Galena Water Co. v. City of Galena

Citations

• 74 Kan. 644
• 87 P. 735
• 1906 Kan. LEXIS 115

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Contracts — Franchise—City Water-works — Option to Purchase — Election by the City. A city granted a franchise to a water company to construct and operate a system of waterworks for such city during the term of twenty years, reserving the option to purchase the plant at the end of fifteen years at its fair and equitable value. It was provided that, if the city should elect to make the purchase and the parties were unable to agree upon the price, the question might be submitted to the district court fpr determination. At the end of the fifteen years the city duly elected to purchase the plant, and, the parties being unable to agree upon - its value, the question was submitted to the district court for decision. Field, that the contract of purchase was complete when the city made its election, and the conveyance of the property, when executed, will relate back to that time, and the rights of the parties should be adjusted as of that date.</p> <p>2. - Determination of Value — Going Concern — Unexpired Franchise. Where a city exercises its right to purchase a system of water-works which is established and in operation in such city, and is required to pay therefor a fair and equit- • able price, if the parties cannot agree as to the amount of such purchase-price and the determination thereof is submitted to a court the fact that such plant is an established system in operation, and has an unexpired franchise, should be considered as elements of value in such determination.</p>