Colville Environmental Services, Inc. v. North Slope Borough

831 P.2d 341, 1992 Alas. LEXIS 43, 1992 WL 81453
CourtAlaska Supreme Court
DecidedApril 24, 1992
DocketS-4069
StatusPublished
Cited by7 cases

This text of 831 P.2d 341 (Colville Environmental Services, Inc. v. North Slope Borough) is published on Counsel Stack Legal Research, covering Alaska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Colville Environmental Services, Inc. v. North Slope Borough, 831 P.2d 341, 1992 Alas. LEXIS 43, 1992 WL 81453 (Ala. 1992).

Opinion

OPINION

MATTHEWS, Justice.

I. INTRODUCTION

The principal question presented in this case is whether to allow a belated attack on the authority of the Alaska Public Utilities Commission (Commission) to issue a certificate of public convenience and necessity. The Commission granted Col-ville Environmental Services, Inc., (Colville) a certificate to operate a garbage collection utility in competition with garbage collection services offered by the North Slope Borough (Borough). The Borough was a party to the proceedings but did not raise a jurisdictional objection before the Commission and did not appeal. Five years later the Borough challenged Colville’s certificate, contending that it was void because it violated AS 29:35.050, which gives the Borough the power to monopolize garbage collection services. We conclude that the Commission’s decision issuing the certificate to Colville should be given res judicata effect.

II. FACTS AND PROCEEDINGS

Beginning in 1962 Colville provided garbage collection and oil site cleanup services on the Arctic coastal plain between the Kuparuk River to the east and the Colville River to the west. Colville operated without a certificate of public convenience and necessity from the Commission.

In 1975 the Borough established by ordinance a garbage collection service east of the Kuparuk River. The Borough obtained a temporary certificate from the Commission for this area. Beginning at least as early as 1979, the Borough began providing garbage collection service west of the Ku-paruk River. In 1981 Colville applied for a certificate. The Borough applied for an amendment to its certificate to extend its service to cover most of the same area in which Colville operated (the “overlap” area). Thus, in 1981, the Commission was faced with two largely conflicting certification requests. Both parties filed objections to the other’s application.

Before the Commission ruled, Colville and the Borough stipulated to resolve the conflict. In the stipulation, each party withdrew its opposition to the other’s application subject to certain conditions. The most important condition relevant to this appeal was condition 3(a), which prohibited Colville from providing “day-to-day” refuse collection services if the Borough was providing them. 1

*343 On February 8, 1982, the Commission approved the stipulation. It granted Col-ville a certificate “subject to the limitations agreed to in the Stipulation for Settlement.” It also granted the Borough an amended certificate subject to the stipulation’s limitations. However, the Commission imposed several additional conditions on the Borough. The most important condition was that within ninety days the Borough file an application to amend its certificate to include the entire North Slope Borough within its service area for garbage collection, including each of the villages in the Borough. Until such an application was filed, Colville would not be precluded from furnishing “day-to-day” refuse collection.

The Borough moved to modify the February 1982 decision asking the Commission to delete the condition that the Borough apply to modify its certificate to include the various villages. On August 17, 1982, the Commission denied this motion. Further, the Commission rejected altogether paragraph 3(a) of the stipulation, thus permitting Colville to permanently offer daily collection services in competition with the Borough. The Commission took this action for a number of reasons. First, the Commission noted:

The Commission will not permit the [Borough] to have it both ways: on the one hand, to expand its existing service area but, at the same time, to state, in effect, that it will get around to serving the area in question when it feels like it and, on the other hand, to attempt to prevent others from furnishing a utility service essential to the preservation of the public health, welfare and safety where the [Borough] is not doing so.

The Commission also believed that 3(a) was anti-competitive, violated federal anti-trust laws, and was contrary to the public interest. The Borough did not contend that the Commission lacked subject matter jurisdiction to certify Colville as a competitor of the Borough and did not appeal the order of August 17, 1982.

Later the Borough applied for an amended certificate to serve all the villages in the Borough. The Commission granted this in 1984. However, the Borough’s certificate may not have covered all of Colville certified area. A few of the northernmost sections of the Colville River delta seem to have remained exclusive areas of operation for Colville. 2

In 1987 Colville filed a complaint with the Commission, claiming that the Borough had operated contrary to its certificate by operating in Colville’s claimed exclusive area. Colville also alleged that in the overlap area the Borough had prevented competition by passing an ordinance requiring potential customers to use the Borough’s collection services and by conditioning the grant of land use permits on a permittee’s continued use of the Borough’s collection services. The Borough counterclaimed, alleging that the Commission had exceeded its authority in granting overlapping certificates for garbage collection because under AS 29.35.050, boroughs are authorized to monopolize garbage services within their boundaries.

After a hearing, the Commission’s hearing officer issued a proposed decision, which was adopted by the full Commission with some modifications on July 19, 1988. Germane to the issues on appeal, the Commission found that the Borough’s ordinance which required all customers in the overlap area to use the Borough’s collection services was void because it conflicted with the orders and certificates issued by the Commission. The Commission also invalidated for the same reason the land use permits which were conditioned on a permittee’s continued use of the Borough’s collection services.

The Commission rejected on several grounds the Borough’s counterclaim that the Commission had exceeded its authority in granting overlapping certificates for garbage collection. First, it held that this *344 argument was barred by the doctrine of res judicata:

In [the competing 1981 applications of the parties] the Commission considered the question of whether or not a certificate which included an area within the boundary of [the Borough] should be granted to [Colville]. The Commission determined in that case that a certificate should be granted to [Colville], an Order granting that certificate was issued, and the Order became final without appeal. [The Borough] was a party to that case, stipulated to the grant of the certificate to [Colville], and did not appeal the grant of [Colville’s] certificate. In these circumstances the doctrine of res judicata applies.

The Commission also held that the Borough had waived any right to contend that the August 17,1982 order granting competitive certificates was void, and that the Borough was estopped from making that contention:

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Bluebook (online)
831 P.2d 341, 1992 Alas. LEXIS 43, 1992 WL 81453, Counsel Stack Legal Research, https://law.counselstack.com/opinion/colville-environmental-services-inc-v-north-slope-borough-alaska-1992.