Peoples Gas System, Inc. v. City Gas Company

167 So. 2d 577, 1964 WL 117711
CourtDistrict Court of Appeal of Florida
DecidedSeptember 2, 1964
Docket63-568
StatusPublished
Cited by4 cases

This text of 167 So. 2d 577 (Peoples Gas System, Inc. v. City Gas Company) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peoples Gas System, Inc. v. City Gas Company, 167 So. 2d 577, 1964 WL 117711 (Fla. Ct. App. 1964).

Opinion

167 So.2d 577 (1964)

PEOPLES GAS SYSTEM, INC., a Florida corporation, Appellant,
v.
CITY GAS COMPANY, a Florida corporation, Appellee.

No. 63-568.

District Court of Appeal of Florida. Third District.

September 2, 1964.
Rehearing Denied October 14, 1964.

*578 Scott, McCarthy, Preston & Steel and George W. Wright, Jr., Miami, McClain, Cason & Turbiville, Tampa, for appellant.

Dubbin, Schiff, Berkman & Dubbin, Ward & Ward, Miami, for appellee.

Edgar H. Dunn, Jr., St. Petersburg, Erskine W. Landis, DeLand, amici curiae.

Before HORTON, TILLMAN PEARSON and HENDRY, JJ.

TILLMAN PEARSON, Judge.

The final decree which is appealed held a territorial service area agreement, defining the areas in which two gas utility companies should sell natural gas in Dade and Broward Counties, to be unenforceable. The basis for the decree was a holding that the agreement was a violation of Chapter 542, Fla. Stat., F.S.A.[1] This chapter is entitled: "Combinations Restricting Trade or Commerce" and prohibits, subject to named exceptions, any combination, "to prevent competition in manufacture, making, transportation, sale or purchase of merchandise, produce or commodities, or to prevent competition in aids to commerce."

The basic question is whether the chapter prohibits contracts made under the circumstances out of which this one grew. The appellant was plaintiff in the trial court and suffered an adverse decree dismissing its complaint. The decree was entered after trial. The chancellor has set down the factual background as follows:

"1. The litigants in the case at bar are two Florida regulated public utilities which voluntarily entered into a territorial service area agreement dividing the territory between them. It appears that upon application of the parties, the (Florida) Railroad and Public Utilities Commission gave its formal approval of the said agreement.
"A dispute later arose between the parties. Plaintiff claims the contract is valid and enforceable. Defendant claims the contract is void and unenforceable as contrary to the anti-trust laws of the state of Florida and the United States.
"Plaintiff admits that a territorial agreement as the one in question, without more, is indeed void. Plaintiff contends that the approval given by the utilities commission is the central fact that takes the agreement outside of the anti-trust laws and renders it valid and enforceable. Plaintiff also ascribes legal significance on the fact that these are `regulated' public utilities, and further that they are allegedly engaged in interstate commerce.
"Defendant contends that the Commission had no authority to approve such a contract, had no authority to supersede the courts and nullify the anti-trust laws, and that the said utilities are engaged in interstate commerce."

The suit was a complaint in equity brought by the appellant, Peoples Gas Company, seeking specific performance of the territorial service area agreement and an injunction against further violation of the agreement by construction undertaken by appellee. A pendente lite injunction was entered. At the conclusion of the plaintiff's *579 evidence, the chancellor dismissed the complaint and dissolved the temporary injunction. Upon the first appeal this court reversed and remanded the cause for trial. See Peoples Gas System, Inc. v. City Gas Company, Fla.App. 1962, 147 So.2d 334. The question that we found to be presented and our holding were as follows:

"* * * These findings were based on the chancellor's conclusion that the map attached to the agreement controlled over the detailed description contained on its reverse side and that the only service areas intended to be covered by the agreement were those shown on the map."
* * * * * *
"Applying these principles to the case at bar we conclude that the chancellor erred in placing a construction upon the agreement which treated as surplusage one of its substantial, integral parts which could have been given a reasonable meaning consistent with the other parts of the agreement."
* * * * * *
"Having considered the agreement, the map, and the description contained on the reverse side thereof, it is our conclusion that the parties intended the map to be demonstrative of the boundary line between their respective service areas, the areas themselves being delineated by the description contained on the reverse side of the map.
"Other contentions have been advanced by the appellant as further basis for the reversal of the decree appealed which we deem it unnecessary to discuss in view of the result reached herein."

This court's mandate was issued on January 3, 1963. Plaintiff moved the trial court on February 8, 1963, for an order citing defendant for contempt for having continued to construct gas facilities in plaintiff's service area, in violation of the circuit court's temporary injunction entered before the appeal. Plaintiff urged that the temporary injunction was re-instated as a result of this court's reversal of the final decree, wherein the temporary injunction had been dissolved. Plaintiff also moved for a new temporary injunction. Both aspects of plaintiff's motion were denied. The chancellor completed the trial of the cause and entered the final decree dismissing the complaint. This appeal followed.

Appellant's first point urges that it was error for the chancellor to dismiss the complaint after trial because this court's prior opinion established that the service area agreement was valid and enforceable. A reference to the portions of our judgment above quoted serves to show that this position is not correct. In the opinion we held that the factual matters found by the chancellor were not determinative and remanded the cause "for further proceedings not inconsistent herewith." The holding of this court left for determination by the trial court all issues not dealt with in the opinion. See Kelly v. Kaufman, Fla.App. 1958, 101 So.2d 909, 911 and authorities cited therein.

The second and third points presented urge that the chancellor erred in his holding that the service area agreement is in violation of the laws of the State of Florida and therefore, unenforceable. Under these points it is urged that the contract is not in violation of the laws of the State because (a) it is in keeping with the public policy of the State, and (b) the contract was specifically approved by the Florida Public Utilities Commission which had implied authority to approve such agreements. The decree of the chancellor was as follows:

"26. IT IS THEREFORE CONSIDERED, ORDERED, ADJUDGED AND DECREED as follows:
(1) That Chapter 542, including Section 542.10, is specifically applicable to the contract sought to be enforced herein
(2) That the claim by the plaintiff that Chapter 542 of the Florida Statutes *580 is or has been amended by implication by the provisions of any existing laws granting powers to the Florida Railroad & Public Utilities Commission, is hereby specifically denied.
(3) That the claim of the plaintiff that the effect of the Florida Statutes, Section 542,

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Bluebook (online)
167 So. 2d 577, 1964 WL 117711, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peoples-gas-system-inc-v-city-gas-company-fladistctapp-1964.