A & B Refuse Disposers, Inc. v. Board of Ravenna Township Trustees

64 Ohio St. 3d 385
CourtOhio Supreme Court
DecidedAugust 19, 1992
DocketNo. 91-1099
StatusPublished
Cited by26 cases

This text of 64 Ohio St. 3d 385 (A & B Refuse Disposers, Inc. v. Board of Ravenna Township Trustees) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A & B Refuse Disposers, Inc. v. Board of Ravenna Township Trustees, 64 Ohio St. 3d 385 (Ohio 1992).

Opinion

Melvin L. Resnick, J.

The precise issue in this case is whether the definition of a “public utility,” as expressed in case law, is applicable to appellant’s landfill operation for the purpose of exemption from township zoning restrictions.

[387]*387Former R.C. 519.211 expressly exempts public utilities from township zoning regulation and land use controls. R.C. Chapter 519 does not, however, provide a definition of the term “public utility” for the purpose of determining qualification for the exemption. Nevertheless, the meaning of “public utility,” although sometimes elusive, has gradually evolved through case law.

Determination of whether a particular entity is a public utility is a mixed question of law and fact. Marano v. Gibbs, supra, at 311, 544 N.E.2d at 636. The resolution of the question of whether an enterprise is operating as a public utility is decided by an examination of the nature of the business in which it is engaged. Indus. Gas Co. v. Pub. Util. Comm. (1939), 135 Ohio St. 408, 14 O.O. 290, 21 N.E.2d 166, paragraph one of the syllabus. Although case law provides a list of characteristics common to public utilities, it is generally recognized that none of these characteristics is controlling. Montville Bd. of Twp. Trustees v. WDBN, Inc. (1983), 10 Ohio App.3d 284, 10 OBR 400, 461 N.E.2d 1345. That is, each case must be decided on the facts and circumstances peculiar to it. Indus. Gas Co. v. Pub. Util. Comm., supra, at 413, 14 O.O. at 292, 21 N.E.2d at 168.

Nonetheless, public utilities possess certain common attributes or characteristics which courts employ in determining the nature of an entity’s operations. The main and frequently most important attribute of a public utility is a devotion of an essential good or service to the general public which has a legal right to demand or receive this good or service. S. Ohio Power Co. v. Pub. Util. Comm. (1924), 110 Ohio St. 246, 252, 143 N.E. 700, 701, quoting Allen v. RR. Comm. of California (1918), 179 Cal. 68, 175 P. 466; Freight, Inc. v. Northfield Ctr. Bd. of Twp. Trustees (1958), 107 Ohio App. 288, 292-293, 8 O.O.2d 212, 215, 158 N.E.2d 537, 540; Motor Cargo, Inc. v. Richfield Bd. of Twp. Trustees (1953), 67 Ohio Law Abs. 315, 318, 52 O.O. 257, 258, 117 N.E.2d 224, 226. See, generally, 2 Anderson, American Law of Zoning (3 Ed.1986) 568, Section 12.32. The fact that a private business provides a good or service associated with the usual subject matter of a public utility does not give rise to a presumption that it is devoted to public service. S. Ohio Power Co. v. Pub. Util. Comm., supra, paragraph one of the syllabus. Rather, in order to qualify as a public utility, the entity must, in fact, provide its good or service to the public indiscriminately and reasonably. Marano v. Gibbs, supra, at 311, 544 N.E.2d at 636. See, also, S. Power Co. v. Pub. Util. Comm., supra, paragraph two of the syllabus; Freight, Inc. v. Northfield Ctr. Twp. Bd. of Trustees, supra, 107 Ohio App. at 292, 8 O.O.2d at 214, 158 N.E.2d at 540. See, generally, 64 American Jurisprudence 2d (1972) 550, Public Utilities, Section 1. Further, this attribute requires an obligation to provide the good or service which cannot be arbitrarily or unreasonably withdrawn. Freight, [388]*388Inc. v. Northfield Ctr. Twp. Bd. of Trustees, supra, at 293, 8 O.O.2d at 215, 158 N.E.2d at 540.

The second characteristic of a public utility most often addressed by courts is whether the entity, public or private, conducts its operations in such a manner as to be a matter of public concern. Marano v. Gibbs, supra. Normally, a public utility occupies a monopolistic or ogopolistic position in the marketplace. Greater Fremont, Inc. v. Fremont (N.D.Ohio 1968), 302 F.Supp. 652, 664-665. See, also, Mammina v. Cortlandt Zoning Bd. of Appeals (1981), 110 Misc.2d 534, 536, 442 N.Y.S.2d 689, 691. This position gives rise to a public concern for the indiscriminate treatment of that portion of the public which needs and pays for the vital good or service offered by the entity. Factors utilized in determining whether an enterprise conducts itself in such a way as to become a matter of public concern include the good or service provided,1 competition in the local marketplace,2 and regulation by governmental authority.3 Again, however, none of these factors is controlling. Nevertheless, in a case where the business enterprise serves such a substantial part of the public that its rates, charges and methods of operation become a public concern, it can be characterized as a public utility. Indus. Gas Co. v. Pub. Util. Comm., supra, 135 Ohio St. at 414, 14 O.O. at 292, 21 N.E.2d at 168.

In this court’s most recent pronouncement dealing with the definition of “public utility,” we summarized the foregoing controlling precedent by stating:

“ * * * [A]n entity may be characterized as a public utility if the nature of its operation is a matter of public concern, and membership is indiscriminately and reasonably made available to the general public.” Marano v. Gibbs, supra, 45 Ohio St.3d at 311, 544 N.E.2d at 637.

Again, this is a distillation of prior case law. It is obvious from a review of that case law that the determination of public utility status requires a flexible rule, a rule which often intertwines the factors considered in relation to the concepts of “public service” and “public concern.” Our holding in Maraño v. Gibbs does not dispense with the factors which must be considered by a court in making its determination of whether, on the particular facts and circum[389]*389stances of the case before it, a specific business qualifies as a public utility. For this reason, we reject appellant’s assertion that Marano v. Gibbs stands for the proposition that any business which simply claims that its services are “open to the public” can be categorized as a public utility. This view is an unduly expansive construction of our holding in that such a definition encompasses traditional private business enterprises which are, in various degrees, regulated by diverse public authorities, e.g., dry cleaners, restaurants, and grocery stores. They are not and should not be deemed public utilities. We hold, therefore, that the determination of whether a particular entity is a public utility for the purpose of exemption from local zoning restrictions requires a consideration of several factors related to the “public service” and “public concern” characteristics of a public utility. It follows that a business claiming public utility status bears the burden of offering sufficient evidence on these factors to the trial court so that the court can comprehensively determine the merits of that claim. Absent sufficient facts as to pertinent attributes, that claim must fail.

Appellant also proposes that state regulation of a waste disposal facility pursuant to R.C.

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Bluebook (online)
64 Ohio St. 3d 385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-b-refuse-disposers-inc-v-board-of-ravenna-township-trustees-ohio-1992.