State ex rel. Johnson v. Consumers Public Power District

10 N.W.2d 784, 143 Neb. 753, 152 A.L.R. 480, 1943 Neb. LEXIS 134
CourtNebraska Supreme Court
DecidedAugust 6, 1943
DocketNo. 31433
StatusPublished
Cited by37 cases

This text of 10 N.W.2d 784 (State ex rel. Johnson v. Consumers Public Power District) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Johnson v. Consumers Public Power District, 10 N.W.2d 784, 143 Neb. 753, 152 A.L.R. 480, 1943 Neb. LEXIS 134 (Neb. 1943).

Opinion

Chappell, J.

This is an original proceeding in the nature of quo warranto instituted by the attorney general by direction of the governor. The action is to determine by what warrant of law respondent, a public corporation, organized August 5, 1939, under the provisions of art. 7, ch. 70, Comp. St. Supp. 1939, exercises possession, ownership and control of the interconnected, integrated electric system known as western division of the Western Public Service Company, including certain ice and steam heating plants, and to require respondent to cease and desist therefrom and be ousted and excluded from the exercise of any relative pretended rights, franchises or privileges. Petitions in intervention adopting substantially the same formulae of allegations and prayers for relief as those sert forth in the amended information were filed by the cities of Bridgeport, Chadron, Sidney, and Scottsbluff by permission of this court.

Respondent filed demurrers to relator’s amended information and to the petitions in intervention. We held in a former opinion in this case (142 Neb. 114, 5 N. W. (2d) 202), that quo warranto is a civil action both in substance and in form, as defined by our civil code, and that demurrer is a proper pleading. We have long recognized an applicable rule that demurrer admits only facts that are well pleaded and not conclusions of either law or fact. See American Water-Works Co. v. State, 46 Neb. 194, 64 N. W. 711; Griffin v. Gass, 133 Neb. 56, 274 N. W. 193.

Preliminary to discussion of the questions involved we call attention to certain facts appearing in the amended information and petitions in intervention. In December, 1941, respondent contracted to purchase, and since a short time thereafter has owned and operated, all of the electric properties of the Western Public Service Company. These properties include electric facilities in the intervener cities [756]*756and many other cities and towns, which comprise what was formerly known as the western division of the Western Public Service Company. There are other divisions of the Western Public Service Company comprising other such facilities, the lawful purchase, ownership, possession and control of which relator and interveners concede and do not contest or challenge in this action. It is sought only to oust and evict respondent from franchises asserted in that part or portion of the property known as the western division. The federal power plants at Guernsey and Lingle, Wyoming, are the only plant or plants owned by the United States of America referred to in the pleadings as being involved in section 70-713, Comp. St. Supp. 1939.

Since there are only questions of law presented, we will not recite at length the allegations of the amended information or petitions in intervention. Suffice it to say that discerning examination discloses three reasons or grounds for the prayers thereof, to wit: 1. That purchase by respondent of the western division including intervener cities and other towns therein was prohibited by the last sentence of section 70-713, Comp. St. Supp. 1939, and that purchase, of all the common stock of Western Public Service Company by respondent was ultra vires, illegal, without statutory authority, and in violation of section 1, art. XI of our state Constitution. 2. That the purchase by respondent of certain ice manufacturing equipment and steam heating plants in Nebraska and a small portion of interconnected and integrated electrical transmission lines in South Dakota, as a part of the properties of the Western Public Service Company, were ultra vires, illegal, and without statutory authority. 3. That respondent violated certain agreements between Western Public Service Company and certain named cities, whereby the cities had an option, upon 90 days’ notice of a proposed sale, to purchase and take over from Western Public Service Company certain electric facilities within their own borders; and that section 70-713, Comp. St. Supp. 1939, required respondent to assume all municipal contractual obligations and pay certain mu[757]*757n'icipal bonds of Sidney, Grant and Republican City, guaranteed contractually by Western Public Service Company, but that respondent in violation thereof terminated such guaranties without notice to or the consent of such cities, and in so far as is known, or it is able to be ascertained, has made no provision to fulfill such obligations.

Demurrers of respondent, in so far as they are important here, contend that the amended information and petitions in intervention do not plead facts sufficient to constitute a cause of action in quo warranto; that quo warranto will not lie because there are adequate remedies at law and in equity, and that so much of section 70-713, Comp. St. Supp. 1939, as is referred to and relied upon by relator and interveners, to wit, the last sentence thereof, 'is unconstitutional for the reason that it is special, local, and class legislation, which freezes the class.

Original jurisdiction in quo warranto 'is vested in this court by section 2, art. V of our Constitution. Sections 20-21,112 to 20-21,139, inclusive, Comp. St. 1929, constitute the only statutory^ provisions applicable to the subject. Section 20-21,112 reads in part: “An information may be filed against any person * * * if, being incorporated, they * * * exercise powers not conferred, by lato.” (Italics supplied.) The purpose of the present action, therefore, is to test the existence of powers conferred upon a public corporation. The only question before the court in such a case is whether the corporation has in fact the power which it assumes.

“When a corporation is organized under a general enabling act, its charter consists of the provisions of the existing state constitution, the particular statute under which it is formed and all other general laws which are made applicable to corporations formed thereunder, and of the articles of association or incorporation filed thereunder, or the charter or certificate of incorporation granted by the court or officer in compliance with its terms; and its powers, rights, duties, and liabilities are determined accordingly.” 14 C. J. 117, sec. 108. If a public corporation usurps or ex[758]*758ercises powers not conferred upon it by law, quo- warranto is the appropriate remedy to (just it from the exercise thereof, without affecting in any other manner the corporate franchise, but it is only authorized and available as a remedy where the franchise is exercised in the absence of the vital element of power. See State v. City of Lyons, 31 Ia. 432; 5 Fletcher, Cyc. Corp. (Perm, ed.) 806, sec. 2332; 2 Bailey, Habeas Corpus, 1325, sec. 347.

That part of section 70-713, Comp. St. Supp. 1939, involved, reads: “Provided, that no such, district shall have the power to construct, lease, purchase or otherwise acquire any electric light or power plant or system or any part thereof, within the boundaries of any city or village in said state, for the purpose of supplying said city or village, or the inhabitants thereof, with electrical energy, if said city or village has been supplied, for one year immediately prior to the passage and approval of this Act, with electrical energy which was produced in a plant or plants owned by the United States of America, except that this provision shall not apply to any city or village supplied with fifteen per cent, or less of said electrical energy produced in said plant or plants and used by said city or village during said year.”

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Bluebook (online)
10 N.W.2d 784, 143 Neb. 753, 152 A.L.R. 480, 1943 Neb. LEXIS 134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-johnson-v-consumers-public-power-district-neb-1943.