SUPREME COURT OF CANADA 652 THE CITY OF LETHBRIDGE May APPELLANT PLAINTIFF AND Oct THE CANADIAN WESTERN NAT URAL GAS LIGHT HEAT AND POWER 00 LTD DEFENDANT ON APPEAL FROM THE APPELLATE RESPONDENT OF THE DIVISION SUPREME COURT OF ALBERTA ContractStatuteFranchiseSupply to Right thereunderAlta On 30 July 70Alta 69 seq 64 the certain price visions were passed of period to of under by-law to power lay the refusal lant then by the asked was bound The fifteen the 5th of of reversed was dismissed on that Board deal enable with such do to it Duff Idington between decline Public of to and would it of and in of The city that view appel from dis the respondent the period stipulated the appellants to the appeal action this has complete court their to entertain and should the clothed re1egatethe has legislature with courts the present parties constituted to adequate powers justice JJ.On Brodeur it which the JJ.Altbough jurisdiction exercise and and the parties Mignault of Utilities cases full for and Division denuded should they to and maintaining and Anglin been price judge rates pro 1922 division equal and have action the trial and April the respondent declaration for the at gas the in restrain to the at impossibility the by-law increase any -and gas by the Appellate C.J not grant in the in gas terms Its years On fixed price injunction of supply was Davies an sale judgment may to city for the the at and which pipes natural supplying by the respondent it sell avail 52 40 54 exclusive purpose 39 27 notified the city company appellant month of May to sell gas owing to the the in continuing Per for and accepted continuing to the for 28e 21 respondent cease Per obtained city 20 58 appellant city oornpany of streets the the 1912 sespondent 1928 ActRemedies Utilities ss 1915 municipality to gas continuanceDeclaratory enforce orderPublic judgmentMandatory able natural of to discontinueInjunction the construction of the agreement contractual of were obligations reciprocal character Per and Idington without Per city the Board to rates merely Per to entitled view Davies as it appellants affected PR5sENT and Mignault the existing JJ.Under by injunction the of question the circumstances not be rendered Duff contra the respondent circumstances court this remed.y submit to is not of any question as to the propriety judgment C.J and might should for one obliged Mignault judgment before raise declaratory Per of is case being and Anglin declaratory J.In Duff appellant C.J and Davies JJ.The Brodeur the Duff Anglin otherwise have claim for and been Mignault just mandatory as JJ.It between order as is not convenient the parties other interests to grant may be by it Sir JJ Louis Davies C.J and Idington Duff Anglin Brodeur SUPREME COURT OF CANADA S.C.R Per and Duff deprives the tions raised expressing oust the Judgement in no APPEAL the from ments now the W.W.R of the Alberta to of the the above judgment appellants action and the case of in issue questions head-note and judg in the reported K.C Ball and Johnstone them with for appellant THE CHIEF JusTIcE.Not reached the conclusion with costs J.The IDINGT0N made between for have by dismissal stated such and power as such for use thereof them by distribu its corporate contract capacity con as appellant in respect appellant was corporation is and gas the contends it which endowed with into into between entered gas contract enab and powers capacity of natural procuring to enter of natural municipal corporation is and the respondent tion and sale and also tends was doubt appeal must be dismissed reasons corporate upon it in the engaged much without this appellant the all to enter it the respondent for Anglin endowed with ling that concur in the brother of and supply its inhabi tants The long forth set part so useful detail repeated Appeal who by heard the by the case purpose to be served Suffice it to to the they are between in great far up history leading whatever tions say that the the the there by inhabitants of for franchise creation trial term of years it judges do not and W.W.R Court of had 838 see any same here in title with appellant to sell and in judge that repeating rela has been in the predecessors from of the said parties learned learned respondent had been in negotiation acquisition CAN WEST NAT GAS on Division reversing Hellmuth K.C and Savary K.C my was affirmed 838 Appellate the dismissing in the K.C Lafleur Act Co LTD decision facts are fully stated CIIY OF JJ LETHBRWGE Mignault that of 1923 courts Division Supreme Court of trial judge and material effect Utilities the court of the The and Anglin the the ordinary the Appellate of whether to as of deal with to the ques- Public Alberta authority C.J and Davies case opinion of Court the in provision Supreme this jurisdiction division equal of JJ.No Brodeur Act 653 gas to it progressed of the for the and its so far SUPREME COURT 654 he that CITY OF LEPRBRIDOE 1910 pursuant That was dered such months as rights other interests which and pects about and by revote and Mayor to the of city