Davenport v. Kleinschmidt

8 Mont. 467
CourtMontana Supreme Court
DecidedJanuary 15, 1889
StatusPublished
Cited by9 cases

This text of 8 Mont. 467 (Davenport v. Kleinschmidt) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davenport v. Kleinschmidt, 8 Mont. 467 (Mo. 1889).

Opinion

Liddell, J.

The plaintiffs in this suit are citizens and taxpayers of the city of Helena, and instituted the present action in 1886, against the defendants, mayor and aldermen of the city aforesaid, and against one G. F. Woolston.

It appears that on the 22d of November of that year, the city council, by an ordinance, granted to the defendant Woolston the franchise of laying mains and water pipes through the streets and supplying water to the inhabitants of said city, as well as furnishing the corporation with water for fire and sewerage purposes for a period of twenty years at a stipulated payment of one thousand two hundred and fifty dollars per month.

The plaintiffs alleging the contract to be illegal, at the time of filing their suit, applied for and obtained an injunction restraining the city council from entering into the contract or paying out any money in accordance therewith. The defendants (except Woolston) appeared and moved to dissolve the injunction upon various grounds to be noticed hereafter; and when the motion was decided against them, appealed the case to this court where it was tried in January, 1887. The opinion of the court, found on page 502 of 6 Mont., affirms the decision of the lower court, and the defendants having filed their answer, the case was again decided in favor of the plaintiffs upon their motion [477]*477for judgment on the pleadings; and from this judgment the present appeal is prosecuted. Before we can intelligently understand the present issues in the case it will be necessary to consider tho opinion referred to, and find from it what issues were presented, and what points therein decided.

The complaint alleges the illegality of the ordinance entering into the contract; first, because it creates a monopoly; second, because it increased the indebtedness and liability of the corporation beyond twenty thousand dollars, which is the amount limited by sections 17 and 37 of the charter of the city; third, because it involved an expenditure of over one hundred dollars, and was not advertised in accordance with the provision of the city'charter; fourth, that the ordinance is in violation of the act of Congress passed the 10th of July, 1886. Those grounds in the motion to dissolve which were insisted upon, were that the bill was without equity and that the writ was improvidently issued.

In the outset of the opinion, the organ of the court, Justice McLeary, while expressing the opinion that Woolston was not a party to the record by reason of the failure to summons him, nevertheless holds that the parties before the court were sufficient to the complete determination of the controversy and the issues involved.

From a careful reading of that opinion we find that the following issues were determined in that controversy, brought about by the motion to dissolve: First. The court held that the plaintiffs had the right to enjoin the council from the execution of and expenditure of the city’s revenues, upon an illegal contract. Second. The court held that the defendant, Woolston, was not a party to the proceedings, never having been summoned, and was not a necessary party. Third. The court declines to express any opinion as to the divisibility of the franchise and contract. Fourth. That part of the ordinance which gave to Woolston the exclusive right and power of selling water to the city of Helena for a period of twenty years at a fixed rate is a monopoly. Fifth. That under the charter of the city no authority existed for the creation of monopolies. Sixth. The ordinance granting the exclusive right and power to furnish the city water for a period of twenty years at a fixed [478]*478rate was not for a reasonable period under the circumstances, and the contract was one beyond the power of the council to enter into. Seventh. The contract proposed was one forbidden by section 17 of the city charter, as amended by the Act of 1883, page 19, which limits the city indebtedness for any purpose whatever to twenty thousand dollars. Eighth. That the indebtedness of the city at that time already exceeded the limit fixed by the charter, to wit, twenty thousand dollars. Ninth. No further debts could be incurred without aid from the legislature of the Territory. Tenth. “ That whether the contract was considered in the nature of a debt or liability, it is prohibited by section 37 of the city charter, which provides that the aggregate amount of bonds, and all indebtedness and liability of the city for any and all purposes whatever, shall not exceed the sum of twenty thousand dollars. Eleventh. For this reason it is beyond the authority of the council to make it or carry it out in any particular. Twelfth. The court also holds that the contract is void because it involved an expenditure of over a hundred dollars, and was not advertised before letting as is required by the city charter, page 15. Thirteenth. The contract does not create an indebtedness which falls within the act of Congress of the 10th of July, 1886. Fourteenth. The injunction was neither improvidently nor prematurely issued.

After this decision the defendants filed an answer admitting the assessed value of property in the city to be five million dollars, as stated in the complaint, and that the bonded indebtedness is also as stated in the complaint, to wit, nineteen thousand dollars; but they deny any floating indebtedness at all on the part of the city. They deny any contract or intention to contract between Woolston and the city; but aver that the tenor and effect of the ordinance is to authorize and empower Woolston to lay pipes and mains and to furnish the inhabitants of the city with water, and to procure from him such water as is needed for city purposes; and that to pay for such water the ordinance makes appropriation.

Without enumerating further the denials and allegations of new matter, we may say generally that the answer puts at issue all the points.presented in the complaint and passed upon in the opinion of the Supreme Court heretofore referred to. In [479]*479passing upon the motion for judgment on the pleadings, the court, while sustaining it, modified the injunction in so far as it restrained Woolston from erecting his system of water-works under the franchise, but made the writ perpetual as to the council, and prohibited them from carrying out the ordinance wherein it gives the exclusive right and power to Woolston to furnish the city with water for fire and sewerage purposes for the period of twenty years. From this judgment it is plain that the question of the divisibility of the ordinance has been recognized by the judge a quo, and from the oral arguments and briefs we understand the point to be conceded by counsel for both sides, and that it is therefore eliminated from the contract.

This being the case we are confronted with the identical questions which were passed upon in the former appeal. It is true, however, that the allegations of the answer which go to show the enhanced or increased value of the taxable property and revenues of the city might make it necessary to review one of the questions, that is, whether or not the revenues are sufficient to meet the additional expenditure without increasing the debt or liability of the city. But even if that point was well taken we could not consider it, because the injunction must stand or fall by the state of facts which existed at the time the writ was granted.

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Bluebook (online)
8 Mont. 467, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davenport-v-kleinschmidt-mont-1889.