Kansas Electric Utilities Co. v. Bowersock

Citations

• 109 Kan. 718
• 202 P. 92
• 1921 Kan. LEXIS 353

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>1. Contract — Defendants to Furnish Electric Power to Plaintiff — Contract Unambiguous — Contract Construed. Under a written contract in force since 1909, and which was to extend for twenty-one years unless terminated as provided in the contract, defendants have furnished electric power to plaintiff to be used in the operation of its railway and electric-light plants. A controversy arose between them over a paragraph in the contract which provided in substance:</p> <p>If after the installations as herein provided for are made by the defendants it should be ascertained after careful trial and demonstration that the water power is unsatisfactory or insufficient to operate the mills of defendants and the plants of plaintiff, then this contract shall be abrogated and declared null and void, and in such event a former contract between the same parties, a copy of which is attached hereto, shall be in full force and effect.</p> <p>In the same clause it was provided that in the event it should be found that the water power was unsatisfactory for the successful operation of the plants of both parties the plaintiff should have the right to purchase the auxiliary steam or gas plant at its then value.</p> <p>Acting under this clause, the defendants served notice in 1919 of their intention to abrogate the contract, when this suit was brought to enjoin such action. The rules that a contract must be construed in its entirety; that where it is not ambiguous its terms control, and extraneous evidence cannot be resorted to to explain the contract; that where the contract is clear and unambiguous, courts will not resort to the rule of practical interpretation by the conduct of the parties, are applied, and held, (a) There is nothing ambiguous in the contract; (6) The provision for ascertaining after careful trial and demonstration whether the water power was unsatisfactory or insufficient did not refer to a single specific test, or mean that in case su