43 A. 784 | Md. | 1899
The appellants, being the plaintiffs below, filed a bill in the Circuit Court of Baltimore City, for the purpose of enjoining the city authorities from preventing, obstructing or in any way interfering with the construction by the plaintiffs, under the supervision of the City Commissioner, of underground conduits upon certain streets named in the bill, according to the plans of location and construction filed with the bill, or with the making of the necessary excavations for such conduits, or with the use thereof for the laying and using of telephone wires therein.
The material facts of the case may be condensed as follows: The Chesapeake and Potomac Telephone Company is a corporation of the State of New York, authorized to construct and operate telegraph lines partly in, and partly out of the State of New York, including all the cities, towns and villages of Maryland, and has ever since its incorporation in 1885, exercised its franchises both in the State of New York and in Baltimore City.
The Chesapeake and Potomac Telephone Company of Baltimore City was incorporated under the laws of Maryland, in March, 1884, its stock being owned by the Chesapeake and Potomac Telephone Company. It is authorized to construct telegraph lines upon any roads, highways, or streets, within the State, by erecting the necessary poles and fixtures, and to acquire the property of any telegraph companies then, or thereafter existing, and it did thus acquire various telegraph lines.
By the decisions of this Court, telephone lines are included within the term, telegraph lines, and by chapter 161 of 1886, now sec. 254 of Art. 23 of the Code of Public General Laws, all corporations formed as the Chesapeake and Potomac Telephone Company of Baltimore City was formed, and then in practical operation in Baltimore City, were authorized to lay any part of their lines underground, on any route where they were authorized to construct such lines above ground, but all corporations not in practical *703 operation at the adoption of the Code of 1888, were obliged to obtain a special grant for this purpose from the State, and the assent and approval of the Mayor and City Council, before using either the surface, or the sub-surface of the streets.
Prior to 1889 there were no underground conduits in Baltimore City for the use of telegraph or telephone lines, but during that year the plaintiffs established a Telephone Exchange in a new building upon the corner of St. Paul street and Bank lane, a thickly-settled business location in the central portion of the city, and on May 9th, 1889, the Mayor and City Council enacted Ordinance number (41) forty-one, entitled "An ordinance to provide for laying the wires of the Chesapeake and Potomac Telephone Company of Baltimore City, or of the Chesapeake and Potomac Telephone Company, or of both of said companies, in underground conduits in the City of Baltimore."
The preamble of this ordinance sets forth that if the overhead system of wires is wholly continued, the number of such wires along the street leading to the exchange must be largely increased; that such increase and concentration at so central a point is not desirable, and that the public convenience requires that such wires, so far as practicable, should be laid in cables underground. It then proceeds to enact and ordain that the said two Telephone Companies, acting separately or in conjunction, be authorized "to lay their wires to be used in connection with said exchange," in suitable conduits "under the surface of the streets, alleys or highways in said city now traversed, or to be so traversed by their respective wires," provided said conduits be so constructed as not to injure any vault, sewer, water or gas-pipe, and provided further, that "the grant" above-mentioned should not be deemed an exclusive grant, and that the same should cease and determine, unless three miles of such conduits should be constructed within two years from May 9th, 1889, and that after said two years, and as rapidly as said wires should be laid in said conduits, *704 all poles of said companies along all streets upon which their conduits were so laid, should be removed, and should not be replaced, except when necessary to make connections with the buildings to be served by such conduits and wires.
It further ordained that said Telephone Companies, "inconsideration of the rights and privileges granted to them bythis ordinance," before constructing any portion of said conduits, should comply with the following requirements:
1st. To execute an agreement, in form, and with security to be approved by the Mayor and City Council, to pay to the city annually thirty cents for each lineal yard of the first four miles of conduits so constructed, and twenty cents per lineal yard for all over four miles, provided no annual payment should be less than $3,000; also, before constructing any portion of such conduits, to file with the City Commissioner a plan showing the location and character of all conduits next proposed to be constructed, which construction should always be under the supervision of the City Commissioner; and to replace all paving removed in said construction, to the satisfaction of said Commissioner.
2nd. To provide in every conduit so constructed, space, free of cost or rent for the laying therein, by the Fire Commissioners of the city, of a cable for the exclusive and official use of the Police and Fire Alarm Telegraph, and the Police and Patrol wires.
3rd. Before exercising any privileges under said ordinance, to execute a bond in the sum of $10,000, with approved security, conditioned for the faithful performance of all requirements of said ordinance on the part of the said companies.
