City of Chicago v. Chicago Telephone Co.

130 Ill. App. 451, 1906 Ill. App. LEXIS 649
CourtAppellate Court of Illinois
DecidedDecember 11, 1906
DocketGen. No. 12,788
StatusPublished

This text of 130 Ill. App. 451 (City of Chicago v. Chicago Telephone Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Chicago v. Chicago Telephone Co., 130 Ill. App. 451, 1906 Ill. App. LEXIS 649 (Ill. Ct. App. 1906).

Opinion

Mr. Presiding Justice Freeman

delivered the opinion of the court.

The Circuit Court sustained a demurrer to the petition of appellant upon two grounds: First, that the ordinance granted by the City of Chicago to the telephone company, which is set out in full in the petition, constitutes in substance a contract between the parties, notwithstanding statements are required of the appellee and payments are provided for which might tend to benefit the public; and that the writ of mandamus will not issue to enforce a mere contract. Second, that mandamus will not be awarded where it is sought for the enforcement of a mere abstract right and will not definitely fix the rights of the parties, even though the right of the petitioner under the contract is clear. It was held that even if the right of the city under the ordinance to a statement from the telephone company of its receipts within the city limits as the latter existed at the time of such statements be conceded, nothing would be settled by the issue of the writ; that the city would not be bound by the statement of the telephone company and the company might not be; that the writ would not therefore be awarded where it does not clearly appear that it will definitely settle the rights of the parties.

It is said in behalf of appellee that the only pertinent questions upon this record are such as relate to appellant’s right to invoke the remedy by mandamus, and that the extent of the rights and obligations created by the ordinance in question can more properly be left for settlement in a pending suit between the parties (see The People v. Chicago Telephone Co., 220 Ill. 238); that mandamus will not be awarded to enforce private obligations resting on contract; that an obligation created by acceptance of an ordinance to pay money compensation to a municipality for the privilege of using its streets is contractual and that mandamus will not be granted to enforce a doubtful right; and it is said that appellant is not entitled to the relief sought for other reasons which, in the view we take, we deem it unnecessary to consider.

It is said by counsel for the city that certain portions of its petition were erroneously expunged by the Circuit Court. Those expunged portions which appellant appears to consider most important set forth in substance that appellee applied to the city for permission to place its poles and wires in certain streets and alleys, that the right given it in that behalf by said ordinance was its sole and exclusive authority for so using and occupying such streets and alleys, that notice was given to appellee that it would be required thereafter to include in its .report and percentage all business done in subsequently annexed territory, and that the receipts from long distance telephone business were not included in any reports made by the company nor was any percentage of receipts of such business paid to the city. Treating these as material and for the purposes of the argument as legitimate averments of the petition, the question to be determined is whether the city is entitled to the writ of mandamus for which it prays, requiring the telephone company to file a true statement of its gross receipts' from all business within the present city limits and to pay into the city treasury three per cent, on such gross receipts.

