Gannett River States Publishing Company, Inc. v. Entergy Mississippi, Inc.

CourtMississippi Supreme Court
DecidedDecember 15, 2004
Docket2005-CA-00052-SCT
StatusPublished

This text of Gannett River States Publishing Company, Inc. v. Entergy Mississippi, Inc. (Gannett River States Publishing Company, Inc. v. Entergy Mississippi, Inc.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gannett River States Publishing Company, Inc. v. Entergy Mississippi, Inc., (Mich. 2004).

Opinion

IN THE SUPREME COURT OF MISSISSIPPI

NO. 2005-CA-00052-SCT

GANNETT RIVER STATES PUBLISHING COMPANY, INC. d/b/a THE CLARION-LEDGER

v.

ENTERGY MISSISSIPPI, INC.

DATE OF JUDGMENT: 12/15/2004 TRIAL JUDGE: HON. STUART ROBINSON COURT FROM WHICH APPEALED: HINDS COUNTY CHANCERY COURT ATTORNEY FOR APPELLANT: ROBERT B. McDUFF ATTORNEYS FOR APPELLEE: JAMES KEITHLY CHILD, JR. HENDERSON S. HALL, JR. CHARLES EDWIN ROSS NATURE OF THE CASE: CIVIL - OTHER DISPOSITION: AFFIRMED - 08/17/2006 MOTION FOR REHEARING FILED: MANDATE ISSUED:

EN BANC.

RANDOLPH, JUSTICE, FOR THE COURT:

¶1. Gannett River States Publishing Company, Inc., d/b/a The Clarion Ledger (“Gannett”)

filed a request with the Mississippi Public Service Commission (“MPSC”) to disclose the

amount Entergy Mississippi, Inc. (“Entergy”) was charging Nissan for electrical service at its

automobile manufacturing plant in Madison County, Mississippi. Entergy filed suit against the

MPSC and Gannett to prevent the MPSC’s disclosure of the terms of an “Agreement for

Electrical Service” (“Agreement”) between Entergy and Nissan, which required and received

the MPSC’s approval. The suit was filed in the Chancery Court of the First Judicial District of Hinds County. Following trial, the chancellor found that the Agreement contained

confidential information protected under the Mississippi Public Records Act and was exempt

from disclosure. Therefore, Entergy’s motion for declaratory and injunctive relief was

granted.

FACTS

¶2. Entergy provides electrical service to forty-five counties in Mississippi. In 2000,

Entergy entered into negotiations with Nissan to encourage Nissan to locate an automobile

manufacturing plant in Madison County. An agreement to supply electrical service to the plant

was eventually reached. The parties designated the Agreement and its terms as confidential.

The Agreement was approved by the MPSC as required by Miss. Code Ann. Section 77-3-

35(1).1 Specifically, the MPSC found “that the Agreement between the Company and Nissan

should be approved by this Commission as being in the public interest.” The terms of the

private Agreement, including the charge for electrical service, were not publicly disclosed.

¶3. While reporting on Nissan’s arrival in Madison County, Gannett began investigating the

amounts that utilities were charging Nissan for their services. Gannett filed a written request

to the MPSC, pursuant to the Mississippi Public Records Act of 1983, to obtain the amount

Entergy would charge Nissan for electrical service. Pursuant to regulations, the MPSC

1 Miss. Code Ann. Section 77-3-35(1) requires MPSC approval of special contracts between utilities and high volume users, but allows those contracts to be entered into without reference to rates or other provisions. By contrast, Entergy uses rates established by the MPSC for most of its customers, as determined in rate proceedings before the MPSC. Miss. Code Ann. §§ 77-3-37 & -39.

2 notified Entergy of Gannett’s request and informed Entergy that it would release the

information in thirty days unless Entergy obtained an injunction blocking such disclosure.2

¶4. Exercising its legislatively granted right, Entergy filed suit against MPSC, its executive

secretary, and Gannett seeking a protective order to enjoin MPSC from disclosing the

information to Gannett. The chancellor entered an agreed order granting Entergy’s motion for

a preliminary injunction to prevent disclosure of any documents related to the Agreement prior

to a trial on the merits. Gannett subsequently filed a motion seeking to dissolve the

preliminary injunction.

¶5. At trial, Entergy called witnesses who testified that the charges were part of a “special

contract” for a specific consumer. Witnesses for Entergy further testified that high volume

customers, who typically require that a potential contract be confidential before negotiations

even begin, are often charged reduced and publicly undisclosed amounts based on their

anticipated large energy consumption. Additionally, Entergy witnesses testified that obtaining

such lucrative contracts allowed Entergy to maintain lower rates for smaller customers.

Finally, Entergy witnesses opined that the disclosure of special contract terms would harm

2 Rule 4D of the MPSC’s Public Utilities Rules of Practice and Procedure states, in part:

[a]ny document filed with the Commission and alleged to contain trade secrets or confidential commercial or financial information subject to the protection of any applicable law or court decision shall be clearly designated as such on its face or accompanying cover letter at the time of filing. Upon request for copies of any documents so designated, the Commission shall notify the person or utility that filed the document. Thirty (30) days after such notice the document will be made available for public inspection pursuant to the terms of this rule unless the filing party shall have obtained a court order protecting such records as confidential pursuant to Miss. Code Ann. Section 25-61-9.

3 Entergy twofold in futuro. First, by enabling other electrical utilities to underbid Entergy in

its attempts to secure high volume industrial customers for Entergy’s area of service. Second,

present Entergy users furnished with confidential commercial or financial information would

seek more attractive terms, even though some present users do not present the same profit

potential as those receiving Entergy’s lowest charges.

¶6. Gannett offered two witnesses. The first witness, a retired economics professor,

opined that he was not aware of any economically feasible reason why Entergy would need to

keep the terms of its special contracts confidential. The second witness, a reporter, testified

about the accuracy of articles concerning Nissan.

¶7. The chancellor found that while the Entergy-Nissan Agreement was not exempt from

disclosure simply because it was labeled a “special contract,” the Agreement did contain

“confidential commercial and financial information” protected under Miss. Code Ann.

Sections 25-61-9(1) and 79-23-1(2), and, thus, was exempt from disclosure. Specifically, the

chancellor stated, “[t]he Court has reviewed the documents in camera and is convinced that

disclosure of such documents would result in a loss of competitive edge in future

negotiations.” Accordingly, the chancellor denied Gannett’s motion to dissolve the

preliminary injunction and enjoined any party from releasing any of the information at issue

to the newspaper or its agents.

¶8. Aggrieved, Gannett appeals the ruling below.

4 STANDARD OF REVIEW

¶9. To reverse the ruling of the trial court requires a de novo finding that the chancellor

erroneously interpreted or applied the law, see Gannett River States Publ’g Corp. v. City of

Jackson, 866 So. 2d 462, 465 (Miss. 2004) (citing Bank of Miss. v. Hollingsworth, 609 So.

2d 422, 424 (Miss. 1992)), or that the chancellor’s findings of fact were not supported by

“substantial, credible, and reasonable evidence.” City of Jackson v. Perry, 764 So. 2d 373,

376 (Miss. 2000). Finding no evidence of either in the record before us, we affirm the

chancellor’s judgment.

ANALYSIS

I.

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