New Lexington (Vil.) v. Ohio Fuel Supply Co.
New Lexington (Vil.) v. Ohio Fuel Supply Co.
Opinion of the Court
The petition in this ease was filed by the village of New Lexington, against the Ohio Fuel Supply Company, alleging for its cause of action that on January 27, 1897, an ordinance was passed by its council granting to the New Lexington Natural Gas Company, its successors and assigns, the right to lay and maintain in the streets and alleys of said village, mains and pipe fixtures for conveying natural gas, and supplying the same to the said village and its inhabitants for use as fuel and for lighting purposes; that pursuant to such grant said company laid its mains and pipes in said village, and exercised the rights and privileges granted by said ordinance; that thereafter and
To this petition a demurrer is filed alleging three grounds of demurrer—
1. "Want of legal capacity to sue.
2. Want of jurisdiction of the subject-matter.
3. The petition does not state facts sufficient to constitute a cause of action.
This demurrer should be overruled, because—
1. The ordinance of September 8, 1903, and its acceptance by the defendant constitute a contract, and it is such a contract
If a municipality is authorized to make a contract, it has authority to enforce it, by implication, if not by express provisions.
2. It is contended that questions, such as are presented by this petition, are questions that ought to be settled by the public service commission, and not by the courts, but this court takes the view that this is a proceeding to enforce a contract already entered into, plain and unambiguous in its terms, and that the controversy is properly cognizable by the courts, and not by the public service commission. It invokes judicial authority, and properly belongs to the courts. When the contract terminates or the time comes when there is no contract existing between the parties, then it could properly be submitted to the commission, but so long as a contract exists, its enforcement is for the courts,
3. The petition alleges a contract, a breach of it, and a threatened continuation of such breach, with a prayer for injunction and general relief.
We think it states a cause of action.
These questions are not made in a recent case, decided by our Supreme Court, involving the same question as is sought to be determined in this action, viz: the right of a public service corporation to make a minimum or “readiness-to-serve” charge when operating under an ordinance or contract, that makes no provisions for such charge. That action was commenced.
1. By the city of Springfield, Ohio.
2. Against the Springfield Light, Heat & Power Co.
3. To enjoin the imposition of a minimum or “readiness-to-serve” charge in violation of an ordinance of said city, under which it operated and for general relief.
The judgment of the court of common pleas in favor of the city was sustained by the Supreme Court without opinion in Springfield L. H. & P. Co. v. Springfield, 88 Ohio St. 572.
The same questions were made by an amended answer in that case as are made in the amended answer in this case, the first defense consisting of certain admissions of fact, and a general denial of everything not admitted or controverted, and be
To this defense a demurrer is filed, and it is to the same defense, that the court of appeals of Clark county sustained a demurrer in the Springfield case cited above, excepting only that the subject-matter of that action was the furnishing of electricity to the city and its inhabitants, while this relates to the furnishing of natural gas. Said judgment sustaining said demurrer was affirmed by the Supreme Court.
The matters alleged in the said second defense are not defensive against a contract entered into of which they are not a part, and furnish no reason why the contract should not be carried out as made. There is nothing alleged that was not already in existence, when the contract was entered into, and it is presumed they were all taken into account at that time.
The demurrer to said second defense will be sustained, and a decree may be entered in favor of the plaintiff, making the injunction heretofore allowed, perpetual, and exceptions may be noted.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.