Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Beverly Sewerage Authority v. Delanco Sewerage Authority

Decided: January 3, 1961.

THE BEVERLY SEWERAGE AUTHORITY, A PUBLIC BODY CORPORATE AND POLITIC, PLAINTIFF,
v.
THE DELANCO SEWERAGE AUTHORITY, A PUBLIC BODY CORPORATE AND POLITIC, DEFENDANT. WILLIAM MCCRUDDEN, PLAINTIFF, V. THE BEVERLY SEWERAGE AUTHORITY AND THE DELANCO SEWERAGE AUTHORITY, DEFENDANTS



Schalick, J.s.c.

Schalick

The Beverly Sewerage Authority instituted an action in the Chancery Division against the Delanco Sewerage Authority to reform or rescind the contract executed by them on October 3, 1947, which contract was for a term of 40 years. In the Law Division plaintiff McCrudden, a taxpayer of the City of Beverly, brought an action in lieu of prerogative writs against both sewerage authorities to invalidate the contract between them or to compel the Beverly Sewerage Authority to charge, and the Delanco Sewerage Authority to pay, an annual service charge per user that would correspond with the charges made to the Beverly users. The actions were consolidated for trial.

The origin of the contract between the City of Beverly and the Township of Delanco, adjacent municipalities, was the result of a series of negotiations brought about by the demands of the State to correct the pollution of the Delaware River. In 1947 Beverly had an inadequate sewer plant and Delanco had no such facility. Beverly transferred its plant to its authority and Delanco, faced with the alternative of building a plant or contracting with a neighboring authority,

chose to contract with the Beverly Authority. At that time this was advantageous to both parties.

Delanco only constructed a sanitary sewerage collection system, while Beverly expanded its plant for the treatment and disposal of sewage from both districts.

By the terms of the contract the parties agreed as follows:

"(1) Delanco shall connect its collecting system with that of Beverly at the boundary line between the Township of Delanco and the City of Beverly. Beverly agrees to convey from the City line and treat and dispose of the sewage (except industrial wastes) of Delanco.

(2) For said service, Delanco will pay to Beverly the following amounts:

(a) Commencing on the date upon which the collecting system of Delanco is connected to that of Beverly and prior to completion of the entire collecting system, as described in Section (9) of this agreement, Two Dollars ($2.) per annum in advance for each person occupying premises whose sewage is discharged into the collecting system of Delanco.

(b) Commencing on the date upon which the collecting system of Delanco is completed in accordance with the provisions of Section (9) of this agreement, the minimum charge of Five Thousand Dollars ($5,000.) per annum in quarterly installments in advance on the 1st days of January, April, July and October in each year (except that the amount of the first installment may be pro-rated in order to pay Beverly at this annual rate and may be reduced to reflect overpayment of charges under subdivision (a) of this paragraph).

In the event that the population of the Township of Delanco exceeds 2,500, the minimum annual charge of $5,000 per annum referred to herein shall be increased by $1.50 for each person in excess of 2,500 excluding for such purposes the number of the persons in the Township of Delanco to whom sewerage service is not rendered. The population of the Township of Delanco shall be determined at any particular time by the then last preceding Federal census."

Included are provisions for the care of industrial wastes, and a right to renew with ten years' notice by either party, the terms of the renewal to be subject to further negotiation. The term of the contract is for 40 years during which term no provision is made for a change of charges or the right of re-negotiation, but both parties are subject to the quoted terms of the contract.

On December 30, 1955, by reason of a dispute between the authorities relative to the interpretation of paragraph (2) of the contract, they did alter and modify that provision, by a supplemental agreement, in this manner:

"* * * it is agreed by and between the parties hereto that said Paragraph (2) of said contract shall be altered, changed or modified to read as follows:

'(2) For said service, Delanco will pay to Beverly the following amounts:

(a) Commencing on the date upon which the collecting system of Delanco is connected to that of Beverly and prior to completion of the entire collecting system, as described in Section (9) of this agreement, Two Dollars ($2.) per annum in advance for each person occupying premises whose sewage is discharged into the collecting system of Delanco.

(b) Commencing on the date upon which the collecting system of Delanco is completed in accordance with the provisions of Section (9) of this agreement, the minimum charge of Five Thousand Dollars ($5,000.) per annum in quarterly installments in advance on the 1st days of January, April, July and October in each year (except that the amount of the first installment may be pro-rated in order to pay Beverly at this annual rate and may be reduced to reflect overpayment of charges under subdivision (a) of this paragraph).

In the event that the population of the Township of Delanco at any particular time exceeds 2,500 as shown by the then last preceding Federal census, the minimum annual charge of $5,000 per annum referred to herein shall be increased by $1.50 for each person in excess of 2,500 as shown by such census, excluding for such purposes the number of the persons in the Township of Delanco to whom sewerage service is not rendered, plus $5.00 for each house connected with the Delanco sewerage system since the date such census became official, deducting for such purposes any dwelling disconnected since such date; provided, however, that the payments heretofore made by Delanco to Beverly for the year 1954 and prior years shall be deemed to be payment in full for said years; and further provided that the total annual payment for the year 1955 shall be $5,950.00; and provided further, that the total payment for the year 1956, and each year thereafter until the date on which the 1960 census becomes official, shall be $5,000, plus $1.50 for each person in excess of 2,500 as shown by the 1950 census, ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.