City of Paris v. Paris-Henry County Public Utility District

340 S.W.2d 885, 207 Tenn. 388, 11 McCanless 388, 1960 Tenn. LEXIS 469
CourtTennessee Supreme Court
DecidedSeptember 9, 1960
StatusPublished
Cited by16 cases

This text of 340 S.W.2d 885 (City of Paris v. Paris-Henry County Public Utility District) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Paris v. Paris-Henry County Public Utility District, 340 S.W.2d 885, 207 Tenn. 388, 11 McCanless 388, 1960 Tenn. LEXIS 469 (Tenn. 1960).

Opinions

Mb. Justice Pelts

delivered the opinion of the Court.

[391]*391These two cases, tried together, were prosecutions brought by the City of Paris (City) against the Paris-Henry County Public Utility District (Defendant) for violating an ordinance (No. 316) of the City by making-excavations in its streets without first obtaining permits therefor and otherwise complying with the ordinance.

Defendant admitted it had made the excavations without such compliance, but insisted it had a right to do so under a prior ordinance (No. 295) which constituted a franchise and contract between the Defendant and the City; and that the later ordinance, upon which the prosecutions were based, was unconstitutional and void, as impairing the obligation of the contract in violation of the Constitution of Tennessee (Art. I, sec. 20).

The City Recorder fined Defendant $10 in each case. Upon its appeal to the Circuit Court, the cases were there tried de novo before the Judge without a jury. He sustained this defense, held ordinance No. 316 unconstitutional upon the ground stated, and dismissed the cases.

This issue of constitutionality being “the sole determinative question in the litigation” (T.C.A. sec. 16-408), the City appealed to this Court and insists that the Trial Court should have held the ordinance was not unconstitutional but a valid police regulation for public safety in the use of the streets.

The City’s legislative body passed ordinance 295 May 19, 1956. It granted to Defendant “the exclusive right and franchise” “to lay, construct and maintain” its gas pipes under the surface of the streets and alleys, and to construct and maintain its system for distribution and sale of gas to the people of the City for 25 years, upon terms stated.

[392]*392One of such, terms was that Defendant should agree that upon payment by the City of all Defendant’s indebtedness, including that secured by the lien on its properties and assets, it would convey the same to the City; and that this agreement should be the consideration for all the rights and privileges granted by the ordinance and “in lieu of any and all other fees, charges and licenses which the City might impose for the rights and privileges herein granted.”

That ordinance contained other provisions not here pertinent and need not be stated. Defendant accepted the offer or the terms of the ordinance, and proceeded with the work of laying its pipes under the streets and of constructing its system for distribution and sale of gas.

Evidence for the City tended to prove that during the latter part of 1958 and the first part of 1959, Defendant, after excavating and laying its pipes in the streets, would fail to repair or restore the streets, and would leave in them ditches or trenches likely to endanger public travel (see photographs, Exs. 1, 2, 3, tr. p. 18, et seq.).

So, on May 19, 1959, the City’s legislative body passed ordinance 316. Section 1 made it unlawful and punishable by fine for any person to make an excavation in a street without first obtaining a permit and complying with its other provisions; but provided that any person maintaining pipes under the streets might make an excavation in case of an emergency and obtain the permit later.

Section 2 provided that applications for permits should state the location of the proposed excavation, its size and purpose, the names of the person doing the work and of the person for whom it was to be done; and that the appli[393]*393cation should be approved or rejected within 24 hours of its filing. Section 3 provided for payment of certain fees for permits. Section 2 and 3 are set out in the margin.1

Other sections contained provisions requiring certain deposits to be made by applicants, to insure repair or restoration of the streets; regulating the manner of making excavations and providing they should be safeguarded by barricades, lights, etc.; and requiring liability insurance to indemnify the City against liability for injuries caused by such excavations. There were other provisions not here pertinent.

It is true that ordinance 295, upon acceptance by Defendant, became a franchise and a contract, binding the city in its proprietary capacity, and giving Defendant the right to make use of the streets in installing its pipes; and that this contract right could not be revoked or impaired by the City. City of Chattanooga v. Tenn. Electric Power Co., 172 Tenn. 524, 112 S.W.2d 385; 24 Am.Jur., Gas Companies, sec. 11, p. 676.

Such right, however, was subject to regulation by the City, acting in its governmental capacity under the [394]*394police power, delegated to it by the State, to regulate and control its streets for the public health and safety. Such power is broad and cannot be limited by contract. City of Chattanooga v. So. Ry. Co., 128 Tenn. 399, 402, 161 S.W. 1000; Nashville, C. & St. L. Ry. v. Middle Fork Obion Drainage Dist., 149 Tenn. 490, 498, 261 S.W. 975; 25 Am.Jur., Gas Companies, sec. 11, p. 672.

“ ‘ “ But the exercise of the police power cannot be limited by contract for reasons of public policy, nor can it be destroyed by compromise, and it is immaterial upon what consideration the contract rests, it is beyond the authority of the state or the municipality to abrogate this power so necessary to the public safety.” ’ ” (Citing cases) Nashville G. & St. L. Ry. v. Middle Fork Obion Drainage Dist., supra, 149 Tenn. 498, 261 S.W. 977.

So, the question is whether ordinance 316 is a valid police regulation. It is supported by a presumption in favor of its validity, and the burden is on Defendant, attacking it, to show it is invalid. Rutherford v. City of Nashville, 168 Tenn. 499, 511, 512, 79 S.W.2d 581; Hermitage Laundry Co., Inc. v. City of Nashville, 186 Tenn. 190, 193, 209 S.W.2d 5.

Defendant attacks it upon a number of grounds; first, upon the provision that no one may make an excavation in a street without first obtaining a permit to do so. It is urged that this would give the City absolute discretion and arbitrary power to refuse permits altogether, since the power to grant implies the power to refuse, and would enable the City to revoke the permission it has already granted Defendant by ordinance 295, and thereby impair Defendant’s franchise and contract right.

[395]*395No such, construction, in our opinion, may be given ordinance 316. Its main provisions have been stated above. We think their clear meaning and intent is that while no one may make an excavation without first obtaining a permit, yet when he meets all the conditions he becomes entitled to it; that the City may refuse a permit until the applicant complies with all the requirements, but when he does, the issuance of the permit is merely ministerial duty and the City authorities cannot refuse the permit.

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City of Paris v. Paris-Henry County Public Utility District
340 S.W.2d 885 (Tennessee Supreme Court, 1960)

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Bluebook (online)
340 S.W.2d 885, 207 Tenn. 388, 11 McCanless 388, 1960 Tenn. LEXIS 469, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-paris-v-paris-henry-county-public-utility-district-tenn-1960.