Southern Union Company, Southern Union Gas Company, and Rio Grande Valley Gas Company v. City of Edinburg

Summary

The Texas Supreme Court held that the City of Edinburg's franchise tax under Ordinance No. 1129 applies only to the grantee's own gas sales, not to sales by affiliates or transportation revenue, and rejected the single business enterprise theory as a basis for liability. Accordingly, the Court reversed the trial court's awards and rendered judgment that the City recover nothing, while affirming the award of attorneys' fees.