Alcorn v. Cincinnati Traction Co.

25 Ohio N.P. (n.s.) 523, 1925 Ohio Misc. LEXIS 1473
Ohio Superior Court, Cincinnati·Decided April 30, 1925·Published

Opinion

Marx, J.

These cases are brought by Robert S. Alcorn. No. 58953 is an action to collect one million and fifty thousand ($1,050,000) dollars, alleged to be due as a tax on the gross earnings [524] of the Cincinnati Traction Company for the years, 1921, 1922, and 1923, under Ordinance 253-1918 revising the original fifty year franchise granted to the Cincinnati Street Railway Company, August 13, 1896, and leased to the Traction Company, February 21, 1901. In this action -the validity of the present franchise (Ordinance 253-1918, August 23, 1918) is asserted as the basis for the claim that a tax is due thereunder.

No. 58950 is an action to enjoin the collection by the Cincinnati Traction Company of a higher rate of fare than five -cents on the ground that a higher fare is prohibited by Section 2505-A Ohio Statutes (93 O. L., 214, April 23, 1898), permitting a lease of the Street Railway Company property and franchise to the Traction Company. In this action the validity of the present franchise is attacked, and if the provisions fixing the rate of fare are invalid, the entire franchise is by its terms invalid.

In both cases, the plaintiff sues as an individual. In neither case is the city of Cincinnati made a party, although both cases involved important interests and rights of the municipality and of the citizens thereof.

In the “tax ease,” the -city solicitor was requested to bring the action and refused.' However, the plaintiff does not say that he brings his action on behalf of or for the benefit of the city, but prays for an individual judgment against the Traction Company and the street Railway Company for $1,050,000.00 on account of taxes alleged to be due the city.

In the “fare case,” no request was made of the city solicitor to bring such an action nor is it claimed that he has refused to do so. The citizens and the -city have a vital interest in any question affecting the rate of street car fare, and such questions should not be decided without the city being a party or having an opportunity to be represented.

The “tax case” is identical, except as to the period of time involved, with an action brought in the Common Pleas Court by the same plaintiff against the same defendants to recover a similar tax for the year 1920 (No. 178421, Common Pleas' Court of Hamilton County, Ohio). That action was dismissed by Judge Stanley Struble. The Court of Appeals for this county, upon proceedings in error by the plaintiff, held that [525] he had no right to maintain or bring such an action. In so deciding Judge Buehwalter said in part:

“General Code, Section 4314, provides for the bringing of certain actions by a taxpayer, upon the refusal of the city solicitor to do so. This action is not included in the ones there specified. So that under the Code, there is no authorization for the bringing of the present suit. * * *. We find no authority in Ohio to warrant the bringing' of an action such as this by a taxpayer. The amended petition, therefore, should have been dismissed, without a determination on the merits. * '* *. The judgment of the court below will be reversed, set aside, and held for naught, and the cause remanded to the Court of Common Pleas, with instructions to dismiss the action at the costs of the plaintiff.”

The Supreme Court of Ohio overruled a motion by the plaintiff for a writ of certiorari (No. 18632, Supreme Court of Ohio). The decision of the Court of Appeals, therefore stands as the law and is controlling upon this court. The Court of Appeals having held that the plaintiff cannot maintain an action such as this and that decision having met the approval of the Supreme Court, this court has no alternative except to dismiss said action for want of capacity upon the part of the plaintiff to sue and without prejudice as to the merits.

By a parity of reasoning, the plaintiff has no capacity to sue to enjoin the rate of fare fixed by contract between the defendants and the city, without previously requesting the city solicitor to -bring such -an action and without making the city a party. This has been held by the Supreme Court in Phelps, a Taxpayer, v. Logan Natural Gas & Fuel Co. et. al., 101 O. S., 144, Syllabus 3.

In the opinion of Judge Merrell, formerly a distinguished member of this court, it is held at page 147:

“The theory that the individual consumer has a vested interest in a contract made by his city with a public utility, and in the provisions thereof with respect to rates for service, finds no support in the authorities. The individual citizen is in no exact sense the direct beneficiary of such contract. The benefits and rights accruing to him thereunder are his by virtue of his membership in the municipal corporation. The latter, embodying the collective citizenship, and representing the general welfare of its citizens, as distinguished from the [526] sum total -of their divergent private interests, is therefore the real as well as the nominal party in interest in -such contract.”

The court further held that the ordinance there in question (page 149) “was not open to attack on general grounds by the individual taxpayer, or gas consumer, suing either in his personal right, or, as here, on behalf of the public.” Hence, the “fare ease” must also be dismissed for a similar want of capacity to maintain such. an action. If there is any error in this conclusion, we are convinced that there is no merit to the contention that the fare is limited to five cents by the act of April 23, 1898 (Section 2505-A Ohio Statutes, 93 O. L., 214).

It is true that this act authorized the traction company to lease the property and franchise of the street railway company, and provided that the then existing fare of five cents should not to be increased “by reason of such lease,” and that the fare should not exceed the maximum fare charged over any one of said lines prior to such, lease or purchase.

However, subsequently, in 1912, the Constitution of Ohio was amended so as to confer complete power upon any municipality'to>

“* * * acquire, construct,, own, lease and operate within or without its corporate limits, any public utility the product or service of which is or is. to be supplied to the municipality or its inhabitants, and may contract with others for such product or service.” (Article 18, -Sec. 4, Constitution of Ohio, adopted September 3, 1912.)

The Supreme' Court has frequently held that any provision of law which conflicts with the Constitution or limits the Constitutional power of a municipality to contract with a public utility for service, in invalid. In Ohio River Power Co. v. City of Steubenville, 99 O. S., 421, at page 428, Judge Donahue, speaking for a unanimous court, said:

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Alcorn v. Cincinnati Traction Co., 25 Ohio N.P. (n.s.) 523, 1925 Ohio Misc. LEXIS 1473 (Ohio Super. Ct. 1925).

25 Ohio N.P. (n.s.) 523 (Alcorn v. Cincinnati Traction Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.