of copy to No No 99 of We hereby forth in by were fol in the respondent Avenue Alta East 1912 August 1st of the said No the being No by-law 99 of city certi of receipt Lethbridge such city the and to by-law being by-law the for Lethbridge Canadian at and to fulfil the all contained Western Natural this Calgary and to amendments the to agree conform will refer-red Limited and consent we 154 therein of Company acknowledge of city pipes through lay by-law behalf the 154 gas provisions in Power Seventh Calgary to respectfully you that notify said and to natural of Given and beg franchise grant matters the Alta Lethbridge by-law by-law distribution set thereto Council GentlemenWe amend view for it more favourable to amend its said by-law terms and provisions its 128 of pros with they duly assented electors and brighter appellant much contract having letter lowing the ren had in title much it approached and agreed duly accepted fied for opened up of the respondent predecessors That amending by-law and To the respondent induced appellant the which circumstances later its possibilities to bringing with said parties under into largely conditional eighteen acquired by-law relative thereto in passed to agreement entered of necessity it About Idnigtozi had appellant CANADA OF EUGENE Gas Light Heat of August 1912 day first COSTE President JOHN BAIN Secretary Both nearly having parties ten presently years except to the that Lethbridge cease to supply could not agreed profits at hitherto which who future loss by leave tenth of which 5th May given continue will gas in following was that it to supply at the seems to it for April its using of excuse reason to dated had been only therewith conformity notice on the novel court of justice me ignorant for of reaped There had been ers in The rates breach of contract the would same except upon parties it in in one particular respondent refer 1912 gave acted incline previous to failure think was to supply so far manufactur tacitly assented SUPREME COURT OF CANADA S.C.R to the by might In other all be observed relieved The if respects so long as the mere concession consider of that and matters can claim to be or LdH.P there not ever or anything beyond the parties which can respondent supply of gas clearly but may it referred franchises such con can relieve came as in all con of failure them the of rail cases in the question and to absolute an analogy in law between to see the which contract therein nothing what cost was and bound respondent to observe provisions from which way CrrY OF are to available is whether franchise there tained fail respondents supply of gas contracts if at will stituted an obligation the no reason between contract that LETHBRIDG see is in injunction been well refused the raised herein question abandon why all an possibly for have applied at has been the that appellant respect 655 West Great The Queen York and North Company Midland Railway Company The Queen or the more ern Railway recent arose parties there that pretend to give At for tion was In that as the the the demonstrate in the submit attitude of such was upon franchise case the to other the party as herein therefor tried the of respondent herein consideration of converse principle parties that much decision an obligation in that long Molleur he cites claims the promised part on converse any relation of my to length great herein end of St Jean attempt but municipality involved least of an out and implied from obtaining North by respondents at the de any other involved the than contractual Ville imagine although destroy was London cited citing La of than point attempted is should case accidentally more closely in That decision which when counsel the decisions comes and others case this Respondents of Co Railway factum and list Board of Darleston Local case Western perhaps at too nature of the rela contractual see Quebec referred Code for it 874 to arose out English of the 118 E.R 663 40 858 E.R 657 the 118 law well as application Q.B 694 Cau S.C.R 629 of Idington SUPREME COURT 656 laws which municipal LETBRwaE Cx WEST NAr GAS code Quebec by case here in the be held to the quite unable to see how until to the legislature sees do not fashion think bounds of such It not the is formance fatal ab of of two contract the to miles of pipe graph pany can by the going for The of the supervision granted injunction be allowed gives involved contract and in appeal costs here learned its trial judge conclusion the to which to in the referred the along It of be that well article under consider appellant to the the the its paragraph for the municipality above effect rights under the two purposes is com the termination by contract 13 would put an end terms of the obligation to may obligation the five own mere motion form of abandoning the of limb of the para preceding of its the of of the line get of this terms contract adherence thereof that to the expression company per the damages could escape the met by rid under declaration to of the inhabitants through necessary