Citizens Utilities Co. v. O'Connor

451 N.E.2d 946, 116 Ill. App. 3d 369, 71 Ill. Dec. 792, 1983 Ill. App. LEXIS 2052
CourtAppellate Court of Illinois
DecidedJuly 7, 1983
DocketNo. 83—307
StatusPublished
Cited by3 cases

This text of 451 N.E.2d 946 (Citizens Utilities Co. v. O'Connor) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Citizens Utilities Co. v. O'Connor, 451 N.E.2d 946, 116 Ill. App. 3d 369, 71 Ill. Dec. 792, 1983 Ill. App. LEXIS 2052 (Ill. Ct. App. 1983).

Opinion

JUSTICE REINHARD

delivered the opinion of the court:

Plaintiff, Citizens Utilities Company of Illinois, appeals from the circuit court’s denial of plaintiff’s motion for a temporary restraining order (TRO). (Ill. Rev. Stat. 1981, ch. 110, par. 11—101.) Plaintiff sought to restrain defendants, Philip R. O’Connor, Helen Schmid, Charles Stalon, Andrew Barrett and Daniel Rosenblum (the members of the Illinois Commerce Commission) and Attorney General Neil Hartigan from enforcing an April 6, 1983, order of the Illinois Commerce Commission (Commission) which cancelled the proposed rates which plaintiff had filed with the Commission. The village of Bolingbrook (village) was allowed to intervene in the circuit court proceeding and, along with defendants, opposed plaintiff’s motion for a TRO.

Plaintiff raises the following issues on appeal: (1) whether the TRO was improperly denied because plaintiff is suffering continuing serious irreparable harm and has no adequate remedy at law; (2) whether the TRO was improperly denied because all criteria for granting a TRO have been satisfied and no basis for denying a TRO exists; (3) whether the TRO was improperly denied because plaintiff’s complaint for injunctive relief, which was incorporated in its motion for a TRO, adequately demonstrates that the Commission’s order is confiscatory and unauthorized by law. Defendants and the village have moved to dismiss the appeal because plaintiff has filed an application for rehearing with the Commission. Plaintiff has moved to strike this motion.

Section 36 of the Public Utilities Act (Ill. Rev. Stat. 1981, ch. 111⅔, par. 36) requires a public utility to file with the Commission any proposed changes in its rates 30 days prior to the proposed effective date of these changes. This section also provides that the Commission may prevent the proposed rates from going into effect for a statutorily prescribed suspension period pending a Commission hearing on the propriety of the proposed rates. On May 11, 1982, plaintiff filed a proposed rate increase with the Commission. The Commission suspended these proposed rates until October 7, 1982, and then resuspended them until April 7, 1983. Hearings were held before a Commission hearing examiner at various times during this suspension period. On April 6, 1983, the Commission entered an order cancelling the proposed rates. The effect of this order was to leave the existing rates in force.

The Commission’s order contained detailed findings. The Commission found, inter alia, that plaintiff’s present rates, “as best as [could] be determined from the evidence in this record,” provided a 6.5% rate of return on plaintiff’s original cost rate base, which the Commission determined to be “the best available evidence of the fair value of [plaintiff’s] plant in service.” The Commission also found that plaintiff had failed to improve the quality of its service in several respects and had failed to comply with prior directions from the Commission “to record all its deferred income taxes on its books and records.”

On April 8, 1983, plaintiff filed its complaint for injunction seeking to enjoin defendants from enforcing the Commission’s order. Also, on that date, plaintiff filed a motion for a TRO seeking to restrain the enforcement of the Commission’s order. Plaintiff sought this equitable relief prior to applying for a a rehearing before the Commission under section 67 of the Public Utilities Act (Ill. Rev. Stat. 1981, ch. 111⅔, par. 71). An application for rehearing and its final disposition by the Commission are statutory prerequisites to an appeal to the courts from a Commission order. Ill. Rev. Stat. 1981, ch. 111⅔, par. 71.

The circuit court heard arguments on April 8 on the motion for a TRO and found that it had jurisdiction over the matter. The Commission filed no pleadings as it only had been notified the previous day of the motion for a TRO. No evidence was taken. The court then denied the motion. This denial is the subject of this interlocutory appeal pursuant to Supreme Court Rule 307(a)(1) (87 Ill. 2d R. 307(a)(1)).

Defendants and the village moved to dismiss this appeal because plaintiff filed an application for rehearing with the Commission subsequent to the trial court’s denial of plaintiff’s motion for a TRO. They contend that plaintiff has elected its remedy by applying for rehearing and may not simultaneously maintain this appeal since the application for rehearing and this appeal seek to resolve identical issues. However, we do not believe that plaintiff, if it is determined to have been entitled to equitable relief prior to rehearing, should be required to forfeit that entitlement because it acted to protect its statutory right to appeal. If any right to equitable relief exists, it is independent of plaintiff’s statutory right to apply for rehearing. Therefore, the motion to dismiss is denied.

We must next address whether the circuit court could properly exercise jurisdiction in this matter prior to plaintiff’s application for a rehearing before the Commission. Generally, where a claim is cognizable in the first instance by an administrative agency alone, administrative remedies must be exhausted before the case may be considered by the courts. (People ex rel. Fahner v. American Telephone & Telegraph Co. (1981), 86 Ill. 2d 479, 485-86, 427 N.E.2d 1226.) Section 67 of the Public Utilities Act (Ill. Rev. Stat. 1981, ch. 111⅔, par. 71) requires an application for rehearing before the Commission and its final disposition prior to seeking review in the courts. The reason for this requirement is to give the Commission an opportunity to correct any mistakes of law or of fact that it has allegedly made before the party claiming error resorts to the courts. (Scherer Freight Lines, Inc. v. Illinois Commerce Com. (1962), 24 Ill. 2d 359, 364, 181 N.E.2d 134; Meinhardt Cartage Co. v. Illinois Commerce Com. (1959), 15 Ill. 2d 546, 550, 155 N.E.2d 631.) Therefore, an application for rehearing generally must have been made and finally disposed of by the Commission in order for a party to have exhausted its administrative remedies and thus become eligible to seek judicial review of a Commission order.

Plaintiff does not dispute that a rehearing must normally be sought before resorting to the courts. Rather, it maintains that this case falls within one of the recognized exceptions to the exhaustion requirement and that therefore, it was entitled to seek equitable relief in the courts prior to applying for a rehearing.

Several exceptions to the exhaustion requirement have been recognized. In People ex rel. Fahner v. American Telephone & Telegraph Co. (1981), 86 Ill. 2d 479, 427 N.E.2d 1226, the court noted the following exceptions: (1) where an ordinance or statute is attacked as unconstitutional in its entirety; (2) where multiple remedies exist before the same zoning board and at least one has been exhausted; (3) where irreparable harm will result from further pursuit of administrative remedies; (4) where it would be patently useless to exhaust administrative remedies. (86 Ill.

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Related

People Ex Rel. Madigan v. Illinois Commerce Commission
941 N.E.2d 947 (Appellate Court of Illinois, 2010)
Citizens Utilities Co., Ill. v. O'Connor
459 N.E.2d 682 (Appellate Court of Illinois, 1984)

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Bluebook (online)
451 N.E.2d 946, 116 Ill. App. 3d 369, 71 Ill. Dec. 792, 1983 Ill. App. LEXIS 2052, Counsel Stack Legal Research, https://law.counselstack.com/opinion/citizens-utilities-co-v-oconnor-illappct-1983.