The bill avers that the plaintiffs accepted the provisions of this ordinance, and that much more than three miles of conduits were constructed within two years from its approval; it sets forth in detail compliance by the plaintiffs with each and every requirement of the ordinance, and charges that said ordinance so enacted and so accepted, *705 constitutes a contract reasonable in its terms, which the city was competent to make, and which is binding on both parties thereto.
In 1892 the Legislature of Maryland, by chapter 200 of that session, authorized the Mayor and City Council of Baltimore to provide a series of conduits under the streets, lanes and alleys of said city, either by constructing the same, or by authorizing their construction by any person or corporation, but expressly provided therein "that nothing herein contained shall be deemed or taken to modify or change in any manner the provisions of Ordinance number forty-one (41), or the rights and privileges granted thereby." In 1898, the Legislature, by chapter 123 of that session, enacted the new charter of Baltimore City, being a repeal, and re-enactment with amendments, of Art. 4, of the Code of Public Local Laws. In section 6 of Art. 4, as thus amended, under the subhead "Streets, Bridges, and Highways," the general powers of the Mayor and City Council in relation thereto, are enumerated and prescribed. Among these, is the power to regulatethe use of streets, highways and roads, and to prevent encroachment thereon, or obstruction of the same, and toregulate the opening of street surface for the purposes authorized by law or ordinance; to regulate the use of streets, lanes or alleys by telegraph, telephone or other wires, in, under, over or upon the same, and to require all such wires to be placed under-ground after such reasonable notice as it may prescribe; and to provide for a series of conduits — using in this last connection the exact language of the Act of 1892, and then adding, also in the exact language of that Act (except that the word "Article" is substituted for the word "Act"), that "nothing herein contained shall be deemed or taken to modify or change in any manner the provisions of Ordinance number forty-one (41)."
The bill then avers that in reliance upon the rights and privileges secured by Ordinance 41, the plaintiffs constructed during 1889 and 1890, in the streets of Baltimore, more *706 than eleven miles of underground conduits, in all of which space was provided, free of cost or rent, for the laying of a wire for the exclusive use of the city, and in most of which such wire was laid, and has been used by the city, from the construction of the conduits down to the present time. That in the year 1898 the plaintiffs found it necessary, for the accommodation of their increasing business, to construct additional underground conduits in the northern and western part of the city, in accordance with plans submitted to the City Commissioner, and that they obtained a permit therefor on August 8th, 1898, in pursuance of which, and under the supervision of the City Commissioner, they proceeded with the construction of said conduits and the laying of cables therein, until the middle of November, 1898, and that said last-mentioned cables and conduits, constructed at a cost of over $29,000, are now used in connection with said exchange, and that in all of them provision is made for a wire for the exclusive use of the city of Baltimore.
The bill further avers that, while under Ordinance 41 no permit is required for the construction of said conduits, yet by Ordinance No. 2, of 1892, it is provided that no person or corporation shall, for any cause whatever, dig up, or uncover any of the streets, lanes or alleys of the city, without a written permit therefor from the City Commissioner, approved by the Mayor; and that the plaintiffs, being willing to comply with this regulation, and having need to construct underground conduits upon Roberts, Madison and other streets, on the 24th of April, 1899, applied in writing for a permit, filing at the same time plans of the location and character of such proposed conduits as required by the ordinances; but that on April 28th, 1899, the City Commissioner refused to issue the permits applied for, or either of them, without assigning any reason for such refusal; and the plaintiffs then charge that the true reason therefor was the passage by the Mayor and City Council, on April 18th, 1899, of an ordinance, a copy of which was filed *707 with the bill, purporting to repeal Ordinance forty-one (41), and providing that such repeal shall not interfere with the use and control of conduits constructed under Ordinance forty-one (41) before January 1st, 1898 — provided such conduits do not interfere with the future use of the streets upon which the same are constructed. The bill further charges that the permit applied for having been wrongfully refused, the plaintiffs are entitled to proceed without such permit, and are desirous to do so, but they aver that they have good reason to believe, and that they do believe that the Mayor intends to use his official authority, and his influence with the police, directed by the Marshal thereof, to prevent by force the construction of such conduits, and they therefore pray for an injunction against the Mayor and City Council of Baltimore, William T. Malster, Mayor of the City of Baltimore, and Samuel T. Hamilton, Marshal of the Police of said city, enjoining them and their agents from interfering in any manner with the construction of said conduits upon the streets named in the prayer of the bill.
