Bellevue Borough v. Ohio Valley Water Co.

Citations

• 245 Pa. 114
• 91 A. 236
• 1914 Pa. LEXIS 842

Syllabus

<p>Water companies — Contract with municipal corporations — Increase of water rates — Unenforceable provisions.</p> <p>1. A contract between a borough and a water company, whereby the water company is granted the right to lay pipes and mains in the streets of the borough, with a stipulation that certain specified rates shall be charged the borough and its inhabitants for water, unlimited by its terms and hence indeterminate as to. time, cannot be enforced indefinitely, and the water company is not thereby precluded from raising its rates, if its necessities so require.</p> <p>Courts — Power to determine reasonableness of water rates— Public Service Commission — Acts of April 89, 187k, P- L. 78, Clause 7, Section 8k, and July 86,1918, P. L, 187k — Equity—Preliminary injunction.</p> <p>2. So much of Clause 7, Section 34, of the Act of April 29,1874, P. L. 73, as conferred upon the courts the power to determine questions relating to the resonableness or unreasonableness of water rates, has been repealed by the Act of July 26, 1913, P. L. 1374, which conferred this power upon the Public Service Commission.</p> <p>3. Where in a suit in equity, brought by a borough and certain taxpayers to enjoin a water company from increasing its rates above the schedule fixed by the contract between the borough and the water company, at the time when the franchise was granted, it appeared that the stipulation fixing the rate was indeterminate as to time, the court made no error in refusing a preliminary injunction.</p>