Birmingham Water Works Co. v. Windham

67 So. 424, 190 Ala. 634, 1914 Ala. LEXIS 712
CourtSupreme Court of Alabama
DecidedDecember 17, 1914
StatusPublished
Cited by18 cases

This text of 67 So. 424 (Birmingham Water Works Co. v. Windham) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Birmingham Water Works Co. v. Windham, 67 So. 424, 190 Ala. 634, 1914 Ala. LEXIS 712 (Ala. 1914).

Opinion

McCLELLAN, J.

The rights and obligations of the parties to this cause and the correctness of the decretal order granting an injunction pendente lite restraining appellant from cutting off or discontinuing’water service at the residence of the appellee depend upon the proper construction of the ordinance-contract entered into by the city council of Graymont and the appellant on the 25th day of October, 1908. In the decision of the Court of Appeals delivered in the cause styled Birmingham Water Works Co. v. Kelley, 2 Ala. App. 629, 56 South. 838, will be found set out the schedule of flat rates and the schedule of meter, rates, with other related provisions of their ordinance-contract. It is not thought necessary to republish, in extenso, those schedules. Reference to that report must suffice in that respect.

Section 13, so far as it need be here reproduced, is: “That, as a further inducement unto grantee to construct said waterworks system and operate the same, said city agrees that grantee shall have the right for and during the full term and continuance of this ordinance to charge all persons and corporations using water from its mains at the following rates, which shall be collected quarterly in advance, except in cases where meters are used, in which cases charges may be collected quarterly or monthly, at the option of the grantee, and, in consideration of the foregoing, grantee does bind itself to furnish, during such term, water unto all consumers in said city having connections with its mains at such rates.”

[636]*636Section 14 of the ordinance-contract is in these words: “That grantee shall have the right to set a meter on any service line, whether it be used for domestic or any other purpose and notwithstanding a specific or annual rate may be named therefor herein, and charge for use of water according to the meter schedule provided in this ordinance, and any water consumer shall have the right to require grantee to- set a meter on his service pipe and to pay for water service by meter measurement, provided that each and every water consumer supplied by meter measurement, shall pay a minimum monthly charge for water privilege of at least one ($1.00) dollar, or a minimum quarterly charge for water privileges of at least three ($3.00) dollars, in cases where a one-half inch or five- eighths inch meter is used, except that in no- event shall the minimum monthly or minimum quarterly charge for water privilege exceed the flat rate charge for the same period.”

The schedules of flat and meter rates appear in section 13 of the ordinance-contract; and in that section, following the schedules, it is provided: “The rates pro vided for in this section are subject to the modifications and provisions of sections fourteenth, fifteenth, sixteenth and eighteenth.”

The only specific reference in the meter schedule to as small a quantity of water as 1,000 gallons is in these words and figures in the first line of the schedule: “For a daily consumption o-f 1,000 gallons $.30 per 1,000 gals.” Under the capital heading “Meter Rates,” and, in parenthesis, preceding the expression just quoted, these words appear: “Subject to the minimum charges and meter rates hereinafter provided for.”

(1-3) The question propounded on this appeal is whether a residential consumer, whose service pipe is of the three-quarter inch class, and who uses less than [637]*6371,000 gallons of water a day,, may be required to pay for water he consumes as measured by a meter; such consumer having for many years used the water furnished by the company (appellant) and having paid therefor during that time according to the measure thereof made by a meter installed by the mutual agreement of appellee and appellant, pursuant to' what they conceived to be the rights established by section 14 (quoted above) of the ordinance-contract.

It will be noted that the quoted first line of the meter schedule appears to only contemplate a daily consumption of exactly 1,000 gallons; no more and no less. If this line of the schedule were considered alone, it would be readily conceded that the rate of 30 cents per 1,000 would and could only apply to a daily user of that exact quantity of water. When the meter schedule’s succeeding ascending gradations of quantity consumed each day, viz., chiefly 500 gallons and 1,000 gallons, are considered, and the obvious fact that rarely, if ever, may there be a connectedly recurrent daily consumption of exactly 1,000 gallons of water is given its due attention, credulity is taxed to accept the words of the first line of the meter schedule as meaning what it seems to say and to accord to it, in consequence, so nearly an impossible field,of operation. Our opinion is that the contract in this respect is open to construction — a condition that could not obtain if the words of the contract were plain and unambiguous. Contracting parties usually engage upon rational considerations and to reasonable effects and ends; and, when the courts find it necessary to construe instruments of obligation, it is ever proper, and often essential, for them to assume, at least prima facie, that the unreasonable and irrational was not the contractual intent. The whole instrument must be considered, and out of this will and must [638]*638come the intelligent judgment of what was the intention of the parties.

Prom the quoted parts of section 13, it appears with certainty that the company was assured the right to charge all persons and corporations using water from its mains at the rates thereinafter set out in the instrument. • It is clear that the common purpose was to fix rates of charge for all consumers in the territory described in the instrument. There is no mistaking this feature of the contractual intent. By section 14 the company was assured the right “to set a meter on any service line,” regardless of the character- of the user, and “notwithstanding a specific or annual rate may be named therefor herein,” and to charge for the use of the water according to the meter schedule set out in the ordinance-contract. That section then declared the broad right in “any water consumer” to require the company to set a meter on his service pipe and exacted that he pay therefor “by meter measurement.” The last three words we have quoted must of necessity refer to the meter schedule in the ordinance-contract. It cannot be supposed that a right so broadly declared and evidently regarded as of value and consequence to the whole class of consumers would be predicated of any other method or scheme of “meter measurement” than that stipulated in the ordinance-contract. So the provision for this right vested in any consumer, and the further stipulation that payment for the water used shall be by measurement must be read as appropriating to the completed expression intended the meter schedule laid out in the instrument.

This status of pertinent schedule provision and of unlimited declaration of right in both company and any consumer to install or to have installed meters and to exact payment according to measure presents this dual-[639]

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Bluebook (online)
67 So. 424, 190 Ala. 634, 1914 Ala. LEXIS 712, Counsel Stack Legal Research, https://law.counselstack.com/opinion/birmingham-water-works-co-v-windham-ala-1914.