Detroit Edison Co. v. Public Service Commission

400 N.W.2d 644, 155 Mich. App. 461
CourtMichigan Court of Appeals
DecidedOctober 20, 1986
DocketDocket 83595, 83674, 87867, 87868
StatusPublished
Cited by6 cases

This text of 400 N.W.2d 644 (Detroit Edison Co. v. Public Service Commission) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Detroit Edison Co. v. Public Service Commission, 400 N.W.2d 644, 155 Mich. App. 461 (Mich. Ct. App. 1986).

Opinion

Per Curiam.

The Michigan Public Service Commission and several intervening defendants appeal from an order of the Ingham Circuit Court which adopted the statutory rate of interest allowed in civil actions on money judgments, MCL 600.6013; MSA 27A.6013, as the appropriate rate of interest to be applied to refunds due customers of plaintiff The Detroit Edison Company.

On April 10, 1975, Detroit Edison petitioned the commission for permission to increase its electric rates by $177,865,000. On March 30, 1976, the commission authorized a fate increase of $62,425,-000. On April 28, 1976, Detroit Edison filed a petition in Ingham Circuit Court for judicial re *464 view. At the same time, Detroit Edison requested injunctive relief, seeking an additional, interim increase pending review. On May 28, 1976, the circuit court granted Detroit Edison’s request for an injunction, authorizing an additional rate increase of $13,846,000. If the interim increase were ultimately disallowed, the court order provided that the circuit court reserved jurisdiction to determine an appropriate interest rate and the method of refund. Thereafter, the circuit judge who had granted the injunction resigned and the case was reassigned to a different judge.

On January 13, 1978, the circuit court remanded the case to the commission to consider additional evidence. The commission rendered its final decision on remand on July 19, 1979, reaffirming its previous order. On December 23, 1981, the circuit court affirmed the commission’s decision, thereby necessitating a refund of the $13,846,000.

On January 8, 1982, the commission filed a motion in circuit court to verify the amount of the principal of the refund and to establish an appropriate rate of interest. Four days later, Detroit Edison claimed an appeal to this Court. On March 1, 1982, Detroit Edison moved the circuit court for a stay of execution of the December 23, 1981, order pending the outcome of the appeal process and submitted an appeal bond. On July 12, 1982, Detroit Edison, the commission, and the Attorney General (one of the intervening defendants) stipulated to postpone the commission’s January 8, 1982, motion until all appeals were completed and to accept Detroit Edison’s appeal bond as sufficient security.

On July 20, 1983, we affirmed the circuit court’s decision disallowing the $13,846,000 interim rate increase. 127 Mich App 499; 342 NW2d 273. On *465 May 7, 1984, the Supreme Court denied leave. 419 Mich 867.

On August 2, 1984, the commission renewed its motion for the circuit court to determine the amount of the refund. On September 14, 1984, the commission modified its renewed motion and requested that the case be remanded to the commission so that the commission could determine the appropriate rate of interest. The motion to remand was heard on January 7, 1985. The circuit court ruled that it would decide the interest issue but remanded the remaining related procedural issues to the commission. The parties were given thirty days to file depositions of expert testimony and briefs. On February 26, 1985, the circuit court issued an opinion and an order adopting the rate of interest set forth in MCL 600.6013; MSA 27A.6013, the statute which governs the rate of interest to be applied on money judgments recovered in civil actions.

On appeal, the commission argues that the circuit court erred by refusing to remand the interest question to the commission. Apparently, the main reason the circuit court determined the interest question itself was because it believed the parties had stipulated that it do so:

It impresses this Court that when an appeal is taken that the interest rate rests within the determination of the Court, plus the fact that in this particular instance we have a stipulation. And I don’t know what a stipulation is worth if it doesn’t mean what it says. I cannot understand how it can say that the Court is to determine the interest if the Court is not to determine the interest.
One thing that impresses me ... is that if it was known, obviously as it must have been at the time the stipulation was entered into, that this was such a complex matter, then obviously the *466 stipulation shouldn’t have been drafted in the manner in which it was. It should have specifically recognized the importance of sending it back to the Commission.
Now, to say that I’m pleased with having to make such determinations and getting involved in this matter any further is maybe an understatement [sic]. Frankly, I cannot conceive of why there can’t be more effort put forth in the settlement of these matters.[ 1 ]

The stipulation which the circuit court referred to is entitled "Stipulation for Postponement of Proceedings on Motion for Refunds and for Acceptance of Appellant’s Bond Pending Appeal” and provides in full:

Now comes the parties hereto, Plaintiff-Appellant Detroit Edison Company (Edison), DefendantAppellee Michigan Public Service Commission (Commission), and Intervening Defendant-Appellee Attorney General Frank J. Kelley (Attorney General), by their undersigned counsel, and hereby stipulate and agree as follows:
1. The Commission’s January 8, 1982 Motion for Determination of Refunds, and Edison’s March 1, 1982 Motion For Stay After Appeal Taken, may be postponed until completion of appellate proceedings before the Michigan Court of Appeals, and if applicable, the Michigan Supreme Court.
2. Edison’s appeal bond attached to its March 1, 1982 Motion for Stay After Appeal Taken is hereby agreed to as constituting sufficient security to obligate Edison to making refunds, if necessary, *467 of the principal amount collected pursuant to the Ingham Circuit Court’s 1976 preliminary injunctive orders, plus appropriate interest to be determined by the Court. The parties further agree that the terms of Edison’s appeal bond shall not prejudice any party’s right to contend that an amount of principal or interest, other than as stated in the appeal bond, should be refunded to ratepayers.
3. The parties agree to diligently pursue final determination of all appeal issues, and the determination of appropriate refunds, if applicable, upon final disposition of this case by the Michigan Court of Appeals and/or Supreme Court.
4. The parties agree that the attached proposed order of the Court accepting Edison’s appeal bond and postponing proceedings on the refund motion should be signed and entered by the Court in this docket. [Emphasis added.]

It has long been the rule that stipulations should be construed as a whole, according to their purpose, and in light of the surrounding facts and circumstances. Security Trust Co v Glazier, 170 Mich 26, 34-35; 135 NW 904 (1912); Whitley v Chrysler Corp, 373 Mich 469, 474; 130 NW2d 26 (1964). Moreover, the language of a stipulation will not be construed so as to give the effect of a waiver of a right not plainly intended to be relinquished. Whitley, supra; In re Cole Estate,

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Bluebook (online)
400 N.W.2d 644, 155 Mich. App. 461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/detroit-edison-co-v-public-service-commission-michctapp-1986.