Public Utility Commission v. Water Services, Inc.

709 S.W.2d 765, 1986 Tex. App. LEXIS 7607, 1986 WL 1166997
CourtCourt of Appeals of Texas
DecidedApril 30, 1986
DocketNo. 14477
StatusPublished
Cited by10 cases

This text of 709 S.W.2d 765 (Public Utility Commission v. Water Services, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Public Utility Commission v. Water Services, Inc., 709 S.W.2d 765, 1986 Tex. App. LEXIS 7607, 1986 WL 1166997 (Tex. Ct. App. 1986).

Opinion

SHANNON, Chief Justice.

After the Public Utility Commission entered its final order disposing of an application by appellees Water Services, Inc. and Water Services Two, Inc. for a change in water rates, appellees challenged the order by an administrative appeal filed in the district court of Travis County. Ancillary to their suit for judicial review, appellees sought a temporary injunction, asserting they would go bankrupt if the Commission’s rates were not enjoined pending review on the merits. After hearing, the district court temporarily enjoined the agency from enforcing its final order until the district court rendered judgment on the merits. The agency has perfected an appeal to this Court from the order of temporary injunction. This Court will affirm the order.

In its order, the district court concluded, among other things, that interim enforcement of the agency’s order would irreparably harm appellees, that appellees would probably prevail on the merits, and that appellant could be adequately protected by bond.

For a temporary injunction to issue in a proceeding ancillary to judicial review of a Commission order, it must appear that:

(1) there is a reasonable probability that the utility will succeed on final hearing;
(2) the loss in the interim will be irreparable; and (3) the customers can be adequately protected by bond.

Southwestern Bell Telephone Company v. Public Utility Commission of Texas, 571 S.W.2d 503, 506 (Tex.1978); City of Houston v. Southwestern Bell Telephone Company, 263 S.W.2d 169 (Tex.Civ.App.1953, writ ref’d); and Southwestern Bell Telephone Company v. Public Utility Commission of Texas, 615 S.W.2d 947, 952 (Tex.Civ.App.1981), writ ref’d n.r.e. per curiam, 622 S.W.2d 82 (Tex.1981).

At the hearing on temporary injunction, the district court, in arriving at its conclusion that appellees would probably succeed on final hearing, confined its review to the agency record which had been introduced into evidence. With respect to irreparable harm and the adequacy of the bond, the district court permitted appellees to call two witnesses who testified concerning those temporary injunction requirements.

By several points of error, the agency complains that the district court erred in permitting evidence to be taken concerning irreparable harm and the bond’s adequacy. The agency insists that the temporary injunction hearing was an integral part of the judicial review process, and that, accordingly, the district court’s consideration of evidence should have been confined solely to the agency record as required by Tex.Rev.Civ.Stat.Ann. art. 6252-13a (AP-TRA), § 19(d)(3) (Supp.1986). Section 19(d)(3) provides that judicial review is confined to the agency record except for evidence of procedural irregularities not reflected in the agency record. In addition, the agency argues that Southwestern Bell [767]*767Telephone Co. v. Public Utility Commission of Texas, 571 S.W.2d 503 (Tex.1978), mandates that the trial court’s determination of the applicant’s right to a temporary injunction must be founded solely on evidence contained in the agency record.

Appellees agree that the district court correctly limited itself to the agency record in passing on the first requirement of a temporary injunction — the probability of prevailing on final hearing. Appellees respond, however, that a hearing on application for temporary injunction ancillary to judicial review of the agency order is not “judicial review” as contemplated by § 19. Instead, the district court signed an order in equity temporarily restraining enforcement of the agency order thereby permitting appellees to avoid bankruptcy until judicial review of the order could be obtained. Appellees point out that the district court in the temporary injunction hearing did not receive extrinsic evidence on an issue adjudicated by the agency because the agency was never called upon to determine whether its order would cause irreparable harm.

This Court has concluded that the district court did not err in permitting evidence bearing on irreparable harm and the bond’s adequacy to be taken at the temporary injunction hearing. In arriving at this conclusion, this Court has endeavored to reconcile administrative law and temporary injunction procedures in a manner consistent with PURA, APTRA and Southwestern Bell Telephone Company v. Public Utility Commission, supra.

Section 85 of PURA, Tex.Rev.Civ.Stat. Ann. art. 1446c (Supp.1986), contemplates that the district court in granting or refusing an application for temporary injunction will follow the rules of practice of a court sitting in equity. Section 85 provides:

During the pendency of an appeal, the district court, the court of civil appeals, or the supreme court, as the case may be, may stay or suspend, in whole or in part, the operation of the regulatory authority order, ruling, or decision and such courts in granting or refusing a stay or suspension shall act in accordance with the practice of courts exercising equity jurisdiction, (emphasis supplied)

The trial court’s allowance or dis-allowance of a temporary injunction is an equitable procedure governed by a voluminous body of case law dating from the earliest days of our jurisprudence. We believe that the legislature in § 85 plainly intended to refer to that well-established case law when it referred to “the practice of courts exercising equity jurisdiction.” Pursuant to the case law governing the issuance of temporary injunctions, a trial court may conduct an evidentiary hearing to determine whether an applicant is entitled to a temporary injunction.

This Court acknowledges, of course, “the far-reaching changes intended by the adoption of the Administrative Procedure Act.” Southwestern Bell Telephone Co. v. Public Utility Commission, supra. We are not convinced, however, that the Act was intended to achieve such sweeping changes in temporary injunction procedures.

The far-reaching changes recognized by the Supreme Court in Southwestern Bell did not specifically deal with temporary injunctions, but instead addressed judicial review on the merits. The opinion in Southwestern Bell opens with a brief discussion of temporary injunctions, but then, under a separate heading entitled “Judicial Review,” proceeds to investigate the far-reaching changes wrought by the Administrative Procedure Act. The Supreme Court’s recognition that a temporary injunction hearing is not the same as a hearing on the merits echoes throughout our jurisprudence.

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709 S.W.2d 765, 1986 Tex. App. LEXIS 7607, 1986 WL 1166997, Counsel Stack Legal Research, https://law.counselstack.com/opinion/public-utility-commission-v-water-services-inc-texapp-1986.