New Orleans Pub. Serv., Inc. v. City of New Orleans

In New Orleans Pub. Serv., Inc. v. City of New Orleans, 281 U.S. 682, 50 S. Ct. 449, 74 L. Ed. 1115 (1930), the Court upheld a city ordinance requiring a street railway to demolish a viaduct and construct grade crossings. The utility relied on cases, including Cumberland, to argue it had a contract with the city and the city's new ordinance violated the constitutional prohibition of impairment of contract. The utility argued that cases which condemned cities' attempts to repeal a grant of a right to use a street for a railroad or required payment of additional fees not in the original contract to use a surface street for wires likewise applied to the viaduct ordinance. Id., 281 U.S. at 685. The Court expressly rejected that argument and held Cumberland did not apply: Neither of these cases has any application here. The ordinance now under consideration does not aim to destroy or to exact payment for the right of appellant to use the street for the operation of its street railway. It purports merely to regulate the use of the streets for the convenience and safety of the public. It does not impair appellant's franchise. 281 U.S. at 685-86.