State ex rel. McCann v. City of Defiance

167 Ohio St. (N.S.) 313
CourtOhio Supreme Court
DecidedFebruary 19, 1958
DocketNo. 35284
StatusPublished

This text of 167 Ohio St. (N.S.) 313 (State ex rel. McCann v. City of Defiance) is published on Counsel Stack Legal Research, covering Ohio 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. McCann v. City of Defiance, 167 Ohio St. (N.S.) 313 (Ohio 1958).

Opinion

Taft, J.

Relator instituted an original mandamus action in the Court of Appeals for Defiance County to compel the city of Defiance, which is a noncharter municipal corporation and is [314]*314herein referred to as the city, to issue a permit to tap into a water line and furnish water service to relator’s premises from the municipal waterworks system owned and operated by that city, “at a rate not in excess of” that permitted or provided by Section 743.13, Revised Code.

Relator bases her right to the relief sought on Section 743. 13, Revised Code, which reads:

“When any person at his own expense has laid down and extended mains and water pipes or electric light and power lines beyond the limits of a municipal corporation, and the legislative authority thereof, by resolution, has authorized the proper officer of the waterworks to superintend or supervise such laying and extension, the municipal corporation shall furnish water or electricity to the residents and property holders on the line of such facilities. The samé rules and regulations which govern the furnishing of water or electricity to its own citizens shall apply in such cases, except that the rates charged therefor shall not exceed those within the municipal corporation by more than one tenth.”

In 1956, American Louisiana Pipe Line Company had “at” its “own expense * * * laid down and extended mains and water pipes” to its compressor station about four miles “beyond the limits of” that city, “and the legislative authority thereof, by resolution,” had “authorized the proper officer of the waterworks to superintend or supervise such laying and extension.” Relator is a resident and property holder “on the line of such facilities. ’ ’

The Court of Appeals determined that, if the above statute is constitutional, relator is entitled to the relief which she seeks, but it held that that statute is unconstitutional because it conflicts with the provisions of Section 4 of Article XVIII of the Ohio Constitution, which reads:

“Any municipality may acquire, construct, own, lease and operate within or without its corporate limits, any public utility the product or service of which is or is to be supplied to the municipality or its inhabitants, and may contract with others for any such product or service. The acquisition of any such public utility may be by condemnation or otherwise, and a municipality may acquire thereby the use of, or full title to, the property and [315]*315franchise of any company or person supplying to the municipality or its inhabitants the service or product of any such utility.”

The cause is now before this court on appeal from the judgment of the Court of Appeals denying a writ of mandamus.

Besides Section 4 of Article XVIII of the Ohio Constitution, it is appropriate to consider Section 6 of that article in deciding this case. The latter section reads:

“Any municipality, owning or operating a public utility for the purpose of supplying the service or product thereof to the municipality or its inhabitants, may also sell and deliver to others any transportation service of such utility and the surplus product of any other utility in an amount not exceeding in either case 50 per centum of the total service or product supplied by such utility within the municipality. ’ ’

This court has often held that the General Assembly cannot impose any restrictions or limitations upon the power to “operate” a public utility granted to a municipality by Article XVIII of the Ohio Constitution. Swank v. Village of Shiloh, 166 Ohio St., 415, 143 N. E. (2d), 586; Village of Euclid v. Camp Wise Assn., 102 Ohio St., 207, 131 N. E., 349; Board of Education v. City of Columbus, 118 Ohio St., 295, 160 N. E., 902; Board of Education v. Village of Willard, 130 Ohio St., 311, 199 N. E., 74. See City of East Cleveland v. Board of Education, 112 Ohio St., 607, 148 N. E., 350; and Pfau v. City of Cincinnati, 142 Ohio St., 101, 50 N. E. (2d), 172.

However, relator contends that the General Assembly may require a municipality, in the operation of a public utility, to comply with a mere regulation reasonably designed to insure the nondiscriminatory service properly and regularly required from public utilities; and that Section 743.13, Revised Code, only represents such a regulation.

