Paul Bunyan Rural Telephone Cooperative v. Pierce

115 N.W.2d 661, 263 Minn. 14, 1962 Minn. LEXIS 746
CourtSupreme Court of Minnesota
DecidedJune 1, 1962
DocketNo. 38,468
StatusPublished

This text of 115 N.W.2d 661 (Paul Bunyan Rural Telephone Cooperative v. Pierce) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paul Bunyan Rural Telephone Cooperative v. Pierce, 115 N.W.2d 661, 263 Minn. 14, 1962 Minn. LEXIS 746 (Mich. 1962).

Opinion

Thomas Gallagher, Justice.

These proceedings were initiated before the Railroad and Warehouse Commission for determination of boundaries of an area in Hubbard County to be served by petitioner, Paul Bunyan Rural Telephone Cooperative, a cooperative association, herein referred to as Paul Bunyan Cooperative; and for an order directing Lewis A. Pierce, doing business as Laporte Telephone Company, referred to herein as Laporte Company, to refrain from doing business in such area and requiring it to remove its telephone lines and equipment therefrom.

On May 6, 1960, the commission made its order awarding Paul Bunyan Cooperative exclusive rights to furnish telephone service within a certain described area in northern Hubbard County set forth in a map attached to such order; and directing Laporte Company to remove its telephone lines and equipment therefrom.

Upon appeal from such order by Laporte Company, the district court directed that the commission’s order be adjudged null and void in that the commission was without jurisdiction to hear or determine the matter. In a memorandum made a part of its order the court stated:

[16]*16“In my consideration of the issues here, involved on appeal, I have, as far as possible, from the mass of material presented, attempted to set forth in the foregoing findings the factual matters leading up to the appeal. In view of the decision which I have reached they are of little or no value except in so far as the same are explanatory of the conflicting claims and interests of the litigants here involved. * * *
“* * * the inquiry and jurisdiction of the Court is limited to a determination:
“(1) Whether or not the Commission acted under authority of law, and if so,
“(2) Whether or not the order appealed from is unjust, unreasonable and not supported by the evidence, * * *.
“The authority conferred upon the Commission with respect to areas to be served by telephone companies is stated in M. S. A. 237.16 which provides as follows:
“ * * the commission shall have the exclusive right to grant authority to any telephone company to construct telephone lines or exchanges for furnishing local service to subscribers in any municipality of this state, * * *. No lines or equipment shall be constructed or installed for the purpose of furnishing local rural or toll telephone service to the inhabitants or telephone users in any locality in this state, where there is then in operation in the locality or territory affected thereby another telephone company already furnishing such service, without first securing from the Commission a declaration, after a public hearing, that public convenience requires such proposed telephone lines or equipment; * * *.’
“* * * The Commission has the exclusive power to authorize service in municipalities. It may authorize duplication of service in a rural area or locality already receiving service upon a finding of public convenience; and undoubtedly could prescribe the area of such duplication in a proper proceeding, but I can find no authority in the law which specifically or by implication confers upon the Commission the duty or authority to make a determination of the bound[17]*17ary to be served by a company in a proceeding brought for that purpose. There is no authority given, no procedure therefor set out, and no standards by which such determination should be made. The act does not require authority from the Commission as a condition precedent for entering an unserved area, nor is there any provision for Commission determination of disputes between companies over the territory to be served.
“There is also, here, the issue raised by the action which is pending in the District Court between the litigants here involved, upon which issue was joined before the filing of the application upon which the Commission assumed to act. While the issue of primary jurisdiction is there raised, no determination has been made, nor is there any claim that the Court is without jurisdiction. This matter was properly before the Commission on motion at the inception of these hearings before the Commission, but notwithstanding, the Commission presumed to act.
“It is my candid opinion that this was error for the following reasons:
“(1) That no authority is granted to the Commission in the act to settle disputes between companies involved in area disputes.
“(6) That once a Court of competent jurisdiction acquires jurisdiction its authority continues until the matter is disposed of, and no other body, even assuming that it has authority, can properly interfere.
“That the pendency of the action in the District Court deprived the Commission of jurisdiction in this matter, and that the Commission had no authority to interfere. * * *
“That the Commission has in the instant case exceeded the powers granted to it by statute; and that it is wholly without power and authority to determine boundaries to be served by a company in a proceeding brought for that purpose and that by reason thereof the Order of the Commission is of no legal force nor effect.”

The prior action referred to by the court in its memorandum had been instituted by the Laporte Company against Paul Bunyan [18]*18Cooperative. Therein Laporte Company sought to restrain Paul Bunyan Cooperative from furnishing telephone service in substantially the same area that is involved in the present proceedings. This action has never been tried because there the court ordered—

“* * * said cause be stricken from the trial calendar * * * without prejudice to re-noticing the same for trial at any succeeding term of said Court.”

Determination of the issues presented here must be dependent upon Minn. St. 1957, § 237.16.1 This section set forth the specific authority granted to the Railroad and Warehouse Commission with reference to the construction and maintenance of telephone lines and [19]*19exchanges, and as to the service to be furnished telephone subscribers in connection therewith. It provided that “the commission shall have the exclusive right to grant authority to any telephone company to construct telephone lines or exchanges for furnishing local service to subscribers in any municipality of this state,” and that in unorganized areas outside of municipalities, where there is in operation a telephone company furnishing telephone services, the commission shall have the authority, after a public hearing, to authorize another telephone company to duplicate such lines and equipment and to furnish telephone service in such area if public convenience so requires. Of course, to arrive at an order authorizing such duplication, the commission would be required to hear evidence with respect to this issue at a public hearing. In making a determination therein, it would have to decide (1) if the area involved were then being served by a telephone company; (2) the extent or boundaries of such area; and (3) the sufficiency or adequacy of the service furnished by such company.

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Bluebook (online)
115 N.W.2d 661, 263 Minn. 14, 1962 Minn. LEXIS 746, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paul-bunyan-rural-telephone-cooperative-v-pierce-minn-1962.