State ex rel. Ruff v. Northern Ohio Traction & Light Co.

Citations

• 104 Ohio St. (N.S.) 245

Syllabus

<p>Franchises — Misuse and forfeiture — Interurban railway — Failure to remove and reconstruct tracks — Nonpayment of installments — Quo warranto — Forfeiture and ouster denied.</p> <p>1. A franchise resolution adopted by a board of county commissioners and accepted toy the grantee, granting the franchise upon condition that the latter begins the removal of its old tracks and the construction of new toy July 1, 1920, is not such a condition precedent as will authorize a forfeiture of the grant if the condition is not then complied with, in the absence of a provision creating a forfeiture for such noncompliance.</p> <p>2. A franchise resolution effective on December 1, 1919, contained provisions for the payment to the grantor of three installments of $25,000 each, payable respectively on July 1, 1920, July 1, 1921, and July 1, 1922; it also provided that if the grantee failed to pay the several installments when due as therein provided no rights should be deemed to have vested “after said third installment is due; but all its rights hereunder shall then be deemed to be terminated.” Held: The nonpayment of the second installment at the time provided will not sustain a forfeiture, or authorize a judgment of ouster, under the terms of the grant.</p>