Lighton v. Abington Township

In Lighton v. Abington Township, 336 Pa. 345, 9 A.2d 609, 31 Mun. L Rep. 65 (1939), suit was brought to enjoin the township from relying on the Act of 1937 to enact ordinances providing for construction of a sewage system, issuance of bonds in payment and operation of the system by a private corporation in the case of defaults. The plaintiffs argued that the statute relied on by the township as authority for its action violated Art. III, 20 of the Constitution by allowing the township to vest control and management of its sewage system in a private corporation. Agreeing with the plaintiffs, the court stated: We think the township, as the governmental agent of the state, is subject to the same prohibition to which the state is subject. Counsel for defendants contend that the challenged statute 'does not delegate to a private corporation any power' but that 'It does authorize a municipality voluntarily to enter into an agreement with a private corporation, such as a bank or trust company, representing, as a trustee, the bondholders.' As the constitution specifically deprives the state of power to delegate the management of the municipal property to a private corporation, certainly the agent, the township, cannot make such a delegation; the effect of the limitation on the principal would be destroyed if the agent could do what was prohibited. Lighton, 336 Pa. at 353, 9 A.2d at 612.