Thomas v. Reid

1930 OK 49, 285 P. 92, 142 Okla. 38, 1930 Okla. LEXIS 61
CourtSupreme Court of Oklahoma
DecidedJanuary 21, 1930
Docket19921
StatusPublished
Cited by28 cases

This text of 1930 OK 49 (Thomas v. Reid) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas v. Reid, 1930 OK 49, 285 P. 92, 142 Okla. 38, 1930 Okla. LEXIS 61 (Okla. 1930).

Opinion

ANDREWS, J.

The plaintiffs in error were plaintiffs in the trial court and the defendants in error were defendants in the trial court. W!e will refer to the parties as they appeared in the trial court.

Concretely stated, the facts from which this controversy arose are as follows: The city of Woodward is the owner of an electric light and power plant. Bonds were issued and sold for the installation and construction of this plant and for its improvement from time to time, and it is operated by the city as a public utility. In the month of June, 1928, the defendant Western Light & Bower Corporation, being desirous of purchasing this plant from the city of Woodward, procured the city council of the city of Woodward, by resolution, to authorize its mayor to advertise for bids for the purchase of the plant, and pursuant thereto the mayor did advertise for such bids.

Pursuant to that notice the defendant Western Light & Power Corporation submitted its bid in writing for the purchase of the plant, and upon receipt of that bid the city council of the city of Woodward passed ordinance No. 244, and a special election was called by the mayor for the pur *40 pose of submitting tbe question of the proposed sale to the voters of the city of Woodward. That election was held, and it is admitted that at the election 749 votes were cast in fa,vor of the sale and 654 votes against it. At the same election' the question of granting a franchise to the Western Light & Power Corporation was submitted to the voters, and that proposition received a majority of the votes cast. Within ten days after the election, the defendant Western Light & Power Corporation filed with the clerk of the city of Woodward its written acceptance of the terms and provisions of the franchise ordinance, evidenced its readiness to pay the consideration for the purchase of the plant upon delivery of title thereto, and requested the city, through its officers, to convey to it the title to the property. A majority of the city councilmen were about to _vote to consummate the transaction and complete the sale when the plaintiffs in this action filed this suit and procured a restraining order preventing them from carrying out that intention. At the conclusion of the trial, the court rendered judgment denying a permanent injunction and directing the city of Woodward and its officers to complete the sale, to transfer the plant to the Western Light & Power Corporation, and to execute and deliver to it proper conveyances therefor. From that judgment the plaintiffs appeal to this court.

The record in this case shows that the defendant city of Woodward, since September 6, 1907, has been a city of the first class and its governing body has consisted of a mayor and city council.

The pertinent portions of chapter 94 of the Session Laws of 1927 are as follows:

“Section 1. That no public utility owned by any municipal corporation, organized and incorporated under the laws of the state of Oklahoma, where the cash value of such public utility in a city of the first class exceeds $10,000, or in a town or village where the actual cash value thereof is in excess of $5,000, shall be sold, conveyed, leased, or otherwise disposed of, by the governing body of such municipality, unless such sale, lease, conveyance, or other disposal of such utility shall be -authorized by the vote of 60 per cent, of the qualified voters of such municipality, voting at an election to be held for such purpose. * * *
“Section 6. That it is further provided, that the governing body of any city of the first class, organized and incorporated by special charter adopted at an election held for such purpose, when authorized by such charter, may sell, convey, or lease any public utility owned by such municipality operating under special charter without the calling of an election as provided herein.”

We quote plaintiffs’ contention, as follows:

“It was and is the contention of the plaintiffs that, under the state of facts presented, the procedure was and is governed by the general laws of the state of Oklahoma pertaining to cities of the first class and which, as a necessary conclusion, carries with it the proposition that the sale of this electric light and power plant must have been authorized at an election held in conformity with the provisions of chapter 94, Session Laws of 1927, and at which election 60 per cent, of the qualified electors voting at such election voted in favor of such sale, and it being an admitted fact in this case that less than 60 per cent, of the voters voting at such election voted in favor of said sale, that the proposition necessarily failed.”

It was agreed that the only requirement of chapter 94, Id., not substantially complied with was the provision requiring such a sale to be authorized by 60 per cent, of the qualified voters of the municipality voting at the election. The record shows no charge of fraud, inadequate consideration, double dealing, or collusion, and the question presented is purely one of the validity of the sale. The plaintiffs in error in their brief say:

“All parties, in the trial court, addressed themselves to the sole question of the legality or illegality of the proceedings for the sale of this property of the city, and that was the only question involved there, and is the only question involved here.”

Many questions presented on this appeal, in our opinion, are immaterial to a determination of this cause, and we will confine our discussion to what we consider to be the determining' factor. Plaintiffs “* * * apprehend that no authority will be found to support the contention of the counsel or the finding of the court below that chapter 94, Id., violated any of the constitutional rights of. the city of Woodward.” We thins that there is much authority.

Under the Constitution, section 6, art. 18:

“Every municipal corporation within this state shall have the right to engage in any business or enterprise which may be engaged in by a person, firm, or corporation by virtue of a franchise from said corporation.”

Under section 4507, C. O. S. 1921:

“Every municipal corporation within this state shall have the right to engage in any business or enterprise which may be engaged in by a person, firm, or corporation by virtue of a franchise from said corporation, and every city containing a population of more than 2,000 inhabitants shall have *41 the right and power to acquire, own, and maintain, within or without the corporate limits of such city, real estate for sites and rights of way for public utility and public park purposes, and for the location thereon of waterworks, electric light and gas plants.

Under the provisions of section 27, art. 10, of the Constitution:

“Any incorporated city or town in this state may, by a majority of the qualified property i ax-paying voters of such city or town, voting at an election to be held for that purpose, be allowed to become indebted in a larger amount than that specified in section 26, for the purpose of purchasing or constructing public utilities, or for repairing the same, to be owned exclusively by such city. * * *”

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Bluebook (online)
1930 OK 49, 285 P. 92, 142 Okla. 38, 1930 Okla. LEXIS 61, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-v-reid-okla-1930.