Source: https://supreme.justia.com/cases/federal/us/395/701/case.html
Timestamp: 2017-07-21 22:50:00
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Matched Legal Cases: ['Art. 14', '§ 14', '§ 33', '§ 39', '§ 33', '§ 2281', '§ 1253']

Cipriano v. City of Houma (full text) :: 395 U.S. 701 (1969) :: Justia US Supreme Court Center Log In
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Cipriano v. City of Houma 395 U.S. 701 (1969)
U.S. Supreme CourtCipriano v. City of Houma, 395 U.S. 701 (1969)Cipriano v. City of HoumaNo. 705Argued April 24, 1969Decided June 16, 1969395 U.S. 701APPEAL FROM THE UNITED STATES DISTRICT COURT
286 F.Supp. 823, reversed and remanded. Page 395 U. S. 702
The Louisiana Constitution provides that the legislature may authorize municipalities to issue bonds "[f]or the purpose of constructing, acquiring, extending or improving any revenue-producing public utility." La.Const., Art. 14, § 14 (m). Pursuant to this provision, the legislature enacted legislation authorizing Louisiana municipalities to issue revenue bonds. La.Rev.Stat. § 33:4251 (1950). [Footnote 1] The legislature further provided, however, that the municipalities could issue the bonds Page 395 U. S. 703 only if they were approved by a "majority in number and amount of the property taxpayers qualified to vote . . . [who vote at the bond election]." [Footnote 2] La.Rev.Stat. § 39:501 (1950). See also La.Rev.Stat. §§ 33:4258, 39:508 (1950).
Appellant alleged that he was a duly qualified voter [Footnote 3] of the City of Houma, and that he had been prevented from voting in the revenue bond election solely because he was not a property owner. He sued for himself and for a class of 6,926 nonproperty taxpayers otherwise qualified as City of Houma voters. Appellant sought to enjoin the issuance of the bonds approved at the special election and to obtain a declaratory judgment that the limitation of the franchise to property taxpayers is unconstitutional. A three-judge District Court was convened pursuant to 28 U.S.C. §§ 2281, 2284. The Page 395 U. S. 704 court then dismissed the suit, finding the Louisiana provisions constitutional. Cipriano v. City of Houma, 286 F.Supp. 823 (D.C.E.D.La.1968). Appellant brought a direct appeal to this Court, 28 U.S.C. § 1253; we noted probable jurisdiction. 393 U.S. 1061 (1969).
The appellees maintain that property owners have a "special pecuniary interest" in the election, because the efficiency of the utility system directly affects "property and property values," and thus, "the basic security of their investment in [their] property [is] at stake." Assuming, arguendo, [Footnote 5] that a State might, in some circumstances, constitutionally limit the franchise to qualified voters who are also "specially interested" in the election, whether the statute allegedly so limiting the franchise denies equal protection of the laws to those otherwise qualified voters who are excluded depends on "whether all those excluded are, in fact, substantially less interested or affected than those the statute includes." Id. at 395 U. S. 632. Page 395 U. S. 705
Moreover, the profits of the utility systems' operations are paid into the general fund of the city and are used to finance city services that otherwise would be supported by taxes. Of course, property taxpayers may be concerned with expanding and improving the city's utility operations; such improvements could produce revenues which eventually would reduce the burden on the property tax to support city services. On the other hand, nonproperty taxpayers may feel that their interests as ratepayers indicate that no further expansion of utility debt obligations should be made. Of course, these differences of opinion cannot justify excluding either group from the bond election, when, as in this case, both are substantially affected by the utility operations. Page 395 U. S. 706 For, as we noted in Carrington v. Rash, 380 U. S. 89, 380 U. S. 94 (1965), "[f]encing out' from the franchise a sector of the population because of the way they may vote is constitutionally impermissible."
Significant hardships would be imposed on cities, bondholders, and others connected with municipal utilities if our decision today were given full retroactive effect. Where a decision of this Court could produce substantial inequitable results if applied retroactively, there is ample basis in our cases for avoiding the "injustice or hardship" by a holding of nonretroactivity. Great Northern R. Co. v. Sunburst Oil & Refining Co., 287 U. S. 358, 287 U. S. 364 (1932). See Chicot County Drainage Dist. v. Baxter State Bank, 308 U. S. 371 (1940). Cf. Linkletter v. Walker, 381 U. S. 618 (1965). Therefore, we will apply our decision in this case prospectively. That is, we will apply it only where, under state law, the time for challenging the election result has not expired, or in cases brought within the time specified by state law for challenging the election and which are not yet final. Thus, the decision will not apply where the authorization to issue the securities is legally complete on the date of this decision. Of course, our decision will not affect the validity of securities which have been sold or issued prior to this decision and pursuant to such final authorization. Page 395 U. S. 707