Giallanza v. LOUISIANA PUBLIC SERV. COM'N

412 So. 2d 1369, 1982 WL 893106
CourtSupreme Court of Louisiana
DecidedApril 5, 1982
Docket81-C-1844, 81-CA-2395
StatusPublished
Cited by21 cases

This text of 412 So. 2d 1369 (Giallanza v. LOUISIANA PUBLIC SERV. COM'N) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Giallanza v. LOUISIANA PUBLIC SERV. COM'N, 412 So. 2d 1369, 1982 WL 893106 (La. 1982).

Opinion

412 So.2d 1369 (1982)

Sam GIALLANZA, Captain Sam V. Gardner, Captain E. B. Hendrix and Warren A. Maher, Individually and as Industry Commissioners of the Crescent River Port Pilots Fee Commission
v.
LOUISIANA PUBLIC SERVICE COMMISSION and Captain Charles E. F. Arnoult, Captain E. G. Bach, III, Captain Mark Delesdernier, Jr. and Captain R. E. Ducros, Pilot Commissioners of the Crescent River Port Pilots Fee Commission, Intervenors.

Nos. 81-C-1844, 81-CA-2395.

Supreme Court of Louisiana.

April 5, 1982.

*1370 Gregory J. Avery, New Orleans, for relator.

Frederick R. Tulley and Tom F. Phillips, Taylor, Porter, Brooks & Phillips, Baton Rouge, and Edward S. Bagley, Terriberry, Carroll, Yancey & Farrell, New Orleans, for plaintiff-appellee and for respondents.

Marshall B. Brinkley, Baton Rouge, for defendant-appellee and respondents.

Joseph W. Nelkin, New Orleans, for intervenors-appellant and for relator.

DENNIS, Justice.

This is a river port pilot rate case. The questions presented are: (1) whether the Public Service Commission, in the absence of an agreement between the pilots and the steamship industry, may exercise its regulatory authority in fixing pilotage fees; (2) *1371 whether the Public Service Commission's order sets forth findings of fact and a statement of reasons from which a court can determine that there is a reasonable basis for the pilotage fees fixed.

In June, 1979 the Louisiana Public Service Commission was called upon by the industry and pilot commissioners of the Crescent River Port Pilot Fee Commission to revise rates and charges for services rendered by the river port pilots. After conducting hearings and receiving evidence, the Public Service Commission issued an order on August 4, 1980 by which it: (1) determined that twenty additional river port pilots are necessary to adequately serve shipping in the Mississippi River, the Mississippi River Gulf outlet and the Port of New Orleans; (2) ordered the Crescent River Port Pilots Association to expeditiously commission twenty additional river port pilots; and (3) adopted a new schedule setting fees for the services rendered by the river port pilots.

Dissatisfied with this result the industry commissioners of the Crescent River Port Pilots Fee Commission petitioned the Nineteenth Judicial District Court to reverse and set aside the Public Service Commission's order.[1] The pilot commissioners intervened seeking an amendment of the order to increase the fees allowed and the number of new pilots to be added.

The district court interpreted the Public Service Commission order to mean that twenty new pilots are authorized and mandated and that the additional funds realized from the new fee schedule are to be used to pay each pilot the same amount a pilot was making before the order. The court approved the Commission's finding that twenty additional pilots are necessary to adequately serve the area between Pilottown and New Orleans. However, the court modified the effective date of the new fees in order to prevent a windfall to the veteran pilots. It provided that only one-twentieth of the new rate shall become effective upon the commissioning of each new pilot. Also, it found that the Commission's order arbitrarily allowed the pilots double compensation for boat service and reduced this amount accordingly.

The pilot commissioners of the Crescent River Port Pilots Fee Commission appealed to this court from the district court decision. The commissioners also applied for a writ of certiorari, which we granted and consolidated with the appeal.

The Role of the Public Service Commission in Pilot Fee Regulation

The Governor is authorized to appoint and commission river port pilots certified as qualified by the Board of River Port Pilot Commissioners for the Port of New Orleans. La.R.S. 34:992, 993. Commissioned river port pilots have the exclusive right to pilot vessels between Pilottown and New Orleans, within the Port of New Orleans, and on other inland waterway routes connecting with the port. La.R.S. 34:996. The pilots are authorized to organize by forming a river port pilots association. La.R.S. 34:995. See Kotch v. Board of River Port Pilot Commissioners, 330 U.S. 552, 67 S.Ct. 910, 91 L.Ed. 1093 (1946); Brechtel v. Board of Examiners of Bar Pilots, 230 F.Supp. 18 (E.D.La.1964); Hendrix v. Louisiana Public Service Commission, 262 La. 420, 263 So.2d 343 (La.1972); A. Parks, The Law of Tug, Tow and Pilotage, 513-519 (1971).

Originally, pilots' fees were regulated directly by statute. La.R.S. 34:997-999. In 1968, however, the legislature established pilot fee commissions composed of four members of the pilots' association and four members of the steamship industry. La. R.S. 34:1121. The pilot fee commissions have authority to fix "reasonable and just... fees for pilotage services to ships and vessels, giving due regard to the length, draft and tonnage of the vessels ..., the difficulty and inconvenience of the particular service and the skill required to render it, the supply of and demand for pilotage *1372 services, the public interest in maintaining efficient, economical and reliable pilotage service and other factors relevant to the determination of reasonable and just rates...." La.R.S. 34:1122.

In the event that the pilot and industry commissioners are unable to resolve any dispute as to pilotage rates or any other legitimate business, the question may be referred to the Louisiana Public Service Commission by commissioners representing either pilots or industry. La.R.S. 34:1121. If the question of reasonable and just pilotage fees or any other matter is so referred, the decision of the Public Service Commission shall constitute the decision of the pilotage commission. Id.

Under this court's previous interpretation of this statutory scheme, the Public Service Commission's regulatory authority is invoked when the question of reasonable and just pilot fees or other matters are referred to it. Hendrix v. Louisiana Public Service Commission, 262 La. 420, 263 So.2d 343 (1972). Accordingly, in a case appealed directly from the district court, we held that pilot fees fixed by the Public Service Commission in default of an agreement by a majority of the pilot fee commission should be affirmed by the courts unless they are found to be arbitrary, capricious, or without support by evidence in the record. Id. 263 So.2d at 350.

The industry commissioners challenge our construction of the legislative aim. They argue that the statute only empowers the Public Service Commission to act as a tiebreaker in the event that a majority of the pilot fee commission is unable to agree upon rates. Accordingly, they contend that the Public Service Commission is not authorized to regulate pilot fees but must restrict itself to voting yes or no on fee schedules or other questions referred. Consequently, they urge, judicial review of the Public Service Commission's decision in this capacity is not governed by the constitutional and statutory rules applicable to review of its actions as a regulatory authority.

In support of their arguments, the industry commissioners point to statutory provisions requiring the Public Service Commission to "serve as a member of each pilot fee commission in the event that the pilot and industry commissioners are unable to resolve any dispute as to pilotage rates," La. R.S.

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Bluebook (online)
412 So. 2d 1369, 1982 WL 893106, Counsel Stack Legal Research, https://law.counselstack.com/opinion/giallanza-v-louisiana-public-serv-comn-la-1982.