Oliver v. Iowa Power & Light Company

183 N.W.2d 687, 1971 Iowa Sup. LEXIS 721
CourtSupreme Court of Iowa
DecidedFebruary 9, 1971
Docket54253
StatusPublished
Cited by16 cases

This text of 183 N.W.2d 687 (Oliver v. Iowa Power & Light Company) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oliver v. Iowa Power & Light Company, 183 N.W.2d 687, 1971 Iowa Sup. LEXIS 721 (iowa 1971).

Opinion

' UHLENHOPP, Justice.

The question presented is whether plaintiff is required to exhaust an administrative remedy before instituting this independent accounting suit for alleged overcharges for electricity.

In his amended petition, plaintiff alleges he previously paid defendant $12 to $15 per month for electricity used in his home. He built a new home on Rural Route 1, Des Moines, Iowa, and thereafter paid defendant $30 per month for substantially the same amount of electricity. He alleges “Defendant has grossly overcharged him for electric power, and has overcharged all of those in his same class”. He asks an accounting for himself and for those similarly situated and says the approximate amount defendant owes is $2,000,000.

Defendant moved to dismiss the petition on the ground plaintiff did not exhaust his administrative remedy before the Iowa State Commerce Commission.

Plaintiff resisted the motion, alleging he complained to the commission, and the commission wrote a letter to defendant about the complaint. Plaintiff further alleged defendant responded to the commission that plaintiff had moved to a rural area where the average distancé between houses is more than 200 feet, that plaintiff’s rate is governed by the filed tariff entitled “Residential Service Rate 104 Zone 2 Rural”, but that the area was being taken into an incorporated town so plaintiff’s rate would soon be reclassified to “Rate 102 Zone 2 Urban”. Plaintiff continued his allegations saying that upon the commission’s receipt of defendant’s response, the commission replied to plaintiff, “It appears that the utility has answered your- complaint and that the rate you desire will be available in the very near future; however, if you have further questions regarding this matter, please contact this office.”

In this state of the pleadings, the trial court sustained the motion on the ground that plaintiff did not exhaust his administrative remedy. Plaintiff appeals.

Defendant’s contention that plaintiff did not exhaust an administrative remedy poses two questions: Does an administrative *689 remedy exist for the claimed wrong? Is that remedy exclusive ?

I. Does an Administrative Remedy Exist? The first question involves the Iowa statute regulating public utilities, Code, 1971, chapter 490A. -Before examining that statute, the general law on actions to recover payments to utilities must be noticed, as well as the specific allegations of plaintiff’s petition.

Plaintiff’s action, involves alleged overcharges for electricity. Two principal kinds of action of this type exist. In the first kind, the customer of the utility does not claim that the rates were unreasonable but claims he was charged the wrong amount — e. g., his meter was misread, the charge exceeds the filed tariff, or he was placed in the wrong rate class. The doctrine of “public utility duress” has evolved in such cases, allowing the customer to recover his overpayments and to have other relief, in an action in court. 25 Am.Jur.2d Duress and Undue Influence § 8 at 364; 40 Am.Jur. Payment § 178 at 837; 38 C.J.S. Gas § 36 at 724. Numerous illustrations are collected in Annotation, 34 A.L.R. 185.

In the second kind of action, the customer seeks to recover overcharges on the ground that the utility’s rates were unreasonable. These actions the courts will not entertain. The customer must proceed before the appropriate public utility regulatory body to have reasonable rates determined for the future; the utility’s filed tariffs govern rates for the past. Cases of this sort are Montana-Dakota Util. Co. v. Northwestern Public Serv. Co., 341 U.S. 246, 71 S.Ct. 692, 95 L.Ed. 912, and Spintman v. Chesapeake & Potomac Tel. Co., 254 Md. 423, 255 A.2d 304. See also Annot. 12 A.L.R. 404.

The distinction is brought into focus by comparing Anderson v. St. Paul City Ry., 152 Minn. 213, 216, 188 N.W. 286, 288, with the Montana-Dakota case, supra, 341 U.S. at 250-252, 71 S.Ct. at 695, 95 L.Ed. at 918-919. In Anderson the court, after referring to cases denying recovery for unreasonable rates, said:

“If this were an action to fix the rate, or to determine the reasonableness of the rate charged, these decisions would doubtless be in point and the contention well founded. See extended note in 12 A.L.R. 404. Plaintiffs do not contend to the contrary. They base their action on the claim that defendant is exacting a charge not permitted by existing law. If this be true, if defendant, a public service company, is exacting from its patrons a higher rate for the service which it furnishes them than is permitted by existing law, we think the users of such service may, under the circumstances disclosed in the record, maintain an action to enjoin defendant from enforcing the payment of more than the lawful charge.”

On the other hand, in the Montana-Dakota case, where the customer happened to be another utility, the Court said:

“It is admitted, however, that a utility could not institute a suit in a federal court to recover a portion of past rates which it simply alleges were unreasonable. It would be out of court for failure to exhaust administrative remedies, for, at any time in the past, it could have applied for and secured a review and, perhaps, a reduction of the rates by the Commission. * * * We hold that the right to a reasonable rate is the right to the rate which the Commission files or fixes, and that, except for review of the Commission’s orders, the courts can assume no right to a different one on the ground that, in its opinion, it is the only one or the more reasonable one.”

The two situations are commented on in Spintman v. Chesapeake & Potomac Tel. Co., 254 Md. 423, 428-429, 255 A.2d 304, 307:

“Where an administrative remedy is available, such as a hearing before the Public Service Commission, to determine the reasonableness of a rate, prior resort to that remedy is a necessary prerequisite to a standing before the courts. * * *
*690 ******
“In the instant case, we are not confronted with a situation where the consumer was charged a rate not in conformity with the established and published tariff set by the Commission or where there was error in the computation or application of the established rate. In such a situation an action in assumpsit may well be the proper remedy for the collection of the overcharge.”

These authorities make clear that if the present action is predicated on a claim that defendant’s rates were unreasonable, plaintiff does not have a case here. We may therefore place consideration of that basis of recovery aside and confine ourselves to whether plaintiff has stated a case based on a claim he was charged the wrong amount.

The other preliminary matter is one of pleading — whether plaintiff’s petition covers a claim based on charges for wrong amounts.

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Bluebook (online)
183 N.W.2d 687, 1971 Iowa Sup. LEXIS 721, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oliver-v-iowa-power-light-company-iowa-1971.