State ex rel. Price v. Columbus, Delaware & Marion Electric Co.

104 Ohio St. (N.S.) 120
CourtOhio Supreme Court
DecidedJanuary 10, 1922
DocketNo. 17042
StatusPublished

This text of 104 Ohio St. (N.S.) 120 (State ex rel. Price v. Columbus, Delaware & Marion Electric Co.) 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. Price v. Columbus, Delaware & Marion Electric Co., 104 Ohio St. (N.S.) 120 (Ohio 1922).

Opinion

Hough, J.

The case is one in which the original jurisdiction of the court is involved, and was submitted on the pleadings, testimony taken thereunder, and oral and written arguments of counsel.

From the transcript of the testimony and admissions in the pleadings it appears that there is very little if any dispute of fact, and, further, that there is evidence tending to prove all the material averments of the petition.

The controversy therefore resolves itself into a consideration of the legal principles arising from an application of the facts to the issues made.

“Quo warranto in its broadest sense is a proceeding to determine the right to the use or exercise of a franchise or office and to oust the holder from its [124]*124enjoyment, if his claim be not well founded, or if he has forfeited his right to enjoy the privilege.” 32 Cye., 1412.

"Whatever may be said of the right generally, it obtains, and its scope is defined, in this state by constitution and statute. The pertinent portions of Section 12304, General Code, read:

“A like [civil] action may be brought against a corporation: * * *
“3. "When it has committed or omitted an act which amounts to a surrender of its corporate rights, privileges, and franchises;
“4. "When it has misused a franchise, privilege, or right conferred upon it by law, or when it claims or holds by contract or otherwise, or has exercised a franchise, privilege, or right in contravention of law.”

In the same chapter of the General Code we find Section 12323, reading as follows :

“"When, in such action, it is found and adjudged that, by an act done or omitted, a corporation has surrendered or forfeited its. corporate rights, privileges, and franchises, or has not used them during a term of five years, judgment shall be entered that it be ousted and excluded therefrom, and that it be dissolved. ’ ’

Section 12324 provides: “When it is found and adjudged in such case, that a corporation has offended in a matter or manner which does not work such surrender or forfeiture, or has misused a franchise, or exercised a power not .conferred by law, judgment shall be entered that it be ousted from the continuance of such offense or the exercise of such power.”

[125]*125The first section above quoted confers the right, the latter two define the remedy against an offending corporation, and Section 2 of Article IV of the Constitution of the State vests the supreme court with original jurisdiction.

By the prayer of the petition the state seeks to be advised by what wa rrant the railway company claims to have, use and enjoy the privileges and rights under its franchise, and asks that it be ousted from the same and be compelled to remove its tracks, poles, wires, ties, etc. The issues tendered and the jurisdiction invoked are therefore planted on the statutes of the state in respect to quo warranto proceedings and are directed against a corporation as the grantee and holder of the franchise. Being a statutory action in which this court is clothed with original jurisdiction, naturally those issues tendered must be bounded and limited by the scope of the jurisdiction provided in the statute.

Section 12315, General Code, provides:

“The defendant may * * * file an answer, which may contain as many several defenses as he has.”

This as a matter of practice, as well as one of authorized scope, permits the defendant to answer the averments of the petition by way of defense, but naturally bounded and limited by the rule above announced. The issues made by the pleadings must of necessity be so limited as to come within the authority granted by the legislature in this character of proceeding, and also within the authority of this court, relief being sought, as it is in this case, by recourse to the original jurisdiction of this court.

[126]*126The action or failure of action on the part of the highway advisory board; the selection of a particular kind of brick, under bids submitted to the highway commissioner; and the time in which the award was made after the bids' were open, covered in the 3d, 4th and 5th defenses of the answer, are all questions directed to the regularity of the proceedings for the improvement.

Where an abutting property owner is affected, or is to be assessed, ample remedy is furnished and opportunity for redress given in courts of competent jurisdiction, other than and not including the supreme court. This action by the state is directed against the corporation in its corporate capacity, as the holder, owner and grantee of a franchise granted to it by the sovereign power of the state, through its properly delegated authority. Defenses 3, 4 and 5 are not addressed to that issue, and are insufficient in law in this case.

In the second defense res adjudicata is pleaded, where it says an injunction was granted the railway company in the court of common pleas of Franklin county, restraining the highway commissioner from awarding the bid and contract, and alleges that the same is in full force and effect at this time. The record of that case is before us. Without going into a lengthy analysis of the record it will be sufficient to state the final understanding between counsel and the court. The defendant in the case was the former highway commissioner. His counsel said: “If that is the case, can the temporary restraining order that has been entered here, be dissolved?” The court said: “It is all dissolved.” Counsel for the railway company said: “We understand it.” The [127]*127court then said: “There isn’t any restraining order now. The party against whom the restraining order' is issued is gone, and there isn’t any restraining.”

The party restrained had gone Out of office, and it was thoroughly understood that there was no longer a restraining order. The railway’s petition, brought as a property owner, sought equitable redress by injunction and nothing else. Since that time the railway company has done nothing to reinstate the case; filed no motion for the substitution of a party defendant; filed no supplemental petition.

It is clear that the railway’s counsel had no misunderstanding about the status of his case, for he later filed a petition of like import in the court of Marion county, which was disposed of by that court before action in the instant case was instituted. From the finding of fact necessary from this state of the record, the second defense must fall.

The Columbus, Delaware & Marion Electric Company is authorized to use the public highway, including Section P, by virtue of, and only by virtue of, the franchise granted by the commissioners of Franklin county, for a period of twenty-five years from the date of its acceptance on July 10, 1917. This is its grant of authority upon which is founded the right to use the highway. The grant is as broad and comprehensive as its own legal provisions, and there it is limited. The sovereign power of the state, by the terms of its provisions, bestowed this franchise upon this corporation through the delegated authority of the county commissioners. The rights thus bestowed are sacred and indefeasible during the life of the franchise so long as the company performs and keeps the faith of its covenants.

[128]

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Bluebook (online)
104 Ohio St. (N.S.) 120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-price-v-columbus-delaware-marion-electric-co-ohio-1922.