Bryant v. Arkansas Public Service Commission

919 S.W.2d 522, 53 Ark. App. 114, 1996 Ark. App. LEXIS 250
CourtCourt of Appeals of Arkansas
DecidedApril 24, 1996
DocketCA 94-1316
StatusPublished
Cited by5 cases

This text of 919 S.W.2d 522 (Bryant v. Arkansas Public Service Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bryant v. Arkansas Public Service Commission, 919 S.W.2d 522, 53 Ark. App. 114, 1996 Ark. App. LEXIS 250 (Ark. Ct. App. 1996).

Opinions

John Mauzy Pittman, Judge.

In this appeal, the Attorney General challenges orders of the Arkansas Public Service Commission (Commission) finding that the Attorney General’s complaint failed to state a cause of action upon which relief could be granted and that the Commission lacked jurisdiction to hear the complaint. Because we find that the complaint failed to state a cause of action, we limit our discussion to the sufficiency of the complaint and do not reach the jurisdictional issue.

On August 8, 1994, the Consumer Utilities Rate Advocacy Division (CURAD) of the Attorney General’s office filed a complaint “on behalf of and for” Arkansas utility ratepayers, alleging that Southwestern Bell Telephone Company (SWB) had been “unjusdy enriched” by providing and charging customers for an optional service without authorization. The Attorney General asserted that he was charged with representing the interests of Arkansas utility ratepayers by Arkansas Code Annotated §§ 23-4-301 through 23-4-307 (1987), the statutes that created CURAD, and that he was authorized by Arkansas Code Annotated § 23-3-119 (1987), the statute that provides for the bringing of a complaint to the Commission by any entity or person unlawfully treated by a public utility, to bring the complaint on behalf of the affected Arkansas ratepayers. The Attorney General stated that SWB’s trunk conditioning service had been unbundled from SWB’s trunk rate [for PBX customers] in 1985 and that subsequently SWB’s applicable tariff was revised to give the conditioning service a separate product code (LOS) and rate. The Attorney General then alleged:

Despite the optional nature of conditioning service, SWB began charging certain customers the new separate rate for the service and failed to notify those customers of their right not to have the service. Moreover, the separate rate is not specifically stated on the face of the customers’ bills; rather, it is included in an item that appears on the customers’ bill simply as “monthly charge,” which includes various charges.

The Attorney General concluded that “there may be numerous customers of SWB who are being wrongfully charged for LOS service and possibly for other optional services without authorization.” The Attorney General sought discovery “to determine the extent of SWB’s unauthorized and wrongful charging”; a public hearing on the issue of SWB’s “unauthorized and wrongful charging”; a refund of all amounts wrongfully charged; and an order from the Commission for SWB to cease and desist from its unauthorized and wrongful charging for optional, unnecessary, or non-functional services.

SWB responded to the complaint with a motion to dismiss. In Order No. 2, the Commission found that the complaint could properly be dismissed for failure to state a cause of action and because it lacked jurisdiction to hear a class action. The Commission, however, held SWB’s motion to dismiss in abeyance for thirty days in order to give the Attorney General the opportunity to amend his complaint to state a cause of action and to specify the individual SWB customers he represented.

In his amended complaint, the Attorney General again claimed that he was authorized to present a complaint on behalf of the affected ratepayers but failed to identify any specific SWB customers harmed by SWB’s actions. The Attorney General alleged that: “In May, 1985, SWB began charging the trunk customers the new separate rate for the service, but failed to notify them of their right not to have the service, or of the advisability of consulting their vendors to determine whether the service was necessary.” The amended complaint sought notice to Arkansas ratepayers who have PBX systems, a public hearing, refunds to customers charged without their authorization from May 1985, and cessation of the alleged unauthorized charging for LOS service. SWB filed a motion to dismiss the amended complaint, stating in part that the Attorney General had failed to set forth facts to support specifically alleged violations of law and specific individual customers who were aggrieved by the alleged violations.

On November 23, 1994, the Commission dismissed the amended complaint for failure to state a claim pursuant to Section 23-3-119 and Rule 10.02 of the Commission Rules of Practice and Procedure and as a class action complaint exceeding the scope of the Commission’s jurisdiction. The Commission found that the Attorney General had not alleged or shown that SWB had violated any law that the Commission has jurisdiction to administer, or any order, rule, or regulation of the Commission. On appeal, the Attorney General argues that the Commission failed to pursue its statutory authority; that it erred in holding that the Attorney General was attempting to bring a class action; and that it erred in holding that the Attorney General’s complaint failed to state a cause of action.

Before we address the Attorney General’s arguments, some discussion of the service in question is appropriate. The conditioning service was unbundled from, or separated from, SWB’s trunk rate in the context of a 1985 SWB rate case. Although the record does not include a copy of the applicable tariff that resulted from that rate case, we have been able to glean information about the conditioning service from the record and discussion at oral argument. It is apparent that the service applies to the local loop portion of the trunk between SWB’s central offices and the customers’ premises. The service is designated a “special circuit” with guaranteed service parameters. Its purpose appears to be to control distortion and other inappropriate noise on the lines. Service customers receive priority handling through a special service center as to trouble reports, repair, and testing. The service is available to both residential and business customers but appears to be directed toward business customers that handle large volumes of calls, such as hospitals and hotels. The tariff provides that the service is “normally required when voice grade line is connected to customer provided switching systems.” Apparently, the service is mandatory for systems using certain types of trunks.

We turn now to the sufficiency of the complaint fried by the Attorney General and the Commission’s finding that the Attorney General failed to state a cause of action. We address this issue first because we find it dispositive of the rest of the appeal. The thrust of the Attorney General’s amended complaint is that SWB is charging some of its customers for LOS service without having notified them that this coverage became optional in 1985. When the conditioning service was unbundled from SWB’s trunk rate in the 1985 rate case, SWB was not specifically ordered by the Commission to advise its customers who had previously been receiving the service. The Attorney General does not contend that SWB failed to comply with statutory and Commission notice requirements attendant to the change in rates. Furthermore, there is no evidence that any party to the rate case asked the Commission to order individual notices or separate line item billing or that any party appealed from the rate case alleging that such action should have been taken.

In Order No. 2, the Commission noted that the Attorney General had neither identified any specific customers to whom its complaint referred nor stated any specific acts to support its complaint. The Commission stated that Arkansas law requires fact pleading and concluded that the Attorney General’s complaint failed to meet this requirement.

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Cite This Page — Counsel Stack

Bluebook (online)
919 S.W.2d 522, 53 Ark. App. 114, 1996 Ark. App. LEXIS 250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bryant-v-arkansas-public-service-commission-arkctapp-1996.