Russell & Co. v. Public Service Commission

66 P.R. 355
CourtSupreme Court of Puerto Rico
DecidedJune 28, 1946
DocketNo. 9090
StatusPublished

This text of 66 P.R. 355 (Russell & Co. v. Public Service Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Russell & Co. v. Public Service Commission, 66 P.R. 355 (prsupreme 1946).

Opinion

ON RECONSIDERATION

Me. Justice Cókdova

delivered the opinion of the court.

The predecessors of the appellee partnership requested and obtained from appellant, the Public Service Commission, a franchise to nse the waters of the Guánica Lagoon for irrigation purposes. Subsequently, the commission ordered the appellee to show canse why the franchise should not he canceled, on the ground that it had violated one of its conditions. The appellee appeared and denied having violated the franchise. After a hearing, the commission found that one of the conditions of the franchise had been violated and issued an order canceling the franchise, which order was appealed and finally affirmed by the courts.1

[356]*356Some years after the litigation hereinbefore set forth ended, the ease under consideration was commenced. It was initiated with an informal complaint, filed before the Public Service Commission by the Chief of the Division of Ornithology and Pisciculture of the Department of Agriculture, which in its pertinent part recited as follows:

“Guánica Lagoon, as I understand it, belongs to Russell & Co. which by a ruling of the Supreme Court of the United States must possess a franchise of the Public Service Commission in order to utilize the waters of the said lagoon for irrigation, which I understand it is doing at present without having obtained the corresponding franchise. ’ ’

Upon this complaint, the commission issued an order to Bussell & Co. to show cause why it was “utilizing those waters without having previously obtained a franchise from the Public Service Commission Bussel & Co. appeared and stated: (1) That it was owne rof the waters; (2) that the commission had no jurisdiction to entertain the action, as the waters are not public waters; (3) that it was not true, as set up in the complaint, that the Supreme Court had decided that Bussell & Co. must possess a franchise to use the waters.

At the hearing held, the members of the commission asked counsel for Bussell & Co. if in the previous proceeding it had been decided whether or not a franchise was required. Counsel answered that that point was not raised and that his answer was that neither then nor now was a franchise necessary to utilize the waters since they belong to the appellee Bussell & Co. The appellee introduced evidence to show that the waters belonged to it, and this was the only evidence submitted. The record does not show that the People of Puerto Bico was notified of the hearing, or that it appeared.2

[357]*357The commission held that ‘ ‘. . . assuming for the purpose of this order that the land and the bed or bottom of the G-uánica Lagoon belong exclusively to the firm Russell & Co., Suers., and that the waters contained in that lagoon are of private ownership, their use, which may require . . . the construction of works, for which it is necessary to divert th'e natural course of the waters to the injury'of third persons, carries with it the legal requisite of the previous obtention of a franchise from the Public Service Commission,” and ordered Russell & Co. to refarin from utilizing the waters until it should obtain a franchise.

Russell & Co. appealed to the District Court of San Juan, which entered judgment setting aside the order of the commission, because under the evidence the waters belonged to Russell & Co., and the commission had no power to prohibit the use of the waters by their owner. The commission has taken this appeal from the judgment of the District Court.

In its appeal the commission has stated its case thus (we copy from its brief):

"The District Court of Sail Juan . . . confined itself to considering two legal points, to wit:
"(1) Who owns the Guánica Lagoon? In other words, is the lagoon private or public property?
"(2) If the lagoon is private property, may the Public Service Commission prohibit the use of the waters by their legitimate owner?
"Both these questions are dealt with in the opinion of the District Court of San Juan.
"We are of the opinion that the decision of the first question, be it as it may, is correct, but not so the decision of the second one.
"We assign as error the following:
"We understand that the District Court of San Juan has decided that the Public Service Commission has no power to prohibit certain uses of private waters, that is, that a lagoon formed by rainfall in a private tenement can be used without restrictions. ’ ’

On November 27, 1945, we decided the appeal reversing the judgment appealed from, oh the ground (1) that in the previous proceeding the public nature of the waters of the [358]*358Guánica Lagoon was adjudicated, (2) that the previous adjudication was raised before the commission, and that although this is a defense which is waived if not affirmatively .raised, in this case it was not waived.

The appellee, Russell & Co., has requested the reconsideration of our judgment, because (1) we did not decide the question of whether or not the commission had jurisdiction to issue the order it issued, (2) the prior adjudication did not determine that the waters were public waters, (3) the defense of res judicata was not raised, nor was evidence introduced to establish it. Although appellant was notified of the motion for reconsideration and of the hearing held thereon, it was not present at the hearing and has filed no opposition.

We have serious doubts whether the decision in the previous proceeding adjudicated that the waters of the Guá-nica Lagoon are public, and even if it did, it is very doubtful that the appellant commission adequately established that affirmative defense, especially in view of the fact that in its appeal to this court it tacitly waived any advantage which the previous adjudication might offer it. It is not necessary, however, that we should decide these two points, since we have reached the conclusion that the judgment appealed from should be affirmed, for whether the waters of the Guánica Lagoon be public or private, the commission has no jurisdiction to determine the nature and extent of the public or private rights to those waters, nor to enjoin anyone from using them. It is true that the jurisdictional question has not been properly raised by the appellee, which has only contended, here and below, that the commission has no jurisdiction because-private waters are involved, when the question which was sought to be decided was precisely whether they were private or public, particularly in view of the prior decision. But since the question is jurisdictional, we may and should consider it although it has not been raised.

[359]*359The jurisdiction of the Public Service Commission, under §§ 38 and 39 of the Organic Act and of the Public Service Act of December 6, 1917, and supplementary laws, may be divided in two fields: the field of the regulation of public services and public service companies, in which the commission is conferred ample power,3 and that of the grant of franchises and privileges of a public or quasi-public nature.

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Related

Public Serv. Comm'n of PR v. Havemeyer
296 U.S. 506 (Supreme Court, 1936)

Cite This Page — Counsel Stack

Bluebook (online)
66 P.R. 355, Counsel Stack Legal Research, https://law.counselstack.com/opinion/russell-co-v-public-service-commission-prsupreme-1946.