Yeatman v. Towers

• Decision Date: 24 June 1915
• Docket Number: 52.
• Citation: 95 A. 158,126 Md. 513
• Parties: YEATMAN v. TOWERS et al.
• Court: Maryland Court of Appeals

95 A. 158

126 Md. 513

YEATMAN v. TOWERS et al.

No. 52.

Court of Appeals of Maryland

June 24, 1915

Appeal from Circuit Court of Baltimore City; John J. Dobler, Judge.

Suit by James B. Yeatman against Albert G. Towers and others constituting the Public Service Commission of the State, and another, for an injunction. From an adverse decree complainant appeals. Affirmed.

Argued before BOYD, C.J., and BRISCOE, BURKE, URNER, STOCKBRIDGE and CONSTABLE, JJ.

George W. Lindsay, of Baltimore (Richard B. Tippett & Son, of Baltimore, on the brief), for appellant. W. Cabell Bruce, of Baltimore, for appellees.

STOCKBRIDGE J.

In April, 1906, Elias A. Blackshere acquired from Clarence M Griffin a tract on Park Heights avenue, just outside the corporate limits of Baltimore city, for the purpose of improving the land by the erection of dwellings thereon. At the time of the purchase there was no available water supply for the houses so to be built, and accordingly, by an agreement of the same date as the deed, Griffin undertook to furnish a water supply "for all the buildings, in number about one hundred" contemplated to be erected by Blackshere. The agreement gave to Griffin "the sole and exclusive right and privilege to lay water retains and pipes *** in, about and upon said lands," and further provided the water rates to be charged for the service in the following language:

"For each dwelling house not over ten dollars per annum, or if meter service be preferred by any occupant of said houses, the charges shall not be in excess of twenty cents for each one thousand gallons of water consumed."

Fifteen of the houses built by Blackshere on the land so conveyed to him now belong to the appellant, Yeatman, and the water plant constructed by Griffin was by him sold to the Park Heights Water Company, and by it in turn to the Suburban Water Company. In 1911 the last-named corporation filed with the public service commission a new and different schedule of rates to be charged; and again in 1914 a revised schedule. Objections appear to have been made to this schedule. A hearing was had before the public service commission, and on October 14th an opinion and order of the commission filed. By that order, after imposing certain requirements upon the water company, the following provisions regulating rates appear:

"Houses with bathroom.--Minimum quarterly charge $3.75, entitling to consumption of 12,500 gallons, excess use to be charged for at rate of 40¢ per 1,000 gallons.

House without bathroom.--Minimum quarterly charge $2.50, entitling to consumption of 8,000 gallons, excess use to be charged for at the rate of 40¢ per 1,000 gallons."

Two days after this order the bill in this case was filed to enjoin putting into effect the provisions of the order in relation to rates. A demurrer to the bill was sustained by the circuit court of Baltimore city, and this appeal followed.

The grounds upon which the appellant relies may be grouped under two heads: (1) That the agreement of 1906 was an agreement between individuals, and related to a private, rather than a public, service, and so is outside the jurisdiction of the public service commission. (2) That as the agreement antedated the creation of the commission, that body lacks power to in any way modify the terms of the agreement without infringing the constitutional inhibition against legislation impairing the obligations of contracts.

The first of the grounds as stated involves several distinct matters, but before taking up the consideration of these there are certain facts appearing in the bill and agreement, which was filed as an exhibit, to be noted. By the language of the agreement, Griffin was given a monopoly of supplying water to the dwellings to be erected on the land conveyed to Blackshere, and there was no restriction upon him limiting him to supply only those houses; and, in the next place, by the order of the commission, there were two classes of service provided for, one at a rate precisely that named in the Griffin-Blackshere agreement, and the other a somewhat higher rate for a different and greater service. The agreement nowhere specified the nature of the service to be performed except, in general language, to furnish Blackshere--

"an adequate supply of water to enable said Blackshere to carry on his contemplated building operations on the above lands, and to fully establish, install and complete a plant of sufficient capacity to furnish every building to be so erected with sufficient potable water for the needs of those persons who may

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