The bill, with exhibits sustaining its allegations, were filed May 1st, 1899, and were immediately laid before the Court, JUDGE WICKES, who on the same day, "upon consideration of the foregoing bill of complaint," passed a decree refusing the injunction — from which decree this appeal is brought.
The defendant has moved to dismiss the appeal upon the ground that it appears upon the face of the record, that its object is to obtain from this Court a preliminary ruling on an ex parte statement of a question involving public interests of great magnitude, without notice to defendant, or those to whom is confided the duty of protecting those interests; but this motion cannot prevail.
Sec. 29 of Art. 5 of the Code of Public General Laws provides that whenever any Court having equity jurisdiction shall refuse to grant an injunction according to the prayer of the bill, an appeal may be taken from such refusal. This section had its origin in the Act of 1832, ch. *708
197, which authorized an application to the Judges of the Court of Appeals, or one of them, when an injunction should have been refused by the County Court. Under that Act, only the bill and the exhibits were submitted to the Judge of the Court of Appeals, and the original papers were forthwith transmitted by the Clerk. In Steigerwald v. Winans,
The Act of 1868 therefore changed the rule previously declared. In O'Brien v. Balt. Belt R.R.,
In Bonaparte v. Balt., Hampden and Lake Roland Co.,
It is contended on the part of the defendant that Ordinance No. 41 has none of the elements of a contract, but that it is simply a license, revocable whenever the public interest requires its revocation, saving, of course, any rights which the plaintiffs have acquired up to the time of revocation, as attempted by the repealing ordinance; while on the part of the plaintiffs it is contended that the passage of Ordinance *710
No. 41 was a proposition to the plaintiffs to enter into a contract securing to them valuable rights and privileges, upon valuable considerations moving from them, and that upon acceptance by plaintiffs of the provisions of said ordinance and compliance by them with all its stipulations, a valid contract was made and concluded, and that after the construction thereunder of three miles of conduits within two years, the contract by its terms became irrevocable, and the repealing ordinance is for this reason inoperative and void. The defendant relies largely, in support of its contention, upon the decision in the Lake Roland Elevated R.R. case,
JUDGE BRYAN said it was the duty of the city authorities to preserve the streets for their primary legitimate purposes, and that it was not competent for them by such a grant to defeat these purposes. The whole opinion went upon the ground that such contracts are made upon the implied condition, understood and accepted by the grantee, that if the safety, health or morals of the public shall require the rescision *711
or modification of such contract it may be rescinded or modified under the police power of the State, or of the city, where the city has been vested by the State with such power. In illustration of the application of this rule of law we may cite the case of N.Y. N.E.R.R. v. Bristol,
It was upon the same principle that this Court proceeded inRittenhouse v. The Mayor and City Council,
The city might, it is true, thus sucure a much larger annual payment from the plaintiffs — one perhaps more fairly proportioned to the value of the franchise granted by the ordinance, but this wish or motive will not justify the repeal proposed. In City Water Co. v. Bridgeport Hydraulic Co.,
But apart from the fact that the attempted repeal of Ordinance 41 cannot be brought within the exercise of the police power, so as to justify the repeal upon that ground, there is another and a conclusive reason why it is beyond the power of the Mayor and City Council in any mode to effect its repeal or impair its operation. By ch. 200 of the Act of 1892, the Legislature of Maryland, after three *714
years trial of the policy inaugurated by the Mayor and City Council upon their own authority, in the contract with the plaintiffs, authorized the Mayor and City Council either to construct, or to authorize any person or corporation to construct conduits throughout the city for the use of telegraph, telephone and electric light wires, to require all such wires to be placed in said conduits, and to prescribe reasonable rentals for the use thereof; thus establishing a general and uniform policy under the sanction of the State, similar to the special policy inaugurated under the sanction of the Mayor and City Council with the plaintiffs. But to this general grant of authority there was annexed a proviso, "that nothing contained in this Act shall be deemed or taken to modify or change in any manner the provisions of Ordinance No. 41, approved May 8th, 1889, or the rights and privileges thereby granted." Whether the Mayor and City Council had the power to grant these rights and privileges at the time that contract was made, it is not necessary to inquire, because ch. 200 of 1892 must be taken as a legislative ratification and confirmation of that contract, with all its rights and privileges. Cooley in his work on Constitutional Limitations,
6 ed. 466, speaking of contracts by municipal corporations, which, when made, were in excess of their authority, but subsequently have been confirmed by legislative action, says: "If the contract is one which the Legislature might originally have authorized the right of the Legislature to confirm, it must be recognized." In Balt. Potomac R.R. v. Reaney,
Upon the principle last above stated, the Act of 1892 not only operates as a ratification of Ordinance No. 41 as of the date of its approval, and of all that had then been done thereunder, but it also operates from its own date of approval as a legislative grant for the future of the rights and privileges thus ratified, and as a legislative prohibition against any interference by the city therewith. The body of that Act authorized the city to require all companies using any kind of electric wires, to place them in the conduits constructed, or authorized by the city; but the proviso excepted out of this grant of power the plaintiffs' companies, and in express language declared that their rights and privileges should not be modified or changed in any manner, and the exception was thus not only a grant of power thereafter to enjoy under the protection of the State, the rights and privileges they had theretofore enjoyed under the protection of the city, but it was also the equivalent of an express denial of power to the city to compel them at any future time to surrender these privileges, in virtue of the general powers conferred upon the city to deal with electric companies in this regard.
