Denver Welfare Rights Organization v. Public Utilities Commission

547 P.2d 239, 190 Colo. 329, 1976 Colo. LEXIS 798
CourtSupreme Court of Colorado
DecidedMarch 8, 1976
Docket26624
StatusPublished
Cited by16 cases

This text of 547 P.2d 239 (Denver Welfare Rights Organization v. Public Utilities Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Denver Welfare Rights Organization v. Public Utilities Commission, 547 P.2d 239, 190 Colo. 329, 1976 Colo. LEXIS 798 (Colo. 1976).

Opinion

MR. JUSTICE ERICKSON

delivered the opinion of the Court.

The plaintiffs (appellants), Denver Welfare Rights Organization and Capitol Hill Tenants Union, instituted an action in the district court for the City and County of Denver seeking judicial review of a decision of the Public Utilities Commission of the State of Colorado, defendant (appellee), which upheld the validity of a Commission rule. The district court granted Poudre Valley Rural Electric Association, Colorado Rural Electric Association, and Public Service Company of Colorado permission to intervene. On May 20, 1974, the district court affirmed the Commission decision, and plaintiffs appealed. The pertinent issues on appeal relate to the validity of Rule 13, adopted by the Public Utilities Commission on September 7, 1973, pursuant to the Commission’s rule-making powers. We affirm.

On March 30, 1973, the Public Utilities Commission initiated rule-making proceedings by giving notice of a hearing and proposed rules relating to electric, gas, water, and telephone utilities. 1 The proceedings involved proposed rule changes in Rule 10 (meter readings), Rule ll (deposit requirements), and Rule 13 (discontinuance of service). 2 Intervention was sought at the hearing level by numerous utilities, cities, and individuals. The plaintiffs, among others, intervened in all four pro *333 ceedings. After two days of hearings, the Commission rendered its decision on September 7, 1973, in which the proposed rules for the various utilities were adopted with some modifications. 3

Plaintiffs brought this action pursuant to C.R.S. 1963, 115-6-15 4 in the district court for purposes of judicial review of final agency action. They challenged the. constitutionality of the Commission’s Decision No. 83551 only as it pertains to Rule 13 (discontinuance of service). 5 On May 10, 1974, the action was tried to the court, and on May 20, 1974, the district court entered its decision affirming the Commission.

The appellant, Denver Welfare Rights Organization, urges this court to declare that the provisions of Rule 13(c) and (d) violate the due process clauses of both the federal and state constitutions in that the rule fails to provide utility customers with an unconditional opportunity to have an evidentiary hearing prior to the termination of utility service.

I.

The Interest Involved

The plaintiffs argument centers on the Due Process Clause of the Fourteenth Amendment, which provides, “nor shall any State deprive any person of life, liberty or property, without due process of law.” The threshold question which must be addressed prior to any consideration of the requirements of due process is whether the requirements are even applicable to the issues in this case. Therefore, we must examine the “nature of the interest at stake,” in order to determine whether it constitutes a property interest subject to the protections of procedural due process. Board of Regents v. Roth, 408 U.S. 564, 92 S.Ct. 2701, 33 L.Ed.2d 548 (1972); see also Morrissey v. Brewer, 408 U.S. 471, 92 S.Ct. 2593, 33 L.Ed.2d 484 (1972).

In this case, the property interest claimed by the appellant is the right to the uninterrupted continuance of utility services. To date, the United States Supreme Court has declined to consider the question of whether continued utility service constitutes a property interest under the Fourteenth Amendment. Jackson v. Metropolitan Edison, 419 U.S. 345, 95 S.Ct. 449, 42 L.Ed.2d 477 (1974). Something more than a “subjective ‘expectancy’ ” must be at stake in order to achieve the protections of procedural due process. Perry v. Sindermann, 408 U.S. 593, 92 S.Ct. 2694, 33 L.Ed.2d 570 (1972).

*334 However, the concept of property under the Due Process Clause extends “well beyond actual ownership of real estate, chattels, or money . . . .” Board of Regents v. Roth, supra. In fact, a person’s interest in a “benefit” has been characterized by the Supreme Court as a property interest, Board of Regents v. Roth, supra; Perry v. Sindermann, supra, provided the person has a “legitimate claim of entitlement to it.” Board of Regents v. Roth, supra. The Supreme Court has declared that:

“To have a property interest in a benefit, a person clearly must have more than an abstract need or desire for it. . . . He must, instead, have a legitimate claim of entitlement to it. It is a purpose of the ancient institution of property to protect those claims upon which people rely in their daily lives, reliance that must not be arbitrarily undermined.
“Property interests, of course, are not created by the Constitution. Rather they are created and their dimensions are defined by existing rules or understandings that stem from an independent source such as state law — rules or understandings that secure certain benefits and that support claims of entitlement to those benefits.” Board of Regents v. Roth, supra.

The customers’ interests in receiving utility service are at least as significant as other “entitlements” the United States Supreme Court has recognized. See e.g., Fuentes v. Shevin, 407 U.S. 67, 92 S.Ct. 1983, 32 L.Ed.2d 556 (1972) (replevin); Bell v. Burson, 402 U.S. 535, 91 S.Ct. 1586, 29 L.Ed.2d 90 (1971) (driver’s license); Goldberg v. Kelly, 397 U.S. 254, 90 S.Ct. 1011, 25 L.Ed.2d 287 (1970) (welfare benefits); and Sniadach v. Family Finance Corp., 395 U.S. 337, 89 S.Ct. 1820, 23 L.Ed.2d 349 (1969) (garnishment), in Bell v. Burson, supra, the Supreme Court characterized an individual’s driver’s license as an “important interest,” and concluded that due process requires States to provide a hearing prior to the suspension of this benefit. The customer’s desire for continued utility service, particularly when such service provides warmth and fuel for a home, ranks as an equally “important interest,” in our view. Stanford v. Gas Service Co., 346 F.Supp. 717 (D. Kan. 1972); See generally, Salisbury v. Southern New England Telephone Co., 365 F.Supp. 1023 (D. Conn. 1973); Lamb v. Hamblin, 57 F.R.D. 58 (D. Minn. 1972).

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Bluebook (online)
547 P.2d 239, 190 Colo. 329, 1976 Colo. LEXIS 798, Counsel Stack Legal Research, https://law.counselstack.com/opinion/denver-welfare-rights-organization-v-public-utilities-commission-colo-1976.