CITY OF NORTH LAS VEGAS, a Municipal Corporation, Appellant, v. CENTRAL TELEPHONE CO., a Corporation, Respondent, 85 Nev. 620

Summary

The company provided telephone service to the city residents under a 50-year franchise granted to its predecessor by City of North Las Vegas, Nev., Ordinance No. 163. Thereafter, the city adopted Ordinance No. 371, which undertook to increase the public utility license fees for the purpose of providing sufficient non-property tax revenue. The ordinance imposed for the license five percent of essentially the same revenues specified in Ordinance No. 163. On appeal, the dispositive issue was whether Ordinance No. 371 was void as against the company by reason of federal and state constitutional prohibitions against passing a law impairing the obligation of contracts. The court noted that a franchise was a contract and constitutionally protected against impairment. The court held that the franchise granted to the company did not reserve to the city a right to amend. The court concluded that because the money to be paid under the franchise granted was clearly stated to be in lieu of a ...