New England Telephone & Telegraph Co. v. Kennelly

67 A.2d 705, 75 R.I. 422, 1949 R.I. LEXIS 72
CourtSupreme Court of Rhode Island
DecidedJune 30, 1949
StatusPublished
Cited by7 cases

This text of 67 A.2d 705 (New England Telephone & Telegraph Co. v. Kennelly) is published on Counsel Stack Legal Research, covering Supreme Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New England Telephone & Telegraph Co. v. Kennelly, 67 A.2d 705, 75 R.I. 422, 1949 R.I. LEXIS 72 (R.I. 1949).

Opinions

*423 O'Connell, J.

This is a bill in equity to enjoin the respondent in his capacity as public utility administrator *424 from interfering in any way with the complainant in immediately putting into full force and effect a certain rate schedule appended to and made a part of the bill. Following a hearing for a preliminary injunction, the superior court entered a decree granting such injunction in mandatory terms, and the operation thereof was then suspended by this court pending a hearing here on respondent’s appeal therefrom. The cause is now before us on that appeal.

In view of the involved allegations and the situation presented by this bill we deem it advisable at the outset to explain our statute governing the fixing of rates for a public utility and to point out the'particular provisions of the statute upon which the complainant seems to rely. The basic statute applicable here is general laws 1938, chapter 122. Speaking generally, this was amended by public laws 1939, chap. 660, commonly called the Administrative Act of 1939, and by P. L. 1940, chap. 821, which thereby vested the powers of the former division of public utilities in a public utility administrator appointed by the director of business regulation. Therefore, when we refer to any provision of said chap. 122 the word “division” as therein used shall mean the public utility administrator, hereinafter called the administrator.

Section 45 of chap. 122, as amended, in so far as pertinent provides that every public utility shall file with the administrator schedules, which shall be open to public inspection, showing all rates, tolls and charges established and in force at the time for any service perforined by it within the state. It also provides: “No change shall be made in the rates, tolls, and charges which have been filed and published by any public utility in compliance with the requirements of this section, except after 30 days’ notice to the division and to the public published as aforesaid, which shall plainly state the changes proposed to be made in the schedule then in force, and the time when the changed rates, tolls or charges will go into effect.”

That section further provides that upon receiving any *425 notice from a public utility of proposed changes in rates, the division is empowered “to hold a public hearing and make investigation as to the propriety of such proposed change or changes. After notice of any such investigation, the division shall have power by any order served upon the public utility affected to suspend the taking effect of such change or changes pending the decision thereon, but not for a longer period than 3 months beyond the time when such change or changes would otherwise take effect. After such hearing and investigation * * * the division may make, such order in reference to any proposed rate, toll or charge as may be proper. * * * Provided, that the division may, in its discretion and for good cause shown, allow charges within less time than required by the notice herein specified, and without holding the hearing and investigation herein provided for, or modify the requirements of this section with respect to filing and publishing tariffs either in the particular instance or by general order applicable to special or particular circumstances or conditions.” (italics ours) Section 41 of that same chapter gives the division power to permit any public utility to temporarily alter, amend or suspend any existing rates, schedules and order relating to or affecting any public utility or part of any public utility in this state, “when deemed by it necessary to prevent injury to the business or interest of the people or any public utility of this state in case of any emergency to be judged of by the said division.” (italics ours)

Before its amendment, §31' of chap. 122 gave a public utility aggrieved by any order of the division the right to appeal to the-supreme court on the ground that the charges so fixed were unlawful or unreasonable. This section was repealed by sec. 261 of the Administrative Act of 1939 and secs. 124 and 125 of that act were substituted in its place and stead. Section 124 provides: “Within the department of business regulation there shall be a public utility hearing board which shall function as a unit independent of the director and not subject to his jurisdiction.” The public *426 utility hearing board, hereinafter called the board, consists of three members.

Section 125 originally provided that any decision or order of the administrator might be appealed to the board which was charged with the duty to make independent decisions in the matter. This section was amended in part by P. L. 1940, chap. 821, section 1, which provides as follows. The public utility administrator may “in the first instance” make such decisions and issue such orders as may to him seem proper; any person aggrieved by any such decision or order shall have the right to appeal to the board within a certain specified time, which board shall then, sitting “as an impartial, independent body in order to make decisions affecting the public interest and private rights,” proceed to hear the appeal “de novo as to both the law and the facts and its decisions shall be based upon the law and upon the evidence presented before it by the public utility administrator and by the parties in interest.” (italics ours)

Section 125, as amended, further provides that the public utility administrator or any other party in interest, if aggrieved by any order of the board, may appeal therefrom to the supreme court by following a certain procedure, which court shall then hear and determine the questions at issue in the manner therein indicated. The section concludes with the pronouncement that “the procedures established by this section shall constitute the exclusive remedies for persons aggrieved by any order or decision of the public utility administrator or of the public utility hearing board.” (italics ours)

When G. L. 1938, chap. 122, as amended, is stripped of procedural details and fairly construed as a whole it is our opinion that the legislature had three main purposes in mind in enacting such legislation: first, to protect the public and the utility against improper or unreasonable rates, tolls and charges by providing what it considered as a full, fair and adequate administrative remedy, including an appeal de novo to a special administrative board; sec *427 ondly, to secure ultimately to an aggrieved party a judicial review of such proceedings by an appeal to this court; and, thirdly, to make the prescribed procedures the exclusive remedies in such matters.

We will now turn to the allegations in complainant’s bill, which when read as a whole presents a perplexing situation. It appears therefrom that on June 3, 1947 the complainant, hereinafter called the company, filed with the respondent administrator a revised schedule, of rates, estimated to yield $2,700,000 additional revenues, as a substitute for the schedule then in iforce.

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Bluebook (online)
67 A.2d 705, 75 R.I. 422, 1949 R.I. LEXIS 72, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-england-telephone-telegraph-co-v-kennelly-ri-1949.