The Pacific commercial advertiser. [volume], April 20, 1899, Page 12, Image 12

About The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921

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12
THE IVADinn COMMEKCIAL ADVERTISER: TinxoUTMT, APRIL 20, 1899.
IN THE SUPREME COURT OF THE HAWAIIAN
ISLANDS.
Jcn-e Tionsr, 1S9S.
t
HAWAIIAN COMMERCIAL & SUGAR COMPANY
WAILUKU SUGAIi COMPANY.
r Appeal from Circuit Jcikjk, First Circuit.
Submitted ox Fi:i:tjieb Akgumext April C, 1S99. Decided
April 11, 1899.
Jcdd, C.J., Frear and AViiitixo, JJ.
An alleged equitable owner of land is not -entitled to an injunction
to restrain the prosecution of condemnation proceedings against
the holder of the legal title, during the pendency of a suit to have
the holder of the legal title declared trustee of the land to the
uso of the equitable claimant, on the ground that the holder of
the legal title will not protect the interests of the equitable claim
ant, there being no collusion between the plaintiff in the con
demnation proceedings and the holder of the legal title.
OPINION OF THE COURT BY FREAR, J.
Th ia is an appeal from a decree sustaining a demurrer .and
dismissing a bill in equity for an injunction against certain con
demnation proceedings.
Tho parties are corporations doing business on the Island of
Maui, llie plaintiff being a foreign, the defendant, a domestic
corporation.
The bill alleges in brief that plaintiff claims to be equitably
entitled to some 0,000 acres of land to which are appurtenant
valuable water rights, which land is a portion of the Ahupuaa
. of "Wailuku on the Island of Maui and is held in the name of
Clans Spreekels of San Francisco, California; that a suit is now
pending in this (the lower) court brought by plaintiff against
said Spreekels praying, amongst other things, that he be de
creed a trustee of said land to plaintiff's use, and that an in
junction therein has been granted and is now in force restrain
ing him from disposing of said land, as appears by the record
in said suit, profert of which is made; that defendant has brought
an action before the circuit judge of the -Island of Maui against
plaintiff and said Spreekels praying judgment authorizing its
construction of a water ditcli and flume ten feet wide and about
a mile long over said land, that summons therein has been issued
but that by consent the time for plaintiff's appearance has been
extended; that plaintiff is informed by defendant's attorneys,
who aro also said Spreekels' attorneys, that said .Spreekels does
not intend to dispute the granting of such judgment in favor
of defendant, and that thev, defendant's attorneys, will dis
continue said action as against plaintiff and take out such judg
ment against said Spreekels if plaintiff shall by demurrer or
otherwise contest the validity of the law under which said action
is brought and that thereupon defendant will dig and use said
ditch; that if plaintiff shall not contest the validity of said law
in said action, it mav be regarded as having waived anv claim
to do so on appeal, and that plaintiff is advised by counsel that
it has just grounds for claiming that said law is invalid; that
plaintiff, as soon as it shall have successfully asserted its rights
in said land, proposes to utilize for its own puiqoses the water
power which the- defendant seeks to obtain and use, and that if
its use thereof is impaired or interfered with, the damage thereby
resulting to its property will be irreparable; that said Spreekels
has no concern in disputing the obtaining by defendant of said
water power, and, as shown by the records in said Guit as well
as by tho records in another suit, profert of which is made,
does not desire as holder of the legal estate in said land to pre
vent such irreparable damage; that the said law does not provide
for proceedings against others than the owners of the legal title
and occupiers of the land, so th:-.t plaintiff's equitable rights
therein cannot be adjudicated and protected, and the judge
before whom said action a v i 1 1 bo tried mav of his own motion
or at the instance of defendant's or said Spreekels' counsel dis
miss said action as against plaintiff and give judgment therein
authorizing defendant to construct said ditch and pay the dam-'
ages to said Spreekels.
The prayer is for an injunction restraining defendant, its
agents and attorneys from proceeding further with said action
until final decision" of said suit in equity or further order of tho
court.
The only ground of demurrer relied on in this court is the
general one that the . complaint does not show facts sufficient
to constitute a cause of action.
Tho only ground, if any, upon which an injunction could
properly be issued in this case, is that the plaintiff is a cestui
que trust of the land and that its interests will not be protected
in the condemnation case, because that case will be discontinued
or dismissed as to it, and its trustee, the other defendant therein,
will not defend.
The other allegations, as to the invalidity of the statute, the
ownership of the vater power and the consequences of a de
cision for the plaintiff in that case, cannot be regarded as inde
pendent grounds for an injunction. They raise questions that
can be raised and determined in that ease as well as in this. Thev
can be regarded only as tending to show, with other things,
that the interests of the plaintiff herein will suffer if not de
fended in that case.
If the proceedings for condemnation under the statute (Act
18, Laws of 1S95) were in the nature of equitable proceedings
and the cestui que trust could be a party thereto, it could de
fend itself therein and there would be no occasion for an in
junction. But counsel on both sides take the position that
those proceedings are at law, that the cestui que trust cannot
properly be a party thereto and that under the statute only legal
as distinguished from equitable owners can properly be parties
defendant. Assuming this to be the correct view, the plaintiff
therein could without question properly discontinue as to
the cestui que trust. In that event, if, on the one hand, the
cestui que trust would not be bound by a judgment against the
. trustee, it would be in no danger such as would entitle it to an
injunction.
But let it be supposed, on the other hand, that, as would
probably be the case, the cestui que trust would be bound by
a judgment against the trustee, on the ground that it was repre
sented by the trustee. See State r. E. d- A. R. R. Co., 36 X. J.
L. 1S1; Rohertson r. Van Cleave, 120 Ind. 217; Hidden r.
Davisson, 51 Cal. 13S. Then, if there were good reason to
believe that the trustee would neglect to protect the interests of
tho cestui que trust, the latter s remedy would seem to be, not
against the plaintiff in the condemnation proceedings, but against
the trustee by compelling him to defend, by having him
removed and another trustee appointed, by getting the trust
executed, or by other preventive remedy, as the case may
permit, or by holding him to account afterwards for the loss
in case the preventive remedy were not applied in time. The
plaintiff in the condemnation proceedings, if acting innocently,
ought not to be compelled to have its rights suspended because
of a dispute between the owner of the legal title and an alleged
equitable claimant.
Of course if it could be shown that the plaintiff in the con
demnation proceedings was acting in collusion with the trustee
to wrongfully deprive the cestui que trust of its rights, the
latter could probably treat tho condemnation proceedings as
void and recover the property or rights taken and perhaps would
even be entitled to an injunction to prevent the plaintiff therein
from proceeding under such circumstances. But in this case
such collusion is not relied on. It seems to be conceded that
the plaintiff in those proceedings is merely endeavoring to secure
rights in accordance with tho terms of the statute, and that
the danger to the interests of the cestui que trust lies merely
in the indifference and perhaps hostility of the trustee, that is,
assuming that there is a trust.
The decree appealed' from, dismissing the bill "with costs, is
affirmed.
.I. . Hurt well and V. R. Castle for plaintiff.
Kinncii tO IJalfou for defendant.
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