the after it specific been unable to concur with the view that example sonal of of by-law 154 on behalf for the exceeds am by-law rights where the upon much to the and under by th acceptance supply on demand the demand for gas and the city too to have adopt calling might have breach of the unable and contract rests it am say unless granted causes appeal with judgment company gave by-law it case the J.I am paragraph Jus effort by commission things attempt to enforce involving to the allow and restore the DUFF when not adequate would to the of obedience is may go further injunction of an case initio it to law as relevant objection Certainly Mr of be forced can observance of the due performance at all in that waste Commissioners of fit the that mutual appellant of regulating and limited circumstances years was it need not majority opinion the Board local the more modern ten as dissenting judgment below that court of respect recourse nature of the the if contractual the that only same reasoning to repeat Out and alike remedy specifically could so fully with the Stuart tice much are court this agree Idington gave relation created OF CANADA operation to but that of this think of those the it per is un appeal entitled to SUPREME COURT S.C.R The of propriety either in the by trial Judgment having defendant the municipality contract to trial the there was ing the and deciding construction the of issues decision it answer To the the such be contrary to Commercial and on the well judgment to would authority Morton Burgess Bank Industrial as any raise circumstances as principles on merits such got declaratory an objection in such settled their favour respondent company in of propriety Morris Bickett upon in its municipalitys appeal to plaintiff to entertain competent entertain judge and for that ground decision to the appealed raised decision Having asked raised as trial the municipal- the questions contract plaintiff company upon for the plaintiff the the asking of not is to the question in any impropriety action merits but actually the not Division Appellate the respondent at the construed having with the of dis- not or pleadings favour judge accordance in contention itys in gone 657 was judgment declaratory puted the OF CANADA Russian British Bank for Foreign Trade The claim for footing of Public although the have statute the establishing find nothing in that troversy action the to protect such convenient not is just been plaintiff and as between mandatory order Board statute of authority in this an order with care the provisions examined of Alberta it have such different interests of the by such circumstances to grant parties on stands has ample power Utilities might otherwise it the be affected In these interests order than other may municipality Board mandatory Interests of Public with in accordance Alberta Utilities and the depriving to deal of the the can Supreme Court questions con in with the course of the court J.The ANGLIN the respondent By s.s 1923 public of the jurisdiction it L.R is The provided of municipal is utility province 54 of of 53 appellant subject corporation the legislative Alberta Public that Utilities in the ILL Sc 47 1896 AC 675592 to 438 Act of Alberta absence AC 136 of at filed 143 LTH SUPREME 658 consent to prior aTHRmGE to the before under The mined under By constituted sioners of Alberta Board The of 21 Section The fix the to By there in contract amended be deter and 1915 21st Public be to price therefore of 1923 of April Act 1915 of Commis Utilities that in conferred is made service Utilities jurisdiction cases and it by this over all all on in respect Act or by that general supervision etc charge be to and tolls rates board the determine shall any is to power given charges individual existing rate joint or unjustly discriminatory insufficient unjust utilities public the province 23 section of Board of authority legislative the toll the or in 1910 and Public of jurisdiction and reasonable whenever rate to The prior to the provided have clause just Act exclusive declares shall Board subject must Utilities it is contracts Act other any was made of the 69 to thereto Board which in matters all 1923 and the have shall statute commodity made thereto applicable provisions at issue Public of section s.s which the case question the amendments to applicable in the present 1912 statutory of supply remain shall all May of day the for question in 1st the charged contrary enactment the OF CANADA COURT or preferential rather incline to put on construction the too this Co Clarke that in Northern Edmonton Al was narrow By 27 the board is empowered municipal by-law or by any to furnish pality and the The of part 40 provides for sections dressing action confer which decision 64 and the thereof it is are sufficiently the subject it is application in all Vide final and 15 Alta L.R 416 for re matters in s.s 52 res restricted right of appeal to and concerned rights made deems municipality or board on such jurisdiction of the board by board plenary powers