Piedmont Power & Light Co. v. L. Banks Holt Manufacturing Co.

183 N.C. 327
CourtSupreme Court of North Carolina
DecidedApril 19, 1922
StatusPublished
Cited by3 cases

This text of 183 N.C. 327 (Piedmont Power & Light Co. v. L. Banks Holt Manufacturing Co.) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Piedmont Power & Light Co. v. L. Banks Holt Manufacturing Co., 183 N.C. 327 (N.C. 1922).

Opinion

Clark, O. J.

Tbe contract made between tbe plaintiff and defendant in December, 1915, stipulated a schedule of rates on a basis of one cent [329]*329per k. w. h. Tbis contract was to extend for five years from 1 April, 1916, and thereafter until terminated by either party upon 6 months notice given in writing to the other. In October, 1911, the defendant agreed to increase this amount to be paid by .003 (three mills) per k. w. h. for 6 months from 1 October, 1917. On 1 June, 1918, the defendant, in writing, agreed to pay for said electric current, in addition to the amount previously paid, the sum of .005 (five mills) per k. w. h. “only so long as the cost of New River or Pocahontas coal shall be more than $5 per ton f. o. b.” The current was billed the defendant on this agreement at one and one-half cents per k. w. h. until 2 or-3 September, 1918. On that date the plaintiff wrote defendant a letter with a full statement of their expenses and financial condition, and said: “It is now necessary for us to arrange to increase our rate to our large customers to two cents per k. w. h., and to ask our lighting customers to pay us a surcharge of 30 per cent as long as present conditions prevail.” After this, beginning in October or November, 1918, the plaintiff charged the defendant, and the defendant paid for current, at the rate of two cents per k. w. h. until June, 1920. In the spring of 1919 Mr. "Williamson, active manager of defendant, advised plaintiff that he was “going to get power elsewhere at a lower rate than the two eepts charged” by the plaintiff.

When the contract was made between the plaintiff and defendant in 1915, the defendant was operating its plant with power generated by steam, and upon the faith of that contract they scrapped and sold their steam plant. In June, 1920, the defendant notified the plaintiff that they would no longer pay for current for power in excess of one and one-half cents per k. w. h., and demanded repayment for all in excess of this sum, and this is the counterclaim set up in this action.

The plaintiff was under an absolute contract to supply the defendant with all the current it desired to use for 5 years from 1 April, 1916, at the rate specified. This sum was afterwards increased by consent to one and one-half cents per k. w. h., which sum was duly paid. “Where an electric light or power company, operating under a gMasi-publie charter, enters into an ordinary contract to furnish electricity for a given number of lights or for a given amount of power, the obligation as to the amount of power or light to be supplied must be construed and determined according to the general principles of contract, which, as a rule, are absolute.” Turner v. Power Co., 154 N. C., 135.

Under the laws of this State the plaintiff could have gone before the Corporation Commission and have made an application to raise its rates. In re Utilities Co., 179 N. C., 161; Dry Goods Co. v. Public Service Co., 248 U. S., 372. This was not done, but the plaintiff arbitrarily notified the defendant that it had raised its rates to two cents per k. w. h.

[330]*330Tbe following agreement is set out in tbe record: “It is agreed between tbe plaintiff and defendant tbat if tbe plaintiff is entitled to recover tbe difference between tbe one and one-balf cents and tbe two cents demanded for power supplies by tbe Piedmont Company of tbe L. Banks Holt Manufacturing Company after June, 1920, tbat tbe amount sued for by tbe plaintiff is correct, and it is further agreed tbat if defendant is entitled to recover on bis counterclaim for payments made for power from September, 1918, to June, 1920, in excess of tbe rate of one and one-balf cents per k. w. b., tben tbe amount set out in tbis answer as a counterclaim is tbe correct amount to wbicb defendant is entitled.”

Tbe pleadings sbow tbat tbe defendants began, in July, 1920, to deduct from tbe monthly bills for current used by it tbe sum of one-balf cent per k. w. h., paying to plaintiff one and one-balf cents per k. w. h., and retaining tbe balance of one-balf cent per k. w. h., and tbat tbe amount so retained by tbe L. Banks Holt Manufacturing Company amounts to $4,172.64; and tbis is tbe amount sued for as per tbe above agreement. On tbe other band, tbe defendant claims as a counterclaim tbe difference between one and one-balf cents and two cents for electric current wbicb it paid without any agreement or by any order of tbe Corporation Commission from November, 1918, to June, 1920, amounting to tbe sum of $9,529.33.

Tbe defendant asked tbe court to charge tbe jury: “If you should find from tbe evidence and by its greater weight tbat tbe defendant paid tbe difference between one and one-balf cents and two cents for its electrical current in order to prevent tbe shutting down of its mill, and so as to continue operating same, tben I charge you to answer tbe issue £Yes,’ and to fix tbe amount at $9,529.33,” wbicb was refused, and tbe defendant excepted. Tbe defendant further asked the' court to charge tbe jury: “If you shall find from tbe evidence and by its greater weight tbat tbe defendant bad no other source from wbicb to obtain power to operate its mill, and tbat it paid tbe difference between one and one-balf cents and two cents for tbe time tbat it did pay same in order to obtain power to operate its manufacturing plant, and in order to prevent tbe shutting down of tbe same, tben I charge you to answer tbe issue ‘Yes,’ and to fix tbe amount at $9,529.33.”

The evidence as to whether tbe plaintiff could have made a profit, or even expenses, if tbe rate bad not been raised by it above one and one-balf cents is irrelevant and immaterial. Tbe plaintiff was a public-service corporation, and bad made a contract extending for five years, from April, 1916, at tbe rate of one cent per k. w. h., and tben to terminate only upon six months notice. During tbe lifetime of tbat contract there bad been modifications increasing tbe rate by agreement to one and [331]*331one-balf cents, but' tbe plaintiff could not go beyond tbat agreement except by order of tbe Corporation Commission.

Tbe defendant scrapped its steam plant upon faitb in tbe contract made in 1916 for five years, and later voluntarily assented to increase tbe price to one and one-balf cents. If tbe demand for tbe extra one-balf cent was paid under duress, “payment coerced under duress or compulsion, tbougb not made in ignorance of tbe fact, may be recovered.” Within this rule are payments of charges or exactions under apprehension on tbe part of tbe payers of being stopped in their business if tbe money is not paid. Brewing Co. v. St. Louis, 2 A. & E., Anno. Cas., 821, and notes.

In Newland v. Turnpike Co., 26 N. C., 372, Ruffin, C. J., said: “It was, however, objected on tbe trial tbat although tbe money was not due to tbe company tbe plaintiffs could not recover it back because they bad paid it without suit and voluntarily; but this objection counsel very properly abandoned here. Tbe payment was not voluntary, tbat is, as payment of a debt admitted to be due and willingly made; but it was made as a means of obtaining a passage over tbe road for tbe mail which tbe plaintiffs were obliged to carry, and of keeping their property from being taken from them by duress; and so it was compulsory and without consideration.”

In Lumber Co. v. R. R., 141 N. C., 191, it is said: “It is not necessary tbat at tbe time of payment there should be any protest.

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Cite This Page — Counsel Stack

Bluebook (online)
183 N.C. 327, Counsel Stack Legal Research, https://law.counselstack.com/opinion/piedmont-power-light-co-v-l-banks-holt-manufacturing-co-nc-1922.