Village of Shelby v. Stearns Lighting & Power Co.

176 N.W. 572, 209 Mich. 354, 1920 Mich. LEXIS 615
CourtMichigan Supreme Court
DecidedFebruary 27, 1920
DocketDocket No. 24
StatusPublished

This text of 176 N.W. 572 (Village of Shelby v. Stearns Lighting & Power Co.) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Village of Shelby v. Stearns Lighting & Power Co., 176 N.W. 572, 209 Mich. 354, 1920 Mich. LEXIS 615 (Mich. 1920).

Opinion

Moore, C. J.

This is an appeal in a chancery case where a decree was entered in favor of the plaintiffs. The issues involved are stated in an opinion of the trial court from which we quote:

“This was a bill filed by the village of Shelby, a municipal corporation, against the Stearns Lighting & Power Company, and it appears that there was a contract entered into between these parties on February 19th, 1917, by which the Stearns Lighting & Power Company agrees to do certain things, among them to light the streets of the village of Shelby and to provide electricity for lighting in other ways, and also provides, in the 4th clause of the contract that the company will make a rate for power purposes of not to exceed two and one-half cents per horse power hour, with a minimum charge of fifty cents per month per horse power installed. This contract was to run for a period of ten years from and after its date.
“The defendant operated Under the contract and furnished light and power according to the contract. On October 21st, 1918, a Mr. Bergen, who claimed to represent the defendant, appeared before the council of the village and asked that the council strike out of the contract clause No. 4. * * * No action was taken at that meeting, and on October 25th, 1918, the council again met, and Mr. Bergen was present, as well as Mr. Chase, representing the Stearns company. Action was taken at that meeting, as the records show, as follows:
“ ‘After due consideration motion was made by Moore, seconded by Johnson, that the 4th section of our present contract with the Stearns Lighting & Power Company be stricken out and the new section submitted by the company be accepted and adopted, which is as follows, the same to take effect December 1st, 1918.’
and then follows the proposition, so-called, and the motion was_ carried.
“Now it is claimed by the bill that there were certain misrepresentations made by Mr. Bergen at one or both of these meetings, and that that was the reason the action was taken making the change in the contract.
[356]*356“On October 31st, the council again met and the council tnen took action as follows:
“ ‘After a report was read from the clerk, showing the cost to the Shelby Milling Company for nine months upon the basis of the rates allowed under the previous contract and under the rates the council had adopted, which showed a cost of about $200 under the new than under the old; also that the company had claimed they had furnished the basket factories power at the rate of one and one-half cents and their receipts showed that they had paid two and a half cents with two exceptions and these were two cents, Moore made a motion that the council reconsider the action taken Friday evening, October 25th. The motion was seconded by Heald and carried, all the council voting yes. , Motion made by Johnson, seconded by Moore, that the council reject the proposed power rates of the Stearns Lighting & Power Company submitted by their representative, Mr. Bergen, on Monday evening, October 25th. Motion carried.’
“It is claimed by the defendant company that the action taken on October 25th made a final contract, changing the original contract, while it is claimed by the village, the plaintiff here, that the council had the right to make the change, and then that the council had the right at the following meeting, there being no unreasonable delay, to reconsider the action taken and to decline to make the change, and the village claims that this was particularly true because of the fact that there were misrepresentations made with reference to the original proposition and what the result would be if the new clause was adopted. * * * I am of the opinion that the village council could reconsider the action taken by it at the previous meeting, for these reasons: In the first place, village councils have the right to reconsider action taken at previous meetings ordinarily, where no rights, have intervened; also, in the second place, there was no acceptance of the proposition, or rather, of the action taken by the council between the time when the action of October 25th was taken and the time of reconsideration, and also there was no consideration moving to the village as a consideration for the change. Of course, that wouldn’t be necessary if there had actually been a writing filed accepting the proposition; that would have made a contract without any consideration.
[357]*357“Of course, I realize the claim of the other side is that by filing the rate with the railroad commission that that was an acceptance, but the testimony clearly shows by the admissions in the pleadings and by the testimony, that the filing of the rate with, the railroad commission was done after the action taken on October 31st, because it appears that copies of all three of the meetings were sent to the Stearns people, and that they selected or took only two and filed them with the Lansing commission and retained or did away or something with the other, so that it is clear that they didn’t file or even attempt to file — couldn’t have filed the action of the council with the railroad commission before the action had really been reconsidered by the council. * * *
“Now it is claimed by the defendant that the records did bind the defendant. I don’t believe that that is the law. * * *
“While there may be somethingto the claims of misrepresentations that were made, I don’t think that as far as that is concerned that the situation is in very satisfactory shape, but I don’t think it is necessary for me to determine that question in order to dispose of the case, in the view that I take of the other part, and therefore I think the prayer of the bill should be granted, that is, that the injunction should issue, that the schedule adopted by the council on October 25th and rejected on October 31st, if that action is needed by this court, may be declared to be null and void. In fact it is my holding that it is null and void, by the action taken on the later date, and that, therefore, the original contract is in force, and that the company may be enjoined from raising its rates over and above the original contract price, and of course costs should follow the decree in favor of the plaintiff.”

A decree was entered in accordance with the opinion.

Counsel for the appellant have assigned a large number of errors as in a law case, and have argued them at length. We do not know why this procedure is taken. We deem it, however, our duty to try this as all other chancery cases are tried, de novo, upon the record as presented here.

[358]*358Counsel say the case stated in the bill of complaint is founded upon fraud, and that the case must stand or fall upon that proposition; that there was no fraud in fact, that the trial judge did not find any fraud, and the bill does not present any other theory and upon this record should have been dismissed. The bill does aver fraud and also avers what was done and what was not done in great detail. It avers:

“And plaintiff expressly charges that all charges made in excess of the rate mentioned in said paragraph 4 are illegal and void.”

It not only prays for injunctive relief but it has a prayer for general relief.

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Cite This Page — Counsel Stack

Bluebook (online)
176 N.W. 572, 209 Mich. 354, 1920 Mich. LEXIS 615, Counsel Stack Legal Research, https://law.counselstack.com/opinion/village-of-shelby-v-stearns-lighting-power-co-mich-1920.