The Court adheres to the views of the law expressed in its
opinion delivered at the former trial of this case,
Rector v.
Gibbon, 111 U. S. 276, and
finds that the decree below was made in accordance with them.
Under the peculiar circumstances of this case, having reference
to the doubt as to title and to the evident good faith of the
parties, the true measure of liability is the actual receipts from
the property, and not its rental value, and in that respect the
decree below is held to have been erroneous.
In equity. The case is stated in the opinion.
MR. JUSTICE BREWER delivered the opinion of the Court.
This is the second time this case has been to this Court. It
came first on demurrer to the bill, and the decision is reported in
111 U. S. 111 U.S.
276. The demurrer, which had been sustained in the circuit court, 9
F. 16, was overruled by this, and the case remanded with
instructions to permit answer and proceed to proof. Obediently
thereto, answer was filed in the circuit court and the case
proceeded to proof and hearing. The history of the "Hot Springs"
litigation, of which this is but a fragment, has been so often
referred to in the opinions of this Court, particularly in the case
in 111 U.S.,
supra, that reference thereto now is
superfluous, and in reference to the principal matter in
controversy here, the title to the lots, it is enough to say that
every material fact alleged in the bill was proved, and that
nothing was developed in answer or testimony to disturb the
conclusions of law heretofore reached by
Page 137 U. S. 140
this Court. The matter of title was established by the decree of
the circuit court in accordance with the views of the law
entertained and announced by this Court, and there is nothing in
the testimony to withdraw the case from the scope of that
conclusion.
The circuit court entered a decree for title and also directed
an accounting. That accounting, as finally settled, credited the
defendant with the amount of taxes and assessments paid by him, the
amount of purchase money paid to the United States for the lots,
and the expenses incurred in obtaining the patent, and the amount
due for improvements, on the basis of the lease which established
the rights of the parties, and charged him with the money received
on certificates from the government for buildings condemned and
destroyed, and also the rental value of the premises from the time
of the award of the commissioners to the date of the decree. We are
of opinion that the rental value ought not to have been charged;
that, under the peculiar circumstances of this case, having
reference to the doubt that must have arisen as to the matter of
title, to the
prima facie effect of the award given by the
commissioners, and to the evident good faith of all the parties in
reference thereto, the true measure of liability is not the rental
value, but the actual receipts. This account, as stated by the
circuit court, was as follows:
To rent of premises . . . . . . . . . . . $ 9,541.66
To amount due on certificates for
condemned buildings . . . . . . . . . . 10,737.86
----------
$20,279.52
By amount of taxes and
assessments paid. . . . . . $ 2,306.98
By amount purchase money
paid for lots . . . . . . . 1,528.00
By amount expenses in
getting patent 112 35
By amount for improvements
as per covenant . . . . . . 8,666.67
----------
$12,614.00 $12,614.00
----------
Balance due Rector $ 7,665.52
Page 137 U. S. 141
This account should be modified so as to charge defendants with
amount received on certificates for condemned buildings,
$10,737.86, and other amounts actually received from the property,
$5,659.07; total, $16,396.93. From which, deducting the credits
allowed, there remains a balance of $3,782.93.
The decree of the circuit court will therefore be modified, and
the case
Remanded with instructions to enter a final decree, as
heretofore, establishing the title of the complainant, and
decreeing to him possession, and adjudging that he recover of the
defendants the sum of $3,782.93, with interest from the 11th day of
November, 1886, the time of the final decree.