Haines v. City of Rapid City

238 N.W. 145, 59 S.D. 58, 1931 S.D. LEXIS 153
CourtSouth Dakota Supreme Court
DecidedOctober 5, 1931
DocketFile No. 7244.
StatusPublished
Cited by12 cases

This text of 238 N.W. 145 (Haines v. City of Rapid City) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haines v. City of Rapid City, 238 N.W. 145, 59 S.D. 58, 1931 S.D. LEXIS 153 (S.D. 1931).

Opinion

RUDOLPH, J.

This is an action brought by the appellant, John C. Haines, as a resident and taxpayer in and for the city of Rapid City, Pennington county, S. D., seeking to enjoin the defendant city and the defendant members of the city council of the city from entering into any contract with the defendant Rapid City Municipal Light Company, or acting in any manner pursuant to purported Ordinance No. 350 of the city of Rapid City, which purported ordinance was submitted to the vote of the electors of Rapid City at a special election on the 22d day of April, 1930. Ordinance No. 350, as submitted at said special election to the electors, is as follows, so far as material to this opinion:

“Be it ordained by the Board of Commissioners of the City of Rapid City, Pennington County, South Dakota:—
“First: — That there is hereby granted to Rapid City Municipal Light Company, a Corporation of Rapid City, South Dakota, its successors and assigns, hereinafter referred to as the Company, a Franchise entitling it for a period of twenty years from and after the passage and approval of .this ordinance to the use of the streets, alleys and public places of the City of Rapid City, Pennington County, South Dakota, hereinafter referred to as the City, for the erection, construction and maintenance of an electric light and power plant with all necessary equipment, transmission and distribution system for furnishing electrical energy to the said City of Rapid City and to the inhabitants of said City and its immediate. vicinity, subject to the following conditions, restrictions and limitations, viz.:
“C. Immediatelj'- upon the completion thereof the Company shall deliver possession of said plant, transmission and distribution system and equipment to the City; and the City undertakes to operate the same with all reasonable efficiency and economy under the following schedule of rates, to-wit :• — Then follows the schedule of rates.
*60 “Whenever the above schedule of rates shall cause a revenue which after allowance for all betterments and extensions shall be sufficient to pay out the total valuation of the said plant, in a period of time less than ten years from the time the said plant 'begins operations, then the 'City Commission may place in effect a lower schedule of rates so calculated as to produce the amount of revenue necessary to complete the paying out of the said valuation in said manner in said period of ten years.
“F. In case of Ninety days default in the payment of any of said pledge orders the Company shall either permit the City to continue to operate said plant if it desires to do so, or shall take possession of and operate the said plant, equipment and system on the schedule of rates provided for by Sub-division ‘C’ within the life of this Franchise until the full purchase price with interest has been paid; whereupon the same shall revert to the City.”

The trial court made and entered findings of fact which are acceptable to both parties. The error assigned relates only to the conclusions of law and the judgment. The conclusions of law, so far as material to this opinion, are as follows:

“Conclusions of Law
“HI. That the languag-e of Sub-division ‘C’ of Ordinance No. 350 in the last paragraph thereof as follows, to-wit:
“ ‘Whenever the above schedule of rates shall cause a revenue which after allowance for all betterments and extensions shall be sufficient to pay out the total valuation of the said plant, in a period of time less than ten years from the time the said plant begins operations, then the City Commission may place in effect a lower schedule of rates so calculated as to produce the amount of revenue necessary to complete the paying out of the said valuation in said manner in said period of ten years.’ and the language in Subdivision ‘F’ of Ordinance No. 350 beginning after the word ‘system’ and ending before the word “within,” as follows, to-wit:
“ ‘On the schedule of rates provided for by Sub-division “C,” has the force of an attempted fixation of the rate schedule in Subdivision “C” Ordinance No. 350 as an irrevocable schedule of rates and unalterable save in compliance with the provisions of the quoted language.’
*61 “IV. That the proposed schedule of rates embodied in SubDivision ‘C’ Ordinance No. 350 is subject to revision, modification and adjustment by the properly constituted authorities under the laws of the State of South Dakota, and the attempted fixation of irrevocable rates as outlined in Conclusion numbered Three is unauthorized, illegal, null and void and of no force, effect or avail.
“VI. That the 'Municipality of Rapid City, South Dakota has power to enter into the project contemplated in Ordinance No. 350 and to grant such franchise save and except in the particulars outlined in Conclusions numbers Three and Four herein.”

The trial court, by its conclusion of law No. 3, determined that subdivisions C and F of Ordinance 350 attempted the fixation of irrevocable rates, and was therefore “unauthorized, illegal, null and void, and of no force effect, or avail,” and in conclusion of law No. 6 determined that the city of Rapid City had power to enter into the project as contemplated in Ordinance No. 350 and to grant the franchise, except that the city had no authority to enter into a contract wherein the provisions of subdivisions C and F of the ordinance were attempted to be carried out. By the judgment, the city was enjoined and restrained from “placing in effect, or to enforce, or to act under subdivision C of the ordinance, unless the rate schedule therein, at the time, should have been finally con-finned and approved by the court, or unless no question regarding the rate schedule should have been raised at the time in any court. It further .provided that, in the event that there was pending litigation at the time the contract was entered into concerning the propriet)'' of said rates, then, upon the application to the court, “this injunctive order may be modified to permit of enjoined parties collecting such rate and under such terms as shall seem to the Court to be proper during the pendency of such litigated question.” There is no appeal by any of the defendants.

The effect of the trial court’s decision is as follows: Subdivision C of the ordinance, and that part of subdivision F as follows “on the schedule of rates provided for by subdivision C.” is an attempted fixation of irrevocable rates, and as such is illegal, void, and of no effect. As a result of this conclusion, the defendants are by the judgment permanently enjoined from entering into any contract, the result of which would be the fixation of the *62 irrevocable rate found to exist in subdivisions C and F of the ordinance. Whether the trial court was right in entering the judgment enjoining the defendants as it did is not before this court.

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Bluebook (online)
238 N.W. 145, 59 S.D. 58, 1931 S.D. LEXIS 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haines-v-city-of-rapid-city-sd-1931.