New York State Electric & Gas Corp. v. Maltbie

169 Misc. 144, 7 N.Y.S.2d 235, 1938 N.Y. Misc. LEXIS 2026
CourtNew York Supreme Court
DecidedOctober 12, 1938
StatusPublished
Cited by1 cases

This text of 169 Misc. 144 (New York State Electric & Gas Corp. v. Maltbie) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New York State Electric & Gas Corp. v. Maltbie, 169 Misc. 144, 7 N.Y.S.2d 235, 1938 N.Y. Misc. LEXIS 2026 (N.Y. Super. Ct. 1938).

Opinion

Bergan, J.

On the 22d day of June, 1938, the Public Service Commission made an order instituting an investigation of the New York State Electric and Gas Corporation. In pursuance of this order, subpoenas were issued by one of the Public Service Commissioners on July 25, 1938, directed to several witnesses to appear on September 7, 1938, at the New York office of the Commission to testify “as to the accounts and records, property, practices and transactions of the New York State Electric and Gas Corporation.”

The witnesses so subpoenaed have instituted a proceeding against the respondents constituting the Public Service Commission returnable at the Special Term of September ninth to “ relieve them of compliance with ” the subpoenas served upon them and for an order quashing the subpoenas “ until the respondents herein define the scope of the investigation purportedly instituted by their order dated June 22,1938.”

The New York State Electric and Gas Corporation has instituted a suit in equity seeking a permanent injunction against the Public Service Commission restraining it from proceeding with the investigation until the Commission shall have served upon the plaintiff a further order “ specifically defining the issues involved and the charges, claims and complaints to be investigated and prescribing the scope of any investigation to be made thereunder.” The plaintiff moves for a temporary injunction during the pendency of the action. The defendants, at the Special Term of September twenty-third, move to dismiss the complaint in pursuance of rules 106 and 107 of the Rules of Civil Practice upon the grounds [146]*146that the complaint fails to state facts sufficient to constitute a cause of action, and that the relief sought by the complaint is in excess of the jurisdiction of the court. A temporary stay has been granted in the proceeding and in the action until the determination of these motions.

Since the questions raised in the action are closely related to those raised in the proceeding instituted by the witnesses under subpoena, they will be determined together.

The jurisdiction of the court to act within its equity powers to restrain an invasion of constitutional rights and privileges at the instance of one aggrieved by an order of the Public Service Commission in a proper case is undoubted. (Municipal Gas Co. v. Public Service Commission, 225 N. Y. 89.) The provisions of subdivision 2 of rule 107 of the Rules of Civil Practice, applying to a case in which the court is without jurisdiction of the subject of the action, upon which defendants apparently rely in part in their motion to dismiss the complaint, accordingly, are not pertinent to the cause of action pleaded. This applies likewise to subdivision 2 of rule 106. In the motion under subdivision 5 of that rule, that the complaint does not state facts sufficient to constitute a cause of action, the facts pleaded must be conceded, and every fair inference and intendment adducible from the facts must be accorded to the pleading. The conclusions of law pleaded, and there are several of them set forth in the complaint, are not, of course, so conceded by a party who adopts this mode of attack upon the pleading.

The case, accordingly, turns upon the sufficiency of the order of the Commission of June twenty-second instituting the investigation. The order, in general language, follows the terms of the statute under which the Public Service Commission has undertaken to act. • The plaintiff is a public utility within the jurisdiction of the Commission. (Complaint, Paragraph “ First.”) Each of the several matters specified in its order as defining the scope of its inquiry is within one or another of the express grants of jurisdiction given the Public Service Commission by the Legislature.

The order provides that the investigation shall be made “ as to the methods of accounting, the books, records, accounts and other documents of the New York State Electric and Gas Corporation.” These matters are each clearly within the powers of the Commission. (Public Service Law, § 66, subds. 4, 5 and 9.) The order further provides that the investigation shall touch upon the methods, practices, regulations and property employed by said corporation in the transaction of its business.” These matters are not only within the jurisdiction of the Commission, but the statute imposes upon it the mandatory duty of examining the plaintiff upon these subjects. (§ 66, subd. 5.) It has no discretion [147]*147in the premises. The statute is explicit. It shall ” make the prescribed examination. The order further determines that the Commission shall investigate whether the plaintiff is failing or omitting or about to fail or omit anything required of it by law or by order of the Commission ” or whether it is affirmatively doing any act in violation of law or order of the Commission. Subdivision 5 imposes also upon the Commission the duty of examination as to “ violation of any provision of law ” and by fair implication this means, too, a violation of any valid order of the Commission. Lastly, the order determines that the investigation shall include inquiry into the affiliated interests ” of the plaintiff, the extent and propriety of transactions with such interests and whether they are “ in the public interest.” This power likewise falls within the provisions of section 66.

The plaintiff contends that it is entitled to have the scope of the inquiry more definitely fixed than has been done in the general terms of the order, and since the investigation may result in a further order by the Commission affecting the business and property of the plaintiff, that the failure of the Commission more definitely to fix the scope of its investigation results in depriving it of due process of law in the procedure adopted and hence violates its immunities under the Constitution of the United States and of the State.

It is clear that the inquisitorial aspect of the investigation is not in violation of the due process clause. The plaintiff is not deprived of property by the inquiry as such, except as to the expense involved in the investigation, and in this respect, since its business is one closely integrated with the public welfare, and since the investigation is consonant with the legislative policy of the State in the regulation of public utilities, it must yield to the reasonable exercise of public powers of inquiry into its affairs and subordinate its convenience to the valid exercise of such powers.

No precise form of order instituting an inquiry by the Commission is fixed by statute) whether the investigation has as its purpose the marshaling of information pertinent to the Commission’s function, or whether it has as its purpose a further order directly affecting the business and property of a utility. This court cannot gratuitously prescribe the form of order to be made or specify what it shall contain in the exercise of a proper legislative function by a co-ordinate branch of the government. The judicial function here, and it is the only one involved, is to see to it that constitutional privileges find proper safeguard.

Upon the argument it was conceded by the Commission that the investigation may, and probably will, result in an order affecting the business and property of the plaintiff. Upon the preliminary [148]*148stages of the inquiry certain specifications were read into the record amplifying the scope of the investigation provided by the order. This was by an assistant counsel to the Commission.

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Central Maine Power Co. v. Maine Public Utilities Commission
395 A.2d 414 (Supreme Judicial Court of Maine, 1978)

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Bluebook (online)
169 Misc. 144, 7 N.Y.S.2d 235, 1938 N.Y. Misc. LEXIS 2026, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-york-state-electric-gas-corp-v-maltbie-nysupct-1938.