Town of Lindsay v. Cook County Electric Cooperative Association

502 S.W.2d 117 (1973)

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Town of Lindsay v. Cook County Electric Cooperative Association

Texas Supreme Court
502 S.W.2d 117 (1973)

Facts

A Texas ordinance provided that once an area was incorporated, any utility company servicing that area had to send an application to the newly incorporated town to request to keep servicing that area. Further, if the application was not approved, the utility company could continue its service for up to 10 years, after which point the company must remove its service lines and poles to cease service. The ordinance also called for a formal written acceptance of the ordinance by the utility company requesting to continue service. The ordinance also required a fee. Cooke County Electric Cooperative Association (Cooke) (defendant) was operating in the Town of Lindsay (plaintiff) when it became an incorporated town. Cooke applied to the town to continue its operations as the ordinance instructed. The town granted Cooke’s request and Cooke paid the fee required by the ordinance. Cooke directed its attorney to submit the formal written acceptance required under the ordinance, but there is no evidence that the attorney ever did so. Subsequently, the town refunded the fee that Cooke paid and denied its request to further service the area. Once the 10-year service deadline passed, the town demanded that Cooke remove its lines and poles. Cooke refused, and the town brought suit. The lower court found in favor of Cooke, and the town appealed.

Rule of Law

Issue

Holding and Reasoning (Walker, J.)

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