Rio Grande Valley Gas Co. v. Ford

169 S.W.2d 263
CourtCourt of Appeals of Texas
DecidedDecember 16, 1942
DocketNo. 11217
StatusPublished
Cited by2 cases

This text of 169 S.W.2d 263 (Rio Grande Valley Gas Co. v. Ford) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rio Grande Valley Gas Co. v. Ford, 169 S.W.2d 263 (Tex. Ct. App. 1942).

Opinion

NORVELL, Justice.

Rio Grande Valley Gas Company has appealed from a money judgment rendered ' in favor of P. S. Ford, the plaintiff below. The action was based upon Article 1438, Vernon’s Ann.Civ.Stats., which reads as follows: “It shall be unlawful for any such corporation [gas, electric current or power corporation] to discriminate against any person, corporation, firm, association or place, in the charge for such gas, electric current or power, or in the service rendered under similar and like circumstances.” The Article is a part of Subdivision 4, Chapter 10, of Title 32, Vernon’s Ann.Civ.Stats., wherein the powers of gas, electric current and power corporations are defined and the right to condemn and appropriate lands, rights of ways, easements- and properties is conferred. Article 1436, Vernon’s Ann.Civ.Stats.

Ford, as the owner of the Square Deal Laundry of McAllen, Texas, claimed that he was the victim of discrimination under the statute in that the appellant, a corporation engaged in the distribution of natural gas for use as fuel, exacted from him a higher rate or charge than that made to firms and corporations engaged in processing fruit and vegetables in the vicinity of McAllen, Texas.

The controlling question upon the issue of discrimination was submitted in the following form:

“Do you find from a preponderance of the evidence that the service rendered by defendant Gas Company to customers in McAllen at the rate of seventeen (17j5) cents per thousand cubic feet between the dates of April 1, 1938, and Dec. 1, 1940, was a service rendered under similar and like circumstances to the service rendered plaintiff’s Lamidry during said period of time? * * *”

The jury answered the above inquiry in the affirmative.

It appears that appellee’s laundry was classified by the Gas Company as a “commercial” user, at a rate of from 20 to 30 cents per thousand cubic feet of gas consumed, while fruit and vegetable processors were classified as “industrial” users, at a rate of 17 cents per M. C. F.

There was no evidence in the record that any business competitor of appellee had been furnished gas at a lower rate than that charged appellee. In fact, there,is no evidence that any one other than a fruit and vegetable processor received a rate of 17 cents per M. C. F.

The trial court submitted no issues to the jury concerning the amount of damages sustained by appellee, but entered judgment for the difference between the amount actually paid by appellee to appellant under the 20 to 30 cent rate and the amount he would have paid under the 17 cent rate.

The theory underlying this award of damages may be stated as a proposition as follows:

A plaintiff who shows that a public utilities company has sold gas to sorne person, not a competitor of the plaintiff, under similar and like circumstances to those [266]*266under which gas was sold to the plaintiff, but at a lesser rate, is, upon such showing, and nothing more, entitled to recover from the utilities company a sum of money equal to the difference between the amount actually paid by the plaintiff and the amount he would have paid under the rate afforded the more favored customer.

Appellee contends that this proposition is supported by Texas Power & Light Co. v. Hilltop Baking Co., Tex.Civ.App., 78 S.W.2d 718, and Texas Power & Light Co. v. Doering Hotel Co., Tex.Civ.App., 147 S.W.2d 897, affirmed by the Supreme Court 162 S.W.2d 938.

Appellant presents numerous points in support of his contention that the judgment of the trial court should be reversed. We are, however, of the opinion that its attack upon the validity , of the proposition above stated, as embracing the theory of the trial court in awarding damages, must be sustained. This necessitates a reversal and rendition of the judgment appealed from and makes unnecessary a discussion of additional reasons for reversal urged by appellant.

“Every overcharge, when exacted of one to the exclusion of others, is indeed, a discrimination. Not every discrimination is an overcharge.” Postal Telegraph-Cable Co. v. Associated Press, 228 N.Y. 370, 127 N.E. 256, 259. The Hilltop Baking Co. case, as well as the Doering Hotel Co. case, must be regarded as a case of overcharge involving a discrimination, while this case is one of discrimination which does not involve an overcharge.

As we see it, the theory of recovery supporting the award of damages in the Hilltop and Doering cases (stated as a proposition) is that when a plaintiff shows that he was charged for gas or electricity at a rate higher than the rate he was entitled to receive, he may recover from the public utility the amount of excess paid.

There can be little doubt but what the holdings of the Hilltop and Doering cases as to the award of damages are based upon a finding that the plaintiff was entitled to a lesser rate than the one charged.

In the Hilltop case it is said [78 S.W.2d 721] : “Here appellee is content if it be allowed to recover the difference between what it has been required to pay and what it should have been required to pay. This measure of damages seems to be the logical one to be applied in a case like the one here under consideration.” The amount which plaintiff “should have been required to pay” must necessarily refer to the amount which would have been due under the M. R. Schedule mentioned in the opinion, and the holding of the court is clear that the plaintiff was entitled to the rates set forth in said schedule.

The opinion of the Court of Civil Appeals in the Doering case deals primarily with the sufficiency of the evidence to support the jury’s findings that a discrimination had taken place. As to the “transformer losses” discussed in the opinion, the Court cites and follows the Hilltop case holding that the proper measure of damages is the difference between the rate charged and the one which should have been charged. The Court further says:

“Appellant next contends that the judgment in allowing appellee recovery for transformer losses, and in addition the difference between what he paid on the L P rate and what he would have paid on the flat 2-cent rate for his current, allowed him to make a profit, at appellant’s expense, of $2,909.30. We fail to see how this could be. Recovery for the transformer loss was but for the moneys paid for current metered to appellee which it did not receive; and recovery of the difference, the actual amount of current billed to appellee not being disputed, between what Doering paid for the current he actually received and used, and what he should have paid under a flat 2-cent rate, was merely a matter of calculation. And as we understand the record, this is what the court awarded in its judgment.” 147 S.W.2d 906.

From the above quotation we take it that the Court regarded the transformer loss claim as one for money had and received —an overcharge, and further found that Doering was entitled to receive electricity under the flat 2-cent rate established by the utility.

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Related

Quality Laundry, Inc. v. Southern Union Gas Co.
479 S.W.2d 101 (Court of Appeals of Texas, 1972)
Ford v. Rio Grande Valley Gas Co.
174 S.W.2d 479 (Texas Supreme Court, 1943)

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Bluebook (online)
169 S.W.2d 263, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rio-grande-valley-gas-co-v-ford-texapp-1942.