Leischner v. Knight

337 P.2d 359, 135 Mont. 109, 1959 Mont. LEXIS 16
CourtMontana Supreme Court
DecidedFebruary 26, 1959
Docket9880
StatusPublished
Cited by9 cases

This text of 337 P.2d 359 (Leischner v. Knight) 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
Leischner v. Knight, 337 P.2d 359, 135 Mont. 109, 1959 Mont. LEXIS 16 (Mo. 1959).

Opinions

MR. JUSTICE CASTLES:

This suit was brought by appellants, plaintiffs below, as'taxpayers. and representatives of others similarly situated (plumb[111]*111ing contractors in the City of Billings) to enjoin the respondents, defendants below, including the City of Billings as a municipal corporation and public utility, from doing certain work in connection with installing new water “services” for customers of the city water system. The district court received evidence, both oral and documentary, made findings of fact and conclusions of law favorable to the defendants, and refused the relief asked by the plaintiff. The findings are amply supported by the evidence, and the questions involved in this appeal are primarily legal rather than factual.

The record indicates that the City of Billings has for many years operated a water system providing service both in and out of the city limits. As:: a part of this system, water mains are maintained in the streets. To make the water available for use it is necessary to tap into the main and run pipe to the edge of the street and at that point install a shut-off valve accessible from the surface of the land.

The pipe, valve, curb box, etc., when installed are referred to as a “service.” These “services” are located entirely within the public right of way. The shut-off valve is located at the consumer’s property line and is the point at which the consumer attaches his own pipe to run the water on into his building.

Effective July 1, 1956, the city established a flat rate schedule for installing these “services” and took for itself the exclusive right to do this work. Prior to that date, independent plumbing contractors could sell the required pipe and parts to the consumer and perform the necessary installation work. Since the city commenced doing the work it has supplied the material and performed the work with its own employees who are not licensed plumbers.

As we .view the. case, two significant issues are. raised. The first concerns the right and power of the city to make these installations and charge for cloing so on a flat rate basis. Second, if the city has the right to make the installations, is it required to employ licensed plumbers to do the work ?

[112]*112It is well-settled law in this state that cities have only those powers granted them by statute or which are necessarily implied as adjuncts to powers granted by statute. This court has -repeatedly stated that “unless a power is vested in the municipality by express law [or by necessary implication therefrom], the presumption is against the exercise by the city of any such power.” State ex rel. Great Falls Housing Authority v. City of Great Falls, 110 Mont. 318, 328, 100 Pac. (2d) 915, 921. This rule requires that we look to the statutes for the solutions to the problems raised by this case.

Cities and towns of this state are expressly granted power to secure supplies of water for use of their inhabitants by R. C. M. 1947, section 11-981, which provides:

“Securing water supply. The city or town council has power: To adopt, enter into, and carry out means for securing a supply of water for the use of a city or town or its inhabitants.”

A city engaging in the water business is a public utility and subject to regulation by the Public Service Commission under the provisions of Title 70, Chapter I, R. C. M. 1947. Public Service Comm. v. City of Helena, 52 Mont. 527, 159 Pac. 24.

Any public utility including a city such as Billings is entitled to make a reasonable charge for service rendered in connection with its functions as such public utility under the provisions of R. C. M. 1947, section 70-105, reading as follows:

“Public utilities to furnish service for reasonable charges. Every public utility is required to furnish reasonably adequate service and facilities. The charge made by any public utility for any heat, light, power, water, telegraph, or telephone service, produced, transmitted, delivered, or furnished, or for any service tobe rendered as or in connection with any public utility, shall be reasonable and just, and every unjust and unreasonable charge .is prohibited and declared unlawful.” Emphasis supplied.

By R. C. M. 1947, section 11-966, subd. (4), it is provided that “Cities and towns shall have jurisdiction and control over the territory occupied by their public works, and over and along [113]*113the line of reservoirs, streams, trenches, pipes, drains, and other appurtenances used in the construction and operation of such works, * * * for the enforcement of its sanitary ordinances * * *.” Emphasis supplied.

These sections form the statutory basis upon which the right of the city to engage in the water business and make charges for the water and services provided is predicated. Section 11-981 is the basic grant of power; section 70-103 defines a city engaging in the water business under section 11-981 as a public utility; section 70-105 authorizes public utilities including cities to charge reasonable rates for both the product and the service in connection with its provision; and section 11-966 assures the city of control over its system.

All of these sections are written in very general terms and in truth they could hardly be written in any other way. Conditions vary over the state to such an extent that it would not be practical to attempt by specific legislation to spell out the methods to be used for procurement or maintenance of a water supply.

This court said in State v. Stark, 100 Mont. 365, 370, 52 Pac. (2d) 890, 892:

“Where a power is conferred upon a municipality and the mode is prescribed, such mode must be followed (State ex rel. Daly v. Dryburgh, 62 Mont. 36, 203 PaC. 508); but if no mode is prescribed, the power is to be exercised in such manner as municipal officials, in their discretion, shall determine upon. Fisher v. Stillwater County, 81 Mont. 31, 261 PaC. 607; Arnold v. Custer County, 83 Mont. 130, 269 P. 396; Lang v. City of Cavalier, 59 N. D. 75, 228 N. W. 819 ; Christensen v. Town of Kimballton, 212 Iowa 384, 233 N. W. 789, 236 N. W. 406, 407.”

In Milligan v. City of Miles City, 51 Mont. 374, 153 Pac. 276, L. R. A. 1916 C, 395, this court held in effect that cities are to operate their affairs, when engaged in proprietary activities, in a businesslike manner.

[114]*114To provide water for its inhabitants, the city must make some provision for tapping the main and .installing the “services. ’ ’ The statutes are silent as to the mode by which this is to be accomplished and therefore the city has discretionary power to decide the matter. State v. Stark, supra, and cases cited therein.

Only two practical possibilities exist, either the city must undertake to build the “services” or the work must be done by private contractors. The defendant has elected to operate under the first alternative and unless it has abused its discretion in so doing its election is unobjectionable. The alternative suggested by the appellants is to let them and other contractors do the work and pay a fee to the city for tapping into the mains. But they suggest no reason why this would better accomplish the result required, provision of adequate “services,” than the method the city is presently using.

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Leischner v. Knight
337 P.2d 359 (Montana Supreme Court, 1959)

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Bluebook (online)
337 P.2d 359, 135 Mont. 109, 1959 Mont. LEXIS 16, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leischner-v-knight-mont-1959.