Chesapeake Beach Railway Co. v. Hupp Automatic Mail Exchange Co.

Citations

• 48 App. D.C. 123
• 1918 U.S. App. LEXIS 2362

Syllabus

<p>Contract; Indemnity; Scope oe; Public Policy; Ultra Vires; Evidence; Judgment Record; Termination oe Contract.</p> <p>1. A liability for injury caused by the negligence of a railway company to a person on the track who had been invited there to remove certain blocks placed by a company which had a contract right to use the tracks for the purpose of some experimental tests and demonstrations of an automatic mail exchange system is within the losses contemplated by the contract whereby an indemnity was given to the railway company for any loss which it should sustain by reason of being compelled to respond in damages for injuries to third persons which arise either directly or indirectly, or in any way arise or grow, out of the operations of the company making the experiments.</p> <p>2. It is not against public policy to indemnify a railway company against liability for injury caused by its own negligence to persons on the track by permission in the course of experimental tests of an automatic mail exchange system which were permitted by the railway company under such provision for indemnity.</p> <p>3. The presumption is that a contract of a corporation is not ultra vires in the absence of anything appearing to the contrary.</p> <p>4. Evidence included in the record of a judgment in a case which an indemnitor had been called upon to defend or settle, where he failed to do either, is admissible against him in a subsequent suit.</p> <p>5. A lease providing that it should terminate on a certain date upon the lessee’s “giving sixty days’ notice” is not terminated by its terms on the date specified if such notice was not given. (Distinguishing United States use of District of Golwnibia v. Bayly, 39 App. D. C. 105.)</p>