McAlester Gas & Coke Co. v. Corporation Commission

1924 OK 312, 224 P. 698, 101 Okla. 268, 1924 Okla. LEXIS 86
CourtSupreme Court of Oklahoma
DecidedMarch 13, 1924
Docket15162
StatusPublished
Cited by13 cases

This text of 1924 OK 312 (McAlester Gas & Coke Co. v. Corporation Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McAlester Gas & Coke Co. v. Corporation Commission, 1924 OK 312, 224 P. 698, 101 Okla. 268, 1924 Okla. LEXIS 86 (Okla. 1924).

Opinion

LYDICK, J.

Tbe McAlester Gas & Coke Company, a corporation, is a public utility furnishing natural gas to the inhabitants of McAlester, Okla., and operating under a schedule of rates fixed by the Corporation Commission. On October 4, 1921, it filed with the Corporation Commission its written petition asking for a very substantial increase in such rates and alleged that unless such rates be granted, its earnings would be insufficient to pay its operating expenses and a reasonable interest upon the value of its used and useful investment, and would result in its property being confiscated, without regard to the constitutional guaranty to it of due process of law. The case was contested by the city of McAlester. Evidence was heard by the Corporation Commission at different times thereafter*, until finally same was submitted to tbe Corporation Commission for decision on February 2, 1922. The Corporation Commission held same under advisement for a period of nearly two years, and finally on January 18, 1924, entered its judgment denying the petitioner any relief whatsoever. The company excepted to the judgment, and brings the case here on appeal.

On March 13, 1924, and upon due notice, the company filed and presented and submitted to the court its application for supersedeas, and for permission to place in effect, during the pendency of the case in this court, such a temporary schedule of increased rates as will protect the company in event it be finally adjudged that an increase in rates should be allowed. The company offers to give a suspending bond conditioned that it will make refund of said excess charge in event the court shall find the company not entitled to such increased rates. As grounds for the order of supersedeas which the company seeks, it alleges,

First. In the language of the application for supersedeas, “Great, inexcusable, and unjustifiable delay has occurred, in that the commission failed from February 2, 1922, and until January 18, 1924, to make any order whatever in said canse, and plaintiff in error states that such delay was in no sense or respect acquiesced in or consented to by tbe plaintiff in error.”

Second. That the decision, order, and judgment of the Corporation Commission denying it the right to increase its rates is a purely arbitrary order, not supported by evidence or law, and requires it to continue to operate under rates which are confiscatory and amount to taking its property without due process of law.

It was on October 4, 1921, that this company filed its petition with the Corporation *270 Commission. Upon tlie filing of that petition, the Corporation Commission owed the company the legal duty to proceed to a final determination thereof as rapidly as was consistent with a proper consideration of the issues and regard for the general business before it. A few intermittent hearings in the case were scattered over a period of five months of the heavy gas consuming period of the year. The evidence was completed and the cause submitted to the commission on February 2, 1922, for its decision. The commission did not decide the issues in the case until January 18, 1924, after the lapse of a period of nearly two years. The members of the Corporation Commission are men of high standing and unquestioned integrity, zealously endeavoring in all matters to render equitable and just relief to all before its bar. We are certain that the commission had no willful intent to wrongfully delay either a hearing on the case or a final decision on same. Nevertheless during all that period of time this delay was an effective denial of justice to the company. This delay is unreasonable and unjust, and in event it develops that the company was entitled to an increase in rates, the delay has effectively deprived the company of its property, through the form but without the substance of due process of law. These rates when made by the commission cannot be retroactive. For the loss sustained by the company during that time, if the allegations in its petition are true, the court is without power to recompensate the company.

