CHANROBLES VIRTUAL LAW LIBRARY
US LAWS, STATUTES and CODES : Chan Robles Virtual Law Library USA Supreme Court Decisions | Resolutions : Chan Robles Virtual Law Library

ChanRobles™ Virtual Law Library™ | chanrobles.com™   
Main Index Repository of Laws, Statutes and Codes Latest Philippine Supreme Court Decisions Chan Robles Virtual Law Library Latest Legal Updates Philippine Legal Resources Significant Philippine Legal Resources Worldwide Legal Resources Philippine Supreme Court Decisions United States Legal Resources United States Supreme Court Jurisprudence ChanRobles LawTube - Social Network

ChanRobles Internet Bar Review : www.chanroblesbar.com DebtKollect Company, Inc. - Debt Collection Firm Intellectual Property Division - Chan Robles Law Firm

Philippine Supreme Court DecisionsChanRobles On-Line Bar Review

google search for chanrobles.comSearch for www.chanrobles.com


SOUTHERN UTILITIES CO. V. CITY OF PALATKA, 268 U. S. 232 (1925)

Subscribe to Cases that cite 268 U. S. 232 RSS feed for this section

U.S. Supreme Court

Southern Utilities Co. v. City of Palatka, 268 U.S. 232 (1925)

Southern Utilities Company v. City of Palatka

No. 339

Argued April 27, 1925

Decided May 11, 1925

268 U.S. 232

CERTIORARI TO THE SUPREME COURT

OF THE STATE OF FLORIDA

Syllabus

1. An agreement of a public utility with a city to observe specified rates remains binding even after the rates become unremunerative if the contract does not lack mutuality. P. 268 U. S. 233.

2. The fact that the state legislature has power regulate the rates does not deprive the contract between the utility and the city of mutuality. Id.

86 Fla. 583 affirmed.

Certiorari to a decree of the Supreme Court of the Florida affirming a decree enjoining the petitioner from increasing its rates for electric lighting.

MR. JUSTICE HOLMES delivered the opinion of the Court.

The City of Palatka brought this bill to restrain the petitioner, the Southern Utilities Company, from charging more than ten cents per kilowatt, meter measurement, for commercial electric lighting in the city. It alleged a contract in the grant of the petitioner's franchise chanroblesvirtualawlibrary

Page 268 U. S. 233

by which the petitioner was bound not to charge more than that sum. The defendant pleaded that, in present circumstances, the rate prescribed in the ordinance granting the franchise was unreasonably low, and that to enforce it would deprive defendant of its property without due process of law contrary to the Constitution of the United States. The plea was overruled, and, defendant having declined to plead further, a decree was entered for the plaintiff by the Circuit Court for Putnam County which subsequently was affirmed by the supreme court of the state. 86 Fla. 583.

The supreme court held that the city had power to grant the franchise and to make the contract, and that it had no power of its own motion to withdraw, but it concedes the unfettered power of the legislature to regulate the rates. On that ground, the defendant contends that there is a lack of mutuality, and therefore that it is free, and cannot be held to rates that, in the absence of contract, it would be unconstitutional to impose. The argument cannot prevail. Without considering whether an agreement by the company in consideration of the grant of the franchise might not bind the company in some cases, even if it left the city free, it is perfectly plain that the fact that the contract might be overruled by a higher power does not destroy its binding effect between the parties when it is left undisturbed. Georgia Railway & Power Co. v. Decatur, 262 U. S. 432, 262 U. S. 438; Opelika v. Opelika Sewer Co., 265 U. S. 215, 265 U. S. 218. Such a notion logically carried out would impart new and hitherto unsuspected results to the power to amend the Constitution or to exercise eminent domain. There is nothing in this decision inconsistent with Southern Iowa Electric Co. v. Chariton, 255 U. S. 539, San Antonio v. San Antonio Public Service Co., 255 U. S. 547, and Ortega Co. v. Triay, 260 U. S. 103.

Decree affirmed.





Back
ChanRobles™ LawTube

google search for chanrobles.com Search for www.chanrobles.com


Supreme Court Decisions Philippine Supreme Court DecisionsUS Supreme Court Decisions



www.chanrobles.us




QUICK SEARCH

cralaw

Browse By ->> Volume


cralaw

Browse By ->> Year


cralaw

  Copyright © ChanRobles Publishing Company | Disclaimer | E-mail Restrictions
ChanRobles™ Virtual Law Library | chanrobles.com™
 
RED