East Ohio Gas Co. v. City of Akron

395 N.E.2d 511, 60 Ohio App. 2d 21, 14 Ohio Op. 3d 10, 1978 Ohio App. LEXIS 7611
CourtOhio Court of Appeals
DecidedSeptember 13, 1978
Docket8750
StatusPublished
Cited by4 cases

This text of 395 N.E.2d 511 (East Ohio Gas Co. v. City of Akron) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
East Ohio Gas Co. v. City of Akron, 395 N.E.2d 511, 60 Ohio App. 2d 21, 14 Ohio Op. 3d 10, 1978 Ohio App. LEXIS 7611 (Ohio Ct. App. 1978).

Opinion

Mahoney, P.J.

The defendant, the city of Akron, appeals the judgment of the Court of Common Pleas finding ordinance 133-1977, purporting to regulate certain activities of the plaintiff, East Ohio Gas Company, invalid. We affirm.

Facts

City council enacted ordinance 133-1977 on February 14, 1977. This ordinance purports to amend or supplement the plaintiffs franchise to distribute natural gas in the city. This franchise was given in ordinance 1071-1959. Section 3-A of ordinance 133-1977 prohibits the plaintiff from terminating or discontinuing service to any residential customer in the city during the period from October 15 through April 15 of the following year for non-payment or delinquency of the customer’s account, unless the account is 30 days in arrears as of October 15, provided, however, that the customer has not obtained service through misrepresentation or fraud. Section 3-B prohibits the plaintiff from charging a deposit for non-payment or delinquency of an account or as a precondition to the resumption of service discontinued for nonpayment or delinquency or any service charge or fee for the resumption of service other than the gross amount due and owing on the account. Section 3-B covers residential customers in the city who have not obtained service through misrepresentation or fraud and who have signed a contract for service. Section 3-B-l requires the plaintiff to restore service to any residential customer who has had service discontinued for non-payment or delinquency of his account upon *23 payment of at least fifty percent of the gross amount due and the agreement of the customer to pay the balance within ninety days of resumption of service, provided the customer pays bills for current service in a timely manner. The original effective date of ordinance 133-1977 was March 17, 1977. Further action taken by city council concerning the effective date of the ordinance is noted infra.

On October 17,1977, the plaintiff filed a complaint seeking declaratory and injunctive relief from ordinance 133-1977. Ordinance 133-1977 was alleged to be invalid by reason of conflicts with R. C. 4933.12 and R. C. 4933.17, and with certain rules promulgated by the Public Utilities Commission of Ohio (P.U.C.O.), by reason of violations of the state and federal constitutions, and by reason of a direct violation of the city charter. A motion to intervene was filed by one Vickie Diamond and 43 other city residents. The trial court allowed this group to participate as amicus curiae. A motion to intervene was also filed by the Ohio Housing Coalition, an entity describing itself as, “a non-profit corporation with a primary purpose ‘to participate in any and all other activities designed to promote the goal of providing a decent, safe, and sanitary home for every citizen of Ohio.’ ” The trial court allowed the coalition to participate as amicus curiae. The amici curiae maintained the trial court lacked jurisdiction, which resided, they said, in the P.U.C.O. They maintained, in the alternative, that ordinance 133-1977 was valid. Another motion to intervene was filed by the P.U.C.O. The trial court granted this motion. The P.U.C.O. argued that it did not have jurisdiction over the controversy. It also maintained that ordinance 133-1977 was invalid. Both the defendant and the plaintiff asserted that the trial court had jurisdiction.

The trial court held a hearing on the plaintiff’s request for preliminary injunctive relief. No injunction was issued, however, as the court determined it would render a decision on the merits. The defendant answered the complaint, in part admitting that ordinances 214-1977 and 675-1977 were invalid as emergency measures.

The trial court found it had jurisdiction and that the ordinance was invalid in that it conflicted with both R. C. 4933.12 and R. C. 4933.17.

*24 The Ohio Housing Coalition renewed its motion to intervene before this court. We denied the motion to intervene but granted the alternative request to participate as amicus curiae.

Jurisdiction

We are first met with the claim that the trial court does not possess jurisdiction to pass on the merits of this controversy. This contention is advanced solely by the amicus curiae. The plaintiff and the intervenor take the contrary position. The defendant does not address this question on appeal, but we assume that it adheres to its position before the trial court that jurisdiction is proper in the Court of Common Pleas.

Our first principle is that the P.U.C.O. is a creature of statute. As such, it may exercise only that jurisdiction which is expressly granted to it by statute, see, e.g., Penn Central Transportation Co. v. Pub. Util. Comm. (1973), 35 Ohio St. 2d 97; State, ex rel. Thomas, v. Thomas (1929), 121 Ohio St. 450; New Breman v. Pub. Util. Comm. (1921), 103 Ohio St. 23. Where, however, the legislature has lodged power over a particular subject with the P.U.C.O., that power is exclusive with the P.U.C.O., and its orders in the exercise of that power are reviewable only in the Ohio Supreme Court. State, ex rel. Columbia Gas, v. Kiroff (1976), 46 Ohio St. 2d 397; State ex rel. Northern Ohio Telephone Co., v. Winter (1970), 23 Ohio St. 2d 6.

The amicus curiae says that R. C. 4909.18 and R. C. 4909.34-.39 establish a regulatory framework vesting the P.U.C.O. with exclusive jurisdiction over municipal ordinances dealing with utility matters. We disagree. R. C. 4909.18 deals with applications filed by public utilities with the P.U.C.O. concerning the establishment of, or change in rates, tolls, charges, etc., or regulations or practice affecting same. R. C. 4909.34 concerns the power of a municipal corporation to enact an ordinance fixing the prices, rates, charges, tolls, or rentals which a public utility may charge, demand, exact, or collect for its product. Procedure for review of the ordinance by the P.U.C.O. is also set forth in the statute. R. C. 4909.39 concerns the power of the P.U.C.O. to review an ordinance encompassed by R. C. *25 4909.34. We agree with the contention of the P.U.C.O. intervenor and the plaintiff that ordinance 133-1977 is not the type of ordinance contemplated by R. C. 4909.34. Ordinance 133-1977 does not purport to fix rates. We find, therefore, that the P.U.C.O. does not possess jurisdiction to review ordinance 133-1977, and that the trial court did have jurisdiction.

Assignment of Error I

“The court erred by not finding that the ordinance is a valid exercise of the city of Akron’s Municipal Authority pursuant to those statutory provisions of the general assembly specifically delegating to municipalities the power to enact ordinances granting to natural gas companies the right to use public right-of-way subject to such regulations and restrictions as the legislative authority of the municipal corporation prescribes.”

In Federal Gas & Fuel Co. v. Columbus (1917), 96 Ohio St.

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Bluebook (online)
395 N.E.2d 511, 60 Ohio App. 2d 21, 14 Ohio Op. 3d 10, 1978 Ohio App. LEXIS 7611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/east-ohio-gas-co-v-city-of-akron-ohioctapp-1978.