Davenport Gas Light & Coke Co. v. City of Davenport

15 Iowa 6, 1863 Iowa Sup. LEXIS 67
CourtSupreme Court of Iowa
DecidedJune 6, 1863
StatusPublished
Cited by13 cases

This text of 15 Iowa 6 (Davenport Gas Light & Coke Co. v. City of Davenport) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davenport Gas Light & Coke Co. v. City of Davenport, 15 Iowa 6, 1863 Iowa Sup. LEXIS 67 (iowa 1863).

Opinion

Wright, J.

The first count in the petition sets forth' in words the con1tract between the parties, by which plaintiff undertook to furnish gas for the city for a time therein' named, for a specified consideration. The fifth count avers.' that said contract was fully kept and performed by the'1 parties until the 1st day of July, 1858, when the city re-' fused to receive or pay for the gas, and notified plaintiff of such refusal: that in September, 1858, plaintiff brought' suit against the city for gas furnished, notwithstanding such: refusal, in the months of July and August of that year; that while said suit was pending (the’plaintiff being ready' and willing to furnish the gas, according to the contract), [12]*12to wit: on the 1st day of October, 1858, an agreement was entered into, as follows:

“ Whereas the city council, at a meeting held on the 15th day of September, 1858, adopted the following resolution, to wit:
“ Resolved, That the city attorney is hereby authorized and required, at the request of the Davenport Gas Light and Coke Company, to enter into a stipulation with said company or their attorney, that the said company shall have the privilege of shutting off the gas from the public lamps until the question of the validity of the contract shall be decided by the courts, and no existing rights of said company or the city shall be prejudiced or affected, but the contract, if now valid, shall be, and remain so, to the same extent as though the said company had not shut off the said gas.
“And, whereas, the said Davenport Gas Light and Coke Company have requested the privilege in said resolution mentioned, and desire said contract to be entered into by said city attorney. And therefore this agreement witnesseth that I, James T. Lane, city attorney of the said city of Davenport, by virtue of the premises heretofore recited, hereby agree and stipulate to and with the said Davenport Gas Light and Coke Company, that said company shall have the privilege of shutting off'the gas from the public lamps, until the question of the validity of the contract shall be decided by the courts, and no existing right of said company or the city shall be prejudiced or affected, but the contract, if now valid, shall be and remain so to the same extent as though the said company had not shut off the gas. In witness whereof, &c.”

It is also alleged, that in this suit referred to in said agreement, the city answered, denying the plaintiff’s right to recover under said contract; that, in December, I860, a judgment was recovered in the District Court against the [13]*13city, which was affirmed in the Supreme Court in June, 1862, the appellate court holding that said contract was valid and binding; that, during the pendency of said suit, to wit, from the 1st of October, 1858, to the — day of July, 1862, plaintiff ceased and omitted to furnish gas to the public lamps, and recovery is therefore sought in damages, to the amount of the profits which plaintiff would have made, under the contract by furnishing gas during said period, alleged to be the sum of fifteen thousand dollars.

The demurrer to this count is, because it appears from the contract that the gas was turned off from the public lamps by the plaintiff and with the consent of defendant, at plaintiff’s request, during the period for which the damages are claimed.

The legal substance of this ground of demurrer is, that the count states facts which avoid the cause of action. And these facts are claimed to be found in the agreement of October 1, 1858, the argument being that the gas was shut off at the request of the company — that it was not defendant, but plaintiff, who asked to be relieved from the contract; or conceding that it was the result of a mutual agreement, then there can be no recovery for profits.

Appellee mistakes the purport of this agreement We do not understand that the company had made any request on the subject prior to the action of the city council. The. language of the resolution, under which the city attorney acted, as well as the agreement itself, clearly indicate that the city would consent to shutting off the gas if the company should request it, not because it had, but if it should. It is doing violence to language to say that the company had asked to be -released or relieved from its agreement, that the city had consented, and that thereafter the company was estopped from claiming damages tinder the same.

But whether the company first made the request to shut [14]*14,off the gas, is not very material, for we thinlt the conclud■'i'ng part of the resolution and agreement place's the matter ,.beyond controversy. As the city had refused to receive or pay for the gas to be furnished under the contract) and had :so notified the company, (and this is averred in the ¡leading and taken to be true,) it was competent for the company without any agreement to shut off the gaá and recovér '.damages as claimed in' this court. ' The city had violated the agreement by refusing to pay for the gas already furnished ; had expressly repudiated and notified the company not to' continue the supply, and instead of complying with •'the agreement and recovering'the- contract price,--or treating it as wholly abandoned, it was the right1 of the- eom•'pany, whether the city assented or not, to withhold the gas and recover the difference between the cost of furnishing •'and its value by the terms of the contract.

Instead of leaving the matter thus, however, it seems that out of abundant caution on the part of both parties,' the •'agreement was made, by which the gas was to'be shirt off until the question of the validity of the contract should be decided by the court “ and no existing rights of --said comipany or the city shall be prejudiced or affected, but the contract if now valid shall be and remain so to the same '■extent as though the said company had not shut off the •gas.” Now if this agreement has the- effect of depriving 'the company of their profits then is' it -not thereby prejudiced in an existing right? Will not such a construction affect a right which was clear and unquestionable, and which has not been surrendered save' by the terms of the instrumént, which (under such a view) defeats the leading object df its execution ?

rThe plain meaning of the 'agreement is that the parties mutually undertook to suspend all controversy as to their ■respective rights and liabilities, under the contract for furnishing gas; until the question of its-validity was settled by [15]*15the c'ourts, and when the question was determined they were to be reinstated to all their rights just as théy existed, if such agreement mere had been made. No rights were impaired by it," arid it certainly was not intended to .take away existing ones.' We,' therefore, conclude that the'facts stated in this count do not avoid the cause of action,’and that the demurrer should have been overruled." "

2d. The second division of the answer' demurred to by plaintiff is quite lengthy, and without abstracting the samé, 'we state generally our views of the law applicable to’the questions made! ’ ' • ' '

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Cite This Page — Counsel Stack

Bluebook (online)
15 Iowa 6, 1863 Iowa Sup. LEXIS 67, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davenport-gas-light-coke-co-v-city-of-davenport-iowa-1863.