State Highway Dept. v. Delaware Power & Light Co.
Supreme Court of Delaware · 1961-01-12 · cited 10×
The case concerned the validity of a Delaware statute directing the State Highway Department to reimburse public utility companies for non-betterment costs of relocating their facilities when required by interstate highway construction projects, for which the state would receive at least 90% federal reimbursement under the Federal Aid Highway Act of 1956. The utilities' franchises obligated them to bear such relocation costs themselves under common law principles, prompting a declaratory judgment action questioning whether the statute improperly appropriated public funds for private benefit. The Supreme Court of Delaware upheld the statute as constitutional, holding that the legislature's determination of a public purpose was entitled to deference and that reimbursing utilities advanced the public interest in highway development given the essential services they provide. The court concluded that such expenditures qualified as a public purpose even if they incidentally benefited private corporations.