East Ohio Gas Co. v. City of Akron

Citations

• 81 Ohio St. (N.S.) 33

Syllabus

<p>'Corporation for transporting gas — To certain named cities — Not bound to furnish gas to all cities — Along line of company— Municipality by ordinance allows company to' enter city — Ordinance constitutes contract — Rules of construction — Franchise indefinite as to time, not perpetual — Company may voluntarily withdraw, when — May be compelled to exercise franchise fairly, when.</p> <p>1. Where a corporation is formed “for the purpose of producing, purchasing and acquiring natural gas” and “of piping and transporting natural gas from .the place or places where it is produced, purchased or acquired” to certain named towns and cities situated in the counties along the line of said company and between the termini thereof, “and to other cities, villages and places in the counties aforesaid,” it is not one of the charter obligations of such corporation to furnish natural gas to consumers in all of such cities, towns and villages.</p> <p>2. When a municipal corporation, by ordinance, gives its consent that a' natural gas company may enter the municipality, lay down its pipes therein and furnish gas to consumers upon terms and conditions imposed by the ordinance, which are accepted in writing by said company, such action by both parties constitutes a contract and the rights of the parties thereunder are to be determined by the contract itself.</p> <p>3. While much regard will be given to the clear intention of the parties, yet where the contract is entirely silent as to a particular matter, the courts will exercise great caution not to include in the contract, by construction, something which was intended to be excluded.</p> <p>4. Where the contract between a municipal corporation and - an incorporated company is silent as to the duration of the franchise, such franchise is not perpetual but the duration thereof is simply indeterminate, existing only so long as the parties mutually agree thereto. The incorporated company may therefore voluntarily forfeit its right to