Montgomery Light & Power Co. v. Town of Linden

29 N.E.2d 209, 217 Ind. 471, 1940 Ind. LEXIS 197
CourtIndiana Supreme Court
DecidedOctober 8, 1940
DocketNo. 27,398.
StatusPublished
Cited by2 cases

This text of 29 N.E.2d 209 (Montgomery Light & Power Co. v. Town of Linden) is published on Counsel Stack Legal Research, covering Indiana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Montgomery Light & Power Co. v. Town of Linden, 29 N.E.2d 209, 217 Ind. 471, 1940 Ind. LEXIS 197 (Ind. 1940).

Opinion

Swaim, J.

This is an action brought by appellee, Town of Linden, against Montgomery Light and Power Company, to acquire, by condemnation, such utility property belonging to said appellant, as was used in furnishing electric utility service to said town and to the consumers, who were residents of said town and the territory adjacent thereto. The appellant filed objections to the complaint entitled “Special Appearance of Defendant and Amended Demurrer and Objections to Complaint.” These objections were overruled by the court and the defendant refused to plead further. The court, without a hearing, entered a judgment appointing appraisers. Whereupon the appellant prayed for and was granted an appeal to this court.

The appellant relies upon the alleged error of the court in overruling the objections of appellant to the appellee’s complaint for reversal of the judgment.

*474 The first point urged by the appellant is that the . complaint of the appellee shows an attempt to condemn the Montgomery Light and Power Company, a public utility; that under the statute it is impossible to condemn a public utility and that, therefore, the objections to the complaint should have been sustained. The appellant is correct in its contention that the condemnation of a public utility is not contemplated by the statute. The statute expressly defines “public utility” as used in the act as the owner of a utility. Acts of 1933, ch. 190, § 1, § 54-105, Burns’ 1933, § 13905, Baldwin’s 1934; Public Service Company of Indiana v. City of Aurora (1939), 215 Ind. 311, 19 N. E. (2d) 255.

We cannot agree with the appellant, however, that a fair interpretation of the complaint herein shows an intention on the part of the appellee to condemn the public utility. The first paragraph of the complaint describes the Montgomery Light and Power Company as “The owner of the property hereinafter described and sought to be condemned; . . .” The complaint recites that the petition of the voters prayed that the board of trustees of said town acquire, purchase or condemn and operate “the utility property used and useful in furnishing electric utility service to said town and to consumers of said town and territory adjacent thereto . . . ”. The complaint alleges that the property sought to be condemned was similarly described in the declaratory resolution adopted by the Board of Trustees of said town, declaring that it was necessary to acquire said property, and was also similarly described in the ordinance providing for a special election to be held on the question of acquiring said property, and in the ordinance approving the action of the voters in such special election.

*475 The complaint further alleges that in the resolutions adopted by the trustees, authorizing and directing the officers of said town to offer to purchase said property from the appellant, the property was described as “its (Montgomery Light and Power Company’s) public utility distribution system serving said Town and the consumers thereof, and including therein the distribution system known as the Cherry Grove Line . . The complaint contains an express statement that the property, which the plaintiff desires to condemn and acquire, is “the electric distribution system now owned by the defendant company used and useful in furnishing electric service to the Town of Linden and to the consumers of said town and territory adjacent thereto” and following this statement is an itemized list of the physical property to be included in such condemnation. The prayer of the complaint is that the plaintiff be adjudged and decreed to be the owner, by condemnation, of “the local electric distribution system of the defendant, Montgomery Light & Power Company, serving said Town of Linden, and the consumers therein and its consumers within the said territory adjacent thereto, as hereinabove described . . . ,” and that the court appoint appraisers to assess the damages, to which said defendant may be entitled, by reason of the condemnation. In view of these descriptions of the property it cannot be seriously contended that the complaint was to condemn the Montgomery Light and Power Company, a public utility, although the words “public utility” were used in the titles of two of the ordinances in connection with this proceeding.

*476 *475 The proposition most seriously contended for by the ■ appellant is that it was given no notice of a hearing *476 before the Board of Trustees on the petition of the qualified voters for the acquisition of the utility property and was, therefore, accorded no opportunity for a hearing on the question of the public necessity of the acquisition of said property by the town. The appellant insists that such notice and hearing are required by the provisions of the Acts of 1913, ch. 76, § 98 as amended by Acts of 1933, ch. 190, § 10, §54-602, Burns’ 1933, §14021, Baldwin’s 1934. The appellee contends that this proceeding is governed by the provisions of Acts of 1913, ch. 76, § 108, as amended by Acts of 1933, ch. 190, § 18, § 54-612, Burns’ 1933, § 14029, Baldwin’s 1934. Acts of 1913, ch. 76, §98 only purports to cover the construction of a new plant or equipment by a municipality, where a public utility was then furnishing similar service. The Act required that in such a case there should be a public hearing for all parties interested before the public service commission to determine that public convenience and necessity required such additional municipal utility. Said section closes with the sentence “But nothing in this section shall be construed as preventing a municipality acquiring any existing plant by purchase or by condemnation as hereinafter provided.” § 54-602, Burns’ 1933, § 14021, Baldwin’s 1934, is an amendment of this section of the 1913 act. The amended section transfers from the Public Service Commission to the municipal council the power to hear, determine and to declare by resolution that public necessity and convenience require such municipal utility. Section 54-602, Burns’ 1933, § 14021, Baldwin’s 1934, provides for a hearing by the municipal council to determine if public necessity and convenience require the construction or acquisition of such utility and also provides for a ten days notice of such hearing to the public utility furnish *477 ing a like service in such municipality. This section of the statute expressly refers to § 54-612, Burns’ 1938, § 14029, Baldwin’s 1934 and is as follows: .

“That no municipality in this state shall hereafter construct and operate, or acquire and operate any such plant or equipment until and unless the voters of such municipality have voted so to do, in the manner hereafter provided in section 108 (section 54-612) hereof.”

By § 54-612, Burns’ 1933, § 14029, Baldwin’s 1934, the legislature has clearly shown that it intended by the provisions of § 98 of said Acts of 1913 even as amended by § 10, ch. 190, Acts of 1933, only to provide a notice and a hearing on the question of public necessity, where the municipality was erecting or acquiring a new utility in a community where a utility of the same character was already in operation.

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Bluebook (online)
29 N.E.2d 209, 217 Ind. 471, 1940 Ind. LEXIS 197, Counsel Stack Legal Research, https://law.counselstack.com/opinion/montgomery-light-power-co-v-town-of-linden-ind-1940.