City of Mullens v. Union Power Co.

7 S.E.2d 870, 122 W. Va. 179, 1940 W. Va. LEXIS 35
West Virginia Supreme Court·Decided March 19, 1940·No. CC 623, 624·Published·Cited by 6 cases

Opinion

Maxwell, Judge:

Can a city, by eminent domain, without specific statutory authority, take over a privately owned public utility?

The circuit court answered in the affirmative by holding sufficient on demurrer two condemnation petitions, and certified its rulings to this Court for review.

Under one petition, the City of Mullens seeks to condemn and appropriate the properties of Union Power Co., a private corporation, which is furnishing within the City of Mullens electric current for power, heat and light. Under the other petition, the city would, by condemnation, acquire ownership and control of the properties of Mullens Water Works, likewise a privately owned utility corporation, now engaged in furnishing water to the city and its inhabitants.

The petitions are alike save only the names of the companies and the description of the service rendered. The legal propositions are the same in each case, except as to a certain statutory provision, hereinafter noted, applicable solely to the taking over of water distribution companies by municipalities.

In each petition, the city alleges that in April, 1939, acting under the home-rule-for-municipalities constitutional amendment of 1936 (West Virginia Constitution, Article VI, section 39a) and the municipal home rule statute enacted in 1937 (Code, Chapter 8A), the city amended its charter to authorize acquisition and ownership by the municipality of electric power and water utilities for the service.of the city and its residents; that in pursuance of its newly acquired authority, the petitioner desires to take over the properties of both of the defendants and to oper *181 ate the same as its enterprises; that the defendants have refused to place prices on their respective plants, and consequently the petitioner is unable to agree with either de-. fendant as tó a consideration to be paid. In each case, the petitioner prays that commissioners be. appointed to ascertain and determine what will be just compensation for the properties and assets sought to be taken.

The charter amendment authorizes, “Subject to general law”, the City of Mullens to acquire or establish, improve, operate, maintain and repair within the city public utility systems for the distribution of water, light, heat and power for the benefit of the people of the city.

The new section of the charter follows closely in phraseology a section of the municipal home rule statute, which reads: “Subject to general law a city shall have power to acquire or establish, improve, operate, maintain and repair, within or without the city, water- systems and electric and gas systems for the production and distribution of light, heat and power primarily for the benefit of the city and consumers therein. A city may acquire watersheds, water and riparian rights, plant sites, rights-of-way and any and all other property and appurtenances necessary or appropriate for such a system. The products and services of any such utility may be sold to consumers outside the city limits to the extent, in the judgment of the governing body, that they are not required to satisfy the needs of consumers within the city.

“A city may purchase the franchises and properties of a privately owned public utility which the city would have the authority to acquire and construct as an original undertaking.” Code, 8A-4-26.

This section of the statute does not expressly authorize municipalities to enter into ownership of the properties of utilities through the exercise of the power of eminent domain. Nor does the implication arise from the legislative authorization to acquire, establish and maintain water, electric, and gas systems, that there was legislative in-tendment that municipalities should have the right under the high power.of eminent domain to acquire the properties *182 of operating companies engaged in serving the public. On appraisement of the entire statutory section immediately under consideration, there seems clear the legislative purpose, first, to authorize the establishment of utility systems through the process of construction, and second, to permit the purchase of franchises and properties of going utility concerns.

Though the^home rule statute carries a requirement for liberal construction of its terms (Code, 8A-4-2), that provision, though manifesting a wholesome purpose, must not be considered as abrogating settled and basic principles of the law of condemnation of private property for public use. Eminent domain is an attribute of sovereignty which can be employed by an instrumentality of government, such as a municipality, only when the legislature of the state has unequivocally vested such governmental subdivision with the authority sought to be exercised. “The exercise of the power (eminent domain) being against common right, it cannot be implied or inferred from vague or doubtful language, but must be given in express terms or by necessary implication. When the right to exercise the power can only be made out by argument and inference, it does not exist.” 1 Lewis on Eminent Domain (3d Ed.), section 371. Statutes.pertaining to eminent domain must be strictly construed. Adams v. City of Clarksburg, 23 W. Va. 203; Cemetery Association v. Redd, 33 W. Va. 262, 10 S. E. 405; Charleston & S. Bridge Co. v. Comstock, 36 W. Va. 263, 15 S. E. 69. Concededly, municipalities are clothed with the power of. eminent domain for specified purposes. Code, 54-1-1, 2; Code, 8-4-12. But nowhere in the statutes is a municipality or other corporate body politic authorized by statute, expressly or by necessary implication, to exercise the power of eminent domain for the acquisition of the property and assets of an operating utility as such, except only as herein next méntioned.

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City of Mullens v. Union Power Co., 7 S.E.2d 870, 122 W. Va. 179, 1940 W. Va. LEXIS 35 (W. Va. 1940).

7 S.E.2d 870 (City of Mullens v. Union Power Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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