Hairgrove v. City of Jacksonville

8 N.E.2d 187, 366 Ill. 163
CourtIllinois Supreme Court
DecidedApril 16, 1937
DocketNos. 23776, 23868, 23940. Decree and orders affirmed.
StatusPublished
Cited by45 cases

This text of 8 N.E.2d 187 (Hairgrove v. City of Jacksonville) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hairgrove v. City of Jacksonville, 8 N.E.2d 187, 366 Ill. 163 (Ill. 1937).

Opinion

Mr. Justice Stone

delivered the opinion of the court:

These causes, consolidated here for opinion, present separate direct appeals from orders and a decree entered in the same cause of action, by the circuit court of Morgan county.

William N. Hairgrove, appellant in cause No. 23940, as a tax-payer of the city of Jacksonville, filed his bill on behalf of himself and all other tax-payers of that city, to enjoin the city of Jacksonville from issuing $420,000 mortgage certificates under section 9 of the Municipal Ownership act and from constructing and operating a municipal electric light and power plant, as proposed by an ordinance of that city. The city answered the bill on March 13, 1936. On the following day the Illinois Power and Light Corporation, appellant in cause No. 23776, (hereinafter referred to as the Light Company,) by leave of court, and without objection from plaintiff Hairgrove, intervened as a party plaintiff and filed an amendment to the original complaint to which it made Harold L. Ickes, Administrator of Public Works, and C. H. Bauer, State Director, parties defendant. On March 23, 1936, the city filed its motion to vacate the order of March 14, authorizing the appellant Light Company to intervene as a party plaintiff. On hearing, the court vacated its order of March 14 and struck the complaint of appellant Light Company, and dismissed it out of the case, and dismissed Iclces and Bauer as defendants. Thereafter on April 8, 1936, appellant Light Company filed a second motion for leave to join and become a party plaintiff, to adopt the allegations of the complaint on file, to add allegations and to make new parties defendant. The amendment sought to be filed was the same in substance as the amendment previously filed which was stricken by the court. This motion alleged that the plaintiff did not bring his suit in good faith but in collusion with attorneys for the city, who prepared the complaint. The sufficiency of the original complaint was not questioned. At the hearing on this motion the Light Company offered evidence in support of its allegation of collusion. Its motion was denied on the ground the amendment presented new issues including Federal questions when only State questions had been raised by the original complaint, and since Iclces and Bauer were made defendants only as to such Federal questions, they were not properly brought in as defendants. On April 3, 1936, Bert Foster and W. L. Saville, appellants in cause No. 23868, by leave of court, joined and became co-parties plaintiff and adopted the complaint originally filed.

The complaint alleges the invalidity of the ordinance, heréin known as No. 358, passed by the defendant city and adopted by a vote of the people, providing for the acquisition, construction, establishment, ownership and operation of a municipal electric light and power plant, under the Municipal Ownership act. (State Bar Stat. 1935, chap, ma, p. 2483.) Ordinance No. 358 provides for the issuance of mortgage certificates in the sum of $420,000 payable solely from income or revenues derived from the operation of the municipal public utility thus acquired and constructed, exclusive of present owned lighting system and all other property, such mortgage certificates to be secured solely by mortgage and pledge of the tangible property and income of the utility so acquired, without encumbering or pledging any present owned property and without granting any franchise or creating any indebtedness of the city, within the meaning of any constitutional or statutory limitations affecting such indebtedness. The ordinance also provides for the segregation of revenues derived from the new plant from other revenues of the city. On December 5, 1935, another ordinance, No. 359, was passed, calling a special election submitting to the voters of the city, on January 21, 1936, (1) the approval of ordinance No. 358; (2) whether the city shpuld operate such a plant, and (3) whether utility certificates not exceeding $420,000 should be issued by said city for said purpose. All of these propositions were approved at that election.

The complaint alleges numerous grounds, hereinafter noted, upon which complainants base their charge that ordinance No. 358 is void. By its answer the city denies the alleged invalidity of the ordinance. On hearing the bill was dismissed for want of equity. Hairgrove and the co-plaintiffs appealed separately. Hairgrove’s appeal is numbered 23940. Foster’s and Saville’s appeal is numbered 23868. The Light Company also appealed from the orders denying it the right to come into the suit as a party plaintiff and that appeal is here as No. 23776. We first consider the contentions arising on causes Nos. 23868 and 23940.

The errors assigned by the original plaintiff and co-plaintiffs are as follows: (1) The ordinance, including, the plans and specifications, fails to describe the proposed municipal electric light and power system, (2) excluded evidence should have been admitted, (3) the effect of the ordinance is to make the entire cost of the plant a general obligation of the city, which, added to its existing indebtedness, exceeds the constitutional and statutory limits of such indebtedness, (4) that the ordinance should have provided that a franchise be granted by the city to the proposed utility, for a reasonable consideration, for the use of the streets and alleys and that such franchise be mortgaged so that upon foreclosure and sale the purchaser would take the franchise, and (5) the ordinance is illegal and void because it does not provide that the contract for the construction of the plant be made at public letting.

It is admitted that if the ordinance provides for mortgage certificates which constitute a general indebtedness of appellee city, an indebtedness will thus be created far in excess of constitutional limitation, and the ordinance is void. Appellee insists, however, that no such indebtedness will be created.

This court has had frequent occasion to define the term “indebtedness” as used in section 12 of article 9 of the constitution. One of the early cases is City of Springfield v. Edwards, 84 Ill. 626, in which that term, as specified in the constitution, is defined as a voluntary incurring of legal liability to pay. Within that definition is included a debt payable in the future as well. as one payable presently. There is also included therein a debt payable upon a contingency, as upon the happening of some event such as the rendering of service or delivery of property. Also, if a contract or undertaking contemplates a liability to pay, the debt exists and it makes no difference whether the debt be for necessary current expenses or for some other purpose. To the same effect are Village of East Moline v. Pope, 224 Ill. 386; City of Chicago v. McDonald, 176 id. 404; Prince v. City of Quincy, 128 id. 443; Culbertson v. City of Fulton, 127 id. 30; Howell v. City of Peoria, 90 id. 104, and Law v. People, 87 id. 385. Whether the mortgage certificates to be issued under authority of the ordinance before us create an indebtedness beyond constitutional or statutory limitations, depends upon what is attempted under and by the ordinance. Certain plans and specifications on file with the city clerk are, by the ordinance, made a part of it. An applicable rule of construetion requires that the meaning and intent of the ordinance be gathered from the language of that instrument.

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Bluebook (online)
8 N.E.2d 187, 366 Ill. 163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hairgrove-v-city-of-jacksonville-ill-1937.