The People v. City of Paris

44 N.E.2d 154, 380 Ill. 503
CourtIllinois Supreme Court
DecidedSeptember 21, 1942
DocketNo. 26549. Judgment affirmed.
StatusPublished
Cited by5 cases

This text of 44 N.E.2d 154 (The People v. City of Paris) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The People v. City of Paris, 44 N.E.2d 154, 380 Ill. 503 (Ill. 1942).

Opinion

Mr. Justice Murphy

delivered the opinion of the court:

This is an appeal from a judgment of the circuit court of Edgar county, entered in a quo warranto action instituted in the name of the People by the State’s Attorney of that county, against the city of Paris. Issues were joined and after a hearing of evidence, the defendant was adjudged not guilty and the information was dismissed. The trial judge certified that the validity of two ordinances was involved and that the public interest required that their validity be passed upon by this court.

The parties differ in their views as to the questions that are the subject of inquiry in a quo warranto proceeding of this character. That this may be fully considered in discussing the contentions of the parties, it is necessary to outline the substance of the pleadings, for the questions presented are questions of law which arise on the pleadings.

The information charged the defendant with having unlawfully exercised and claimed the power to exercise without warrant or authority the right to issue and dispose of $820,000 of public utility certificates in acquiring, constructing and operating a municipal electric light and power public utility. The prayer was that the defendant make answer by what warrant or authority it exercised such power.

The defendant’s answer was in justification and referred to the Municipal Ownership Act (111. Rev. Stat. 1941, chap. 111^3, pars. 96-110) wherein power is granted cities and villages to acquire, own and operate public utilities upon compliance with the provisions of the act. Conditions upon which a city may own and operate a public utility may be stated in a general way: that there shall be the enactment of an ordinance setting forth the action proposed, a description of the plant, equipment and property proposed to be acquired or constructed, and the issuance of bonds, mortgage certificates or special assessment bonds to pay for the same. The statute also requires a favorable referendum on the approval of the ordinance and on the right to own and operate the utility proposed.

It was alleged in defendant’s answer that on August 26, 1940, the city council passed an ordinance, referred to as ordinance No. 6, which provided for the construction, ownership and operation of an electric light and power public utility, the equipment necessary to be acquired and the issuance of public utility certificates for the payment of the same, which certificates were to be paid out of the revenue derived from the operation of the utility. It was alleged that the ordinance in its final form remained with the clerk the requisite period for public inspection, that it was signed and approved by the mayor and had been duly published. It is further stated that thereafter ordinance No. 7 was passed, duly approved and published. The latter ordinance called a special election for October 15, 1940, for the purpose of voting upon the approval of ordinance No. 6. The propositions submitted were, briefly: (1) Shall ordinance No. 6 be approved; (2) Shall the public utility certificates be issued to the amount of $820,000; (3) Shall the city operate an electric light and power utility as provided in ordinance No. 6. The ordinance divided the city into four precincts, fixed the boundaries and designated the location of voting places in each precinct. It prescribed the form of ballots, named the election judges and clerks and gave the city clerk directions as to his duties in the posting and publishing of notices for the election. The result of the election was pleaded, showing that 3298 votes were cast on proposition No. 1, of which 2028 were for and 1270 against; 3245 votes were cast on proposition No. 2, 1962 for and 1283 against; and that on proposition No. 3, 3382 votes were cast, of which 2053 were for and 1329 against. Defendant contends that by virtue of the matters and things set forth in reference to said ordinances, the election and result thereof and the proof made, it had the right to exercise the power and authority to acquire, own and operate an electric public utility under the provisions of the Municipal Ownership Act, to issue the certificates in question and use the proceeds therefrom in the acquisition of the plant.

Plaintiff’s reply contained many general denials as to the passage of the ordinances, their approval and the election, but plaintiff’s contentions relate more specifically to that part of the reply pleaded as affirmative matter. Plaintiff admitted the defendant was operating under a commission form of government and that the project proposed by defendant was a public utility within the provisions of the Municipal Ownership Act. No attack is made upon the validity of the act and no question is raised as to the extent of the power granted when all steps required by statute have been taken.

As a basjs for the contention that the powers granted by the Municipal Ownership Act were not available to the defendant by reason of non-compliance with all the requirements, it was alleged as affirmative matter that in November, 1939, the city council met in secret session at a place other than the regular meeting place and adopted a resolution accepting a proposition previously made by Lansford & Company, whereby the company would name the engineers the city was to employ and make a preliminary survey and prepare plans and specifications for the proposed improvement. The proposal as accepted also included the sale of the utility certificates to Lansford & Company. It was alleged the proposition submitted by Lansford & Company and the resolution of the council accepting it constituted a void contract and that as such it became the basis for the passage of ordinances No. 6 and No. 7, and that they would not have been passed had it not been for such illegal contract. It was also stated that pursuant to the contract the defendant had procured contracts to furnish electric service with more than 50% of the consumers of electricity residing in the city. It was claimed that this influenced the special election held October 15. Other alleged defects were that ordinance No. 6 did not state a definite interest rate that the public utility certificates were to bear, did not fix the location of a plant, that the plans and specifications were not complete and did not contain an estimate of the income that would be derived from the operation of the plant or that it would be sufficient to meet the utility certificates, that the certificates were not payable at the office of the city treasurer, that they could be called for payment prior to the stated maturities, that the deed of trust proposed in the ordinance was not set out therein, and that one section of the ordinance pledged the income to the payment of the certificates, while other sections provided for the deduction of operating expenses before applying any of it to the payment of certificates.

Ordinance No. 7 was alleged to be void for the reasons that No. 6 was void, that there were irregularities in the election, that propositions on the ballots were not properly stated, the boundaries of the voting precincts were not properly fixed and many persons who were legal voters were deprived of their vote, while others who had no right to vote were given such privilege. Improper location of the voting booths was pleaded together with other irreglarities which it was claimed were of such gross character as to make the election void.

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Bluebook (online)
44 N.E.2d 154, 380 Ill. 503, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-people-v-city-of-paris-ill-1942.