Lone Star Gas Co. v. City of Fort Worth

98 S.W.2d 799
CourtTexas Commission of Appeals
DecidedNovember 25, 1936
DocketNo. 2005—6715
StatusPublished

This text of 98 S.W.2d 799 (Lone Star Gas Co. v. City of Fort Worth) is published on Counsel Stack Legal Research, covering Texas Commission of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lone Star Gas Co. v. City of Fort Worth, 98 S.W.2d 799 (Tex. Super. Ct. 1936).

Opinion

GERMAN, Commissioner.

This suit was instituted in the district court of Tarrant county, Tex., by Lone Star Gas Company against the City of Fort Worth and its governing officials, and was for injunction. We will designate the parties as in the district court, and will regard the city as the real defendant.

The plaintiff is a corporation with its principal place of business in Fort Worth, and it owns and operates a gas distributing plant or system in that city by which it furnishes gas and gas service to the inhabitants thereof. In connection with this system it owns gas wells, leases, rights, contracts, franchises, pipes, pipe lines, meters, easements, regulator stations, compressor stations, lands, buildings, and other property, tangible and intangible, necessary and essential to constitute a complete gas distributing system. Presumably, said company has owned and operated its gas system for some time under franchises from the city and in conformity with all the rules, regulations and requirements of the law and city ordinances governing a public utility of this kind.

The ground upon which the injunction was sought is thus stated in plaintiff’s petition: “That the City of Fort Worth and the defendants herein named are threatening and now propose to take, appropriate, condemn and deprive plaintiff of its gás distribution plant or system in the City of Fort Worth, together with its rights, privi.leges, contracts, franchises, easements, and its tangible and intangible, real and personal property therein, and to render valueless and useless all that portion of plaintiff’s property and system used and useful in and devoted to the furnishing to the public of gas and gas service in the said City of Fort Worth and its environs, and that unless said defendants are restrained and enjoined in the premises, they will carry out their threats and purposes, to plaintiff’s irreparable injury and damage in the sum of Twenty Million Dollars, for which plaintiff has no adequate remedy at law, as more fully appears from the allegations hereinafter contained.”

The plaintiff in its petition contends that such proposed and threatened taking and appropriation of its gas system and properties by condemnation proceedings were without right or authority in law, and if permitted would violate its rights under article 1, § 17 of the Constitution of the [800]*800state of Texas, which is as follows: “No person’s property shall be -taken, damaged or destroyed for or applied to public use without, adequate compensation being made, unless by the consent of such person; and, when taken, except for the use of the State, 'such compensation shall be first made, or secured by a deposit of money.”

The potential power of the City of Fort Worth to condemn all of plaintiff’s property as a going concern is not seriously questioned. This power seems to be so definitely conferred by the general laws of the state, and particularly the charter provisions, that it cannot be questioned. We shall assume that such power on the part of the City of Fort Worth actually exists. But, while recognizing the existence of the potential power, nevertheless plaintiff contends that before such power can be exercised, there must be accompanying same specific legislative provisions guaranteeing to all parties affected by the exercise of the power adequate compensation for all of their property taken or damaged, and setting up a certain and adequate method by which such compensation may be ascertained. In other words, plaintiff contends that, although the city possesses the power to condemn its property, such power is dormant and cannot be legally exercised for several reasons, among which are the following :

1. Because there are no adequate and appropriate provisions in the general statutes of Texas or in the charter of the City of Fort Worth prescribing a method of procedure and the mode and manner of condemning property of the kind (other than real estate) owned by plaintiff and devoted by it to public service, such property being mainly personal and intangible in its character.

2. Because the only provisions in the general statutes Of the state prescribing rules, regulations, and procedure in condemnation proceedings are articles 3264 to 3269, inclusive, of the Revised Statutes of 1925, which on their face are designed for guidance in proceedings for condemnation of real estate alone, and are inappropriate, inefficient, inadequate, and inapplicable in a proceeding to condemn the property of plaintiff, consisting largely of personal property, franchises, and intangibles.

3. Because the charter of the City of Fort Worth, in connection with the provision conferring upon the city the power to condemn the properties and business of public utilities, conditions the exercise of such power upon the proviso “that the City may adopt by its charter any such rules and regulations as it may deem advisable for the acquiring and operation of any such public utilities,” thus providing an exclusive method by which said condemnation may be effectuated; and, the city having failed to adopt such rules and regulations, there is no method of procedure provided by which plaintiff’s properties can he legally condemned.

4.Because there are no adequate provisions in the charter of the City of Fort Worth securing plaintiff in its constitutional right to just compensation first made or' secured by a deposit of money, and, in the absence of provisions which guarantee such compensation, the constitutional provision is violated.

It is alleged and contended that in the absence of these essential provisions in the law, any attempted condemnation and taking of plaintiff’s property would be void, and inasmuch as the city is threatening and proposing to institute proceedings to take plaintiff’s property under laws which fail to confer authority for that purpose, plaintiff can properly invoke the equitable powers of the court to prevent such threatened action, and consequent irreparable injury’ and damage.

The trial court sustained a general demurrer to plaintiff’s petition and the Court of Civil Appeals affirmed such action. 68 S.W.(2d) 605. Writ of error was granted in view of the constitutional questions involved and on account of the importance of the case.

Before proceeding to discuss the main questions involved, we remark that the city is not contending that the intention to institute the threatened suit was not bona fide, nor that the threat to do so was not real and impending. We will therefore, in light of the importance of the question to the public at large, consider the case as if such threat to institute the proceeding still exists and is imminent.

The Court of Civil Appeals affirmed the action of the trial court in sustaining a general demurrer on the ground that as the county court is by the general laws of the state given exclusive jurisdiction in eminent domain proceedings, such court alone has jurisdiction to decide whether or not the proposed action could be maintained, and to determine the questions raised by plaintiff touching the power and [801]*801authority of the city to exercise the right'of eminent domain as to plaintiff’s property. The question is not one merely of jurisdiction, as the honorable Court of Civil Appeals appears to have thought. It goes beyond that, and involves an inquiry as to the existence of legislative authority to exercise thé power to condemn, which, if absent, is such a limitation upon the county court’s power to proceed as makes its action void if it does proceed.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Osborne v. Missouri Pacific Railway Co.
147 U.S. 248 (Supreme Court, 1893)
City of Omaha v. Omaha Water Co.
218 U.S. 180 (Supreme Court, 1910)
Benat v. Dallas County
266 S.W. 539 (Court of Appeals of Texas, 1924)
Fort Worth Improvement District No. 1 v. City of Fort Worth
158 S.W. 164 (Texas Supreme Court, 1913)
Dallas County v. Plowman
91 S.W. 221 (Texas Supreme Court, 1906)
Lone Star Gas Co. v. City of Fort Worth
68 S.W.2d 605 (Court of Appeals of Texas, 1933)
Kennebec Water District v. City of Waterville
60 L.R.A. 856 (Supreme Judicial Court of Maine, 1902)
White v. Maverick County Water Control & Improvement Dist. No. 1
35 S.W.2d 107 (Texas Commission of Appeals, 1931)
Watauga Water Co. v. Scott
111 Tenn. 321 (Tennessee Supreme Court, 1903)

Cite This Page — Counsel Stack

Bluebook (online)
98 S.W.2d 799, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lone-star-gas-co-v-city-of-fort-worth-texcommnapp-1936.