Bagert v. Moreau

325 So. 2d 702
CourtLouisiana Court of Appeal
DecidedMarch 19, 1976
Docket7106
StatusPublished
Cited by8 cases

This text of 325 So. 2d 702 (Bagert v. Moreau) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bagert v. Moreau, 325 So. 2d 702 (La. Ct. App. 1976).

Opinion

325 So.2d 702 (1976)

Ben BAGERT
v.
James A. MOREAU et al.

No. 7106.

Court of Appeal of Louisiana, Fourth Circuit.

January 13, 1976.
Rehearings Denied February 10, 1976.
Writs Refused March 19, 1976.

*704 Broderick A. Bagert, New Orleans, for plaintiff-appellee.

Blake G. Arata, Jacob Taranto, III, New Orleans, for members of the City Council for the City of New Orleans, defendants-appellants.

Chaffe, McCall, Phillips, Toler & Sarpy, Harry McCall, Jr., James P. Farwell, New Orleans, for New Orleans Public Service, Inc., intervenor-appellant.

Monroe & Lemann, Andrew P. Carter, Eugene G. Taggart, William T. Tete, Kenneth P. Carter, New Orleans, for Louisiana Power & Light Co., intervenor-appellant.

Before SAMUEL, REDMANN and GULOTTA, JJ.

GULOTTA, Judge.

Plaintiff, alleging himself to be a consumer of energy furnished by New Orleans Public Service, Inc. (NOPSI), files a mandamus suit to compel the Council of the City of New Orleans to hold a public hearing with public notice before approving fuel cost adjustments to be paid by the consumer.

NOPSI and Louisiana Power and Light Company (LP&L) intervene. Exceptions of lack of jurisdiction ratione materiae, no cause of action and prematurity, filed by the defendants and intervenors, were referred to the merits. After hearing on the merits, the trial judge made the writ of mandamus peremptory and, in reasons for judgment, concluded that the public utility cannot assess the fuel cost adjustment against the consumer without first conducting a public hearing with public notice as set forth in § 4-1604 of the Home Rule Charter of the City of New Orleans.

Defendants and intervenors appeal. It is their contention, on appeal, that the court lacks jurisdiction ratione materiae over public utility rates since this responsibility is placed exclusively with the Council under Article 4, § 21(C) of the Louisiana Constitution of 1974 and the Home Rule Charter of the City of New Orleans; that plaintiff failed to request a public hearing and notice on the assessment of the fuel cost adjustment prior to instituting judicial proceedings; that mandamus is not the proper remedy; that plaintiff is not a proper party to file suit for the reason that he is not a person or corporation, as contemplated under § 4-1604 of the Home Rule Charter, who must be notified of the time and place of the public hearing.

*705 Finally, it is defendants'-intervenors' position that the fuel cost adjustment is not a "rate" change or alteration requiring notice and a public hearing as set forth under the Home Rule Charter. In this connection, NOPSI and LP&L concede that any rates to be fixed by the public utility require a public hearing by the City Council. However, it is their contention that the fuel cost adjustment is a part of the scheduled rate, not a change in the rate, and, as such, there exists no necessity for a notice of a public hearing. Defendants-intervenors support their contention with Supreme Court decisions from Virginia, Illinois, Mississippi and Massachusetts[1] which, in effect, have held that a fuel cost adjustment is not a rate hike or rate increase requiring public hearing by the regulatory body under the statutes in those states.

Prior to a consideration of § 4-1604 of the Home Rule Charter of the City of New Orleans, relating to establishment of rates, which reads as follows:

"Section 4-1604. Establishment of Rates. In the exercise of its powers of supervision, regulation and control of any street railroad, electric light, gas, heat, power, waterworks or other public utility, the Council shall, in cases involving the establishment, change or alteration of rates, charges, tolls, prices, fares or compensation for service or commodities supplied by such utilities, cause notice of the matter to be served upon the person or corporation affected thereby, so that such person or corporation shall have an opportunity, at a time and place to be specified in said notice, to be heard in respect to said matter. The Council shall make all necessary and reasonable rules and regulations to govern applications for the fixing or changing of rates and charges of public utilities and all petitions and complaints relating to any matter pertaining to the regulation of public utilities, and shall prescribe reasonable rules and regulations to govern the trial, hearing and rehearing of all matters referred to herein, under the same procedure as provided for ordinances granting franchises."

we direct our attention to other issues raised by defendants.

EXHAUSTING ADMINISTRATIVE REMEDY

It is well established that a party must exhaust his administrative remedy before relief can be sought in the courts. However, in the instant case, the Council has taken the position that public notice of a hearing is unnecessary since no price or rate increase is sought by NOPSI. Furthermore, the Council conducted a hearing without public notice in which it approved a fuel adjustment cost. Under the circumstances, requiring plaintiff to petition the Council for relief would be vain and useless. See Louisiana Milk Commission v. Louisiana Commission on Governmental Ethics, 298 So.2d 285 (La.App., 1st Cir. 1974). We find no merit to this contention.

MANDAMUS

We reject also defendants' claim that mandamus is not the proper remedy. We have no quarrel with defendants' argument that before mandamus will lie, plaintiff must show that he has a special interest in the rate or price increase; that he seeks to compel the performance of a ministerial duty[2]; and that no other remedy *706 is available. However, in Bussie v. Long, 286 So.2d 689 (La.App., 1st Cir.1973), writ refused, 288 So.2d 354 (La.1974), the court concluded that a taxpayer had sufficient interest to seek mandamus. In Bussie, on petition of a taxpayer, mandamus was issued to compel the tax commission to assess all property in the state at actual cash value. In the instant case, as in Bussie, plaintiff seeks the enforcement of a public duty. Furthermore, the remedy sought by plaintiff is ministerial in nature. Section 4-1604 of the New Orleans Home Rule Charter provides that the Council shall (emphasis ours) provide notice of a hearing when an alteration or change in a rate, charge, toll, price, fare or compensation for services is requested. If, in fact, the fuel adjustment cost is a price or rate increase or alteration, the request for notice is mandatory and therefore ministerial in nature. Furthermore, the same section of the Charter additionally requires that any order of the Council fixing or establishing any rate, fare or charge of a commodity or service furnished by the public utility requires such order to be issued upon a resolution or ordinance passed in open Council meeting by a majority vote of the Council. Under § 3-112(5), the Charter requires notice by publication, in the official journal of the City, of the introduction of a proposed ordinance, when the substance of the proposed ordinance involves the establishing or increasing of any service charge. Clearly, whether § 4-1604 requires notice to be served when a price or rate alteration or change is requested, or whether notice by publication is required for the adoption of an ordinance or resolution, these requirements are mandatory.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Jackson v. Mayo
975 So. 2d 815 (Louisiana Court of Appeal, 2008)
Metro. New Orleans, Etc. v. Council, Etc.
423 So. 2d 1213 (Louisiana Court of Appeal, 1982)
Bailey v. American Sugar Refinery
342 So. 2d 1268 (Louisiana Court of Appeal, 1977)
Bonomo v. Louisiana Downs, Inc.
337 So. 2d 553 (Louisiana Court of Appeal, 1976)
Bagert v. Moreau
329 So. 2d 465 (Supreme Court of Louisiana, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
325 So. 2d 702, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bagert-v-moreau-lactapp-1976.