City of Garland v. Texas Power & Light Co., 4509
| Decision Date | 14 July 1966 |
| Docket Number | No. 4509,4509 |
| Citation | 405 S.W.2d 380 |
| Parties | CITY OF GARLAND et al., Appellants, v. TEXAS POWER & LIGHT COMPANY, Appellee. . Waco |
| Court | Texas Court of Appeals |
Cary Young, City Atty., Garland, James W. Wilson, Shannon H. Ratliff, McGinnis, Lochridge, Kilgore, Hunter & Wilson, Austin, for appellants.
Burford, Ryburn & Ford, Robert E. Burns, Dallas, for appellee.
This is an appeal by City of Garland from a judgment permanently enjoining it: 1) from interfering with the construction and operation of a 1500 foot electric line extension by TP in such City; and 2) from requiring a permit for such construction under its Ordinances 275 and 276.
The City Council denied TP 's application for permit, and TP brought suit against the City attacking the validity of the ordinances, and the validity of the action of the City in denying the permit. The trial court, without a jury, held denial of the permit invalid, and enjoined the City from interfering with construction of the line.
The City appeals, contending the trial court erred:
1) In failing to hold Ordinances 275 and 276 valid, since they were in effect at the time TP 's franchise was renewed in 1964, and therefore are incorporated in TP 's franchise as a matter of law.
2) In holding Ordinances 275 and 276 and the action of the City denying the permit under such ordinances to be arbitrary and unreasonable.
By ordinance of August 2, 1915 the City of Garland granted TP 'the right, privilege and franchise until August 1, 1965, to construct, maintain and operate in the present and future streets, alleys and public places of the City of Garland * * * electric light and power lines with all the necessary and desirable appurtenances * * * for the purpose of supplying electricity, to the said City, the inhabitants thereof * * *, for light, heat, power and other purposes .'
Under such franchise the TP has built lines and sold electricity to customers since 1915. Thereafter the City built a municipal electric plant, and has sold electricity to customers.
In 1949 the City Council enacted Ordinances 275 and 276, providing 'that no electric light poles, wires, * * * used to conduct and transmit electrical energy shall be placed in any street, alley * * * easement for utilities * * * in the City of Garland, unless and until a permit in writing from the governing body of the City shall first have been obtained * * *.' Section 10 provides, among other things, the permit may be denied in the discretion of the City if any of the poles, wires, etc. 'results in duplication of services in an area, * * * of the City of Garland, with electric facilities installed, contemplated or planned as extension of the City's Municipal Electric System.' (The ordinances provide as further grounds for refusal of permit, that the poles, lines etc. constitute: a nuisance or hazard; unnecessary extension of transmission facilities; an extension likely to result in loss of customers by the City's municipally owned electric plant; or cause any reduction in earning capacity or net income of the City's plant; or impair the City's bonds; an interference with any governmental or proprietary function of the City).
On August 4, 1964 the City Council, by ordinance, extended TP 's franchise for 25 years as follows:
'Be It Ordained by the City Council of the City of Garland, Texas:
After passage of such ordinance, a referendum election of the qualified voters of the City ratified same.
In August, 1965, Chiles & Stockton proposed to build a 118 unit apartment complex on the south side of Walnut Street in the City. The City has an electric distribution line running on the south side of Walnut Street directly in front of the location. TP has a line on Forest Lane and International Road which line terminates 1500 feet from Chiles & Stockton's property. Chiles & Stockton applied to TP for service; and TP applied to the City for a permit to extend its line from its dead end on International Road, 1500 feet across to Chiles & Stockton's property. Such application was made 'without admitting the validity of Ordinances 275 and 276', * * * 'and without waiving any right to question the validity of such ordinances.'
TP 's application was denied by the City Council because the extension would result in duplication of services in an area the City had electric facilities installed in and intended to serve. (TP asserts the City's real reason for denial of permit was...
To continue reading
Request your trial
-
Texas Power & Light Co. v. City of Garland
...extension of its line to the new customer. The Company then constructed its line. The Court of civil appeals reversed the trial court. 405 S.W.2d 380. We reverse the judgment of the intermediate court and affirm the judgment of the trial On August 2, 1915, City granted the Company a franchi......