Metropolitan New Orleans Chapter of the Louisiana Consumers' League, Inc. v. Council of New Orleans

349 So. 2d 400, 1977 La. App. LEXIS 4055
CourtLouisiana Court of Appeal
DecidedAugust 1, 1977
DocketNo. 8108
StatusPublished
Cited by3 cases

This text of 349 So. 2d 400 (Metropolitan New Orleans Chapter of the Louisiana Consumers' League, Inc. v. Council of New Orleans) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metropolitan New Orleans Chapter of the Louisiana Consumers' League, Inc. v. Council of New Orleans, 349 So. 2d 400, 1977 La. App. LEXIS 4055 (La. Ct. App. 1977).

Opinion

SAMUEL, Judge.

By this suit against The Council of the City of New Orleans and New Orleans Public Service Inc. (NOPSI), plaintiffs seek an injunction prohibiting enforcement of a five cent increase in the transit rate charged by NOPSI, which increase was enacted by the City Council on November 11, 1975. Plaintiffs allege the five cent increase is null and void because the City of New Orleans, and more particularly the City Council, did not give sufficient public notice of the special City Council meeting held on November 11, 1975 at which the increase was approved and thereby deprived plaintiffs and others so situated of due process of law as required by the Home Rule Charter of the City of New Orleans. Defendants answered, averring the validity of the notice and of the rate increase.

After a trial on the merits, there was judgment granting plaintiffs’ prayer for an injunction prohibiting enforcement of the five cent increase. The judgment is based on a finding by the trial court that the increase was null and void because the Council had “failed to follow the prescribed statutory procedures in adopting the transit rate increase.”

NOPSI owns the franchise for electricity, gas and transit service in the City of New Orleans. As a public utility, it is regulated on a unified basis by the City Council.

On April 10,1974 NOPSI filed an application for a ten cent transit rate increase. On October 1, 1974 it filed an application for approval of increases in electric and gas rates and requested an early effective date for the ten cent transit increase for which it applied on April 10, 1974. On November 7, 1974 the City Council granted NOPSI a ten cent transit rate increase, from fifteen cents to twenty-five cents. NOPSI filed no other application for an increase after October 1, 1974.

On December 5, 1974, the City Council adopted procedures for hearings on NOP-SI’s pending application for gas and electric rate increases. These procedures provided for a public hearing “relating to said application . . . ” Plaintiffs argue that because no new application for a transit rate increase was pending, testimony and comment at the public hearing was limited to the October 1, 1974 application relating to gas and electric rates.

Public hearings on the increase in gas and electric rates were held January 6, 1975, April 8, 1975, July 28, 1975, September 24, 1975, and November 5,1975. On November 7, 1975 the president of the City Council directed the Clerk of the Council to call a special meeting for November 11, 1975 for the purpose of making a determination on the application for the rate increases applied for on October 1, 1974.

At its meeting held November 11, 1975 the City Council granted NOPSI gas and electric rate increases and also, by resolution, granted it a five cent transit fare increase, from the twenty-five cents granted one year earlier to thirty cents. Plain[402]*402tiffs contend the application and the notice of the special meeting of November 11,1975 related only to gas and electric rates, and any increase in the transit rate at that meeting was null and void for lack of proper notice and hearing.

The pertinent portion of the Home Rule Charter regulating the procedure for rate or price changes is § 4-1604, which provides:

“Establishment of Rates. In the exercise of its powers of supervision, regulation and control of any street railroad, electric light, gas, heat, power, waterworks, or other public utility, the Council shall, in cases involving the establishment, change or alteration of rates, charges, tolls, prices, fares or compensation for service or commodities supplied by such utilities, cause notice of the matter to be served upon the person or corporation affected thereby, so that such person or corporation shall have an opportunity, at a time and place to be specified in said notice, to be heard in respect to said matter. The Council shall make all necessary and reasonable rules and regulations to govern applications for the fixing or changing of rates and charges of public utilities and all petitions and complaints relating to any matter pertaining to the regulation of public utilities, and shall prescribe reasonable rules and regulations to govern the trial, hearing and rehearing of all matters referred to herein, under the same procedure as provided for ordinances granting franchises.” (Emphasis ours).

Section 3-112(5)(b) of the Home Rule Charter further provides:

“(5) Proposed ordinances on any of the following specified subjects can be adopted only at a regular meeting of the Council and shall not be adopted until at least twenty-one days after copies thereof shall have been distributed to all members of the Council and made available to the public, nor until a notice of the introduction of such proposed ordinance shall have been published in the official journal of the City not less than one week nor more than two weeks after the introduction thereof, which notice shall state the substance of the proposed ordinance and the date of the meeting at which the Council shall begin its consideration thereof, to wit:
(b) Imposing any license, requiring any permit, establishing any charge for services rendered, not imposed, required, or established at the effective date of this Charter, or increasing the rate of any license, fee, or service charge.” (Emphasis ours).

These provisions are mandatory and have been so held by this court in a recent decision.1 The above two Home Rule Charter provisions, together with the hereinafter quoted § 4-1602(2), require that when a rate or price alteration or change is sought, the citizens with a pecuniary interest in the ultimate cost of the services of a public utility be given notice of a public hearing in accordance with those provisions so they may be heard thereon.

In addition to the above quoted Home Rule Charter provisions, the trial court concluded the last sentence of Home Rule Charter § 4-1604 also required notice by publication of a meeting to consider a rate increase for utility services. As shown by the above quotation of that section, the last sentence thereof provides the Council “shall prescribe reasonable rules and regulations to govern the trial, hearing and rehearing of all matters referred to herein, under the same procedure as provided for ordinances granting franchises.” In pertinent part, the provision for granting franchises, § 4-1602(2), reads:

“(2) Each such proposed franchise ordinance, after having been introduced in the Council, shall be laid over and published once in full in the official journal. There shall then be published in the official journal three times during each calendar week for the two successive weeks immediately following said publication in [403]*403full, notices of intention, briefly describing the content of the proposed ordinance and citing where it can be seen.

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Related

Hildebrand v. City of New Orleans
549 So. 2d 1218 (Supreme Court of Louisiana, 1989)
Metropolitan New Orleans Chapter v. Council, Etc.
391 So. 2d 878 (Louisiana Court of Appeal, 1981)

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Bluebook (online)
349 So. 2d 400, 1977 La. App. LEXIS 4055, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metropolitan-new-orleans-chapter-of-the-louisiana-consumers-league-inc-lactapp-1977.