Citizens Gas and Coke Utility v. Sloan

196 N.E.2d 290, 136 Ind. App. 297
CourtIndiana Court of Appeals
DecidedAugust 1, 1964
Docket19,928
StatusPublished
Cited by26 cases

This text of 196 N.E.2d 290 (Citizens Gas and Coke Utility v. Sloan) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Citizens Gas and Coke Utility v. Sloan, 196 N.E.2d 290, 136 Ind. App. 297 (Ind. Ct. App. 1964).

Opinions

Mote, J.

This action was commenced when appellees, owners of real estate in the Worthington Gas Storage Field in Greene County, Indiana, filed a complaint in the nature of a petition with the Public Service Commission of Indiana.

The complaint named as respondents, appellants herein, the following entities: (1), Citizens Gas & Coke Utility, which is a utility district and instrumentality of the City of Indianapolis, Indiana, (2), seven named individuals joined as members of, and constituting the Board of Directors of Utilities of the City of Indianapolis, and (3), Citizens By-Products Coal Company, a West Virginia corporation which is admitted to do business in Indiana and which is wholly owned by Citizens Gas & Coke Utility.

The appellants moved to dismiss the complaint on the ground, among others, that the Public Service Commission is without jurisdiction “either of the subject matter or the person of any of the respondents”, since a municipal utility rather than a public utility is involved herein.

The Commission overruled the motion to dismiss and on July 20, 1962, entered an order stating that the [300]*300Commission did have jurisdiction. It based its order on the premise that the allegation that appellants were furnishing gas to inhabitants of Greene County alone was sufficient to give the Commission authority to undertake an investigation.

Appellants petitioned for a rehearing and appellees moved to strike the petition. The Commission overruled both the petition and the motion. Appellants then instituted this proceeding for review and assigned as error, (1), the Commission’s overruling of the appellants’ motion to dismiss, (2), the assertion of jurisdiction by the Commission, and (3) that the Commission’s ruling is contrary to law, all of which are prejudicial to appellants, who also ask this Court permanently to enjoin the enforcement of the order.

A motion to dismiss the action in this Court has been filed by part of the appellees. The contention, asserted in support of dismissal, is that the action is premature since (1) the order complained of is not a final order, and (2) the order, since it is procedural only, does not adversely affect appellants.

Appellants, on the other hand, contend that such an attack may be made at any time, since the issue of jurisdiction is subject to judicial review at any timé.

At the outset, therefore, we are faced with the following question: May the jurisdiction of the Public Service Commission of Indiana be challenged in our courts by a party who does not first exhaust his administrative remedies?

Indiana courts have held that the issue of jurisdiction over the subject matter may be raised at any stage of the proceedings. See Board of Commissioners of the County of Marion v. Jewett (1915), 184 Ind. 63, 110 N. E. 553. The question [301]*301of whether judicial relief may be obtained without exhausting administrative remedies is different, howevér, and has been subject to great diversity of opinion in' this country. The United States Supreme Court, in the case of Petroleum Exploration, Inc. v. Public Service Commission (1938), 304 U. S. 209, 58 S. Ct. 834, 82 L. Ed. 1294, refused to enjoin a hearing of the Kentucky Public Service Commission. The Kentucky Commission had issued an order asserting its jurisdiction over the appellant and ordering the appellant to present evidence at a public hearing and also to make its records available for examination. The injunction was refused, since there was no showing of irreparable injury, other than expense of litigation which was said to be insufficient reason to interfere with the administrative proceedings.

The contrary view was taken in Public Utilities Commission of Ohio v. United Fuel Gas Co. (1943), 317 U. S. 456, 63 S. Ct. 369, 87 L. Ed. 396. The same issue faced the court; however, exhaustion of administrative remedies was not required and the court decided the case on its merits.

Other cases in the United States Supreme Court are similarly divided. See Allen v. Grand Central Aircraft Co. (1954), 347 U. S. 535, 74 S. Ct. 745, 98 L. Ed. 933; Franklin v. Jonco Aircraft Corp. (1953), 346 U. S. 868, 74 S. Ct. 126, 98 L. Ed. 378.

Cases in other states fluctuate as to the requirement of exhaustion of administrative remedies when the jurisdiction of the agency is challenged. Some courts refuse judicial review until all administrative remedies have been exhausted. See Abelleira et al. v. District Court of Appeal (1941), 17 Cal. 2d 280, 109 P. 2d 942, 132 A. L. R. 715; United States v. Superior Court [302]*302(1941), 19 Cal. 2d 189, 120 P. 2d 26; Stoddard v. Public Utilities Commission (1941), 137 Me. 320, 19 A. 2d 427; Brass Rail Restaurant Co. v. Pennsylvania Labor Relations Board (1953), 375 Pa. 213, 100 A. 2d 80. Other cases allow the jurisdiction of the agency to be challenged without exhausting administrative remedies. St Luke’s Hospital v. Labor Relations Commission (1946), 320 Mass. 467, 70 N. E. 2d 10. A few states take a modified approach and allow jurisdiction to be challenged without exhaustion of administrative proceedings if the question is one of law and not of fact. Idaho Mut. Ben. Ass’n. v. Robison (1944), 65 Idaho 793, 154 P. 2d 156; or if it would appear to be of no avail to pursue the administrative remedies. Kirn v. Noyes (1941), 262 App. Div. 581, 31 N. Y. S. 2d 90; or if irreparable harm is shown. See Thomas v. Ramberg (1953), 240 Minn. 1, 60 N. W. 2d 18.

Indiana has held that an assertion of jurisdiction by the Public Service Commission is an initial and integral step in a regulatory scheme and such an order is immediately subject to judicial review. Boone County Rural Electric Membership Corporation, et al. v. Public Service Commission of Indiana (1958), 129 Ind. App. 175, 155 N. E. 2d 149.

In view of this, we think the application to this Court for judicial review is not premature; therefore, we come to the only other question presented herein.1

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Bluebook (online)
196 N.E.2d 290, 136 Ind. App. 297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citizens-gas-and-coke-utility-v-sloan-indctapp-1964.