City of Opelika v. Opelika Sewer Co.
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265 U.S. 215 (1924)
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U.S. Supreme Court
City of Opelika v. Opelika Sewer Co., 265 U.S. 215 (1924)
City of Opelika v. Opelika Sewer Company
Argued April 8, 9, 1924
Decided May 26, 1924
265 U.S. 215
1. A public service corporation is bound by rates fixed by a valid contract between it and a city even if the rates become so unremunerative that, if imposed under the police power, they would be confiscatory in violation of the Fourteenth Amendment. P. 265 U. S. 217.
2. Decisions of the Supreme Court of Alabama construing the state constitution and a city charter as permitting the city to grant a sewer company the right to operate in the city for a term of years at stipulated rates, subject to power in the legislature to revoke the contract, held binding in a suit by the company to obtain relief from the rates on the ground that they had become confiscatory. Id.
280 F. 255 reversed.