Monochem, Inc. v. East Ascension Telephone Co.

195 So. 2d 748, 1967 La. App. LEXIS 5838, 68 P.U.R.3d 109
CourtLouisiana Court of Appeal
DecidedFebruary 6, 1967
DocketNo. 6912
StatusPublished
Cited by8 cases

This text of 195 So. 2d 748 (Monochem, Inc. v. East Ascension Telephone Co.) 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
Monochem, Inc. v. East Ascension Telephone Co., 195 So. 2d 748, 1967 La. App. LEXIS 5838, 68 P.U.R.3d 109 (La. Ct. App. 1967).

Opinion

ELLIS, Judge.

In this case, plaintiffs Monochem, Inc., The Borden Company, and United States Rubber Company seek the return of certain amounts of money paid by them to defendant under Order 9085 of the Louisiana Public Service Commission, which was later set aside by the Supreme Court in the case of Monochem, Inc. v. Louisiana Public Service Commission, 247 La. 532, 172 So.2d 670 (1965).

In the trial court, the matter was heard on a motion for summary judgment filed by plaintiffs, and an exception of no cause of action filed by defendant. From a judgment denying the motion for summary judgment, maintaining the exception of no cause of action, and dismissing plaintiffs’ suit, plaintiffs have taken this devolutive appeal.

The allegations of plaintiffs’ petition, which, for the purposes of the exception of no cause of action must be considered as true, are to the effect that plaintiffs own and operate chemical plants near Geismar, Louisiana, and that they receive telephone service from defendant’s Gonzales, Louisiana, telephone exchange. It is further alleged that plaintiffs receive foreign exchange service from the Baton Rouge exchange of Southern Bell Telephone ana Telegraph Company.

It further appears from the petition that in May, 1961, defendant entered into a contract with United Engineers and Constructors, Inc., as agent for petitioners, for telephone service in the Geismar area. Subsequent to the execution of the contract, defendant applied to the Public Service [750]*750Commission for a foreign exchange charge of $100.00 per month for each foreign exchange telephone in its area, basing its claim on long distance revenue lost due to the presence of the foreign exchange phones.

On March 4, 1964, the Louisiana Public Service Commission entered Order No. 9085, which imposed a $75.00 a month charge on each of said foreign exchange telephones. The matter was litigated and a judgment of the 19th Judicial District Court invalidating the said order was affirmed by the Supreme Court in the Mono-chem case, supra, and became final on March 29, 1965.

The remainder of the petition relates to the amounts of money which plaintiffs claim should be refunded to them.

In support of its exception, defendant relies on Article 6, Section 5 of the Constitution of 1921 which provides:

The orders of the Commission fixing or establishing any rate, fare, toll or charge for any commodity furnished, service rendered, or to be rendered by any common carrier or public utility named herein, or hereafter placed under the control of said Commission, shall go into effect at such time as may be fixed by the Commission, and shall remain in effect and be complied with, unless and until set aside by the Commission, or by a final judgment of a court of competent jurisdiction, in a suit setting aside and annulling the same; provided, however, that if an interlocutory injunction is applied for, and if of opinion that irreparable loss or damage would result to plaintiff unless a temporary restraining order is granted, the judge of the district court having jurisdiction may grant a temporary restraining order, to remain in force only until the hearing and determination of the application for an inter-Cocutory injunction; provided, that no injunction shall issue until after five days notice has been given the Commission.

It argues that, once a rate is set by the Public Service Commission, a utility is required by law to charge that rate until same is set aside, and that the law does not contemplate that any refund be made in the event that the rate should be subsequently reduced or set aside. It further contends that plaintiffs’ proper remedy in such a case as this is by way of injunction, which is provided by the above section for the avoidance of irreparable injury.

Plaintiffs’ contention is that the law of this state does permit the recovery of amounts paid under an illegal order of the Public Service Commission, and that they wopld not have been able to obtain an injunction because they could not have shown irreparable injury. They urge that this court reverse the judgment of the district court and sustain the motion for summary judgment filed by them.

In support of the first contention, appellants cite the case of Southern Bell Tel. and Tel. Co. v. Louisiana Public Service Commission, 183 La. 741, 164 So. 786 (1935). In that case, the Public Service Commission had ordered Southern Bell to make substantial reduction in its rates. Southern Bell opposed the order and applied to the courts for a preliminary injunction on the ground that it would be irreparably injured if the order remained in effect pending the appeal. The irreparable injury alleged was its inability to collect from its subscribers the difference between the higher and lower rates if the court should set aside the order of the Commission. In that case, the injunction was refused on the basis that there was no showing that, if the higher rates were reinstated, the subscribers “would fail to voluntarily pay what they owe”. There is obviously an underlying assumption on the part of the court that an obligation to pay would exist.

Appellants further rely on Article 2301 of the Civil Code, which reads as follows:

“He who receives what is not due to him, whether he receives it through error [751]*751or knowingly, obliges himself to restore it to him from whom he has unduly received it.”

They further call the attention of the Court to the case of Smith v. Phillips, 175 La. 198, 143 So. 47 (1932), in which the plaintiff was permitted to recover monies wrongfully received by defendants under an executory judgment which was subsequently reversed on a devolutive appeal. They claim that the legal situation in that suit is analogous to the one presently before the Court.

Appellants take the position that it would have been useless for them to have attempted to obtain an injunction, since they would not have been able to show irreparable injury, which they claim to be damage which cannot be adequately compensated or measured by a money judgment.

We feel that plaintiffs’ position is well taken. Irreparable injury is that injury “for which the injured party cannot be compensated adequately in damages or for which his damages cannot be measured by a pecuniary standard”.

We feel that the Southern Bell case, supra, clearly indicates that recovery of rates wrongfully charged or paid is contemplated by the laws of this state. The authorities cited by defendant-appellee in this connection, while persuasive, are all from other jurisdictions and cannot be binding on the courts of this state. We further feel that they are inapposite to this case, which is not, in the strictest sense, a rate case. The charge of $75.00 per month per foreign service line which was levied by ■Order No. 9085 was to compensate defendant for loss in revenues as a result of the installation of the lines, and had no bearing whatsoever on services rendered.

For the above reasons, we are of the opinion that the judgment of the district court, insofar as it maintained the exception of no -cause of action, was erroneous.

Appellant also urges that there are no issues of material fact in the case, and that judgment can be rendered on the basis of the pleadings, admissions and affidavits contained in the record.

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

Related

State of Louisiana v. Ralph Cheramie, Jr
Louisiana Court of Appeal, 2025
Giardina v. Marrero Furniture Co.
300 So. 2d 543 (Louisiana Court of Appeal, 1974)
W. E. Parks Lumber Co. v. Ronald A. Coco, Inc.
297 So. 2d 925 (Louisiana Court of Appeal, 1974)
Wooten v. Null
292 So. 2d 883 (Louisiana Court of Appeal, 1974)
Franklin v. Clemmons
252 So. 2d 687 (Louisiana Court of Appeal, 1971)
Greenberg v. Burglass
229 So. 2d 83 (Supreme Court of Louisiana, 1969)
McBride v. Duckworth
232 So. 2d 122 (Louisiana Court of Appeal, 1969)
Monochem, Inc. v. East Ascension Telephone Co.
199 So. 2d 912 (Supreme Court of Louisiana, 1967)

Cite This Page — Counsel Stack

Bluebook (online)
195 So. 2d 748, 1967 La. App. LEXIS 5838, 68 P.U.R.3d 109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/monochem-inc-v-east-ascension-telephone-co-lactapp-1967.