Water Works Board of Town of Parrish v. White

202 So. 2d 721, 281 Ala. 357, 1967 Ala. LEXIS 963
CourtSupreme Court of Alabama
DecidedSeptember 14, 1967
Docket6 Div. 438
StatusPublished
Cited by13 cases

This text of 202 So. 2d 721 (Water Works Board of Town of Parrish v. White) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Water Works Board of Town of Parrish v. White, 202 So. 2d 721, 281 Ala. 357, 1967 Ala. LEXIS 963 (Ala. 1967).

Opinion

MERRILL, Justice.

The five complainants, all citizens and taxpayers of the Town of Parrish, filed a bill, for themselves and representing a class of over four hxxndred other taxpayers and customers of the water system, against the Water Works Board of the Town of Par *360 rish, seeking declaratory and injunctive relief.

The demurrer to the original bill was sustained; the bill was amended, demurrer overruled and the final decree granted and denied some of the relief sought. The Water Works Board appealed.

The amended bill sought a declaration that a bond issue of $185,000 be declared void; that a receiver be appointed; that an audit be conducted of the books of the Water Works Board; that a uniform rate be established for all customers; that discrimination of services be ended; that the Board’s books be opened for inspection and for other and general relief.

The Town of Parrish originally was receiving its water supply from the Water Works System at Cordova. When the Water Works Board at Parrish was established, the proceeds of a bond issue of $185,000 was used to buy the existing system and make improvements. The water rate was raised from $2.00 to $3.00 per 4,000 gallons and the advertisement in the county paper stated “there is positively no anticipation of the Water Board that these rates be raised at any time.” But later, the rate was raised to $4.00 per 4,000 gallons, and, notwithstanding the raise, the trial court found:

“8. That various and sundry complaints were made to the Water Works Board after the new system was installed, among those complaints were that some consumers could not get any water at all, some consumers could only get a stream of water the size of a pencil, some had no water pressure at all, and some had no pressure when the neighbor turned on his water, or some had no pressure at various times of the day, some had to catch water at night in order to have water to cook breakfast the next morning, some couldn’t get water but once a week, some couldn’t get any more supply of water after the work was done to the system than before the work was done, the supply of water to some of the consumers was worse than before the new system went into effect, that the Water Works Board refused to let responsible persons see their books and see how they had spent the money which they had borrowed to improve the Water Works System, that some members of the Water Works Board were arrogant and impolite when persons made complaints.”

The court also found:

“10. This Court does not find that there was any actual fraud perpetrated upon the public by the members of the Water Works Board or any member of the government of the Town of Parrish. However, the Court does find that some members of the Board or the government of the Town of Parrish in the past did not assume the proper responsibility which they should have assumed in the creating of the Water Works Board and the incorporation of said Board and in the operation of the Water Works Board after it was set up or incorporated. That there was a failure to take into consideration the exact cost for the operating of a Water Works System and failure to investigate and make the necessary and proper investigations to determine such sum of money which was necessary for the day by day operation of the Water Works System and the amount of indebtedness that would have to be incurred in order to operate and pay for the expenses which had to be incurred for the buying and improvement of the new system and the failure to determine whether or not by the purchasing of the new system that was purchased that there would be an improvement in the water supply to the consumers thereof. That due to misinformation or lack of information or mismanagement there appears to have been in the past a reckless disregard of the public interest in determining whether or not it would be to the best interest of the public to have incorporated a Water Works Board at all and in determining whether or not there would be any improvement to the system or whether the system could be improved and if an improvement could be made whether or not *361 it was worth the cost or increase of the cost to the public for such improvement. That past members of the Board failed to cooperate with the people of the Town of Parrish in failing to allow the public to examine their books or records and in failing to otherwise provide adequate water supply and water pressure to the public, and by failure to properly notify and inform the public of the actual and full cost to the public or consumers for the new water system before it was purchased.”

In its decree the trial court ordered, inter alia, that the Water Works Board furnish adequate and constant water supply and pressure to its customers, that there be no discrimination between customers; that adequate pressure for fire protection be provided; that an annual statement of receipts and disbursements be posted or published; that the books be available for inspection subject to six listed limitations; that the Board was restrained and enjoined from further increasing or raising rates pending further orders of the court and that no further indebtedness be incurred which would cause or necessitate the increasing of water rates to consumers, and that the costs be taxed against the Water Works Board.

Assignments of error 1 and 2 raise the point that the evidence was not sufficient to support the decree. There was evidence, if believed, to support the complaints listed by the court in paragraph 8 of its findings listed supra.

Where evidence is heard orally before the trial court, the finding of the court has the effect of a jury’s verdict and will not be disturbed on appeal unless plainly erroneous, whether in law or equity. And we must affirm the trial court’s decree, if fairly supported by credible evidence under any reasonable aspect, regardless of what might be our view of the evidence. Norton v. Norton, 280 Ala. 307, 193 So.2d 750, and cases there cited.

Assignment 3 charges error in the restraining of the Water Works Board from increasing water rates without further orders of the court. Appellant insists that the trial court exceeded its jurisdiction because we have held that rate making is a legislative and not a judicial function, citing Mitchell v. City of Mobile, 244 Ala. 442, 13 So.2d 664. That case does support appellant’s contention but it says more. We quote;

“* * * Rate-making is a legislative, not a judicial function. The courts cannot directly nor indirectly make rates. If rates fixed by legislative acts, orders of Public Service Commission, or municipal ordinances, are confiscatory or so greatly excessive as to violate constitutional rights, the courts have jurisdiction to so declare, and by proper orders protect the party aggrieved until lawful rates are fixed by legislative authority. The well-recognized procedure for review is by bill of injunction or by declaratory judgment proceedings wherein the complainant offers to do equity. Equity demands payment of a reasonable rate for services rendered. * * * ”

Here, we consider that the trial court was merely protecting the aggrieved parties until the present (and evidently new) Board could have a chance to operate the system efficiently.

The law will not and cannot tolerate discrimination in the charges of a water works company.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Bessemer Water Serv. v. Lake Cyrus Dev. Co.
959 So. 2d 643 (Supreme Court of Alabama, 2006)
Carson v. City of Prichard
709 So. 2d 1199 (Supreme Court of Alabama, 1998)
City of Wetumpka v. Central Elmore Water Auth.
703 So. 2d 907 (Supreme Court of Alabama, 1997)
WATER WORKS AND SEWER BD. v. Shelby County
624 So. 2d 1047 (Supreme Court of Alabama, 1993)
Williams v. Water Works & Gas Bd.
519 So. 2d 470 (Supreme Court of Alabama, 1987)
Rayford v. Rayford
456 So. 2d 833 (Court of Civil Appeals of Alabama, 1984)
Marshall Durbin & Co. v. Jasper Utilities Bd.
437 So. 2d 1014 (Supreme Court of Alabama, 1983)
San-Ann Service Inc. v. Bedingfield
305 So. 2d 374 (Supreme Court of Alabama, 1974)
KING HOMES, INCORPORATED v. Roberts
240 So. 2d 679 (Court of Civil Appeals of Alabama, 1970)

Cite This Page — Counsel Stack

Bluebook (online)
202 So. 2d 721, 281 Ala. 357, 1967 Ala. LEXIS 963, Counsel Stack Legal Research, https://law.counselstack.com/opinion/water-works-board-of-town-of-parrish-v-white-ala-1967.