City of Crown Point v. Henderlong Lumber Co.

206 N.E.2d 890, 137 Ind. App. 662, 1965 Ind. App. LEXIS 634
CourtIndiana Court of Appeals
DecidedMay 10, 1965
Docket20,070
StatusPublished
Cited by3 cases

This text of 206 N.E.2d 890 (City of Crown Point v. Henderlong Lumber Co.) 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
City of Crown Point v. Henderlong Lumber Co., 206 N.E.2d 890, 137 Ind. App. 662, 1965 Ind. App. LEXIS 634 (Ind. Ct. App. 1965).

Opinion

Mote, J.

Appellees filed their petition, which they designate as a complaint and which hereafter will be referred to as a complaint, with the Public Service Commission of Indiana alleging, in material substance, that the three corporate appellees were, respectively, the developers, owners and sub-dividers of certain respectively named sub-divisions located within the corporate limits of the appellant City of Crown Point; that the remaining named appellees are either owners or purchasers of lots in one or more of said sub-divisions; that said city is a city of the Fifth Class and is the owner and operator of a municipal waterworks which is the only source of public water supply in said city; that said complainants need water mains extended to their lots and the appellant refused to make such extensions or “pay any part of the cost” thereof as *664 required by. “Section 105-3, Rule 29” of the rules of the Public Service Commission. The prayer is for the said Commission to investigate the service of the waterworks of appellant and for the latter to be ordered to make reasonable extensions “requested” and “pay the costs thereof” within, a reasonable time.

The complaint contains an allegation that appellant “unjustly discriminated” against the appellees in that the appellant refused to enter into an agreement with appellees upon the same terms' and conditions as to reimbursement of costs of extensions as the appellant allegedly had previously contracted with a named individual. This particular count of the complaint need not be further noticed, however, as appellees do not argue the point but say in their brief that “they are not depending to any extent on the discrimination feature.”

Appellant moved to dismiss the complaint upon the alleged ground, in effect, that said Rule 29 of the Commission refers to “public utilities” as defined in Acts 1933, ch. 190, Sec. 1, as amended by Acts 1947, ch. 318, Sec. 1, the same being §54-105, Burns’ 1951 Replacement, and does not apply to “municipal utilities”, and the Commission has no jurisdiction to entertain the said complaint. This motion was denied by the Commission with a statement directing attention to the Official Opinion No. -74 of the Attorney General, dated December 20, 1954, “which covers this exact question, . . . that this commission does have jurisdiction over line extensions and service of municipally owned water utilities.”

Thereupon, appellant filed its affirmative answer to the compláint and the issues thus formed were submitted to the Commission, and the evidence thereon was heard by it on August 8, 1957. On June 13, 1958, the Commission entered its thirteen (13) findings and its order adverse to appellant. The latter filed its petition for a *665 rehearing on the several pertinent grounds that: the order of the Commission constituted an attempt to impair the “validity” of previously executed contracts in violation of the Constitution of Indiana, and the 14th Amendment to the Constitution of the United States; the order is not supported by sufficient evidence; and the order directs “action and requirements” of the appellant beyond the relief prayed for in the complaint. Appellant also filed its motion for a modification of the order of June 13, 1958, and motion to vacate the order of June 13, 1958, and dismiss the proceedings. The petition for a rehearing and said motions to modify, vacate, and dismiss were denied by the Commission by .its order approved October 18,1963.

Appellant has filed nine assignments of error, including the assignment that' the “decision, ruling or order of the Public Service Commission of Indiana, is contrary to law,” which, under the provisions of Acts 1957, ch. 189, Sec. 1, being §54-443, Burns' 1964 Cum. Pocket Supp., is sufficient to present the sufficiency of the facts found and the sufficiency of the evidence to sustain the findings of fact upon which the order is based.

It is of primary necessity, of course, that consideration be given first to the issue, appropriately raised and duly assigned, of whether the Commission possessed jurisdiction to entertain and determine the issues duly raised in this particular proceeding. More precisely, we think, the jurisdictional issue is whether the Commission, under the legislative acts of this state, is vested with defined control of the acts,, proceedings, and contractual relations of a Fifth Class city with relation to the operation, maintenance, and extensions of its municipally owned waterworks. There is no question of the jurisdiction of the Commission, as is conceded by .all, for the purpose of “fixing rates” *666 to .be “charged” by such city to the “patrons” of the water facilities for the “service” thereof, subject to divestiture of such jurisdiction by the voters of the municipality. See. Acts 1913, ch. 76, Sec. 109, as variously amended by Acts of 1933, 1959 and 1961, §54-613, Burns’ 1951' Repl. and Cum. Pocket Supp.

Seemingly, the Commission predicated its affirmative holding of jurisdiction, upon two factors. The first factor is found in the Commission’s Finding No. 5, which reads:

“5. That on August 19, 1940, said City enacted Resolution Number 376, adopting the Public Service Commission water main extension rules; that this resolution has not been rescinded and must be considered in full force and effect.”

The second factor is expressed in the Commission’s Finding No. 10, as follows:

“10. That without question it has jurisdiction, in water main extension eases involving municipal utilities; that Official Opinion of the Attorney General Number 74, dated December 20,1954, describes accurately the Commission’s jurisdiction.”

With reference to the above mentioned first’factor, we have been unable, after diligent search, to find the referred to Resolution Number 376 in the record herein, nor do we find that.it was ever admitted or received in evidence in this cause. The récord contains some reference to a Resolution No. 376. A witness, Vernon Everett, testified that he is the Clerk-Treasurer of the appellant city and, at the end of considerable other testimony, said that he did not have with him a copy of “Resolution No. 376 of the Common Council of the city of Crown Point, dated August 19, 1940.” During the course.of the interrogation of said witness an “off-the-record” discussion took place by the attorneys for *667 the parties and at the conclusion thereof, attorney Norton said with apparent reference to said purported resolution :

“If we have what they are asking for, we will produce it without being subpoenaed.”

However, the record discloses no production of the resolution by anyone. We are not informed whether such want of production was due to the failure of appellant to have what appellees’ counsel was asking for or to some other undivulged reason.

There was introduced into evidence an exhibit referred to as “Public’s Exhibit No. 1” which contained the heading: “ENGINEERING DEPARTMENT REPORT,” dated July 11, 1957, and bore the signatory name of “Fred R. Witherspoon, Supervising Engineer.” The latter was identified by the Public Counsel as the Engineer of the Public Service Commission.

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Bluebook (online)
206 N.E.2d 890, 137 Ind. App. 662, 1965 Ind. App. LEXIS 634, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-crown-point-v-henderlong-lumber-co-indctapp-1965.