Houston Independent School District v. Southwestern Bell Telephone Co.

376 S.W.2d 375, 1964 Tex. App. LEXIS 1988
CourtCourt of Appeals of Texas
DecidedFebruary 12, 1964
DocketNo. 11137
StatusPublished
Cited by2 cases

This text of 376 S.W.2d 375 (Houston Independent School District v. Southwestern Bell Telephone Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Houston Independent School District v. Southwestern Bell Telephone Co., 376 S.W.2d 375, 1964 Tex. App. LEXIS 1988 (Tex. Ct. App. 1964).

Opinion

HUGHES, Justice.

This suit is on a sworn account brought by Southwestern Bell Telephone Company against the Houston Independent School District to recover the sum of $82,899.67 allegedly due for local exchange telephone service furnished schools of the District within the corporate limits of Houston by the Company from September 1, 1959, to March 1, 1961.

The Company alleged in its petition:

“Local exchange telephone service furnished by Plaintiff to Defendant during the time and at the locations specified hereinabove, was reasonably worth the sum of $136,125.68, the same being in accordance with the one-party business flat rate charged generally during such time in said Houston District Exchange. The one-party business flat rate is the general classification of local exchange service set out in Plaintiff’s published tariffs applicable to all telephones installed by Plaintiff in all public schools within the State of Texas. * * *
“Defendant has paid Plaintiff the sum of $53,226.01 as a payment on said account but has failed and refused to pay the Plaintiff the balance of $82,-899.67 though often requested, to Plaintiff’s damage in said last named amount.”

The District defended by specially pleading as follows:

“The Defendant, Houston Independent School District, further specially pleads that Plaintiff operates its telephone system in and around the City of Houston, Texas, pursuant to a franchise heretofore granted to the Plain[377]*377tiff by the City of Houston, acting by and through its duly elected Mayor and Council. That the said City of Houston, under the Constitution and statutes of the State of Texas, and under the charter of the City of Houston, is vested with authority to regulate the rates and the services of the Plaintiff. Pursuant thereto the said City of Houston has, by ordinance, established rates to be charged by Plaintiff for telephone service. The said City of Houston has classified subscribers as ‘business’ subscribers or ‘residence’ subscribers and has provided, by ordinance, a rate schedule for business subscribers and residence subscribers and the said City of Houston, by ordinance, has directed that all telephone service furnished to public school buildings shall be at the rates provided for residence telephones.”

The parties tried this case before the Court, without a jury, upon stipulated facts, it being provided in the stipulation, however, that either party could offer evidence of additional facts if desired. No such additional evidence was offered.

The Trial Court rendered judgment for the Company for the amount in suit. At the request of the District the Trial Court filed conclusions of law which follow:

“It is stipulated by the parties that the $82,899.67 for which Plaintiff sues in its Original Petition correctly represents the difference between Defendant’s account with Plaintiff for exchange telephone service calculated at the business rate and the same account calculated at the residence rate. (Stipulation of Fact No. 20). I conclude that Plaintiff is entitled in law to maintain this action against Defendant upon such Defendant’s account with Plaintiff and recover such amount of $82,899.67.
“2.
“I conclude that, prior to September 1, 1959 (the beginning of the period covered by Plaintiff’s suit, Stipulations of Fact Nos. 19 and 20), the City Council of the City of Houston repealed the ordinance known as Section 346 of the Revised Code of Ordinances of the City of Houston of 1922, (Stipulation of Fact No. 11), originally enacted on January 3, 1911 (Stipulation of Fact No. 8).
“3.
“Independent of the conclusion that the ordinance of 1911 was repealed, I conclude that such ordinance of 1911 was rendered void and invalid by the final judgment in Cause No. 426,913 in the District Court of Harris County, Texas for the 133rd Judicial District of Texas styled ‘Southwestern Bell Telephone Company, Plaintiff vs. City of Houston, et al, Defendants’, which judgment enjoined the City of Houston from enforcing or attempting to enforce by suit or otherwise the charging, collecting or observance by Plaintiff of the rates and charges for telephone service in any ordinance enacted prior to April 26, 1955 effective in the City of Houston (Stipulation of Fact No. 15a).
“4.
“Independent of the conclusions that the ordinance of 1911 was repealed and was invalidated by permanent injunction, I conclude that the ordinance of 1911 unlawfully commanded Plaintiff to discriminate and charge the Houston public schools a lesser rate than the rates charged other schools for similar service, and unlawfully commanded Plaintiff to receive by special rate, a lesser compensation for its service than it received from other corporations, persons, firms or association of persons for a like service under substantially similar circumstances and conditions, all in violation of Article 4005 and Article 4013 of the Revised Civil Statutes of 1925 and, therefore, such ordinance was and is wholly void and invalid.”

[378]*378We are of the opinion that the Court erred in concluding that the ordinance relied upon by the District has been repealed or that its enforcement has been enjoined or that any discrimination exists of which the Company can complain. It follows that the District, not the Company, was entitled to judgment.

We will set out the full history and pertinent content of the ordinance upon which the District relies as well as the ordinances and statutes upon which the Company relies to show its repeal.

On January 3, 1911, the City Council of the City of Houston adopted an ordinance which, except for the emergency clause, reads:

“AN ORDINANCE FIXING THE RATES TO BE CHARGED BY ANY PERSON, FIRM, CORPORATION, OR RECEIVER, OPERATING OR OWNING TELEPHONE LINES IN THE CITY OF HOUSTON FOR FURNISHING TELEPHONE SERVICE TO FIRE STATIONS AND TO THE PUBLIC SCHOOLS OF THE CITY OF HOUSTON.
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“BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HOUSTON:
“Section I. That from and after the passage of this ordinance any person, firm, corporation or receiver, operating or owning telephone lines within the City of Houston shall furnish telephone service to fire stations and to public schools at the following rate, viz: Telephone service shall be furnished to fire stations at the rates provided for business or office phones. And telephone service shall be furnished to public school buildings at the rates provided for residence phones Italics ours.

On May 6, 1914, the City of Houston adopted a Code of Ordinances which carried forward and included Section I of the 1911 ordinance copied above. The same is-true of the 1922 Revised Code of Ordinances of the City of Houston.

On June 5, 1941, the City of Houston' adopted an ordinance “Regulating the Rates-of the Southwestern Bell Telephone Company.” This ordinance called for and fixed a reduction of rates to be charged for business and residence service. It did not mention rate classification of public school's within the City of Houston.

On December 31, 1942, the City of Houston adopted a Code of Ordinances called',.

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376 S.W.2d 375, 1964 Tex. App. LEXIS 1988, Counsel Stack Legal Research, https://law.counselstack.com/opinion/houston-independent-school-district-v-southwestern-bell-telephone-co-texapp-1964.