Cincinnati Gas & Electric Co. v. Joseph Chevrolet Co.

791 N.E.2d 1016, 153 Ohio App. 3d 95, 2003 Ohio 1367
CourtOhio Court of Appeals
DecidedMarch 21, 2003
DocketNo. C-020317.
StatusPublished
Cited by15 cases

This text of 791 N.E.2d 1016 (Cincinnati Gas & Electric Co. v. Joseph Chevrolet Co.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cincinnati Gas & Electric Co. v. Joseph Chevrolet Co., 791 N.E.2d 1016, 153 Ohio App. 3d 95, 2003 Ohio 1367 (Ohio Ct. App. 2003).

Opinion

*97 Mark P. Painter, J.

{¶ 1} A public utility backbilled its customer for unmetered gas consumption over a 23-month period. The need to backbill was caused by the public utility’s mistakes. We are asked to decide whether the public utility met its burden of proof as to the amount of the bill, whether the public utility’s customer could assert the equitable-defenses of laches and estoppel to preclude its obligation to pay for the unmetered services it received, and whether these issues fell under the trial court’s subject-matter jurisdiction. We conclude that the public utility demonstrated the amount of unmetered gas used, that application of laches or estoppel to preclude payment of the utility bill would violate public policy, and that the defenses raised by the customer fell under the trial court’s subject-matter jurisdiction. We also conclude that the jury’s verdict as to the amount owed for the unmetered consumption of 144,479 CCF of gas was against the manifest weight of the evidence.

{¶ 2} Appellee, Cincinnati Gas & Electric Company (“CG&E”), sued appellant, Joseph Chevrolet Company (“Joseph”), seeking $79,549.38 for unmetered gas consumption from March 5, 1996, through February 19, 1998. Both parties filed summary-judgment motions, which the trial court denied. CG&E argued in its motion that the Public Utility Commission of Ohio (“PUCO”) had exclusive jurisdiction over any matter that Joseph could assert as an affirmative defense, in particular CG&E’s failure to monitor its equipment, the correctness of CG&E’s bill for unmetered usage, and Joseph’s liability for the usage. In its summary-judgment motion, Joseph contended that CG&E was precluded from collecting the unpaid balance because of laches, estoppel, and CG&E’s inability to prove the amount of unmetered gas consumption. In its motion to reconsider the denial of summary judgment, CG&E also asked the trial court to stay the proceedings and to instruct Joseph to file a complaint with PUCO. The trial court denied the motion, and the case went to trial. A jury found for CG&E and awarded $79,549.38 in damages. Joseph moved for judgment notwithstanding the verdict, a new trial, or a remittitur. The trial court denied Joseph’s motion.

I. CG&E’s Mistakes Result in Backbilling Joseph for Gas Usage

A. A Tight-and-Tally Inspection

{¶ 3} Joseph, a Chevrolet dealership, occupied two buildings, each separately metered and billed by CG&E. The meter at issue was installed on June 5, 1995, and was connected to Joseph’s work facility and body repair shop. The meter registered no gas usage for June and July 1995. On January 4, 1996, CG&E measured gas usage of 35,761 CCF. (CCF represents 100 cubic feet of gas.) The next meter reading, taken on March 5, 1996, indicated gas usage of 33,885 *98 CCF. A CG&E employee noticed that the meter was reading backwards and requested a “tight and tally” inspection. The tight-and-tally inspection took place on March 8, 1996, and the inspector reported that the meter was tight and tally. This inspection entailed a visual examination of the meter to determine whether the hands on the dials were tight and properly moving, but CG&E did not inspect the meter to determine whether it was correctly measuring gas usage. The meter also passed an unidentified test in April 1996.

B. Continued Unmetered Gas Usage

{¶ 4} For the next several months, the gas usage recorded by the meter was in either single or double digits. Consumption for December 1997, January 1998, and February 1998 was registered at zero. During that time, CG&E billed Joseph for the reflected gas usage, and Joseph paid its bills. In February 1998, CG&E issued another work file on the meter. That same month, CG&E replaced the meter, concluding that It was defective.

C. CG&E Loses Track of Joseph’s Account

{¶ 5} Joseph’s account should have been forwarded to CG&E’s revenue-protection group for rebilling. Because of a merger and resulting internal confusion, the account was not forwarded. Sometime in January 1999, CG&E discovered that mistake and on February 11, 1999, Thomas Jump, a CG&E billing analyst, sent notice to Joseph that it would be billed for unmetered gas consumption from March 5, 1996, through February 19, 1998. The notice requested that Joseph contact Jump if it had any questions concerning the billing. Joseph did not do so.

D. The Necessity of a Rebilling by a Public Utility

{¶ 6} Jump testified that rebilling was necessary because CG&E was a regulated industry, and because PUCO encouraged it to keep its rates as low as possible. According to Jump, if a customer that had used unmetered gas did not reimburse CG&E, the lost amount would be rolled into the rates and “everyone [would have] to pay for it.” CG&E’s Gas Service Regulations filed with PUCO (PUCO Gas No. 18, Sheet Nos. 23.4 and 24.5) provided that nonreceipt of bills did not affect a customer’s obligation for payment and that undercharges could be computed on the basis of a consumer’s prior or later use “in accordance with the rates in effect during the period.”

E. Estimating Unmetered Gas Usage

{¶ 7} Jump estimated Joseph’s unmetered gas usage for the period of March 1996 to February 19, 1998, by using a sample period from February 1998 to February 1999. (He used subsequent usage and not prior usage because *99 subsequent usage was more readily available to him and because the previous meter’s malfunctioning made prior readings suspect.) He used heating degree-days (an accepted industry method for estimating usage that takes into account temperature fluctuations) for the sample period plus the amount of gas used during the sample period and compared those figures with the degree-days when the meter was not registering. That provided Jump with an estimate of usage over a period of time based on Joseph’s usage patterns and the degree-days. Jump estimated a usage of 144,479 CCF. Jump testified that the rates for gas in effect from 1996 to 1998 were applied to the estimated usage. After giving Joseph a credit of $3,220.82, the amount Joseph had paid for the applicable period, CG&E billed Joseph $79,549.38. Eighteen months after sending the notice letter, CG&E sued Joseph to collect for the unpaid usage.

II. Joseph’s Appeal

{¶ 8} Joseph did not argue below that it had not consumed the gas, only that CG&E could not prove the amount of gas that it had used during the unmetered period. It also argued that it should be relieved from its payment obligation under the common law doctrines of laches and equitable estoppel because of CG&E’s negligence in failing to maintain and to monitor the gas meter, failing to notify Joseph that the meter was malfunctioning, and failing to timely bill it for unmetered gas consumption.

{¶ 9} In its appeal Joseph raises three assignments of error. It contends that the trial court erred by (1) failing to grant it a directed verdict, (2) refusing to instruct the jury on laches and estoppel, and (3) failing to grant it judgment notwithstanding the verdict.

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Bluebook (online)
791 N.E.2d 1016, 153 Ohio App. 3d 95, 2003 Ohio 1367, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cincinnati-gas-electric-co-v-joseph-chevrolet-co-ohioctapp-2003.