Pacific Electric Railway Co. v. Los Angeles

Citations

• 194 U.S. 112
• 24 S. Ct. 586
• 48 L. Ed. 896
• 1904 U.S. LEXIS 878

Syllabus

<p>The jurisdiction of the Circuit Court is established when it is shown that complainant had, or claimed to have a contract with a State or municipality which the latter had attempted to impair, and so long as the claim ' is apparently made in good faith and is not frivolous, the case can-be heard, and decided on the merits.</p> <p>Whether presented on motion to dismiss or on demurrer the question of jurisdiction depends primarily on the allegations of the bill and not upon the facts as they may subsequently turn out.</p> <p>Under the act of California of March 11, 1901, a street railway franchise can only be granted in case of failure of the successful bidder to comply with the. provisions of the act as to payment within the prescribed period to the next highest bidder at the original competitive opening of bids, and an ordinance attempting to grant the franchise to another is void and the grantee acquires no rights thereunder, nor is such an ordinance a contract within the meaning of the impairment of contract clause of the Federal Constitution.</p>