Friederich v. Illinois-American Water Co.

418 N.E.2d 836, 94 Ill. App. 3d 172, 49 Ill. Dec. 816, 1981 Ill. App. LEXIS 2257
CourtAppellate Court of Illinois
DecidedMarch 11, 1981
Docket80-244
StatusPublished
Cited by5 cases

This text of 418 N.E.2d 836 (Friederich v. Illinois-American Water Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Friederich v. Illinois-American Water Co., 418 N.E.2d 836, 94 Ill. App. 3d 172, 49 Ill. Dec. 816, 1981 Ill. App. LEXIS 2257 (Ill. Ct. App. 1981).

Opinions

Mr. PRESIDING JUSTICE KASSERMAN

delivered the opinion of the court:

This appeal results from the dismissal of plaintiffs’ first amended petition, in which they requested a mandatory injunction and actual and punitive damages from the defendant water company. In their petition, the plaintiffs alleged that they own property known as 1401 South Illinois Street in Belleville, abutting State Bond Issue Route 159 right-of-way; that such property is without water service; and that defendant provides water service to the area but has refused to service the property until the plaintiffs pay for the installation of a service pipe to connect the property with defendant’s water main on the other side of Route 159. Plaintiffs attached to their complaint a copy of an Illinois Commerce Commission regulation which requires the installation, at the utility’s expense, of service pipes to premises which abut streets, highways, or rights-of-way containing water mains.

On March 17, 1980, defendant filed a motion to dismiss, contending that plaintiffs have failed to pursue their remedies with the Illinois Commerce Commission. Defendant argues that plaintiffs’ property is separated from Route 159 by a township road called Taft Street and that, as a consequence, defendant is not required to install a service pipe without charge.

Defendant’s motion to dismiss was granted on May 14, 1980, and plaintiffs appeal from the order of dismissal, contending that Taft Street is actually owned by the State of Illinois, and the provisions of that I.C.C. regulation mentioned above apply here.

On appeal defendant raises two issues for determination by this court: (1) whether this controversy is a “rate dispute,” which the legislature has entrusted to the Illinois Commerce Commission for resolution; and (2) if not, is injunction an appropriate remedy.

A determination of these issues requires construction of the Public Utilities Act (Ill. Rev. Stat. 1979, ch. Ill 2/3, par. 1 et seq.), hereafter referred to as “the Act.”

Section 72 of the Act (Ill. Rev. Stat. 1979, ch. 111 2/3, par. 76) outlines the procedure to be used to resolve a rate dispute. It states, in pertinent part, that:

“When complaint has been made to the Commission concerning any rate or other charge of any public utility and the Commission has found, after a hearing, that the public utility has charged an excessive or unjustly discriminatory amount for its product, commodity or service, the Commission may order that the public utility make due reparation to the complainant therefore, with interest at the legal rate from the date of payment of such excessive or unjustly discriminatory amount.”

In the event the utility does not comply with that order, section 72 allows suit to be brought by the complainant, or others, for civil damages; and it is specified that such remedy “shall be cumulative, and in addition to any other remedy or remedies in this Act provided in case of failure of a public utility to obey a rule, regulation, order or decision of the Commission.”

Section 73 of the Act (Ill. Rev. Stat. 1979, ch. 111 2/3, par. 77) .provides in part that:

“In case any public utility shall do, cause to be done or permit to be done any act, matter or thing prohibited, forbidden or declared to be unlawful, or shall omit to do any act, matter or thing required to be done either by any provisions of this Act or any rule, regulation, order or decision of the Commission, issued under authority of this Act, the public utility shall be liable to the persons or corporations affected thereby for all loss, damages or injury caused thereby or resulting therefrom, ” *

Section 73 permits the recovery of punitive damages and declares that an action may be brought in the circuit court by any person or corporation.

Section 74 provides that the Act “shall not have the effect to release or waiver any right of action by * * * any * * * person or corporation for any right or penalty which may have arisen or accrued or may hereafter arise or accrue under any law of this State.

All penalties accruing under this Act shall be cumulative of each other, and suit for the recovery of one penalty shall not be a bar to or affect the recovery of any other penalty * # Ill. Rev. Stat. 1979, ch. Ill 2/3, par. 78.

Notwithstanding the provisions of the Act, the decided cases uniformly have held that a claim for reparations based on unreasonable charges must first be filed with the Commerce Commission under the procedures of section 72. Klopp v. Commonwealth Edison Co. (1977), 54 Ill. App. 3d 671, 370 N.E.2d 822; Dvorkin v. Illinois Bell Telephone Co. (1975), 34 Ill. App. 3d 448, 340 N.E.2d 98.

The defendant estimates the cost of installation of the service pipe in question to be between $9,000 and $15,000 and urges us to find that plaintiffs’ claim constituted a rate dispute, which must be brought before the Illinois Commerce Commission according to section 72 of the Act. Defendant relies on the definition of “rate” contained in section 10.16 of the Act, which states that the term “ *[r]ate’ includes every individual or joint rate, fare, toll, charge, rental or other compensation of any public utility * * * or any schedule or tariff thereof, and any rule, regulation, charge, practice or contract relating thereto.” (Ill. Rev. Stat. 1979, ch. 111 2/3, par. 10.16.) Defendant argues that the recovery sought by plaintiffs in the instant case presents a rate dispute because of the controversy over whether it is entitled to charge plaintiffs for the installation of a service pipe under the existing circumstances. Defendant relies on Klopp v. Commonwealth Edison Co. and Dvorkin v. Illinois Bell Telephone Co. in support of its position. In Klopp the plaintiffs contended that a delayed payment charge contained in defendants’ rate schedule was in essence an interest charge and that such charges were in excess of the maximum interest charge allowed under the Illinois Interest Act. The plaintiff in Dvorkin sought damages alleged to have resulted from defendants’ practice of providing services for the personal use of its current, former, and retired officers, directors, and employees without charge or at less than its established rate. In both Klopp and Dvorkin, the court of review held that the controversy was a rate dispute which must first be submitted to the Illinois Commerce Commission.

Although we are of the opinion that the controversy in the case at bar is analogous to both Klopp and Dvorkin and also may be classified as a rate dispute, we conclude that there is a more fundamental consideration which dictates our affirming the trial court.

The obligations of defendant regarding the rendition of service are found in section 32 of the Act (Ill. Rev. Stat. 1979, ch. 111 2/3, par. 32), which provides in pertinent part:

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Friederich v. Illinois-American Water Co.
418 N.E.2d 836 (Appellate Court of Illinois, 1981)

Cite This Page — Counsel Stack

Bluebook (online)
418 N.E.2d 836, 94 Ill. App. 3d 172, 49 Ill. Dec. 816, 1981 Ill. App. LEXIS 2257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/friederich-v-illinois-american-water-co-illappct-1981.