Citizens' Gas-Light Co. v. Louisville Gas Co.

81 Ky. 263, 1883 Ky. LEXIS 58
CourtCourt of Appeals of Kentucky
DecidedJune 16, 1883
StatusPublished
Cited by3 cases

This text of 81 Ky. 263 (Citizens' Gas-Light Co. v. Louisville Gas Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Citizens' Gas-Light Co. v. Louisville Gas Co., 81 Ky. 263, 1883 Ky. LEXIS 58 (Ky. Ct. App. 1883).

Opinion

JUDGE HINES

delivered the opinion of the court.

In 1838 the legislature chartered the Louisville Gas Company, with the exclusive privilege of manufacturing and furnishing gas to the city and citizens of Louisville until the 1st day of January, 1869, at which date the charter was to expire.

[265]*265On the 30th of January, 1867, in anticipation of the expiration of this charter, the legislature passed an act, entitled “An act to extend the charter of the Louisville Gas Company,” which provided that it should take effect from the 1st day of January, 1869, and continue twenty years. This last act was in effect, as we have decided in the case of Caiivv. Commonwealth, 14th Bush, 535, the creation of a new charter, the powers under which are to be ascertained by reference to this act, and not by reference to the act of 1838. In this last act of 1867 there is no grant of an exclusive privilege to manufacture and sell gas in the city of Louisville.

On the 22d of January, 1869, after the charter of 1867 had gone into effect, and after its acceptance by the stockholders of the old company, the company applied to and obtainedTrom the legislature an amendment to the act of 1867, by which the company was given the exclusive right to manufacture and furnish gas to the city and to the citizens of Louisville during the life of the charter.

On the 21st of March, 1872, the legislature chartered the “Citizens’ Gas-light Company,” with power to manufacture and furnish gas to the city and citizens for the period of fifty years. The 3d section of that act reads:

“Said company shall have power and authority, with the consent of the general council of said city, to open the «ground in any highway, street, lane, alley, park, or other public place within the limits aforesaid, and lay and repair therein their pipes for conducting gas; said company restoring the same to as good condition as before, within a reasonable time thereafter; said company being required in so doing not to injure any gas or water-pipe, or connection or sewer laid therein, and said corporation being liable to the [266]*266city of Louisville for any damage it may have to pay for its negligence in so laying, repairing, or restoring as aforesaid, and such power and authority is subject to such reasonable regulations as the mayor and city council may make for the protection of life, property, and health of citizens. ”

Appellant instituted this action in equity, alleging the facts stated, and that the claim of appellee to the exclusive right to manufacture and supply gas in the city of Louisville cast a cloud over appellant’s title to the franchise, and prevented it from selling its stock to raise the sum of money necessary to the enjoyment of its franchise, and preliminary to its beginning work under its charter. Appellant prays that the cloud on its title may be removed; that it be adjudged that appellee has no such exclusive right as asserted, and that an injunction be granted restraining appellee from asserting such exclusive claim.

On hearing, the court dismissed appellant’s petition, with cost, from which judgment this appeal is taken.

The first point made by appellee is, that this proceeding in equity for an injunction is not the proper remedy by which to determine whether appellee has the exclusive right to the manufacture and the supplying of gas to and in the city.

If the exclusive right insisted upon by appellee is without warrant of law, is unconstitutional and void, and the assertion of that right prevents appellant from selling its stocI% and raising the large amount of money necessary to entering upon the enjoyment of its franchise, the whole of the charter rights of appellant are destroyed by the assertion of an unfounded claim on the part of appellee. In such case the remedy adopted is peculiarly appropriate, as has been expressly adjudged in the similar case of Crescent City Gas[267]*267light Co. v. New Orleans Gas-light Co., 27 La. Ann., 142. As to whether such claim of exclusive privilege is unfounded, because unconstitutional, we will inquire into hereafter. It is enough for jurisdiction that the claim is so alleged.

Secondly, it is insisted that as the conditions of the consent of the city council, manifested by ordinance exhibited with the petition, are conditions precedent to the exercise of appellant’s franchise, and that as they have not been complied with, appellant has no right to entertain its action. Those conditions are contained in the ninth and tenth sections of the ordinance, and are as follows:

“Ninth. That said company shall proceed as rapidly as practicable to establish its works, and lay down its pipes and mains, after the passage of this ordinance,' provided the said company shall have erected its gas-works, laid down, its mains, and be prepared to supply the citizens with gas, within two years after the approval of this ordinance; and this ordinance, and all rights and privileges granted thereunder, shall be null and void should said company fail to keep or perform each and every provision of this ordinance in each and every particular.”
Tenth. That for the faithful performance of all the provisions of this ordinance, the Citizens’ Gas-light Company shall execute a bond, with good security, to the amount of $75,000, to be approved by the mayor and general council. And that within two years there shall be an investment made by said company in works and mains equal in value to the sum of $75,000.”

Subsequent to this ordinance, the city council, by resolution, extended the time for the performance of these conditions two years longer.

[268]*268In the first place, the right of appellant to have the cloud removed from its franchise was precedent to, and independent of, any consent on the part of the city to the opening of the streets to lay its pipes and mains. On the passage of the charter and its acceptance by appellant, it became seized of a property right in the franchise, for the protection of which it had the right to invoke the aid of a court of equity. As to whether appellant could or could not obtain the consent of the city council was a matter with which appellee had nothing to do. So long as the consent might be obtained, it did not lay with appellee to claim that the consent had not been obtained, particularly as the claim of exclusive right on the part of appellee might have been the cause of preventing the consent.

Secondly, the franchise of appellant was valuable without the consent of the city council to the tearing up of streets to lay down pipes and mains, as the business of the corporation might have been carried on without disturbing the soil of the streets.

Thirdly, all the conditions contained in the ordinance, except it may be that of giving bond, are conditions subsequent to the consent of the city council; and as to the matter of the bond, that is an affair between the city and appellants, with which appellee has nothing to do.

Fourthly, the charter of appellant does not require that the consent of the city shall be obtained by ordinance, and although such consent was so obtained, and although it may be conceded that an ordinance cannot be continued in force after its expiration by resolution, yet, as the city council had the right to waive the forfeiture for non-compliance therewith, the resolution is an express and unimpeachable waiver.

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Cite This Page — Counsel Stack

Bluebook (online)
81 Ky. 263, 1883 Ky. LEXIS 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citizens-gas-light-co-v-louisville-gas-co-kyctapp-1883.