So sacredly does the organic law regard these rights that the remedy to avoid such results is not confined to the Corporation Commission, nor to this court, nor to the tribunals of the state. The Corporation Com. mission in making these rates acts in a legislative capacity. When it has made its adjudication, and not before, has the losing party recourse to this court by appeal. On app""’ this court acts in a legislative capacity, but when it has finally approved or prescribed rates and charges, the utility has recourse to the federal courts of equity to determine whether the rates so prescribed are so unreasonable as to amount to a taking of the company’s property without due proces of law. Reference is made to the cases of Oklahoma Natural Gas Company, Appellant, v. Campbell Russell, Art L. Walker, and E. R. Hughes, Constituting the Corporation Commission of the State of Oklahoma, et al., and Oklahoma Gas & Electric Company and Muskogee Gas & Electric Company, Appellants, v. Corporation Commission of the State of Oklahoma, Campbell Russell, Art. L. Walker, and E. R. Hughes, Constituting said Commission, et al., 261 U. S. 290, 69 L. Ed. 659. Here the court held that when a case like this was pending on appeal before this court and this court had denied to the company th« right to give a suspending bond and place in effect increased rates until a final determination of the case, the company need not await such final determination in this court, but might go into a federal court of equity and obtain an increase in rates during such time. Pursuant to said holding, the company then proceeded to do sí> in those cases.

It is the general rule that while a' case is yet pending and undetermined before the Corporation Commission, the utility does not have recourse to a federal court of equity for the enforcement of a temporary increase of rates. The leading case on that point is Prentis v. Atlantic Coast Line Co., 211 U. S. 210.

Interesting discussions of such conditions is found also in the following cases: A., T. & S. F. Ry. Co. v. Love, 174 Fed. 59; Chicago Rys. Co. et al. v. Ill. Commerce Commission, 277 Fed. 970; Springfield Gas & Electric Co. v. Barker, 231 Fed. 331; Love v. A., T. & S. F. Ry. Co., 185 Fed. 321; Palermo Land & Water Co. v. Railroad Commission of Calif., 227 Fed. 708; Northwestern Bell Telephone Co. v. Hilton, Atty. Gen., et al., 274 Fed. 384.

The general rule above announced may not be applicable where there is an unreasonable and unjust delay in the proceedings before the Corporation Commission, even though such delay be necessary. This the court may hold, on the theory that the company, being without fault, must not even by the necessity of delay be deprived of its property, though such deprivation may taike the form but lack the substance of due process of law. If such delay be intentionally caused by the commission, the suggested exception to the rule would have even a greater appeal.

It is by the provisions of the federal Constitution and acts of Congress that a litigant has a right in a given ease to resort to a federal court of equity.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

MCI Telecommunications Corp. v. State
1991 OK 86 (Supreme Court of Oklahoma, 1991)
Opinion No. (1979) Ag
Oklahoma Attorney General Reports, 1979
City of Cambridge v. Public Utilities Commission
159 Ohio St. (N.S.) 88 (Ohio Supreme Court, 1953)
Southwestern Bell Telephone Co. v. State
1949 OK 188 (Supreme Court of Oklahoma, 1949)
Wilson & Co. v. Oklahoma Gas & Elec. Co.
1942 OK 152 (Supreme Court of Oklahoma, 1942)
State Ex Rel. Hembree v. County Court of Cleveland County
1941 OK 261 (Supreme Court of Oklahoma, 1941)
State Ex Rel. Reirdon v. County Court of Marshall County
1938 OK 424 (Supreme Court of Oklahoma, 1938)
Community Natural Gas Co. v. Corporation Commission
1938 OK 51 (Supreme Court of Oklahoma, 1938)
Oklahoma Gas & Electric Co. v. Wilson & Co.
1936 OK 514 (Supreme Court of Oklahoma, 1936)
Oklahoma Cotton Ginners' Ass'n v. State
1935 OK 1004 (Supreme Court of Oklahoma, 1935)
McAlester Gas & Coke Co. v. Corporation Commission
1924 OK 566 (Supreme Court of Oklahoma, 1924)

Cite This Page — Counsel Stack

Bluebook (online)
1924 OK 312, 224 P. 698, 101 Okla. 268, 1924 Okla. LEXIS 86, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcalester-gas-coke-co-v-corporation-commission-okla-1924.