices concur. •