State Ex Rel. Oklahoma Natural Gas Co. v. Hughes

1950 OK 321, 227 P.2d 666, 204 Okla. 134, 1950 Okla. LEXIS 582
CourtSupreme Court of Oklahoma
DecidedDecember 15, 1950
Docket34865
StatusPublished
Cited by10 cases

This text of 1950 OK 321 (State Ex Rel. Oklahoma Natural Gas Co. v. Hughes) is published on Counsel Stack Legal Research, covering Supreme Court of Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Oklahoma Natural Gas Co. v. Hughes, 1950 OK 321, 227 P.2d 666, 204 Okla. 134, 1950 Okla. LEXIS 582 (Okla. 1950).

Opinions

WELCH, J.

The purpose of this action is to prohibit Kenneth Hughes, judge of the district court of Creek county, and Judicial District No. 24, from enforcing a certain peremptory writ of mandamus heretofore issued in case No. 27458, district court of Creek county, and from exercising further jurisdiction of the subject-matter of that cause.

The plaintiff relator, hereinafter referred to as “The Oklahoma Natural,” is a public utility engaged in the sale and distribution of natural gas.

On and prior to July 9, 1949, there was and now is in force and effect within the state what is known as “Rate Schedule 1-1.” Such is the rate schedule set up in an order of the Corporation Commission fixing the rate for the sale of gas to industrial consumers, and prescribing regulations appliable to the furnishing of industrial gas service. Therein industrial consumers are defined as those whose primary business is the manufacture or the processing of a product for sale to the public and it is provided that gas service to industrial consumers under Rate Schedule 1-1 and approved contract practice may be interrupted or discontinued without notice when the supply of gas is inadequate to meet the demands of the supplier’s other customers.

By order of July 9, 1949, effective September 1, 1949, the Corporation Commission approved certain gas rate schedules as filed and requested by the Oklahoma Natural which includes what is designated as “Rate Schedule PG.” Under Rate Schedule PG a rate for the sale of gas to industrial consumers is fixed at a price substantially higher than is established by Schedule 1-1 on a basis that large industrial gas consumers who are or might be otherwise served under Rate Schedule 1-1 may contract in writing for uninter-ruptible gas and thus in some instances have a character of priority of gas service over customers served under Rate Schedule 1-1, or served under rates providing for possible interruption or discontinuance of service without notice.

On March 28, 1950, Bartlett-Collins Company, a corporation, joined with others, all users of natural gas for manufacturing purposes and purchasers of gas so used from the Oklahoma Natural under contracts embodying Rate Schedule 1-1, filed petition in the district court of Creek county, case No. 27458, praying for a writ of mandamus commanding the Oklahoma Natural to furnish to the said users the natural gas suitable to their needs and wholly without reference to alleged contracts executed with other consumers under the new rate Schedule PG.

It seems that Oklahoma Natural served gas to plaintiffs in that action pursuant to approved contracts under Rate Schedule 1-1, and in the same locality served other industrial users pursuant to approved contracts .under Rate Schedule PG. As to plaintiffs in that action there had been some interruptions or curtailment of service as authorized under the Rate Schedule 1-1 practice and contract, while in the [136]*136same locality gas had been furnished to other industrial users under the PG rate schedule and practice without any interruption as specifically authorized by the PG rate schedule contract and practice.

It was the purpose of that district court suit to compel Oklahoma Natural to cease the above action and practice as to the plaintiffs which was claimed to be illegally discriminatory against them.

Oklahoma Natural took the position that all the above actions and practices were proper under the aforesaid approved rates, practices and contracts and further asserted in effect that the plaintiffs’ suit, if sustained, would effect a defeat and nullification of an order of the Corporation Commission in approved rate schedules or suspend the execution and operation thereof, beyond the power and jurisdiction of the district court so to do.

•In case No. 27458, after hearings held, objection to the exercise of jurisdiction over the subject-matter of the action was overruled, and the trial court entered an order and judgment that peremptory writ of mandamus issue directed to Oklahoma Natural. In that judgment there was a finding that the order of the Corporation Commission approving or establishing the Rate Schedule PG was invalid and that Rate Schedule PG was null and void. The judgment in mandamus then commanded of Oklahoma Natural that certain things be done, and that certain practices be followed by Oklahoma Natural which would in effect nullify Rate Schedule PG or prevent Oklahoma Natural from following the practices authorized thereby.

Oklahoma Natural gave notice of appeal from such judgment, but pending necessary time to complete the appeal, commenced this action for prohibition.

The sole issue here is whether the district court had jurisdiction of the subject-matter, and jurisdiction to render the judgment rendered in said cause No. 27458. The Corporation Commission has filed a brief, amicus curiae.

Our Constitution, in article 9, sec. 20, provides as follows:

“No court of this State, except the Supreme Court, shall have jurisdiction to review, affirm, or reverse, or remand any action of the Corporation Commission with respect to the rates, charges, services, practices, rules or regulations of public utilities, or of public service corporations, or to suspend or delay the execution or operation thereof, or to enjoin, reverse or interfere with the Corporation Commission in the performance of its official duties; provided, however, that writs of mandamus or prohibition shall lie from the Supreme Court to the Corporation Commission in all cases where such writs respectively would lie to any inferior court or officer.”

We think it apparent that the plaintiffs’ cause of action and right to the relief granted in ease No. 27458 rests upon the claimed invalidity of the action of the Corporation Commission in approval of rates, charges, services and regulations applicable to Oklahoma Natural, a public utility, and that the peremptory writ of mandamus was in effect a reversal and annulment of such an action of the Corporation Commission, and purported to suspend the execution or operation thereof.

Against this view it is contended that the Corporation Commission order of July 6, 1949, was invalid; that the rates, contracts, and practices under the Schedules 1-1 and PG result in unlawful discrimination against gas users on the 1-1 rate. These contentions, however, cannot be resorted to as an avoidance of the constitutional rule that the district court is without jurisdiction. This does not mean that parties feeling themselves so aggrieved are without remedy. They might have appealed from the order of July 9, 1949. They may at any time apply to the Corporation Commission for relief from any oppressive, discriminatory, or objectionable rate schedule order, and may appeal therefrom to this court. [137]*137Thus may be had a complete judicial review in keeping with the Constitution, and a comprehensive attack on rate schedules and practices may thus be made. Such cannot occur in the district court on account of specific constitutional inhibition.

For some of the cases in which this court has heretofore referred to this constitutional bar to district court jurisdiction, see Southern Oil Corp. v. Yale Natural Gas Co., 89 Okla. 121, 214 P. 131; Chicago, R. I. & P. Ry. Co. v. Brown, 105 Okla. 133, 232 P. 43; Russell Petroleum Co. v. Walker, 162 Okla. 216, 19 P. 2d 582, and Swain v. Oklahoma City Ry. Co., 168 Okla. 133, 32 P. 2d 51.

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State Ex Rel. Oklahoma Natural Gas Co. v. Hughes
1950 OK 321 (Supreme Court of Oklahoma, 1950)

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Bluebook (online)
1950 OK 321, 227 P.2d 666, 204 Okla. 134, 1950 Okla. LEXIS 582, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-oklahoma-natural-gas-co-v-hughes-okla-1950.