Hayden v. Louisiana Public Service Com'n

553 So. 2d 435, 1989 La. LEXIS 2957, 1989 WL 149447
CourtSupreme Court of Louisiana
DecidedDecember 11, 1989
Docket89-CA-1283
StatusPublished
Cited by7 cases

This text of 553 So. 2d 435 (Hayden v. Louisiana Public Service 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
Hayden v. Louisiana Public Service Com'n, 553 So. 2d 435, 1989 La. LEXIS 2957, 1989 WL 149447 (La. 1989).

Opinion

553 So.2d 435 (1989)

Channing HAYDEN, Jr., et al.
v.
LOUISIANA PUBLIC SERVICE COMMISSION and the State of Louisiana.

No. 89-CA-1283.

Supreme Court of Louisiana.

December 11, 1989.

*436 Richard S. Eustis, Louis S. Quinn, Charles Nunmaker, Monroe & Lemann, New Orleans, Walter H. Drake, Jr., Chalmette, Charles H. Junek, III, Violet, Louis Stierwald, Jr., Kenneth M. Wright, Lake Charles, for intervenors-appellants.

Edward S. Bagley, Terriberry, Carroll & Yancey, New Orleans, for plaintiff-appellee.

Marshall B. Brinkley, Robert L. Rieger, Jr., Baton Rouge, for defendant-appellee.

William J. Guste, Jr., Atty. Gen., Jesse James Marks, Chief, Robert A. Barnett, Asst. Atty. Gen., for defendant-appellant.

COLE, Justice.

In this case we are asked to decide whether certain sections of a statute governing pilotage fee commissions are an unconstitutional infringement on the power of the Louisiana Public Service Commission to adopt its own rules, regulations, and procedures and whether one section of the statute violates due process. We find the statute constitutional.

BACKGROUND

Beginning in 1837, the legislature first imposed regulations on the pilots who navigated ships through the entrances of the Mississippi River. In response to this legislation, the pilots in different areas formed pilots' associations to promote high standards among the members. Prior to 1968, the legislature set the fees and rates that could be charged by these associations. By La. Act 579 of 1968 (La.R.S. 34:1121-1127) the legislature created pilotage fee commissions for each pilots' association and gave these commissions the power to set fees and rates. The fee commissions consisted of an equal number of representatives of the steamship industry and the pilots' association. The Louisiana Public Service Commission (LPSC) served as a member of each fee commission in the event the industry *437 and pilot commissioners became deadlocked and could not resolve rate disputes. Commissioners from either side were allowed to certify any proper issue to the LPSC for adjudication when they could not agree. The decision of the LPSC would then constitute the decision of the fee commission. See Hayden v. Louisiana Public Service Commission, 512 So.2d 370 (La.1987); Hendrix v. Louisiana Public Service Commission, 262 La. 420, 263 So.2d 343 (1972).

By La. Act 202 of 1987, the legislature amended La.R.S. 34:1121-1122. The sections at issue in the present case are as follows:

La.R.S. 34:1122 B:

B. Pilotage fees and rates shall provide for all ordinary and necessary operating and administrative costs and expenses, including, but not limited to, the cost of, replacement of, and reasonable return on investment of pilot stations, administrative offices, furniture and fixtures, communication equipment and facilities, vessels, launches and other required vehicles of transportation and the expenses of maintaining and repairing same, other transportation expenses, the expense of maintaining necessary employees, operating materials, consumables and services, pensions, pension plans, hospitalization, disability compensation, taxes and licenses, life insurance, license insurance, trade promotions, public relations, legal expense, accounting expense, professional dues, administrative and professional publications, state pilot commissions, state and federal requirements, and fair average annual compensation for a state ship pilot, in comparison to regulated state ship pilotage in other United States ports.

La.R.S. 34:1122 D(2) & (3):

(2) Within ninety days following the certification of the issue to the Louisiana Public Service Commission, it shall hold hearings where interested members of the fee commission may file and present their evidence and arguments, at the same time, relative to the issue. The Louisiana Public Service Commission shall render a full and final decision relative to the issue prior to the lapse of twelve months from its receipt of certification of the issue.
(3)(a) If the dispute involves a proposed increase in fees and rates, the Louisiana Public Service Commission may permit the proposed increase to be put into effect, in whole or in part, pending its decision, subject to protective bonding and other security requirements set by it.
(b) If the dispute involves a proposed increase in fees and rates and the Louisiana Public Service Commission does not permit the proposed increase to be put into effect prior to its decision, the proposed increase shall nevertheless go into effect, and remain in effect unless and until it reaches a full and final decision disallowing the increase, immediately following the lapse of twelve months following its receipt of certification of the dispute if it has not rendered a decision by such time, subject however, to reasonable protective bonding and other security requirements set by it.
(c) If the dispute involves a proposed increase in fees and rates and such has been put into effect prior to full and final decision of the issue by the Louisiana Public Service Commission, and the full and final decision disallows the increase, in whole or in part, the increase which is disallowed shall be refunded in a manner as prescribed by the Louisiana Public Service Commission.

FACTS

On March 21, 1988, after the effective date of the amendment, the pilot members of the Crescent River Port Pilots Fee Commission certified a pilotage fee dispute to the LPSC pursuant to La.R.S. 34:1121-1122. The certification was docketed by the LPSC.

In April 1988, several industry commissioners of the Crescent River Port Pilots Fee Commission filed a petition in the district court for a temporary restraining order, declaratory judgment and injunctive relief against the LPSC and the State of Louisiana. The industry commissioners *438 sought to enjoin the LPSC from conducting any proceedings pursuant to the amended form of La.R.S. 34:1122 and further sought to have the statute declared unconstitutional. The pilot members of several other pilot fee commissions intervened into the proceedings.[1]

On May 3, 1988, the district court granted a temporary restraining order. The court rendered final judgment on February 2, 1989 declaring La.R.S. 34:1122 B and La.R.S. 34:1122 D(2) & (3) unconstitutional. The court found La.R.S. 34:1122 B and La.R.S. 34:1122 D(2) & (3) were impermissible restrictions on the LPSC's powers as set out in La.Const. Art. 4, § 21(B). In addition, the court found La.R.S. 34:1122 D(3) violated due process.

The LPSC, the State of Louisiana and the intervenors appealed directly to this court in accordance with La.Const. Art. 5, § 5(D)(1).

ANALYSIS

We begin from the well-settled premise that constitutional scrutiny favors the statute. Statutes are presumed to be valid, and the constitutionality of a statute should be upheld whenever possible. The party attacking the statute has the burden of showing the legislation is unconstitutional, and any doubt as to the legislation's constitutionality must be resolved in its favor. Board of Directors of the Louisiana Recovery District v. All Taxpayers, 529 So.2d 384 (La. 1988); State v. Griffin, 495 So.2d 1306 (La.1986); State v. Brenner, 486 So.2d 101 (La.1986); City of Lake Charles v. Henning, 414 So.2d 331 (La.1982).

Infringement on LPSC's Power to Adopt Rules, Regulations and Procedure

La.Const. Art.

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