Mountain States Tel. & Tel. Co. v. Town of Belen

244 P.2d 1112, 56 N.M. 415
CourtNew Mexico Supreme Court
DecidedMay 26, 1952
Docket5442
StatusPublished
Cited by9 cases

This text of 244 P.2d 1112 (Mountain States Tel. & Tel. Co. v. Town of Belen) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mountain States Tel. & Tel. Co. v. Town of Belen, 244 P.2d 1112, 56 N.M. 415 (N.M. 1952).

Opinion

COORS, Justice.

This is an appeal from the judgment of the District 'Court of Valencia County in a cause filed by the Town of Belen, New Mexico, a municipal corporation, plaintiff and appellee, against The Mountain States Telephone and Telegraph Company, a corporation, defendant and appellant. The Town of Belen sought to force and require the telephone company to accept a franchise granted by the Town of Belen by Ordinance No. 257 on February 14, 1949 to operate within the corporate limits of the Town of Belen and to use the streets, alleys and public ways for constructing and maintaining its poles, wires and equipment. The franchise so offered by the town was alleged to have been rejected by the telephone company. The ordinance offering and granting the franchise provided that the telephone company, in consideration of the granting of such franchise, should pay annually into the treasury of the town two per cent (2%) of its gross receipts from telephone service in the town or directly connected with its exchange service in said town, and contained various other provisions, among them the granting to the town by the company permission to use free of charge the poles of the company for the attaching and running of the town’s low tension police and fire alarm wires. The offered franchise was to run for a period of 15 years but later was extended for a period of 25 years. The town prayed that the defendant telephone company be restrained from operating within the corporate limits of the town unless and until it obtained from the town permission or franchise as offered and for such other relief as might be just and proper.

The defendant telephone • company filed a motion to dismiss the complaint on the ground that it failed to state a claim upon which relief could be granted. This motion was denied and the defendant company filed its answer, in which it admitted that it refused to accept, the franchise offered by the town by Ordinance No. 257 adopted on February 14, 1949 >and alleged that it was not operating within the corporate limits of the Town of Belen by virtue of any franchise or permit from such town biit under the authority of a franchise granted by the County Commissioners of Valencia County in the year 1905, long prior to the incorporation in 1918 of the Town of Belen, and alleged that since the granting of the franchise of 1905 by the County Commissioners for a period of 99 years the defendant telephone company and its predecessor and assignor had been operating the telephone system in the territorial limits now constituting the Town of Belen and that it has since the granting of the franchise of 1905 built, extended and maintained its lines and equipment along the roads, streets and alleys in. the Town of Belen; that if the defendant were required and forced to accept the city franchise offered and forced to abandon its rights acquired under the county franchise of 1905 it would be deprived of its property without due process of law, contrary to the provisions of Article 2', Section 18 of the Constitution of New Mexico and Amendment 14 of the Articles of Amendment to the Constitution of the United States, that it would be denied equal protection under the laws contrary to the provisions of Amendment 14 of the Articles of Amendment to the Constitution of the United States and that such action would impair the obligation of contract contrary to Article 1, Section 10 of the Constitution of the United States, and the defendant telephone company prayed for a dismissal of the complaint.

The court having tried the case, made findings of fact and conclusions of law and rendered final judgment ordering that the defendant telephone company was required to secure a proper franchise from the Town of Belen in order to continue its telephone operations within the town and that the franchise offered by the town by Ordinance -No. 257 passed February 14, 1949 meets the terms of the New Mexico statutes as being fair, just and equitable; it further ordered the defendant telephone company be restrained from operating within the corporate limits of the town unless and until it obtains from the town a franchise to operate therein and, further, that if the defendant telephone company continues to operate within the town without obtaining a franchise from the town it will be deemed to have accepted the said franchise provided by said Ordinance No. 257 and that the said franchise and all its terms will be in full force and' effect, but ordered that the injunction enjoining the operation under the judgment would not become operative until such time as the decree becomes final, on appeal or otherwise.

The defendant telephone company made objection and took exception to most of the findings and conclusions of the trial court which favored the plaintiff Town of Belen and made numerous assignments of error, all of which are not necessary to repeat or discuss at-this time. The brief of the defendant and appellant telephone company relies upon four points projected as a basis for its appeal. The first point made by defendant company, which we believe is the only one necessary for discussion and disposition of the appeal, is as follows:

"The ordinance and the judgment of the trial court violate the Constitution of the United States in that it would impair the obligation of a contract entered into in 1905 between the appellant telephone company and Valencia County, contrary to the provisions of Article I, Section 10 of the United States Constitution.”

The important fundamental issue in the case is whether or not the franchise granted by the County Commissioners of Valencia County in the year 1905 to Colorado Telephone and Telegraph Company for a period of 99 years to “construct, maintain and operate its telephone poles, telephone lines and system over, across, along, and upon the roads and highways of the County of Valencia, in the Territory of New Mexico” was a valid contract and covered the right by the telephone company to use the roads and highways and operate its system in that portion of the territory included in Valencia County which was not within the limits of any incorporated city, town or village but which might later, by legal steps taken by the inhabitants of some particular community or section of the county, become a municipal corporation, that is, an incorporated city, town or village. In 1905, at the time of the granting of the franchise by the county commissioners, the community of Belen' was not incorporated as a municipal corporation. It became a municipal corporation in the year 1918, at which time t'he telephone company was already operating its telephone system in the community of Belen and in the territory taken in by the creation of the municipal corporation of the Town of Belen. • The company has continued to operate since 1918 without any charter or permit from the Town of Belen, claiming its rights under the county charter of 1905. By the passage of Ordinance No. 257 on February 14, 1949, the municipal corporation Town of Belen sought to deny the authority of defendant telephone company to operate within the city limits and to use its streets, roads and public ways for telephone poles or lines under the county charter of 1905 and contended that such operation was unlawful unless permitted by a franchise granted by the Town of Belen.

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Bluebook (online)
244 P.2d 1112, 56 N.M. 415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mountain-states-tel-tel-co-v-town-of-belen-nm-1952.