Davies v. Columbia Gas & Electric Corp.

86 N.E.2d 603, 151 Ohio St. 417, 151 Ohio St. (N.S.) 417, 39 Ohio Op. 249, 1949 Ohio LEXIS 446
CourtOhio Supreme Court
DecidedMay 25, 1949
Docket31539
StatusPublished
Cited by20 cases

This text of 86 N.E.2d 603 (Davies v. Columbia Gas & Electric Corp.) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davies v. Columbia Gas & Electric Corp., 86 N.E.2d 603, 151 Ohio St. 417, 151 Ohio St. (N.S.) 417, 39 Ohio Op. 249, 1949 Ohio LEXIS 446 (Ohio 1949).

Opinion

Zimmerman, J.

The defendants advance a number of arguments why the judgment of the Court of Appeals is wrong and should be reversed. First engaging our attention is the important question whether the Court of Appeals was correct in deciding that under the allegations and plain implications of the amended petition a proper and recognizable class suit is presented.

Such amended petition is long and involved, covering some 62 pages of the printed record. Plaintiff purports to represent himself and approximately 700,-000 individuals and corporations in a large number of Ohio localities, who were, between the years 1929 to 1939, inclusive, consumers of gas furnished by and purchased from the defendants The Ohio Fuel Gas Company and other companies now consolidated with such company, all of which were and are wholly owned subsidiaries of the Columbia Gas & Electric Corporation.

The gravamen of the complaint is that during the years mentioned, certain of the defendants, as conspirators, cheated and defrauded Ohio gas consumers by secretly diluting natural gas delivered to such consumers with an inexpensive, manufactured, inert gas, thereby substantially increasing rates throughout the entire area involved without notice to or'consent of the consumers or the Public Utilities Commission, and *420 with the result that such consumers were overcharged.

In the prayer of the amended petition, injunctive relief is sought to prohibit the billing of customers for diluted gas until proper charges for the commodity furnished have been determined by competent authority and to forbid the placing of a diluent or inert gas in the natural gas distributed — matters initially within the province and control of the Public Utilities Commission.

The prayer then, among other things, is for a finding as to the aggregate amount of damages sustained by plaintiff and all others on whose behalf the action is brought; that a master be appointed “who shall require each and every of the defendants to account for and turn into the custody of this court all the funds which he or it received at any time by reason of said cheat”; that a trust be impressed on certain assets of the corporate defendants to the extent of the amount which each received as a result of the conspiracy to cheat by the sale of inert gas; and that the court enter judgment in favor of the gas consumers and against the public utility defendants for'triple the amount of the actual damages found to have been sustained.

There are three General Code sections relating to class suits, which should be considered together in disposing of the question whether the amended petition presents a cognizable class suit.

Section 11254, provides:

“All persons having an interest in the subject of the action, and in obtaining the relief demanded, may be joined as plaintiffs except as otherwise provided.”

Section 11256, reads, in part:

“Parties who are united in interest must be joined, as plaintiffs or defendants.”

Section 11257, recites:

*421 “When the question is one of a common or general interest of many persons, or the parties are very numerous, and is impracticable to bring them all before the court, one or more may sue or defend fo,r the benefit of all.”

Under the statutes quoted, for one to properly institute an action for the benefit of himself and others, there must be a community of interest plus a right of recovery based upon the same essential facts, and all those on whose behalf the suit is filed must have an interest common or identical with that of the person in whose name the action is brought. Trustees of Jackson Twp. v. Thoman, 51 Ohio St., 285, 37 N. E., 523; Duncan v. Willis, 51 Ohio St., 433, 38 N. E., 13; Stevens v. Cincinnati Times-Star Co., 72 Ohio St., 112, 73 N. E., 1058, 106 Am. St. Rep., 586; 30 Ohio Jurisprudence, 741, Section 28.

In the later cases of Haggerty v. Squire, Supt. of Banks, 137 Ohio St., 207, 28 N. E. (2d), 554, and Wheatley, Trustee, v. A. I. Root Co., 147 Ohio St., 127, 69 N. E. (2d), 187, wherein the propriety of class suits was recognized and wherein the relief sought was primarily of an equitable nature, this court adhered to the rule that in order to prosecute a class suit, the claims asserted must ‘ ‘ arise from a common source and represent a like interest.”

It will be noticed that in-both the Haggerty and Wheatley eases the respective plaintiffs and those they undertook to represent were affected in a similar manner and under like conditions and that the character of the relief which each member of the class represented might obtain was confined to what was asked for in the petitions.

In the Wheatley case “the record shows that the parties, themselves, by stipulation in the Court of Common Pleas divided the preferred shareholders in *422 to classes in accordance with the attitude of each as to consent, acquiesence or opposition in connection with the recapitalization [of the A. I. Root Company] . ’ ’

With the above principles in mind, let us turn to the-instant case. Here, the primary object of the action is the recovery of money in the form of damages for all those who were allegedly defrauded by the claimed, deceitful practices of the defendants during a specified number of years. The total damages sought would be arrived at by combining the amounts found due-each affected gas consumer, and such amounts would depend upon the peculiar facts surrounding the particular person or to the facts which pertained to a group similarly affected in a particular area. The relief of an equitable character prayed for is secondary and ancillary. There is no charge or allegation that any of the defendants is insolvent or verging on insolvency, or that any judgment which might be recovered would not be collectible. Compare Complete Building Show Co. v. Albertson, 99 Ohio St., 11, 121 N. E., 817, and Wall v. Dayton Federation Co., 121 Ohio St., 334, 168 N. E., 847.

Plaintiff herein purports to represent, in the recovery of “overcharges,” some 700,000 gas consumers scattered throughout many of the counties of Ohio, who over different periods of time paid different rates or charges for their gas purchases, under different franchises, contracts, ordinances and rate schedules, and varying provisions covering service. Surely, any right to damages on behalf of this multitude of persons would depend upon proof that the amounts collected did constitute “overcharges” in the light of the rates charged for the gas delivered, and that such alleged “overcharges” were collected through fraud and deceit. So far as we can ascertain, no claim is *423

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Bluebook (online)
86 N.E.2d 603, 151 Ohio St. 417, 151 Ohio St. (N.S.) 417, 39 Ohio Op. 249, 1949 Ohio LEXIS 446, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davies-v-columbia-gas-electric-corp-ohio-1949.