Middletown v. City Comm.

29 Ohio Law. Abs. 625, 15 Ohio Op. 361, 1939 Ohio Misc. LEXIS 920
CourtButler County Court of Common Pleas
DecidedAugust 24, 1939
StatusPublished
Cited by2 cases

This text of 29 Ohio Law. Abs. 625 (Middletown v. City Comm.) is published on Counsel Stack Legal Research, covering Butler County Court of Common Pleas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Middletown v. City Comm., 29 Ohio Law. Abs. 625, 15 Ohio Op. 361, 1939 Ohio Misc. LEXIS 920 (Ohio Super. Ct. 1939).

Opinion

OPINION

By mcdowell, j.

This action was instituted by the city attorney ■ of Middletown,. Ohio, on behalf of said municipality, against the city commission of Middletown, the members of said commission, the auditor of said city, and Van Lahr, Doll & Isphording, Inc., seeking to enjoin the issuance and sale of certain bonds in the amount of $1,800,000.00, purporting to have been authorized by an. ordinance numbered 2237 and adopted by said city commission on the 18th day of November, 1938, and to enjoin permanently said defendants and each of them from carrying out’the provisions of said ordinance and a contract provided therein.

The facts, according to the evidence introduced, including stipulations of the parties, are very briefly as follows:

The city of Middletown, has a charter form of government. Its governing body is termed the city commission, which is composed of five members elected by the people. They employ a city manager and a city attorney, both of whom serve in their respective capacities for a term during the pleasure of the city commission.

On the 18th day of August, 1938, the city commission adopted the following ordinance:

ORDINANCE No. 2226

An Ordinance Declaring It Necessary For The. City of Middletown, Butler County, Ohio, to Construct or Purchase a Municipal Electric Light and Power Plant Together With All The Necessary Equipment Therefor, Including the Acquisition of The Necessary Land.

BE IT ORDAINED by the City Commission of the city of Middletown, Butler. County, .Ohio:-• ■;

Section 1.

That it is necessary for .the city of Middletown, Butler county*-Ohio, to [627]*627construct or purchase a. municipal electric light and power plant consisting of works for the generation and transmission of electricity and equipping the same, including transmission and distribution lines for supplying electricity to the city of Middletown, Ohio, and the inhabitants thereof including the acquisition of the necessary land therefor.

Section 2.

• This ordinance shall take effect and be in force from ana after the earliest period allowed by law

Chairman of the City Commission.

Adopted: -

Attest: -

On the 18th day of November, 1938, the city commission adopted Ordinance No. 2237, which is the subject of the attack in this action, authorizing the issuance of $1,800,000.00 mortgage revenue bonds of the city of Middletown, Ohio, under §12 of Art. XVIII of the Constitution of the State of Ohio, for the purpose of constructing or purchasing a municipal electric light plant, together with all the necessary equipment therefor, including the acquisition of the necessary .and; to provide a franchise to take • effect in event of foreclosure of said mortgage and to declare an emergency.

This ordinance was passed as an ■emergency measure, (Section 15), providing that the same should go into effect immediately upon its adoption and ■ publication. Publication was made on the following day: November' 19, 1938. ■In the interim between the passing of ■these two ordinances, the city commission adopted many ordinances and resolutions, among which was legislation for the issuance of general obligation bonds to finance the project, submission ■ of question of issuing such bonds to the electors, etc. All legislation concerning the issuance of general obligation bonds and calling an election was repealed by said commission on the 13th day of October, 1938.

It "is contended on behalf of the plaintiff and intervening petitioners that the “Uniform Bond- Act” is applicable in this case and that Ordinance No. 2237 is unconstitutional and- void by reason of the emergency clause purporting to- make it effective one day after its passage.

The defendants claim that the Uniform Bond Act' has no application to mortgage revenue bonds issued under Art. XVIII, § 12 of the Constitution, and that Ordinance No. 2237 adopted by the commission on November 18th, 1938, not being an “initial” ordinance, is not subject to referendum.

Thus, two principal propositions of law are presented to this court for consideration.

It must be admitted that legislation for issue and sale of mortgage revenue bonds by the city commission certainly does not comply with the Uniform Bond Act. On the .contrary, the Uniform Bond Act is utterly disregarded. The bonds are term '->onds instead of serial bonds; they are to be sold at less than par, at private sale, and without advertisement. Thirty months’ interest is capitalized oy the terms of the ordinance and included as part of the cost of the project, and the bonds are subject to call and redemption prior to maturity at more than par and accrued interest. These provisions are in direct conflict with the Uniform Bond Act, hence if the Uniform Bond Act is applicable, there must be little doubt that the legislation with reference to the issue of bonds in this case is illegal and invalid and that .lie bonds sought to be issued thereunder are unauthorized and void, providing, of course, that such applicable provisions do not contravene or come in conflict with the Constitution of Ohio.

Numerous cases have been cited • by counsel which they contend support their respective claims. We have examined all of them available, and, in addition, many others, and while these cases do have a bearing upon the matter, or some phase '••hereof, none of them, in our opinion, is determinative of the particular matters at issue. In each case it seems Che facts or cir[628]*628cumstances differ more or less from those in the instant case, and our state constitution is not an exact duplicate of that of any other state. So, we are therefore compelled to “break ground” in the determination of the matters here involved, and in so doing we may commit error, but if so, all concerned may have some consolation in the fact that the higher court will promptly correct that error.

The provisions of the Home Rule Amendment under which defendants claim authority to act, are §§4, 5 and-12 of Art. XVIII.

Sec. 4 provides:

“Any municipality may acquire, construct, own, lease and operate, within or without its corporate limits, any public utility, the products or service of which is, or is to be supplied to the municipality or its inhabitants, and may contract with others for any such product or service * *

See. 4 above is the power conferring provision. It specifically authorizes construction, acquisition and municipal ownership.

Sec. 5 provides:

“Any municipality proceeding to acquire, construct,-own, lease or operate a public utility, or to contract with any person or company therefor, shall act by ordinance, and no such ordinance shall take effect until r iter thirty days from its passage. * * *”

Sec. 5 is procedural and prescribes the method for the exercise of the power conferred by Sec. 4.

Sec. 12 of Art. XVIII provides:

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Related

State v. Stouffer
276 N.E.2d 651 (Ohio Court of Appeals, 1971)
Ohio Water Service Co. v. Washington
176 N.E.2d 360 (Fayette County Court of Common Pleas, 1961)

Cite This Page — Counsel Stack

Bluebook (online)
29 Ohio Law. Abs. 625, 15 Ohio Op. 361, 1939 Ohio Misc. LEXIS 920, Counsel Stack Legal Research, https://law.counselstack.com/opinion/middletown-v-city-comm-ohctcomplbutler-1939.