enforcing etc resolution board whenever public by given council in the on the and grievances of to the public by any munici any it and proper service municipal an application intersts considerab1e respect every agreement with adequate 39 empowers Section to authorize Other to require to conform to the duties imposed upon utility that Justice clause latter Gas Development berta Natural Mr with agree et seq judicata 70 SUPREME COURT OF CANADA S.C.R and binding conclusive in and porations While on courts in regard the action be said may was of this legislation effect cor- municipal the as that are the the of jurisdiction in presented be disposed may appeal view the for to oust such matters to present and persons this without of so For reasons that stated the am that opinion by my Duff and Mignault brothers my also with Mignault brother merely declaratory no event in order sought should mandatory be granted of the should judgment be not pronounced The avowed board should exercise be exclusive general when determine the decision and tion all the matters of of questions to order and to the fact upon that to to this within require these for merely declaratory must ultimately lature and of its policy diction which do it the and legislature has and 67559 complete not jurisdic or person imposed by board and also would relief not the follow of rights than other prove the that opinion of respect spirit Public have an action in the not if the now to to deal adequate premises the of juris before jurisdiction parties legis letter Act Utilities as that that constituted with powers to the been denuded relegate the justice its statute the Out to exercise should and has clothed full such of in the may they think decline possess effect expressed empowered requisite for of the the of sub whose jurisdiction the parties to recourse into to entertain should cases as although courts have to carry of the could judgment fact direction concrete am embarrassing to the board of obligation or declaratory action made is company any provisions no order between ambit of the order by any judgment any parties or and to fulfil any municipal corporation any agreement Having regard law agreements the board board public declared it expressly is all the is upon of that over supervision conferred of was legislature enforcement the of the jurisdiction ject of the and municipalities utilities public to intention jurisdiction utilities to LETHBRIDuE WEsr L1i Co.Lfl Anglin deciding agree 1923 69 deal great nd companies all courts all 659 if us they the board with such to enable it to SUPREME COURT CITY OF to therefore Subject conclusion Mr of the OF CANADA Clarkes opinion Justice LETBRIDGE the for in would appeal with disimss this reasons foregoing indicated reservation the solely costs CAN WEST J.The BRODEUR Co Lo most important whether by the agreement between bound issue in this the to the In 1910 and 1912 by-laws were passed by ent company is to appeal supply gas is respond of Leth parties the city bridge the by which city the clusive power in the purpose of supplying natural and for It is gas company the gas the price the that part to use and to an the it the their that of bility fifth the the city to the price could to of the streets at years contended is for supply gas privilege which at city time any it then would relations contractual the by-laws fifteen it the relinquish agree and city of period part the to supply gas company its by above on the obliged gas on and the of April 1922 it gas the to sell the company notified the in the month of May gas would cease within continuing franchise for end natural sell between above the for of Lethbridge that city to that at that bound and is ex city certain plaintiff based are no obligation is period desired passed of the defendant possessed On which mentioned there come and company definite it been the of years on the part of the have within gas inhabitants its of fifteen period claimed ments which On and corporation plaintiff of the streets council obtained company respondent to lay pipes the refusal at gas of the of the because city the price any to city impossi by fixed increase its in rates Then the present pany is the bound at the price The As city judge was decided reversed the first future and city stipulated that its in the the agreements but his in appeal were two by-laws passed by one was passed in 1910 and was of It com inhabitants plaintiffs favour in city company from discon declaration to the the period said before there tative nature in the for gas and for to supply gas and trial decision of gas sale has been instituted by the to restrain the for an injunction tinuing action provided for the granting because the ownrs of the of gas the ten the franchise wells were and binding certain it more could of the and the By exclusive demand By section used subject By the to of expiration section years 10 price such withdraw has price stipulated not agree with such franchise and years action involves sides this right for with the habitants The out It