State Ex Rel. Church v. Arizona Corp. Commission

382 P.2d 222, 94 Ariz. 107, 1963 Ariz. LEXIS 282
CourtArizona Supreme Court
DecidedMay 29, 1963
Docket7232
StatusPublished
Cited by31 cases

This text of 382 P.2d 222 (State Ex Rel. Church v. Arizona Corp. Commission) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Church v. Arizona Corp. Commission, 382 P.2d 222, 94 Ariz. 107, 1963 Ariz. LEXIS 282 (Ark. 1963).

Opinion

JENNINGS, Justice.

This appeal raises two questions concerning the procedure for judicial review of actions of the corporation commission. The facts are these: Arizona Public Service applied to the corporation commission for an order modifying the company’s “Terms and Conditions for the Sale of Electric and Gas Service,” with regard to charges to be made for establishment and *109 re-establishment of gas service, for service line extension for residential gas customers, and with regard to certain other matters. After a hearing at which the application was unopposed, the commission on August 17, 1959, issued its decision approving the proposed changes. Thereafter, in accordance with A.R.S. § 40-253, subd. A 1 *the attorney general petitioned for a rehearing before the commission. This petition was granted, extensive testimony was heard, and on July 13, 1960, the commission issued its order affirming, with the exception of one minor detail, 2 the previous decision which approved the proposed changes. On August 11, 1960, the State filed this action in the Superior Court in Maricopa County to set aside the order of the commission. Arizona Public Service was permitted to intervene and its motion to dismiss the action was granted, resulting in this appeal.

The Superior Court dismissed the action on the grounds that no petition for rehearing of the order of July 13, 1960, was made before the corporation commission pursuant to A.R.S. § 40-253. The first question presented is this: When, upon a motion for rehearing, the corporation commission hears new evidence, and thereafter affirms its original order, except in minor detail, must an aggrieved party apply for a second rehearing before bringing an action to set aside the order of the commission?

The answer to this question turns upon an interpretation of A.R.S. § 40-253, subd. B:

“No claim arising from any order or decision of the commission shall accrue in any court to any corporation or person,, or the state, unless the corporation or person, or the state, makes, before the effective date of the order or decision, application to the commission for a rehearing.”

Arizona Public Service argues that, since the State has not applied for a rehearing following the commission’s order of July 13, 1960, this provision precludes any claim arising to the State with respect to that order. Further, it argues, under A.R.S. *110 § 40-253, subd. F, 3 the order of that date is the final order of the' commission,, and the order of which review must be sought. In support of this view', Arizona Public Service cites City of Edwardsville v. Illinois Commerce Commission, 412 Ill. 34, 104 N.E. 2d 283 (1952) and State ex rel. Southwest Water Co. v. Public Service Commission, 173 S.W.2d 113 (Mo.App.1943). In these cases, similar statutes were construed to require petitions for a second rehearing where new evidence was presented at the first rehearing, or where, as a ■ result of the first rehearing, the original order was modified.

After due consideration we are unable to accept the position taken by these decisions. The subsection quoted’ above is an expression of the doctrine of the exhaustion. of administrative remedies. .Un.der this doctrine, the commission must be given the opportunity to correct its errors before resort is had to provisions for judicial review, cf. Wammack v. Industrial Commission, 83 Ariz. 321, 320 P.2d 950 (1958). The doctrine does not require, however, that the commission must have a double look at every item of evidence that might be presented. Indeed, the reviewing court is free to consider evidence which was not adduced before the commission, Gibbons v. Arizona Corporation Commission, 75 Ariz. 214, 254 P.2d 1024 (1953).

Although the procedure established for review of decisions of the industrial commission is in many respects unlike that established for review of decisions of the corporation commission, the doctrine of exhaustion of administrative remedies applies in both situations. We have held that application for a rehearing is prerequisite to judicial review of industrial commission action, Ross v. Industrial Commission, 82 Ariz. 9, 307 P.2d 612 (1957). Further, we have held that “while a party has the privilege of applying for a second rehearing, he is not compelled to ’ do so in order to exhaust his administrative remedies.” Wammack v. Industrial Commission, 83 Ariz. 321, 327, 320 P.2d 950, 954 (1958). The same principle applies in this case.

The purpose of a statute will not be frustrated or thwarted by a literal application of its terms, Feffer v. Bowman, 90 Ariz. 48, 365 P.2d 472 (1961). Statutes are to be construed as a whole, and related *111 provisions in pari materia are to be harmonized if possible, Desert Waters, Inc. v. Superior Court, 91 Ariz. 163, 370 P.2d 652 (1962) ; City of Phoenix v. Kelley, 90 Ariz. 116, 366 P.2d 470 (1961). A.R.S. § 40-253 governs the procedure on application for rehearing before the corporation commission. By its terms it contemplates judicial review following rehearing. A.R.S. § 40-254 governs the procedure for obtaining judicial review and, significantly, sets brief time limits within which the action may be brought, answer made, and preparation for trial completed. A.R.S. § 40-255, in further expression of the legislature’s intent that judicial review be expeditiously obtained, gives such actions precedence over other civil matters except election actions. Read together, these sections indicate speed, not delay, is the legislative mandate where judicial review is sought of action by the commission.

Under the rule advocated by Arizona Public Service, after each new “final order” application must be made for another rehearing, and judicial review would not be available until the commission decided to deny the application.

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Bluebook (online)
382 P.2d 222, 94 Ariz. 107, 1963 Ariz. LEXIS 282, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-church-v-arizona-corp-commission-ariz-1963.