Relator argues that, in operating its waterworks pursuant to Article XVIII, the city is acting in a proprietary capacity; and that, in doing so, it is subject to the same restrictions and regulations as other like proprietors. City of Akron v. Public Utilities Commission, 149 Ohio St., 347, 78 N. E. (2d), 890; Butler, a Taxpayer, v. Karb, Mayor, 96 Ohio St., 472, 117 N. E., 953; Western Reserve Steel Co. v. Village of Cuyahoga Heights, [316]*316118 Ohio St., 544, 161 N. E., 920. See Travelers Ins. Co. v. Village of Wadsworth, 109 Ohio St., 440, 142 N. E., 900, 33 A. L. R., 711, and State, ex rel. White, v. City of Cleveland, 125 Ohio St., 230, 181 N. E., 24, 86 A. L. R., 1172.

It would ordinarily he the duty or the right of a government to provide those facilities to the public that are provided by a public utility. Hence, such government usually grants to a public utility providing those services certain governmental powers, rights and privileges, such, for example, as the right of eminent domain and protection from competition; and, by reason thereof, the public utility is subject to governmental restraints designed to protect the public from any abuse of such powers, rights and privileges. Such restraints may ordinarily be imposed either by the judicial or legislative authority of the government involved. Scofield v. Railway Co., 43 Ohio St., 571, 593, 3 N. E., 907, 54 Am. Rep., 846.

With respect to a municipally operated public utility, the municipality’s powers, rights and privileges are derived directly from the people, pursuant to the provisions of Sections 4 and 6 of Article XVIII of the Constitution, and not from the General Assembly. Nothing is said in the Constitution to indicate that the powers, rights and privileges so conferred upon municipalities are to be subject to any legislative power other than that conferred by the various sections of Article XVIII of the Constitution (see, in addition to Sections 4 and 6, Sections 3, 7 and 13). Hence, it would appear that the General Assembly has no power to limit or restrict, by regulation or otherwise, the power and authority of a municipality to operate a public utility for the purpose of supplying the product thereof to such municipality or its inhabitants, or selling and delivering to others some of the surplus product thereof, pursuant to the provisions of Sections 4 and 6 of Article XVIII.

The opinions and syllabi in some of the cases referred to in this opinion have language in them tending to indicate that the General Assembly may merely regulate though not restrict or limit such municipal power. However, every regulation limits or restricts something. Hence, if a so-called mere statutory regulation of the General Assembly limits or restricts a power conferred by Sections 4 or 6 of Article XVIII of the Constitu[317]*317tion, it can be no more effective than any other statutory limitation or restriction of such a power.

In City of Akron v.

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Related

City of Lakewood v. Rees
8 N.E.2d 250 (Ohio Supreme Court, 1937)
City of East Cleveland v. Board of Education
148 N.E. 350 (Ohio Supreme Court, 1925)
City of Akron v. Public Utilities Commission
78 N.E.2d 890 (Ohio Supreme Court, 1948)
Board of Education v. Village of Willard
199 N.E. 74 (Ohio Supreme Court, 1935)
Hartwig Realty Co. v. City of Cleveland
192 N.E. 880 (Ohio Supreme Court, 1934)
Pfau v. City of Cincinnati
50 N.E.2d 172 (Ohio Supreme Court, 1943)
Himebaugh v. City of Canton
61 N.E.2d 483 (Ohio Supreme Court, 1945)
State Ex Rel. White v. City of Cleveland
181 N.E. 24 (Ohio Supreme Court, 1932)
State Ex Rel. Indian Hill Acres, Inc. v. Kellogg
79 N.E.2d 319 (Ohio Supreme Court, 1948)
Travelers Insurance v. Village of Wadsworth
142 N.E. 900 (Ohio Supreme Court, 1924)
Western Reserve Steel Co. v. Village of Cuyahoga Heights
161 N.E. 920 (Ohio Supreme Court, 1928)

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Bluebook (online)
167 Ohio St. (N.S.) 313, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-mccann-v-city-of-defiance-ohio-1958.