The new charter, approved March 24, 1898, contained *716
the same proviso as the Act of 1892, and all we have said as to the legal effect of that Act, is applicable to the new charter, without repetition. Inasmuch as the new charter repealed the whole of Art. 4 of the Public Local Laws of the State, relating to the city of Baltimore, and embracing the Act of 1892, it was necessary to incorporate into the charter the proviso of that Act, in order to give to the plaintiffs the continued assurance that their rights and privileges were beyond the control of the Mayor and City Council, and to remove all doubt upon that subject from the minds of all persons interested in, or dealing with said companies. We hold, therefore, that from the moment the plaintiffs were by the proviso of the Act of 1892 taken under the protecting aegis of a legislative grant, the Mayor and City Council were powerless to destroy, change, or modify their existing rights and privileges, and the ordinance of April 18th, 1899, is wholly ineffectual. The possible unfavorable effect of such a decision upon other corporations using electric wires, or upon the revenues of the city, however much deprecated by others, are considerations which we are not at liberty to entertain, and we may here repeat the language of this Court in the Lake RolandCo.'s case,
The remaining question is as to the jurisdiction of the Court to interfere by injunction in this case. The rule is thus stated in 2nd Beach on Injunction, sec. 1279: "Equity will interfere to protect and secure the enjoyment of a franchise secured by statute, because it affords the only *717
plain and adequate remedy. So, it will protect rights of a like character acquired under a lawful municipal ordinance." This rule is supported by numerous cases, both in the State and Federal Courts, among which are City of Quincy v. Bull,
In Holland v. Mayor and City Council,
We think, however, that in a matter of so much moment to the parties, the purposes of justice will be advanced by permitting further proceedings in the cause, and that an opportunity should be given the defendants to answer, and for a hearing upon the merits, and the cause will therefore be remanded under Art. 5, sec. 36 of the Code, without affirming *718 or reversing the decree of the Circuit Court for Baltimore City.
Cause remanded, without affirming or reversing the decree, forfurther proceedings in conformity with this opinion, costs aboveand below to abide the final result of the cause.
(Decided June 22d 1899).
PEARCE, J., delivered the following separate opinion:
Having stated in the foregoing opinion my individual view, thatmandamus, and not injunction, was the proper remedy in this case, this memorandum is made for the purpose of expressing as briefly as I can the ground of that view.
