Hull v. Columbia Gas of Ohio

828 N.E.2d 677, 160 Ohio App. 3d 695, 2005 Ohio 2089
CourtOhio Court of Appeals
DecidedApril 29, 2005
DocketNo. L-04-1149.
StatusPublished
Cited by4 cases

This text of 828 N.E.2d 677 (Hull v. Columbia Gas of Ohio) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hull v. Columbia Gas of Ohio, 828 N.E.2d 677, 160 Ohio App. 3d 695, 2005 Ohio 2089 (Ohio Ct. App. 2005).

Opinions

*697 Singer, Presiding Judge.

{¶ 1} This is an appeal from a judgment of the Lucas County Court of Common Pleas dismissing a defendant in a class-action lawsuit. Because we conclude that the trial court had authority to hear appellant’s contract claims, we reverse and remand for further proceedings.

{¶ 2} Appellee is Columbia Gas of Ohio, a supplier and deliverer of natural gas to consumers. Appellant is Charles A. Hull, a residential natural gas customer along with those similarly situated.

{¶ 3} In 2000, appellant elected to participate in appellee’s Ohio Consumer Choice program. Part of utility deregulation, the choice program was set up to allow consumers to purchase natural gas in a competitive environment. Appellant was offered natural gas from gas marketers selected and approved by appellee.

{¶ 4} Appellant chose to purchase his gas from Energy Max of Northeast Ohio, Inc., a Youngstown company that contracted to provide natural gas for $0.36 per 100 cubic feet for a one-year period, beginning March 15, 2000.

{¶ 5} On August 30, 2000, appellee notified appellant that Energy Max had failed to deliver the natural gas that it had contracted to deliver to appellee for appellant’s purchase. As a result, appellee told appellant, it had elected to terminate Energy Max from its Consumer Choice program. The result, appellee notified appellant, was that appellee would assume the role as appellant’s natural gas supplier, but at appellee’s current approved rate of nearly $0.63 per 100 cubic feet.

{¶ 6} When appellant complained to the Public Utilities Commission of Ohio (“PUCO”), the PUCO responded that it did “not have clear jurisdiction over marketers” and that the switch was engendered by a contract dispute between appellee and Energy Max.

{¶ 7} On October 18, 2000, appellant sued appellee and Energy Max on behalf of himself and others similarly situated, alleging breach of contract and warranty as well as a violation of the public utilities law, R.C. Title 49. 1 A class was eventually certified, 2 and a default judgment against Energy Max obtained. Before this occurred, however, the court dismissed appellee for want of jurisdiction. The court concluded that appellant’s claims against appellee constituted a *698 rate dispute with a public utility and, therefore, were within the exclusive jurisdiction of the PUCO.

{¶ 8} Appellant now appeals this dismissal, setting forth a single assignment of error:

{¶ 9} “The trial court erred by granting the motion to dismiss filed by appellee Columbia Gas of Ohio”

{¶ 10} The trial court granted appellee’s motion to dismiss for want of subject-matter jurisdiction, pursuant to Civ.R. 12(B)(1).

{¶ 11} We review a dismissal for lack of subject-matter jurisdiction de novo. Pulizzi v. Sandusky, 6th Dist.App. No. E-03-002, 2003-Ohio-5853, 2003 WL 22462463, at ¶ 5. At issue is whether a plaintiff has alleged a cause of action that the court has authority to decide. Id., citing McHenry v. Indus. Comm. (1990), 68 Ohio App.3d 56, 62, 587 N.E.2d 414. The court’s analysis is not limited to the complaint but may also consider other pertinent material without converting the motion to one for summary judgment. Southgate Dev. Corp. v. Columbia Gas Transm. Corp. (1976), 48 Ohio St.2d 211, 2 O.O.3d 393, 358 N.E.2d 526, paragraph one of the syllabus.

{¶ 12} In this matter, the trial court concluded that the subject of appellant’s complaint was a rate dispute. Therefore, the court concluded, the PUCO has-exclusive jurisdiction. On appeal, appellant insists that there was no rate dispute; the rate charged by appellee was unquestionably within its tariff. Rather, appellant contends, appellee was an agent of or at least appeared to be an agent of Energy Max in entering into a contract with appellant. It is the breach of this contract that appellant maintains is the crux of his suit. Therefore, according to appellant, the suit falls within the jurisdiction of the courts, not the PUCO.

{¶ 13} “The jurisdiction specifically conferred by statute upon the Public Utilities Commission over public utilities of the state, including the regulation of rates and the enforcement of repayment of money * * *, is so complete, comprehensive and adequate as to warrant the conclusion that it is likewise exclusive.” State ex rel. Ohio Bell Tel. Co. v. Court (1934), 128 Ohio St. 553, 557, 1 O.O. 99, 192 N.E. 787; accord, N. Ohio Tel. Co. v. Winter (1970), 23 Ohio St.2d 6, 9, 52 O.O.2d 29, 260 N.E.2d 827; Kazmaier v. Toledo Edison Co. (1991), 61 Ohio St.3d 147, 152, 573 N.E.2d 655.

{¶ 14} The traditionally recognized exceptions to this blanket preemption of jurisdiction, however, are “pure tort and contract claims that do not require a consideration of statutes and regulations administered and enforced by the [Public Utilities] Commission.” State ex rel. Illuminating Co. v. Cuyahoga Cty. *699 Court of Common Pleas, 97 Ohio St.3d 69, 73, 2002-Ohio-5312, 776 N.E.2d 92, at ¶ 21; see, e.g., Kazmaier, supra, 61 Ohio St.3d at 153-154, 573 N.E.2d 655 (pure common-law tort claims may be brought in common pleas court); Marketing Research Serv. v. Pub. Util. Comm. (1987), 34 Ohio St.3d 52, 56, 517 N.E.2d 540 (breach of contract for the provision of interstate telecommunications services); Kohli v. Pub. Util. Comm. (1985), 18 Ohio St.3d 12, 14, 18 OBR 10, 479 N.E.2d 840 (failure to warn landowners concerning the dangers of voltage); Milligan v. Ohio Bell Tel. Co. (1978), 56 Ohio St.2d 191, 10 O.O.3d 352, 383 N.E.2d 575, paragraph three of syllabus (invasion of privacy).

{¶ 15} If the hallmark of claims exempt from the PUCO’s broad authority is that they do not require consideration of statutes or regulations administered or enforced by the commission, it is difficult to see how the present matter is not within the exemption. As much as appellee reiterates that this case is about rates, there is no rate dispute requiring the commission to interpret statutes or regulations. Appellant concedes that the default rate appellee charged after terminating its arrangement with Energy Max was the proper rate, according to the regulatory tariffs.

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Bluebook (online)
828 N.E.2d 677, 160 Ohio App. 3d 695, 2005 Ohio 2089, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hull-v-columbia-gas-of-ohio-ohioctapp-2005.