Yuma Gas, Light & Water Co. v. City of Yuma

• Decision Date: 01 February 1919
• Docket Number: Civil 1633
• Citation: 178 P. 26,20 Ariz. 153
• Parties: YUMA GAS, LIGHT AND WATER COMPANY, Appellant, v. CITY OF YUMA, THOMAS D. MOLLOY, City Attorney, and S. FRANK STANLEY, City Recorder, Appellees
• Court: Arizona Supreme Court

178 P. 26

20 Ariz. 153

YUMA GAS, LIGHT AND WATER COMPANY, Appellant, v. CITY OF YUMA, THOMAS D. MOLLOY, City Attorney, and S. FRANK STANLEY, City Recorder, Appellees

Civil No. 1633

Supreme Court of Arizona

February 1, 1919

APPEAL from a judgment of the Superior Court of the county of Yuma. Frank Baxter, Judge. Reversed and remanded, with instructions.

STATEMENT OF FACTS BY THE COURT.

This action was commenced by the appellant as plaintiff to restrain and enjoin the defendant city and its officers from enforcing the provisions of an ordinance of the city, known as "Ordinance No. 150a," for the alleged reason that said ordinance was enacted without authority of law and is void because in conflict with the Constitution of the state. The demurrers offered presented the questions as follows:

"Is the city of Yuma, by its charter and ordinances, authorized by law, as contemplated by section 3 of article 15 of the state Constitution, to fix and determine the rates or compensation to be collected by the plaintiff, . . . a public service corporation doing business within the city of Yuma or has the [state Corporation] Commission full and exclusive power to fix and determine such rates?"

The court sustained the demurrer and thereby determined that the municipality, the city of Yuma, has the power of fixing the rates and charges of plaintiff company within the city of Yuma to the exclusion of the Corporation Commission, and judgment followed accordingly. The plaintiff appeals, and the record consists of an agreed statement of the case.

Mr. G P. Bullard and Mr. C. A. Lindeman, for Appellant.

Mr Thomas D. Molloy, for Appellees.

OPINION

CUNNINGHAM, C. J.

(After Stating the Facts as Above). The question for determination is whether the city of Yuma has the power to fix the rates to be charged patrons of a public service corporation by such corporation while doing business in the city. The parties concede that the city of Yuma enacted an Ordinance No. 150a by which the plaintiff corporation was required to charge and collect from the inhabitants of the said city the rates and compensation for services rendered, water and light furnished such inhabitants in the amounts designated in a schedule annexed to said ordinance, and permitted no greater rates to be charged or collected. That said ordinance was enacted under authority of section 54 of article 3 of the special charter of Yuma, as amended, and of section 3 of article 15, state Constitution.

The ordinance in question is clearly one regulating and fixing, until otherwise provided by law, the rates which public service corporations may charge and collect from the inhabitants of the city of Yuma for water, lights, and power, served and used in the city of Yuma. The ordinance is one directly regulating the private business transactions between the public utilities company and its patrons or customers, users of its water, light, and power. Consequently the matter here for inquiry is the source of the power of the municipality to regulate the relations of its inhabitants among themselves with regard to the services of public utilities companies.

The city of Yuma duly adopted a special charter, authorized by section 2 of article 13, state Constitution. Yuma, being a city of the population of 3,500 inhabitants or more, was permitted to "frame a charter for its own government, consistent with, and subject to, the Constitution and laws of the state. . . ." Section 2, art. 13, State Constitution. When said charter is framed and has been adopted as specified in said section 2, and approved, the said section declares that "Upon such approval, said charter shall become the organic law of such city, and supersede any charter then existing (and all amendments thereto) and all ordinances inconsistent with said new charter."

The city of Yuma duly adopted, as an amendment to its said special charter, the following provision, known as section 54 of article 3 of the charter:

"Sec. 54. To fix and determine by ordinance, rates or compensation to be charged and collected by any public utility corporation or person for the use of water, heat, light, power, telephone service, or other public utility supplied to the city or its inhabitants, and to prescribe the quality of service."

The city depends exclusively upon this section of its special charter as authority for enacting Ordinance No. 150a setting forth a schedule of rates to be charged by appellant company for its service to the inhabitants of Yuma. In other words the city of Yuma contends that said section 54 of article 3 of its charter, adopted as required by section 2 of article 13 of the state Constitution, places the city of Yuma within the proviso found in section 3 of article 15 of the state Constitution. Section 3 of article 15 grants to the Corporation Commission "full power to . . . prescribe just and reasonable classification to be used, and just and reasonable rates and charges to be made and collected, by public service corporations within the state for service rendered therein, and make reasonable rules,...