Cospelich v. Mississippi Power Co.

144 So. 38, 164 Miss. 88, 1932 Miss. LEXIS 231
CourtMississippi Supreme Court
DecidedOctober 31, 1932
DocketNo. 30202.
StatusPublished
Cited by3 cases

This text of 144 So. 38 (Cospelich v. Mississippi Power Co.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cospelich v. Mississippi Power Co., 144 So. 38, 164 Miss. 88, 1932 Miss. LEXIS 231 (Mich. 1932).

Opinion

*91 McGowen, J.,

delivered the opinion of the court.

About April 11, 1930, Cospelich, the appellant, made application for service of electrical energy to Mississippi Power Company, for a filling station operated by him, which contained the following provision: “The undersigned requests Mississippi Power Company to furnish subject to its rates and service regulations in effect from lime to time, the service and facilities named herein as may be requested from time to time and agrees to pay all service and other charges in accordance with said rates and service regulations. Upon the beginning of the service applied for herein, or which may be applied for hereafter, this application becomes a contract for a term of one year and thereafter until terminated by either party upon thirty days’ written notice.”

At or about the same date, the power company issued to the appellant a receipt for ten dollars, required by the company as a deposit from its customers, containing the following provisions:

“This is to certify that the above amount has been deposited with Mississippi Power Company as security for the payment of all bills for electricity, gas or for any appliances used in connection with same, or for any material of any kind purchased from or services rendered by said company.

“Upon discontinuance of service and surrender of this receipt, the amount of this deposit less any amounts due *92 said company deductible therefrom will be returned to depositor. The company will pay interest on this deposit less any deductions at the rate of eight per cent per annum from date hereof, payable when deposit is returned or annually as earned upon request of depositor, provided depositor has been served by the company longer than six months. Interest ceases when service is discontinued. Conditions on reverse side hereof are a part of this receipt.

“Mississippi Power Company,

“By Wallace Chapman,

“L. M. L. A. Cashier, C. A.

“I accept the above conditions.

“■ — -——-Depositor. ’ ’

And on the reverse side- the following: “The Company will not connect its service with premises described in depositor ’s application unless depositor has complied with the state and municipal regulations on the class of service applied for and with the rules and regulations of the Company, . . . nor until all bills for service rendered to- or materials purchased by depositor previously at any time- and at any place have been paid in full. In event depositor fails to- comply with such conditions this deposit may be returned to depositor and the deposit is accepted by the Company with this understanding, and such return of the deposit or the- tender of the same to depositor as herein provided terminates and ends all of depositor’s rights under application for service.”

The appellant company furnished electrical energy to Cospelich from the date of the receipt of the ten dollars until late in September or early in October. Cospelich was unable to pay his bills for service from August 5 to September 5, 1930, and from September 5 to October 11, 193.0; and, when the representative of the power company presented its bill for the two months in arrears, demanded payment thereof, and was refused payment by the appellee, Cospelich, the power company disconnected *93 the wires of the company from the filling station of the appellee, and thereby deprived him of that service.

The bill for two months’ service, presented to the appellee on October 11, 1930, showed .the amount of four dollars-and ninety-one cents due the power company for electricity theretofore furnished.

On. the day the power company disconnected its service, and subsequent thereto, Cospelich demanded of the representatives of the company that they deduct from the ten dollars deposit the unpaid bill of four dollars and «ninety-one cents and continue to furnish him service until he had exhausted the balance of the deposit, but did not offer to continue to leave with the company any additional deposit. The company declined to comply with, this request.

Cospelich offered evidence tending to' show damage thereafter, amounting to' a considerable sum as detailed by him, because of the discontinuance of electrical service, contending that he had the right to have the money on deposit, which belonged to him, applied to the payment of his current bills until same was exhausted, and that the disconnection of such electrical service was a willful wrong by which his business was greatly damaged.

It was also shown in evidence that the rule of the power company was that no part of the customers’ deposits should be applied to their bills until after service was discontinued.

The Mississippi Power Company is a public-service corporation generating and selling electricity to the public at Biloxi, Gulfport, and other points along the coast.

At the conclusion of the evidence, the court below gave a peremptory instruction to the jury to find a verdict for the appellee, the power company, and an appeal from that judgment is prosecuted here by the appellant, Cospelieh.

There is no material conflict in the evidence.

*94 Appellant insists that the court should not have decided whether or not the rule in question was reasonable, but should have submitted to the jury the question of the reasonableness or not of the rule requiring- a deposit to be maintained by the company’s customers during the continuance of their service, and cited the case of Mississippi Power Company v. Byrd, 160 Miss. 71, 133 So. 193. In this case there was an issue of facts as to whether or not notice had been given by the power company to the customer of its intention to disconnect its service, the plaintiff, therein denying notice and the defendant asserting notice; and the court there said that that question should properly be submitted to a jury, mailing it apparent that this case is of no aid to us in this cause. The reasonableness of the rule was a question of law for the court, and not a question of fact for the jury.

It is next insisted, if we understand counsel’s brief, that a reasonable construction of the contract or rulé is that a customer who makes a deposit of ten dollars with a public service corporation, in order to secure electrical energy from the corporation, has a right to- have applied on past-due bills a portion of that deposit in discharge thereof and to be allowed to continue the use of the service.

In the: case of Southwestern Telegraph & Telephone Company v. Danaher, 238 U. S. 489, 35 S. Ct. 886, 888, 59 L, Ed. 1419, L. R. A. 1916A, 1208, that court said: “It uniformly is held that a regulation requiring payment in advance or a fair deposit to1 secure payment is reasonable, and this is recognized in the brief for the plaintiff where it is said that to protect themselves against loss telephone companies ‘can demand payment in advance. ’ If they may do this, it is difficult to perceive why the more lenient regulation in question was not reasonable. ’ ’

In the case of Central Louisiana Power Co. v. Thomas, 145 Miss. 352, 110 So. 673, 111 So.

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Bluebook (online)
144 So. 38, 164 Miss. 88, 1932 Miss. LEXIS 231, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cospelich-v-mississippi-power-co-miss-1932.