Mrs. Grace Carrigan v. Sunland-Tujunga Telephone Company and State of California, Public Utilities Commission

263 F.2d 568
CourtCourt of Appeals for the Ninth Circuit
DecidedApril 20, 1959
Docket16190
StatusPublished
Cited by28 cases

This text of 263 F.2d 568 (Mrs. Grace Carrigan v. Sunland-Tujunga Telephone Company and State of California, Public Utilities Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Mrs. Grace Carrigan v. Sunland-Tujunga Telephone Company and State of California, Public Utilities Commission, 263 F.2d 568 (9th Cir. 1959).

Opinion

STANLEY N. BARNES, Circuit Judge.

Mrs. Grace Carrigan appeals from the dismissal of her complaint against each appellee upon the ground that such complaint fails to state a claim upon which relief can be granted; and because the district court refused to convene a three-judge court to hear the matter. The only questions before us are (1) did appellant’s complaint state a claim upon which relief can be granted, and (2) can a district court refuse to convene a three-judge court under the circumstances existing in this case?

It would serve no useful purpose for us to emphasize the difficulties under which laymen, unfamiliar with the practice of law, labor when they appear in propria persona. They have the undoubted and invaluable right as citizens to represent themselves in our courts. Almost as certainly, they endanger their ability to secure the fruits of that right by insisting that they can understand and apply legal theories (some technical and others not) with the same ability as that possessed by one who has spent years in his or her professional education. 1 That they cannot is repeatedly proved. But we would be the last to prevent the exercise of their great American right to represent themselves in court.

Appellant alleges in her complaint that Sunland-Tujunga Telephone Company (hereinafter called the Company) charged unlawful rates for its telephone services, in that such rates — under the three rate schedules promulgated by the Public Utilities Commission of the State of California (hereinafter called the Commission) — do not comply with sections 4251, 4252 and 4254 of the Internal Revenue Code of 1954, chapter 33, sub-chapter B (26 U.S.C. §§ 4251-4252, 4254) — “a tax law” enacted by Congress. 2

*570 The Internal Revenue Code taxes local telephone service ten per cent (10%) and long distance telephone service ten per cent (10%). Thus, urges appellant, it defines all telephone service as “local” or “long distance,” “based on a 24 cents line of demarcation,” 3 and makes no provision for any third category in between, and when the Company makes its charges, with the Commission’s approval, on the basis of three rate schedules, to wit: A-l, local; B-l, toll service: and H-l, message unit toll service, such charges are violative of the federal taxing statute, and unconstitutional.

The first Commission schedule, “A-l”, is for calls to certain prefixes in the Los Angeles Extended Area comparatively close to the subscriber’s prefix, which are billed on a fiat rate basis. The “B-l” schedule is for calls outside the Los Angeles Extended Area, and the charges vary with the length of the call and the length of its time. The cost is always more than twenty-four cents per call. The “H-l” schedule is for calls to more distant prefixes than those within the “A-l” area, but still within' the Los Angeles Extended Area. They are “message unit” calls and are billed on a fluctuating toll basis, their amount depending on distance and time involved. Some calls under this latter schedule cost more than twenty-four cents, and some less.

Appellant alleges that she was charged less than twenty-four cents for “H-l” unit message calls, and that these should have been included within the flat rate charge for “A-l” calls. She further alleges that she refused to pay what she deemed to be the unlawful part of her telephone bill, and that because of such refusal to pay, her telephone was disconnected by the Company.

Appellant prays for specific relief against both appellees to require certain changes in the tariffs under which the Company operates, and to require the restoration of her telephone service. She prays also for an injunction against both appellees to prevent them from enforcing the present tariff schedules promulgated by the Commission.

Both appellees moved to dismiss the action on the grounds that the district court had no jurisdiction over the subject matter of the complaint and that the complaint failed to state a claim. The court granted the motions on the latter ground.

Twelve days after the court had ordered the action dismissed, but prior to the execution of formal orders dismissing the action, appellant filed with the *571 district court and served upon appellees an application for a hearing before a three-judge court. Thereafter the formal orders of dismissal were filed.

It perhaps should be here emphasized that the federal tax on all calls, whether local or long distance, is the same, i. e., ten per cent.

As damages, appellant prays for a gross refund of $20.76 for 1957, and a total net refund of $1.44 for the period ■January 1st to March 1st, 1958; for the restoration of her telephone service; $5,000 in damages against the Company for overcharges; $10,000 for disconnecting her telephone; $10,000 damages from the Commission for permitting the 'Company to make the charges; and, $20,-000 damages against the Commission for its failure to restrain the disconnection of her telephone. No facts are alleged to show any monetary damage in excess of $50.00, or thereabouts.

The fundamental legal question with respect to appellant’s alleged claim is whether §§ 4251, 4252 and 4254 of the Int.Rev.Code limit state public utilities ■commissions in establishing schedules for intrastate telephone calls.

The district court judge concluded they do not. We agree.

The Internal Revenue Code imposed federal taxes, as it had a right to do. The Commission fixed the telephone rates, as it had a right to do. The Commission’s rates had nothing to do with the federal tax and the federal tax had nothing to do with fixing the rates, but was on them as fixed.

Federal power initially depends on the concept of interstate, not intrastate commerce, and what may affect it. See, e. g., United States v. Public Utilities Commission of Cal., 1953, 345 U.S. 295, 73 S.Ct. 706, 97 L.Ed. 1020; Cloverleaf Butter Co. v. Patterson, 1942, 315 U.S. 148, 786, 62 S.Ct. 491, 86 L.Ed. 754; N. L. R. B. v. Jones & Laughlin Steel Corp., 1937, 301 U.S. 1, 57 S.Ct. 615, 81 L.Ed. 893; Fairway Foods, Inc., v. Fairway Markets, Inc., 9 Cir., 1955, 227 F.2d 193; Las Vegas Merchant Plumbers Ass’n v. United States, 9 Cir., 1954, 210 F.2d 732, certiorari denied 348 U.S. 817, 75 S.Ct. 29, 99 L.Ed. 645; N. L. R. B. v. Townsend, 9 Cir., 1951, 185 F.2d 378, certiorari denied 341 U.S. 909

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263 F.2d 568, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mrs-grace-carrigan-v-sunland-tujunga-telephone-company-and-state-of-ca9-1959.