Katz Drug Co. v. Kansas City Power & Light Co.

Decision Date13 May 1957
Docket NumberNo. 22447,22447
PartiesKATZ DRUG COMPANY, Respondent, v. KANSAS CITY POWER & LIGHT COMPANY, Appellant.
CourtMissouri Court of Appeals

Spencer, Fane, Britt & Browne, Irvin Fane, Arthur J. Doyle, Kansas City, for appellant.

Dick H. Woods, Kansas City, Stinson, Mag, Thomson, McEvers & Fizzell, Kansas City, of counsel, for respondent.

BOUR, Commissioner.

Katz Drug & Company brought suit against Kansas City Power & Light Company to recover part of the total amount paid by plaintiff to defendant for electric current furnished to plaintiff at a building located at 1001 Main Street, Kansas City, Missouri, during the period from September 1, 1946 to January 31, 1950. The petition was based upon a written contract between the parties made pursuant to Rule 35 of defendant's General Rules and Regulations. Rule 35 had been filed with and approved by the Public Service Commission of Missouri, and it was made a part of the contract by reference. Plaintiff claimed that it fully performed 'its obligations under the contract'; therefore it was entitled to a refund equal to the difference between (1) the total amount paid by it, at the direct current rate, for electric current furnished by defendant at 1001 Main Street during the period mentioned above, and (2) the total amount it would have paid for such service during the same period had the lower rate for alternating current been applied, the difference between the two amounts being $1,582.30. Defendant, in its answer, admitted the execution of the contract, denied that plaintiff had performed its 'obligations under the contract', and pleaded that the circuit court had 'no jurisdiction over the subject matter placed in controversy by plaintiff's petition', which plea was overruled. The trial was before the court, a jury having been waived, and resulted in a judgment in favor of plaintiff for $1,582.30 with interest in the amount of $450.95, a total of $2,033.25. Defendant has appealed.

The case was submitted to the court upon a stipulation of facts, the testimony of two witnesses, and certain exhibits. The stipulated facts are as follows:

'1. Plaintiff (Katz Drug Company) is now and at all times hereinafter mentioned was a corporation organized under the laws of the State of Delaware and duly qualified and authorized to do business in the State of Missouri. Plaintiff is now and at all times hereinafter mentioned was engaged in the retail drug business.

'2. Defendant (Kansas City Power & Light Company) is now and at all times hereafter mentioned was a public utility corporation organized and existing under the laws of the State of Missouri and engaged in supplying both alternating current and direct current electrical power and energy to consumers in Kansas City, Jackson County, Missouri, and environs.

'3. On or about August 1, 1946, defendant, filed pursuant to law and the regulations of the Public Service Commission of the State of Missouri, Rule 35 of its General Rules and Regulations, as part of its published rates and tariffs. Said commission approved said Rule 35 effective September 1, 1946, in the following form:

"35

"Conversion To Alternating Current Service.

"Due to inability of the Company to provide alternating current service immediately for present users of direct current service the following provision will compensate the consumer for using direct current service until alternating current is made available:

"Conversion Privilege.

"Any consumer receiving direct current service may contract to change over his entire load to alternating current service within a period of five (5) years from September 1, 1946. If the consumer completes the transfer, then he shall receive a refund equivalent to the difference in the amount paid by him at the rate for direct current service and the amount he would have paid at the rate for alternating current service. The refund shall be from the date the consumer certifies that he will change over his load to the date the transfer is completed and the direct current service removed from the premises, which date shall be not later than five (5) years from September 1, 1946.

"In the event the consumer fails to convert his load from direct to alternating current in its entirety within the prescribed period of time, he shall forfeit all rights to a refund of the difference between the amount paid for direct current and what he would have paid for alternating current service.

"The term 'consumer' as used herein covers the service now being delivered through a specific meter or meters and billed as one account. A consumer will not be permitted to divide his load in order to qualify for the benefits of this provision.'

