Frith v. Southwest Ouachita Waterworks, Inc.

207 So. 3d 1121, 2016 La. App. LEXIS 1871
CourtLouisiana Court of Appeal
DecidedOctober 12, 2016
DocketNo. 50,749-CW
StatusPublished
Cited by2 cases

This text of 207 So. 3d 1121 (Frith v. Southwest Ouachita Waterworks, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Frith v. Southwest Ouachita Waterworks, Inc., 207 So. 3d 1121, 2016 La. App. LEXIS 1871 (La. Ct. App. 2016).

Opinion

BROWN, CHIEF JUDGE.

| plaintiffs, Dennis Harold Frith, et al., filed a writ with this Court complaining of a judgment rendered on October 15, 2015, by the district court denying in part defendant’s exception of lack of subject matter jurisdiction as to plaintiffs’ tort and contract claims against the defendant water service provider, granting in part as to the plaintiffs’ claims which fell within the jurisdiction of the Louisiana Public Service Commission (“LPSC”), and staying the pending proceedings until plaintiffs’ administrative remedies regarding their water service were exhausted. This Court granted the writ and converted it to the instant appeal.1

For the reasons set forth below, we affirm the lower court’s ruling. Plaintiffs’ tort and contract claims should be stayed by the lower court until the LPSC determines whether a change in water service provider is needed.

Facts and Procedural History

Plaintiffs are contract customers of defendant or household members of the homes defendant contracted with to provide service. The defendant, Southwest Ouachita Waterworks, Inc. (“Southwest”), provides water service to plaintiffs at their homes and/or places of employment. On August 7, 2015, plaintiffs filed a petition for damages and an injunction related to the water supplied by Southwest, complaining that the water provided by defendant was brown in color, foul-smelling, and [1123]*1123unfit for use or consumption. Plaintiffs’ claims included breach of contract, negligence, breach of warranty, trespass, nuisance, violation of duties imposed under the Louisiana Products Liability Act, red-hibition, and violations of state environmental laws.

| {¿Plaintiffs sought general damages for: (1) costs sustained in purchasing water filtration devices and alternative water sources; (2) costs incurred repairing and replacing water piping systems, water tanks, and clothes damaged by the unfit water; (3) the diminution in value to plaintiffs’ properties; and (4) a refund of all payments plaintiffs made to Southwest under their contracts for water service. Plaintiffs additionally sought non-pecuniary damages for mental anguish, distress, and inconvenience they experienced when: (1) they were unable to use the water; (2) their clothes were ruined and required replacement; (3) their pipes and appliances were damaged and required repair or replacement; and (4) they had to find other water sources for drinking and daily use. Plaintiffs additionally sought a permanent injunction requiring Southwest “to adopt adequate methods in supplying safe drinking water and/or find sources of water that prevent and/or reduce the likelihood of contamination.” Plaintiffs’ petition also alleged that part of their purpose in filing the suit was “to force a change by Southwest Ouachita or for another water company [to deliver] safe drinking water as mandated by law.”

On September 11, 2015, Southwest filed a declinatory exception, claiming that the Fourth Judicial District Court did not have subject matter jurisdiction over the case, but rather, that exclusive jurisdiction over the matter rested with the LPSC, which has jurisdiction over claims related to water service as granted by Louisiana constitutional and statutory law. Defendant alternatively argued that because the LPSC had primary jurisdiction over several issues in the case, the court should dismiss and/or stay the proceedings until the LPSC determined those matters.

|3Following a hearing on October 15, 2015, the district court denied the exception as to plaintiffs’ tort and breach of contract claims, and granted the exception as to the remaining claims under the jurisdiction of the LPSC. The court found it had concurrent jurisdiction with the LPSC over plaintiffs’ non-tort and non-contract claims, and that the plaintiffs were first required to exhaust their administrative remedies with the LPSC before seeking district court review of those matters. The district court, under the doctrine of primary jurisdiction, stayed the case until plaintiffs exhausted their administrative remedies for the claims that fell within the jurisdiction of the LPSC.

On November 16, 2015, plaintiffs filed a notice of intent to seek supervisory review of the court’s ruling on defendant’s exception of lack of subject matter jurisdiction and motion to stay. Plaintiffs timely filed for supervisory review and this Court granted the writ, ordering the matter to be docketed, briefed, and argued as an appeal.

Discussion

Plaintiffs argue that the trial court abused its discretion in finding that the LPSC had concurrent jurisdiction with the district court over plaintiffs’ non-tort and non-contract claims. According to the plaintiffs, the LPSC has jurisdiction only to certify water service providers, assign territories, and fix rates for water service; all other unrelated disputes fall within the jurisdiction of the district court, which includes plaintiffs’ claims. Plaintiffs further urge that the district court may only stay district court proceedings under the doctrine of primary jurisdiction when there is concurrent jurisdiction between the dis[1124]*1124trict court and the LPSC, an available administrative remedy exists which can settle the dispute, and issuing such a stay is in the interest |4of justice or judicial efficiency. In the instant case, assert plaintiffs, , there is no existing administrative remedy within the LPSC to resolve the dispute between plaintiffs and defendant.

Southwest argues that the LPSC has jurisdiction over matters related to water service. Plaintiffs are seeking an injunction ordering defendant to supply acceptable methods for providing safe drinking water or find other sources of adequate water; alternatively, plaintiffs are asking for a change in water service providers. Southwest contends that either remedy relates to water service and falls within the jurisdiction of the LPSC; therefore, the district court correctly dismissed those claims. Defendant agrees that the district court has jurisdiction over plaintiffs’ tort and contract claims, but contends that all of plaintiffs’ other claims relate to water service. As such, plaintiffs must first exhaust their administrative remedies with the LPSC before seeking relief from the court. Lastly, Southwest argues that plaintiffs’ claims for damages are dependent upon the appropriate standards for waterworks, which bear on what duties defendant owes to its clients, and whether those standards were breached. Southwest claims that deferring to the LPSC’s determination of those matters would encourage consistency in the governing scheme and preclude the district court from being the regulatory manager of the waterworks system.

The district courts are vested with “original jurisdiction of all civil and criminal matters” under La. Const, art. V, § 16(A), unless otherwise authorized in the constitution. Central La. Elec. Co. v. La. Public Serv. Com’n., 601 So.2d 1383 (La. 1992).

Jurisdiction over public utilities in general and rates in particular is vested in the LPSC under La. Const, art. IV, § 21(B). Daily Advertiser v. Trans-La., a Div. of Atmos Energy Corp., 612 So.2d 7 (La. 1993). Article IV, § 21(B) states that:

The commission shall regulate all common carriers and public utilities and have such other regulatory authority as provided by law. It shall adopt and enforce reasonable rules, regulations, and procedures necessary for the discharge of its duties, and shall have other powers and perform other duties as provided by law.

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207 So. 3d 1121, 2016 La. App. LEXIS 1871, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frith-v-southwest-ouachita-waterworks-inc-lactapp-2016.