the the for gas the that of fifteen period the paying to company for possible was years of supplying gas at can proposition for at of period the on obligation certain very essence yule de fifteen the of part The trans price of reciprocal came Molleur and case fifteen before Chicoutimi contractual rights In gas waterworks for stituted the which cases ago viz La de St Jean chises of contention obtained the company supplying be shall until the of obligation character contractual In two not is supply to company it assertion with was to inhabitants its franchise the for the before field the The is provisions from the con to agreed fixed is elapsed on the and the by hereof fifteen Brodeur upon agreed January 1913 and city that provided the company before to the gas that felt supply and the was price the city terrhs domestic purposes With for is it the had stage determined years contract in line LHBI contract company as to the franchise of the section struct its pipe the experimental respondent formal during gas by-law and explicitly of fifteen period supply the the of supplying the The explicit more stipulate period But now and away passed time of period 1912 were of for the contract 661 make stage and would not in the experimental still OF CANADA SUPREME COURT S.C.R it in this these relationships decided two years and La yule LØgare was some court that the fran con municipalities which created for both obligations the gas obtained company obligation during that the in the years to lay its pipes period city to exclusive limits but in supply the with gas at the price agreed contractual consent relations cannot of both was urged on ordinary courts 27 Can the upon now be changed with parties part of the of the respondent company that land had no power to deal with S.C.R 329 40 Can S.C.R 629 SUPREME COURT 662 the but that question an exclusive THRIDGE not raised Public in jurisdiction the by in the Appellate LH.JP the OF CANADA in company matter its This point but was plea by some Division Commission had Utilities that of the learned seems to be the ground upon which they favour of the Brocleur The my in to respect give the with and future the of tractual of the land not does Utilities what the which might have con by decisions courts ordinary with the deal pointthat of subject to be urged might that of result been stipulated its to be done is empowered which not with but transactions not is dispossess right of dealing obligations past decide be the may does it of agreements do not relations board but Public to directing board the breaches may beand It as to the arising out rights in to decide board the right to adjudicate the seems to be limited power in of Alberta opinion relied up and judges company gas statute was brought the of the contractual between the parties For those reasons the appeal should of the restored judgment trial and of the Appellate to the granted to restrain the from shutting off the price city of 1912 or the same the the term the of plaintiff defendant July 1912 99 as at price amended The to said same of the at the to trial was in the the entitled is sufficient or to of period not prices 154 of fifteen said fixed fifteen-year period letter of day by dis at the of August the expira July 1912 declaration natural those set from gas the of years from than of 154 of until city 30th the 30th forth the and city its day in of by-law city respondent city its by-laws 99 and terms in which in the prices inhabitants requirements greater the or city by supply the for or from said said with interfering inhabitants respondents of appellant plaintiff way any its said out set years from an order to the the or city council supply of ntura1 gas to the habitants learned respondent the in or was accompanied by by-law injunction equivalent the of continuous for the gas from Lethbridge the to fifteen city company inhabitants of this court costs the against natural of mayor and This injunction that of city upon the terms and the defendants Lethbridge to appellant or prices directed of tion of the supply continuing which injunction supply its the of supply the latter or the inhabitants the with and Division J.The MIGNAULT judge judge be allowed it was to granted continue of Lethbridge and the mentioned its by-law until the therein Quite is the in end in- dependently such the of must the respondent violated court should such grant This calls Alberta 1915 of to public light to and in writing ordinance duties upon 39 every municipal public in of steps sary if to with it is council concerned with clothed questions That of water to respond- of section And gas which to respect public laws of the public Thus under whenever in may by order and province and utility or other municipal any conform to to own its public the charter utility that deems it that considerable part in dispute the of authorize resolution or intervenant in upon in section by notice by the provisions of or out set utility this provided the question board are Act any municipality or authorize between and per