City of Austin v. John D. McCall

Summary

The Texas Supreme Court held that the original city charter did not authorize Austin to purchase a privately owned water and light plant, but the 1901 amendment to the charter implied such authority. The Court further held that the proposed purchase contract violated the state constitution's debt‑sinking‑fund requirement and that a taxpayer could enjoin an illegal municipal contract. Accordingly, the lower courts' judgments were reversed and a perpetual injunction against the contract was entered.