City of Sullivan v. Truckstop Restaurants, Inc.

142 S.W.3d 181, 2004 Mo. App. LEXIS 1225, 2004 WL 1925981
CourtMissouri Court of Appeals
DecidedAugust 31, 2004
DocketED 83236
StatusPublished
Cited by25 cases

This text of 142 S.W.3d 181 (City of Sullivan v. Truckstop Restaurants, Inc.) is published on Counsel Stack Legal Research, covering Missouri 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 Sullivan v. Truckstop Restaurants, Inc., 142 S.W.3d 181, 2004 Mo. App. LEXIS 1225, 2004 WL 1925981 (Mo. Ct. App. 2004).

Opinion

PER CURIAM.

The City of Sullivan (“City”) appeals from the judgment of the Circuit Court of Franklin County, after jury verdicts which awarded damages to seven of the plaintiffs and a declaratory judgment by the trial court. The trial court found that as a matter of law, the City had violated an ordinance for the classification of customers for electricity rates, resulting in overcharges to a number of the plaintiffs in the case. The trial court awarded damages to those plaintiffs, and also ordered City to pay prejudgment interest on the damage award. Truckstop Restaurants, Inc., Peterson Oil Company, Midwest Petroleum, Inc., Casey’s General Stores, Inc., West-brooke Hotel Partners, Wallis Oil Company, Sullivan Bowl, and West Brothers Chrysler (“plaintiffs”) cross-appeal from the judgment of the trial court. We affirm in part and reverse in part.

Viewed in the light most favorable to the judgment, the evidence shows the following. During the relevant period, January 1, 1987 to February 1, 1995, City operated its own municipal electrical power utility and provided electrical power to residents of City. Plaintiffs were among the residents to whom City provided electricity. City’s municipal ordinances, adopted and incorporated into the City Code, governed the operation of City’s electrical utility.

Section 69.020 of the 1985 City Code contained several related definitions: “residential dwelling,” “commercial dwelling,” and “industrial user.” 1 Section 69.040 concerned the establishment of different customer classifications, and provided that “such electric current and service shall be furnished to all regular consumers through a meter according to the schedule of classifications hereinafter set forth to which each consumer may qualify, and according to the rates applicable thereto.” There were three different rates in the City Code contained in Sections 69.050, 69.060, and 69.070. 2 Section 69.050 listed the rate for residential service, and stated that those *186 rates apply “to residences as hereinbefore defined for all domestic purposes, only[.]” It further provided that these rates were “not available to that portion of any residential dwelling used for business or professional purposes.” Section 69.060 set the rates for “Commercial Service,” and further stated that “[t]he character of service which shall be single or three-phased, 60 cycle, and at one standard delivery voltage required commercial and available at con-sumeras service location.” That section did not reference any definition of “commercial.” It did provide a rate per kilowatt hour for monthly use of 5,000 to 20,000 kilowatt hours, and a rate for monthly use exceeding 20,000 kilowatt hours. The third set of rates, contained in Section 69.070 was not specifically for industrial users, but rather was “General power, Manufacturers.” Unlike Sections 69.050 and 69.060, this section set its own standard for when it applied, providing that “[t]he following rate shall apply to energy for power purposes when the customer has a connected load of 25 KW or more.”

Section 69.160 provided a mechanism to resolve disputes over rates and rate classification. It stated that in the event of a conflict or uncertainty, the “rate or rate classification applicable to such consumer shall be determined by the Mayor and Board of Aldermen of said City of Sullivan.” It did not provide who has the burden of claiming conflict or uncertainty over rates or classification, how such conflict or uncertainty had to be brought to City’s attention, or how the Mayor and Board of Aldermen would make the determination.

Plaintiffs operated businesses during all or part of the period from January 1, 1987 to February 1, 1995, and were customers of City for electric power. City billed plaintiffs for electricity at the commercial rates. Prior to February 1, 1995, none of the plaintiffs were billed at the general power rates set forth in Section 69.070. Bradley Brown (“Brown”), a self-described “rate analysis engineer” with a degree in electrical engineering, separately contacted plaintiffs in 1992 and 1993, indicating that their bills for electricity might be too high, and offered his services in reviewing their bills.

Based on his review of plaintiffs’ records and information provided by City, Brown determined that plaintiffs should have been billed on the general power rate rather than the commercial rate, and had been overcharged for electricity. On June 11, 1993, Brown sent a letter to John Butz, City Administrator (“Administrator”). Brown informed Administrator of the results of his review and requested that City immediately place plaintiffs on the general power rate and refund to them the alleged overcharges based on the difference between the commercial power rate and the general power rate, dating back to the adoption of the ordinance setting the rates, plus interest on that amount at nine percent per year.

Brown received a response from the city attorney, which denied that plaintiffs had been billed incorrectly for electrical service and stated that City would not issue any refunds. He stated that the mayor and aldermen of City were in charge of resolving uncertainties about classification. City attorney also requested that Brown cease to harass the staff of City and direct any further correspondence to him at his own private office. Brown made several more requests on behalf of plaintiffs to City, with no apparent effective result. Brown advised plaintiffs to pursue litigation and recommended an attorney. By February 1995, plaintiffs that were still in operation had received demand meters and had been *187 placed on the general power rate. 3 During 1995, City conducted a study of electrical rates, and on October 15,1996, it enacted a new ordinance revising the provisions on electrical service and rates.

On August 25, 1995, plaintiffs filed suit against City in a three-count petition. Count I was an action for declaratory judgment seeking the construction of City’s ordinances and “for such further relief as may be equitable”; Count II, subsequently dismissed, was an action seeking an injunction; and Count III was an action for damages for rate overcharges.

Plaintiffs presented documentary evidence which included their billing records, correspondence, City’s ordinances, and the 1995 rate study done by Allgeier Martin and Associates (“Allgeier Martin”). Plaintiffs also presented testimony from representatives of their companies, employees of City, Brown, and an engineer from Allgeier Martin.

The testimony from the representatives was largely similar. The plaintiffs received bills for electricity from City and paid them during all or part of the relevant period, depending on the individual firm. Plaintiffs were not aware that they could have been on the lower cost general power rate, and never received information directly from City about the option of being billed at that rate. All of the plaintiffs were contacted by Brown, who indicated that they might be being overbilled for electricity, and agreed to retain his services. On cross-examination, the representatives of plaintiffs indicated that the buildings and businesses on the premises had all been constructed and in operation, in some form, prior to the enactment of the 1985 ordinance at issue, some as far back as the 1950s.

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Bluebook (online)
142 S.W.3d 181, 2004 Mo. App. LEXIS 1225, 2004 WL 1925981, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-sullivan-v-truckstop-restaurants-inc-moctapp-2004.