It is conceded by counsel for appellant “that the obligations of a mere private contract cannot be enforced by mandamus,” but it is urged that the principle has no application in this case, and that the judgment of the Circuit Court amounted to a clear abuse of discretion; that a city ordinance is a law, rights and duties under which can be enforced by mandamus, even when resting partly upon contract; that even if the ordinance in question be deemed a mere contract, it is not a private .contract, and that the remedy sought cannot be defeated upon the ground that such ordinance is also a contract or because it would compel the payment of money. It has been held in this state that where there is a grant and acceptance by a corporation of an ordinance involving the performance of acts in the nature of duties or services to the public as a condition of the grant, “the corporation accepting the franchise may be compelled by the writ of mandamus to perform the duty so enjoined by the grant and consented to by the acceptance thereof.” The People v. Suburban R. R. Co., 178 Ill. 594-604. In that case it was sought to compel the respondent corporation to comply with the express provisions of an ordinance which it had accepted, which provisions created “a duty to the public to be performed by the company for the benefit of the public.” It was urged m behalf of the corporation as “fundamental law” that “mere contract obligations cannot be enforced by mandamus.” The court, however, held it to be “now well settled that when there is a grant and acceptance of a public franchise involving the performance of such acts or service, the corporation accepting the franchise may be compelled by the writ of mandamus to perform the duty so enjoined by the grant and consented to by the acceptance thereof.” The writ was awarded commanding the company to sell tickets to passengers, good to stations in River Forest, at the. same rate as to stations in Cicero, as the ordinance required; and the court said (p. 606): “The fact the ordinance requires the company should formally accept it as conditioned had no effect to render the grant a mere private contract.” In Rogers Park Water Co. v. Fergus, 178 Ill. 571, a writ of mandamus was awarded fixing water rates as provided by an ordinance of the City of Chicago enacted subsequent to the annexation of Rogers Park to said city, which rates were lower than those fixed in the original ordinance of the village of Rogers Park, which was accepted by the water company, under which ordinance it had laid its pipes and previously operated its water works. It was held that the ordinance of the village and its acceptance did not constitute a contract that the rates fixed by the ordinance should remain fixed and unchanged and that no such “contract obligations arose by reason thereof” (p. 578). In these cases the writ as awarded enforced rates for services which the corporation agreed to render to the public where a clear right was thought to exist.

In Chicago Mun. Gas Light Co. v. Town of Lake, 130 Ill. 42, which was a bill in equity to enjoin the town from interfering with the company in laying gas pipes in the streets, it was held that the company by acceptance of its ordinance undertook to perform a service for the public benefit of the town and its inhabitants, which undertakings were a sufficient consideration for the contract based on the ordinance, and that this was a valid and binding contract which the town could not abrogate by repealing the ordinance. In like manner ordinances of a municipality granting licenses to public service corporations for use of public streets are said in Belleville v. Citizens Horse Ry. Co., 152 Ill. 171-186, to be licenses which when accepted become valid and binding contracts. In The People v. The Central Union Telephone Company, 192 Ill. 307-311, it is expressly stated that the grant by the city of the right to use the streets “is not a franchise, but a license or contract,” which “could not be revoked or rescinded except for cause.” So also in Chicago Telephone Co. v. N. W. Telephone Co., 199 Ill. 324-347, Chicago Glen. Ry. Co. v. City of Chicago, 176 Ill. 253-259, and there are other cases.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

People ex rel. Young v. Trustees of Fairbury
51 Ill. 149 (Illinois Supreme Court, 1869)
Chicago Municipal Gas Light & Fuel Co. v. Town of Lake
130 Ill. 42 (Illinois Supreme Court, 1889)
North v. Board of Trustees of the University
27 N.E. 54 (Illinois Supreme Court, 1891)
Wagner v. City of Rock Island
21 L.R.A. 519 (Illinois Supreme Court, 1893)
City of Belleville v. Citizens' Horse Railway Co.
152 Ill. 171 (Illinois Supreme Court, 1894)
Chicago General Railway Co. v. City of Chicago
52 N.E. 880 (Illinois Supreme Court, 1898)
Rogers Park Water Co. v. Fergus
53 N.E. 363 (Illinois Supreme Court, 1899)
People ex rel. Jackson v. Suburban Railroad
178 Ill. 594 (Illinois Supreme Court, 1899)
People ex rel. City of Pontiac v. Central Union Telephone Co.
61 N.E. 428 (Illinois Supreme Court, 1901)
Chicago Telephone Co. v. Northwestern Telephone Co.
65 N.E. 329 (Illinois Supreme Court, 1902)
City of Chicago v. Rothschild & Co.
72 N.E. 698 (Illinois Supreme Court, 1904)
People ex rel. City of Chicago v. Chicago Telephone Co.
77 N.E. 245 (Illinois Supreme Court, 1906)
State ex rel. City of New Orleans v. New Orleans & Carrollton Railroad
37 La. Ann. 589 (Supreme Court of Louisiana, 1885)

Cite This Page — Counsel Stack

Bluebook (online)
130 Ill. App. 451, 1906 Ill. App. LEXIS 649, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-chicago-v-chicago-telephone-co-illappct-1906.