'4. At and prior to September 1, 1946, the date of the filing of said Rule 35, plaintiff leased and occupied the premises located at 1001 Main Street, Kansas City, Missouri (SE Corner of 10th and Main Streets), and operated a retail drug store at such premises, which said store was carried by plaintiff on its books as its store 'No. 5.' The connected lighting and power load at such premises was equipped for direct current operation and not for alternating current operation. Defendant furnished direct current electric service to the plaintiff as the occupant of such premises through its DC Meter No. 223-S-144081 as Account No. 4-078-29420.

'5. After the filing of said Rule 35 with the Public Service Commission of Missouri, defendant, in pursuance thereof, and on or about the 14th day of October, 1946, entered into a written contract with plaintiff as follows:

"This Memorandum of Agreement, made this 14th day of October, 1946, by and between the Kansas City Power & Light Company of Kansas City, Missouri, a corporation organized under the laws of the State of Missouri, having its place of business in the City of Kansas City of said State, hereinafter called the 'Company' and Katz Drug Company, occupant of the premises at 1001 Main, used as a Store, in Kansas City, Jackson County, Missouri, hereinafter called the 'Direct Current Consumer.'

"Whereas, the Company filed, as of August 1, 1946, a rate for secondary alternating current service which became effective September 1, 1946; and

"Whereas, the Direct Current Consumer is at present taking direct current service from the Company at the above address; and

"Whereas, the rate for direct current service is higher than the rate for alternating current service; and

"Whereas, the Company desires to give the Direct Current Consumer the advantages of the rate for alternating current service from the effective date thereof;

"Now, Therefore, in consideration of the premises and of the mutual covenants and agreements hereinafter set out, the parties hereto do hereby covenant and agree each with the other as follows:

"1. The Direct Current Consumer agrees to convert, prior to September 1, 1951, all of the present load whether light or power, and any addition thereto, now served by direct current so that it may be operated with alternating current. Said conversion and the providing of a new entrance switch for alternating current to be made by the Direct Current Consumer at the expense of the Direct Current Consumer.

"2. If a Direct Current Consumer complies with the provisions of paragraph 1 hereof, the Company will refund to the Direct Current Consumer upon completion of the conversion from direct current to alternating current service, the difference in the amount paid by the Direct Current Consumer at the rate for direct current service and the amount the Direct Current Consumer would have paid at the rate for alternating current service. The refund will be made on all bills for service rendered to Direct Current Consumer from September 1, 1946 to the date of qualification for the alternating current rate by a complete conversion from direct current to alternating current service.

"3. The Direct Current Consumer, as referred to herein, covers the direct current service now delivered, or any addition thereto, through specific meter or meters billed by the Company as one account. If a Direct Current Consumer converts said load to alternating current from time to time prior to September 1, 1951, then the Company will continue to bill, for the alternating current service at the rate for direct current service, by combining the simultaneous demands of the two classes of service and the kilowatt hours so delivered as one account until such time as the conversion of direct current service is completed, so that the Direct Current Consumer will have qualified for the rate for alternating current service.

"4. The Direct Current Consumer to qualify for the refund mentioned in paragraph 2 hereof must eliminate entirely, before September 1, 1951, the use of any direct current energy by equipment supplied through one account and will not be permitted to divide said load covered by one account in order to qualify for the refund.

"5. If a Direct Consumer contracts to and fails to convert, prior to September 1, 1951, from direct current to alternating current service, billed as one account, then the Direct Current Consumer forfeits all rights to a refund of the difference between the amount paid at the rate for direct current service and what would have been paid at the rate for alternating current service.

"6. This agreement is made pursuant to Rule No. 35 of the Rules and Regulations filed with the Public Service Commission of Missouri, which Rule became effective September 1, 1946, and said Rule is made a part of this agreement.

"7. This agreement is made in all respects subject to the terms and provisions of the Public Service Commission laws of the State of Missouri and all acts mandatory thereto and to the jurisdiction and authority of the Public Service Commission. Nothing herein contained shall be construed as divesting, or attempting to divest, said Commission of any of its rights, jurisdictions, powers or authority...

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