Ocean Shore Railroad v. Spring Valley Water Co.

This is an appeal from a judgment in favor of the plaintiff for $50,993, consisting of $35,000, with interest at the rate of seven per cent per annum from March 11, 1914, to date of judgment.

On the fourteenth day of October, 1905, the Ocean Shore Bailway Company paid to the defendant the sum of thirty-five thousand dollars ($35,000) for a.grant of a right of way across certain property of the defendant. The agreement between the parties is evidenced by a receipt for the purchase price, which reads as follows:

and a resolution of the Spring Valley Water Company, passed .by the board of directors at a meeting held November 23, 1905, as follows:

Subsequently on account of the fire of 1906 the Railway Company encountered financial difficulties and did not urge the completion of the contract at the time it was originally contemplated the road would be built.

On June 10, 1909. in reply to a letter from the Water Company making inquiry of the Railway Company regarding various transactions between the two companies, the then president of the Railway Company, referring to the right of way which forms the basis for this action, said: “The other right of way can wait until we are ready…