Western Union Tel. Co. v. Los Angeles Electric Co.

No. 656
Decided Circuit Court, S. D. California
Disposition
overruled
full scope
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Court
Circuit Court, S. D. California
Decided
Judge
WELLBORN, District Judge
Posture
Hearing on demurrer to the bill (complaint)
Complainant (1)
WESTERN UNION TEL. CO.
E. B. Carpenter
v.
Defendant (1)
LOS ANGELES ELECTRIC CO.
Wm. A. Cheney

Overview

The demurrer is overruled, and the defendant is assigned to answer the bill at the rule day in September next.

Case summary

Western Union Telegraph Company sued Los Angeles Electric Company to enjoin operation of electric wires that interfered with Western Union's telegraph lines on Second Street in Los Angeles. Western Union had constructed its telegraph line in 1889 under a federal franchise granted by the Act of Congress of July 24, 1866. In 1895, the electric company constructed wires directly under Western Union's wires, carrying strong electrical currents that interfered with telegraph signals through induction. The electric company demurred, arguing the bill failed to state a claim for equitable relief and that lighting streets was a higher use than telegraphy. The court overruled the demurrer, holding that the bill sufficiently alleged interference and that Western Union's federal franchise with prior occupancy gave it superior rights over the electric company, especially since the electric company transmitted electricity not just for lighting but also for propelling machinery.

Abstract

Telegraph company sought to enjoin electric company from operating wires under its telegraph lines due to electrical interference with signals via induction. The electric company demurred, claiming no equitable relief and that street lighting was a higher public use than telegraphy. The court overruled the demurrer, holding the complaint sufficiently alleged interference and that the telegraph company's federal franchise and prior occupancy conferred superior rights, particularly since the electricity was used not only for lighting but also for powering machinery.

Opinion of the court

Majority
opinion
WELLBORN, District Judge
  • Bill sufficiently alleges interference through electrical induction
  • Specific distance of induction is matter of evidence, not pleading
  • Telegraph company's federal franchise with prior occupancy gives superior rights
  • Electric company's use for propelling machinery is not superior to telegraph franchise

Jurisdiction

not challenged
Subject matter
Federal question jurisdiction under Act of Congress of July 24, 1866 (telegraph franchise)
Jurisdictional facts
  • Complainant is a New York corporation
  • Defendant is a California corporation
  • Case involves interpretation of federal statute (Act of July 24, 1866)

Procedural posture

Posture at trial
Hearing on demurrer to the bill (complaint)
Posture on appeal
Not applicable - this is a trial court ruling
Preserved issues
  • Whether bill states claim for equitable relief
  • Whether telegraph company's franchise gives superior rights

Legal categories

Business

Case record

Full case name
WESTERN UNION TEL. CO. v. LOS ANGELES ELECTRIC CO.
Docket number
No. 656
Court
Circuit Court, S. D. California
Trial court
Circuit Court, S. D. California
Trial court judge
WELLBORN, District Judge
Decided
Opinion author
WELLBORN, District Judge
Opinion type
published
Precedential status
precedential
Judges on panel
WELLBORN, District Judge

Issues & holdings

2
Issues raised
2
affirmed
2
Holdings
Standard of review

de novo (on demurrer)

Disposition rationale

Bill sufficiently alleges interference through electrical induction

Preservation

Issue preserved for review

Standard of review

de novo (on demurrer)

Disposition rationale

Prior occupancy under federal franchise confers superior right against subsequent user

Preservation

Issue preserved for review

Holdings of the court

Sufficiency of bill's allegations
Bill sufficiently alleges interference and need not state specific distances at which induction occurs
Specific distance of electrical induction is matter of evidence, not pleading; bill alleges ultimate fact of interference
unanimousbinding precedent
Priority of rights between telegraph and electric companies
Telegraph company with federal franchise and prior occupancy has superior rights over subsequent electric company
Act of Congress July 24, 1866 confers franchise; prior occupancy fortifies right; electric company's use for propelling machinery is not superior use
unanimousbinding precedent

Error analysis

  • Bill fails to state claim for equitable relief — procedural · no error found
  • Bill lacks specificity about distance of induction — procedural · no error found

Statutory interpretation

1
Statute
Act of Congress July 24, 1866 (Rev. Stat. §§ 5263-5269)
Question
Whether franchise includes protection against interference
Court's reading
Franchise confers right to construct and operate without interference; prior occupancy fortifies right
Canons applied
Plain meaning

Burden of proof

Prosecution burden
Complainant must show interference and superior right
Burden met
true

Standards of review

  • Sufficiency of allegations in bill — de novo Court reviews demurrer de novo to determine if bill states claim for relief

Timeline

4
Events
10,645
Days, incident to ruling
—
Span
procedural eventcited in opinion

Complainant filed written acceptance with postmaster general of restrictions and obligations of Act of Congress July 24, 1866

