Forest Hills Developers, Inc. v. Public Service Commission

936 S.W.2d 94, 1996 WL 283629, 1996 Ky. App. LEXIS 98
CourtCourt of Appeals of Kentucky
DecidedMay 31, 1996
DocketNo. 95-CA-0699-MR
StatusPublished
Cited by1 cases

This text of 936 S.W.2d 94 (Forest Hills Developers, Inc. v. Public Service Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Forest Hills Developers, Inc. v. Public Service Commission, 936 S.W.2d 94, 1996 WL 283629, 1996 Ky. App. LEXIS 98 (Ky. Ct. App. 1996).

Opinion

GARDNER, Judge:

Forest Hills Developers, Inc. appeals from an order of the Franklin Circuit Court granting the motion of the Public Service Commission to dismiss the action. We affirm.

Forest Hills Developers, Inc. (Forest Hills) owns and operates a sewage treatment facility in Jefferson County, Kentucky. On December 23, 1992, Forest Hills applied to the Public Service Commission (the Commission) pursuant to 807 KAR 5:076 for authorization to increase the rates it charges its customers for sewage treatment service. Several parties subsequently intervened in the proceeding, some of whom served upon Forest Hills requests for additional information under 807 KAR 5:076, Section 6. On February 2,1993, the Commission ordered Forest Hills to comply with these requests within ten days. Compliance was not forthcoming, and the Commission again ordered Forest Hills to comply by an order entered on March 24, 1993. Forest Hills again did not comply, and motions were filed by the intervenors to compel compliance with the discovery orders, or in the alternative to dismiss Forest Hills’ application. On May 14, 1993, the Commission dismissed Forest Hills’ application.

On June 3, 1993, Forest Hills filed an action in Franklin Circuit Court seeking review of the Commission’s order dismissing the application. In its complaint, Forest Hills argued that it complied with the Commission’s orders to produce the information sought by the intervening parties, and that accordingly the dismissal of its application was unlawful and unreasonable.1 On June 24, 1993, the Commission moved to have the action dismissed, arguing that Forest Hills had failed to give notice to all parties of record as required by KRS 278.410. It further argued that Forest Hills had failed to comply with KRS 278.420 in that Forest Hills did not designate those portions of the record necessary to resolve the issues raised in the action.2 Forest Hills, however, argued that no portion of the record was necessary for the court to resolve the issues presented. Upon considering the arguments, the lower court concluded that,

Based upon the fact that Forest Hills alleges in its Complaint that the orders below are inconsistent with one another and that the May 14, 1993, order [of dismissal] is unlawful, we find that at least some portion of the record below is necessary in order for this Court to decide the issues presented on appeal.

Citing Frisby v. Board of Education of Boyle County, Ky.App., 707 S.W.2d 359 (1986), the lower court found that it lacked jurisdiction to adjudicate the matter because Forest Hills had failed to prosecute its claim in conformity with the statute requiring designation of the necessary portions of the record. It did not address the Commission’s argument that Forest Hills failed to give proper notice. The Commission’s motion for dismissal of the action was granted, and this appeal followed.

Forest Hills first argues that the designation of record under KRS 278.420(2) is not jurisdictional. Specifically, it maintains that its action before the Franklin Circuit [96]*96Court is an original action rather than an appeal and that the basis for the court’s jurisdiction is KRS 278.410 rather than KRS 278.420. Accordingly, it argues that irrespective of its failure not to designate the record, the Franklin Circuit Court was vested with jurisdiction to adjudicate the action and that the court abused its discretion by denying Forest Hills’ motion to enlarge the period during which the record could be designated. Having closely studied the facts and the law, we find no error.

KRS 278.410 provides that any party to a commission proceeding or any utility affected by an order of the commission may, within thirty days of the order, bring an action in Franklin Circuit Court to determine if the order is unlawful or unreasonable. KRS 278.420(2) states as follows:

Unless an agreed statement of the record is filed with the court, the filing party shall designate, within ten (10) days after an action is filed, the portions of the record necessary to determine the issues raised in the action. Within ten (10) days after the service of the designation or within ten (10) days after the court enters an order permitting any other party to intervene in the action, whichever occurs last, any other party to the action may designate additional portions for filing. The court may enlarge the ten (10) day period where cause is shown. Additionally, the court may require or permit subsequent corrections or additions to the record.

KRS 278.420(2) states in clear and unambiguous terms that the party filing the complaint shall designate the portions of the record necessary to resolve the issues raised in its complaint. It is uncontested in the matter at bar, however, that Forest Hills did not designate any portion of the record within ten days of filing the complaint. Forest Hills maintained in its complaint that the Commission’s dismissal of its application was unlawful and unreasonable, and further set forth its argument that the Commission’s orders preceding the dismissal were inconsistent and contradictory. Accordingly, it appears that at a minimum the designation of those orders would be necessary in order for the trial court to resolve the issue raised. Irrespective of the mandatory language of KRS 278.420(2), the party challenging the Commission’s order “[s]hall have the burden of proof to show by clear and satisfactory evidence that the determination, requirement, direction or order is unreasonable and unlawful.” KRS 278.430. Without presenting to the trial court the orders which Forest Hills maintained were inconsistent, contradictory, unlawful and unreasonable, there existed no evidence, much less clear and satisfactory evidence, that the Commission had exceeded its authority.

As to the question of whether Forest Hills’ failure to designate the record deprived the trial court of jurisdiction to adjudicate the claim, we find no error in the court’s reliance on Frisby for the proposition that the failure to abide by the statutory scheme for seeking review of a commission’s order deprives the reviewing court of jurisdiction. Quoting Frisby,

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936 S.W.2d 94, 1996 WL 283629, 1996 Ky. App. LEXIS 98, Counsel Stack Legal Research, https://law.counselstack.com/opinion/forest-hills-developers-inc-v-public-service-commission-kyctapp-1996.