to supply natural of the take the to the municipality council to interest the is any decision the are municipality within become of municipality matter any and for that purpose the board and to incur any expense and to submit full relating the meaning one with is the necessary Clarke called the furnishing after hearing thereby it complainant any the contract every the municipality sufficiently tion body all the of the affecting agreement section become with by-law imposed By power to require or of board can be exercised of the comply by any or as and jurisdiction the board has to Justice can admit of no doubt statute that and following 20 the statutes and the municipalities inhabitants its jurisdiction 27 such utility within certain The powers sections with deal services of the city the Mr of of provisions are entitled to these services equally is Mignault of the Commissioners to corporations subsection it of the to create is the to jurisdic authorized to take neces the board and proceedings of party to an appeal therefrom 40 enacts Section if the Attorney complaint to General the board that municipality that any or public LHThGE and powers appellant chapter statute power public is it that and equally heat or power as well as with disputes utility who ent to the judgment Utility and utility gas public think even admitting court Public jurisdiction in the that say convenient consideration of this object Board sons to make court should extraordinary its Act 663 with the appellant that another if available is the appellate The exercise Utilities referred the in not for Public frankly contract its an injunction remedy effective the can be no doubt objectionablethere the whether question orderand an OF CANADA COURT SU1REME S.C.R any party utility interested municipal makes corporation SUPREME COURT 664 1923 about LETHBRIDGE the NAT GAS unlawfully matter over board Co LTD MignaultJ board jurisdiction something aforesaid as premises fit to the and or is to prays that board make require do relating after shall such order it as as 52 and at the conferring for following jurisdiction the enforcement may be mentioned and length widest by 64 section of its with it pro is that decision the of be shall jurisdiction Without board final ordinary court it held Workmens was res court whether is by is the as the convinced that rights and spondent in restoring aside by Mr the think without which case contractual with the the by think would re statute this justify which appellant pressed is the that injunction of the asserted right of the years of the the was set for at of the of the no 154 on appellant in the of the view appellate obligation of the utility the left commis con do not wish by some entertained court of city be rights but on the S.C.R 46 in prices stipulated board of public the to appellant services whole matter had better any pronouncement judges by And because made it redress Act do so in order to can terms and at the to be taken as acquiescing learned pertinent full Utilities do not one fifteen or otherwise of no binding as this Ontario court during determination tractual its jurisdic the as statute 99 as amended by by-law Lethbridge sioners by Public that mandatory of the respondent upon the to the the quite is remedy provided on behalf continuation it contract out the declaration no within statute cannot obtain appellant effective appellate Lafleur by-law this the made has court least that this statute Alberta under the that and convenient appellant by such complainant statute its ousted appealed to applying to the board created enforce law or Act The Dominion Canners Co that when the extraordinary juris think under such am fact of holding length courts of question judicata Compensation of the inquiry any be ousted Costanza diction upon and to the going tion of the of the the in providing them quoting vided the and do to failed unlawfully to circumstances effect sections orders out same the the the or not think may it as has order some evidenoe done or unlawfully the board make proper under To on do to which do hearing such thinks has unlawfully or person company OF CANADA that part there was the re of SUPREME COURT S.C.R the spondent to continue fif teen upon years the by-law its franchise leave all stitutes escape these res The that or board whose right to is appellant the respondent be dismissed be to the statute is states final by the and con Mignault the reserved to the all are thus my jurisdiction appellant of the board under the the to judg the rights and proper remedies safeguarded opinion for the appellant for OF determined is that the appeal should with costs McLaurin CITY would obligation finally Appeal Solicitors the during by abandoning could such from any resort to For these reasons Solicitor gas ET questions decision of natural terms and at the prices mentioned in ment appealed from and of the service 665 judicata redress obtain the OF CANADA respondent dismissed no costs Ball Savary Fennerty
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