Established complainant's franchise rights under federal law

Western Union Tel. Co. · Postmaster General of United States
factual eventcited in opinion

Complainant erected poles and strung wires, constructing telegraph line along north side of Second Street in Los Angeles

Established prior occupancy of the street

Western Union Tel. Co. Second Street, Los Angeles, California
factual eventcited in opinion

Defendant constructed line of poles in exact line with complainant's poles and strung wires directly under complainant's wires

Created interference with complainant's telegraph operations

Los Angeles Electric Co. Second Street, Los Angeles, California
rulingcited in opinion

Court overruled defendant's demurrer and assigned defendant to answer the bill

Outcome: Demurrer overruled

Court found bill stated claim for equitable relief

WELLBORN, District Judge · Western Union Tel. Co. · Los Angeles Electric Co. trial court

Facts & evidence

Incident

Location
Second street, city of Los Angeles, California

Key facts

8 facts
  1. Complainant (Western Union) is a telegraph company operating nationwide and internationally
  2. Complainant accepted restrictions of Act of Congress July 24, 1866 on June 12, 1867
  3. Complainant constructed telegraph line on north side of Second Street in 1889
  4. Second Street is a post road under federal law
  5. Defendant constructed electric line in May 1895 directly under complainant's wires
  6. Defendant's wires carry strong electrical currents for arc lights, incandescent lights, and propelling machinery
  7. Defendant's wires interfere with complainant's telegraph signals through electrical induction
  8. Complainant's telegraph instruments are delicate and sensitive to interference

Procedural history

3 steps
  1. Complainant filed bill seeking injunction
  2. Defendant demurred to the bill
  3. Court heard arguments on demurrer

Evidence in the record

Physical
  • Telegraph poles and wires
  • Electric light poles and wires
Testimonial
  • Allegations in bill about interference
Documentary
  • Act of Congress July 24, 1866
  • Written acceptance filed with postmaster general

Objects of relevance

Telegraph poles and wires on Second StreetElectric light poles and wiresDelicate telegraph instrumentsCross arms on poles

Policy considerations

  • Promotion of interstate and foreign commerce through telegraphy
  • Protection of prior investments in public infrastructure
  • Balancing competing uses of public streets

Authorities

Cited authorities (4)

Pensacola Tel. Co. v. W. U. Tel. Co., 96 U. S. 1
distinguishedprecedent
Cited for proposition that telegraph franchise is subject to reasonable local regulations
Telegraph Co. v. Pendleton, 122 U. S. 359, 7 Sup. Ct. 1126
distinguishedprecedent
Cited for proposition that telegraph franchise is subject to reasonable local regulations
Mutual Union Tel. Co. v. City of Chicago, 16 Fed. 309
distinguishedprecedent
Cited for proposition that telegraph franchise is subject to reasonable local regulations
Crosw. Electricity, p. 194
followedquotedpersuasive
Cited as authority that prior occupancy determines rights between telegraph and electric companies
Discusses precedence between telegraph and electric light wires

Related cases (3)

Pensacola Tel. Co. v. W. U. Tel. Co., 96 U. S. 1
prior appeal
Cited for proposition that franchise is subject to reasonable local regulations
Telegraph Co. v. Pendleton, 122 U. S. 359, 7 Sup. Ct. 1126
prior appeal
Cited for proposition that franchise is subject to reasonable local regulations
Mutual Union Tel. Co. v. City of Chicago, 16 Fed. 309
prior appeal
Cited for proposition that franchise is subject to reasonable local regulations

Statutes

  • Act of Congress July 24, 1866 (Rev. Stat. §§ 5263-5269)
  • 23 Stat. 3 (declaring Second Street a post road)

Standards & doctrines

  • Prior occupancy doctrine for street rights
  • Federal franchise supremacy under Act of Congress 1866

Legal principles applied

  • Specific facts of interference are matter of evidence, not pleading
  • Prior occupancy fortifies franchise rights
  • Act of Congress 1866 confers franchise not to interfere with ordinary travel

Notable quotes

“The ultimate fact, in this connection, essential to complainant's case, and which should be alleged, is that defendant's wires have been placed so near to complainant's wires as to seriously impair the efficiency of the latter; and this situation, I think, is sufficiently shown.”
majority — Discussing sufficiency of bill's allegations about interference
Explains pleading standard for interference claims
“As against this latter use [propelling machinery], a franchise acquired under said act of congress, I think, confers a superior right, where the right, as here, is fortified by prior occupancy.”
majority — Comparing uses of electricity
Establishes priority of telegraph franchise over electric power transmission
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Entities and documentation
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Action type
overruled
Target
defendant's demurrer
Appealed from
defendant's motion
Context
Court overruled demurrer, finding bill stated claim for equitable relief
Scope
full
Further instructions
Defendant assigned to answer the bill at rule day in September next
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