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Contracts Keyed to Marshall
Town of Lindsay v. Cooke County Electric Cooperative Association
Citation:502 S.W.2d 117 (1973)
Petitioner was incorporated as a town in 1959. Respondent, which had been serving inhabitants of the area since 1938, prepared and submitted to the Town Council a proposed ordinance granting respondent a franchise for a period of 50 years from acceptance of the ordinance. The ordinance was enacted by the council on March 24, 1960, but was not immediately effective. On June 9, 1960, after expiration of the 30-day acceptance period, respondent’s manager appeared before the Council and requested that the ordinance be allowed to stay in effect. No action on the matter was taken on that meeting. On June 30, 1960, the franchise ordinance was repealed and the Council at the same time ordered that the franchise tax be refunded to respondent. Petitioner thereupon issued its check for $12.45 to respondent, and the check was accepted by respondent and deposited in its bank account. In July or August, 1960, and again in 1963 and in 1970, respondent’s manager appeared before the Council and requested a franchise, but the request was denied.
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