The case of Hooper v. The City Passenger Railway Co.,
In Hooper v. City Passenger Railway Co., the record shows that Mayor Hooper, in his answer, contended that the refusal to issue the permit, there applied for, could only be reviewed by a proceeding of mandamus in a law Court. No opinion accompanied JUDGE DENNIS' decree granting the injunction. In the brief for the appellant in the case, it was contended that the possession by a body corporate of a franchise to be a Street Railway Company in Baltimore City, does not, in itself, entitle it to the use of the streets without the assent of the Mayor and City Council expressed in the usual way, and for this reliance was placed upon the decision of this Court in State v. Latrobe,
In examining the cases in which injunctions of this character have been sustained, I have found none, with the single exception of Hooper v. Railway Co., in which it was necessary to consider the effect of an ordinance requiring a permit before commencing the work, and the failure to obtain such permit, though duly demanded. The Point Breeze R.R. case, in 81 Md., relied on in 85 Md., was not an application for an injunction to restrain interference, but for a mandamus to compel the issuance of a permit which had been refused. The language of the Court should, therefore, be interpreted with reference to the character of the remedy invoked and the relief sought by the distinguished counsel who initiated that proceeding and argued the appeal. I readily concede, in the language of that case, that "the Mayor has no right by the simple refusal of a permit todefeat the doing of an act authorized to be done, and thus *721 practically to abrogate and repeal the formal permission to do it," as would be the result if the issuance of the permit, could not be enforced by mandamus; but, it by no means follows that the Mayor may not thus delay the doing of the act, nor that the permit can be dispensed with, especially since, in closing the opinion in 81 Md., the Court says: "We need only add, the franchise can only be exercised in such mode as the city, which has absolute control over its own streets, may by reasonable regulation prescribe." Moreover, the language quoted in 85 Md. from 81 Md., was used in discussing whether the Mayor had a discretion to grant or refuse the permit, because if there was such discretion, the mandamus could not be ordered at all, and it was held in reference to this same ordinance that there was no such discretion. I regard the ordinance requiring a permit as preliminary to any digging up of the streets of the city as a reasonable and most salutary regulation, both to guard against wholly unauthorized opening of the surface, and to avoid conflict between those duly authorized, when exhibiting suchpermit, and the police force of the city, who are charged with the duty of arresting the violators of all ordinances.
The two conditions declared by the Court in 81 Md. to be necessary to exist to entitle an applicant to a permit under Ordinance No. 2, are that the act to be done be sanctioned by legislative enactment, and that the party proposing to do it beone duly empowered to perform it. In that case, there was due legislative sanction for the act to be done, within a certain time-limit, and this having expired, the right was lost. Here also there is due legislative sanction for the act, and no time-limit is prescribed. There, as here, there was also a valid ordinance, under which no one, without a permit to dig up the streets, was duly authorized to perform the act proposed. If not so duly empowered, then the language from 81 Md., relied on in 85 Md., does not appear to me to warrant relief by injunction, though fully applicable in a proceeding for a mandamus, because such *722
permit, when issued in compliance with the ministerial duty to issue it, would duly empower the recipient to perform the act, and in event of subsequent interference by any of the city authorities, the remedy by injunction would then be clear and unquestioned. In Edison Company v. Hooper,
In the recent case of State ex rel. Nat. Subway Co. v. St.Louis, 42 L.R.A. 113; 145 Mo. 551, the Subway Company applied for a permit, which was refused, to construct *723 service and supply pipes in certain streets in St. Louis, under an ordinance for that purpose, and it was held that where one possesses a clear legal right to have exercised an office, or a franchise, or to have a service performed by the party to whom he seeks to have the writ directed, and where there is no legal specific remedy to which he can resort to compel the performance of this duty, mandamus is the proper legal remedy. In the course of the opinion JUDGE SHERWOOD said: "In the lower Courts I have never noticed a precedent, or read an authority which would sanction resort in a case of this kind to a bill for specific performance. Indeed it has been decided that a Court of Equity will not enforce the specific performance of a contract to build a railroad, and by parity of reasoning it would seem that if a Court of Equity would deny specific performance in the case instanced, it would also refuse the relief where it is sought to compel a municipality, or a public officer thereof, to allow a railroad or other similar public structure contracted for to be built."
In State ex rel. Bell Telephone Co. v. Flad, 23 Mo. Appeals, 185, where the Board of Public Works refused to grant a permit to plant poles because the Telephone Company declined to comply with conditions other than those prescribed by the statute and ordinance, under which they acted, the Court, through Judge Seymour D. Thompson, ordered a mandamus compelling the board to issue the permit applied for. These decisions are in accord with leading text-writers. High on Ext. Legal Remedies, sec. 327, and Spelling on Ext. Relief, vol. 1, secs. 309 and 694, wheremandamus is declared to be the proper remedy to compel a board to furnish just and adequate facilities to a party. The existence of a full, complete and adequate legal remedy should be here, as in other cases, the exclusion of recourse to equity.
The result of the best consideration I have been able to give to the matter, is that the plaintiffs should be remitted to the remedy by mandamus. It may be that this was the *724 ground on which the learned Judge of the Circuit Court based his decision, his decree not disclosing the ground taken, and if this should be so, I shall feel confirmed in the correctness of the view I have here expressed. Entertaining this view, I think the decree of the Circuit Court should be affirmed, but my associates think otherwise, and I have deemed it proper to concur in the opinion remanding the cause for further proceedings, as we differ only as to the method of procedure.
(Filed July 1st, 1899).