Georgia Power Co. v. City of Decatur

149 S.E. 32, 168 Ga. 705, 1929 Ga. LEXIS 219
Supreme Court of Georgia·Decided April 15, 1929·No. No. 6849·Published·Cited by 5 cases

Opinion

Stark, J.

This suit had its origin in the decision of the City of [706] Decatur in 1925 to pave its streets in accordance with an act of the legislature of Georgia, and to assess certain of the expenses of paving against the street-railway. On July 9, 1925, plaintiff in error notified the City of Decatur that unless it was relieved of the burden of this paving expense, it would be “willing to surrender to the City of Decatur the franchise for this line and remove the tracks from the streets.” The city refused this proposition. On September 26, 1925, a communication was addressed to the mayor and commissioners of Decatur, stating, among other things, that the “ Georgia Eailway and Power Company, as the lessees thereof, concurring herein, hereby formally surrenders the said permits and franchises granted by the Town and City of Decatur for the construction and operation of the said electric railway hereinbefore referred to.” Attached to. this notice was a certified copy, or copies, of the resolutions by the board of directors of the Georgia Eailway and Electric Company and the Georgia Eailway and Power Company. The notice recited when the discontinuance would1 be put in operation. On September 28, 1925, the City of Decatur by proper resolution refused to accept the surrender of the said franchise, or permit, tendered to it by the street-railway companies, as it would not be to the interest of the city to accept the same. The City of Decatur then filed this equitable petition against the Georgia Eailway and Electric Company and the Georgia Eailway and Power Company, to prevent the abandoning of these lines, setting up the contract made and entered into between the city and said street-railway companies. Pending this litigation the Georgia Eailway and Electric Company and the Georgia Eailway and Power Company have been consolidated and merged into the Georgia Power Company. In further discussion of tbis case we will refer to the ordinance of March 3, 1903, of the City of Decatur and the contract entered into in pursuance thereof, dated April 1, 1903, as if made with the Georgia Power Company instead of Georgia Eailway and Electric Company and Georgia Eailway and Power Company.

It would seem that every attack that could be made upon this contract of April 1, 1903, has been made by the Georgia Power Company. When it was before this court the last time (Georgia Railway & Power Co. v. Decatur, 153 Ga. 329 (supra)), it was stated by Wright, Judge: “While the plaintiff in error now insists [707] that some ten distinct points of attack upon the validity of the contract are made in the present appeal that were not made in the mandamus case (149 Ga. 1), it is not and can not be insisted that the identical questions of law were not involved upon the first hearing of the interlocutory injunction (153 Ga. 143, 108 S. E. 615) as are now involved upon this second appeal.” We have examined the original record in this court when the case was here before, that we might again have before us the “ten distinct points of attack upon the validity of the contract” referred to in the decision; and every controlling issue was distinctly made and passed upon in that case that is made in the case now before us, unless it be the offer to surrender back to Decatur the franchise, or permit. In paragraph 37 of the company’s answer it said: “Defendants show and allege that said so-called contract is indefinite as to the time it is to run; said provision contains no definite or fixed time during which a fare of five cents is to be charged, and because of said indefiniteness said so-called contract provision is revokable on notice, and as shown by exhibit “D” attached to the petition defendants have served notice on petitioner, terminating said contract on the twentieth day of October, 1930, and so-called contract, if it ever had any force and effect, is now terminated.” The company further set out in its answer and cross-bill a copy of the order of the Eailroad Commission of the State of Georgia, dated September 33, 1930, among other things stating: “the five-cent fares now in effect on the main Decatur line, . . contracted for under vastly different conditions than now exist, are not fairly compensatory, and as to the patrons of the company on other routes, and on intermediate territory on these routes, are discriminatory. This Commission is without power to increase them.”

“ Defendants further allege that provisions, or contracts, with reference to rates, or fare, being with reference to a legislative or police power, must be for a definite term, not grossly unreasonable, and that where the provisions as to rates are indefinite it is revokable on notice under changed conditions.”

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Georgia Power Co. v. City of Decatur, 149 S.E. 32, 168 Ga. 705, 1929 Ga. LEXIS 219 (Ga. 1929).

149 S.E. 32 (Georgia Power Co. v. City of Decatur) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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