City of Corpus Christi v. Southern Community Gas Co.

BARROW, Justice.

This is an appeal by the City of Corpus Christi from a summary judgment granted Southern Community Gas Company. The case involves a construction of Chapter 470, Acts 52nd Legislature, 1951, now Article 1436b, Vernon’s Ann.Civ.Stats.

In October, 1954, the City annexed an area which included a portion of appellee’s gas distribution system. On February 2, 1955, City passed an ordinance which granted a five-year franchise to appellee and provided as part consideration for the granting of this franchise, that appellee should pay to City two per cent of its annual gross receipts from…