United Gas Corp. v. Louisiana Public Service Commission

118 So. 2d 442, 239 La. 368, 1960 La. LEXIS 933
CourtSupreme Court of Louisiana
DecidedJanuary 11, 1960
DocketNo. 44855
StatusPublished
Cited by1 cases

This text of 118 So. 2d 442 (United Gas Corp. v. Louisiana Public Service Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United Gas Corp. v. Louisiana Public Service Commission, 118 So. 2d 442, 239 La. 368, 1960 La. LEXIS 933 (La. 1960).

Opinion

HAMITER, Justice.

In this cause, which is a sequel to City of Monroe v. Louisiana Public Service Commission and City of West Monroe v. Louisiana Public Service Commission, 233 La. 478 et seq., 97 So.2d 56 et seq., the United Gas Corporation seeks the annulment of Order No. 7711 of the Louisiana Public Service Commission wherein that body announced its refusal to act on plaintiff’s application for an increase in gas rates in that part of the “Monroe Division” lying outside the City of Monroe.

The factual background respecting the commencement of the litigation is well stated by the district judge in his reasons for [443]*443.judgment (in the instant case) from which we quote, in part, as follows: “United Gas ■Corporation is a private corporation engaged in distributing gas to consumers in several North Louisiana parishes and municipalities, including the cities of Monroe .and West Monroe. The whole area is referred to as the Monroe division. In 1947, the plaintiff entered into one contract with the City of Monroe and another contract with the City of West Monroe under the terms of which the plaintiff was granted ■separate exclusive franchises as a public •utility to sell gas to the inhabitants of those •cities at specified rates for a period of 25 years. In 1955, the plaintiff filed an application with the Louisiana Public Service ■Commission for an increase in price levels throughout the Monroe division, alleging that the rates fixed in those contracts and prevailing elsewhere have become confiscatory. The cities of Monroe and West Monroe filed separate pleas to the jurisdiction ■of the Commission and other exceptions attacking the right of the Commission to ■consider the application as to those cities because of the existing contracts. The ■Commission overruled the pleas and exceptions. Whereupon, the said cities instituted separate actions against the Commission * * * to enj oin the Commission. * * ”'

In such former actions the district court rendered judgments denying the injunctions .and dismissing the suits. And on consolidated appeals to this court we reversed the judgment relating to the City of Monroe .-and permanently enjoined the Commission from entertaining jurisdiction of or from holding a hearing on the application of the United Gas Corporation for a revision of ■the rates in that municipality. In our reasons for so ruling we pointed out that the ■City of Monroe had the exclusive right to ■fix rates within its limits. See City of Monroe v. Louisiana Public Service Commission, supra. However, the judgment which denied the injunction sought by the ■City of West Monroe was affirmed, we having concluded that the right to compulsorily fix gas rates in that municipality was vested by Article 6, Section 4 of the Constitution of 1921 solely in the Public Service Commission. See City of West Monroe v. Louisiana Public Service Commission, supra.

The United Gas Corporation then amended its application with the Commission so as to exclude the City of Monroe. And the City of West Monroe filed with that body an exception in which it alleged that “ * * * the Public Service Commission, though vested with jurisdiction over the parties herein, is without right to change or alter the contract validly entered into between the parties, both of whom at the time of the making of the contract were vested with the capacity to contract.” Such exception was referred to the merits; and thereafter the Commission held many hearings, during which a voluminous record resulted, relative to United’s alleged need for a rate increase in West Monroe.

Ultimately the Commission issued the order complained of here (No. 7711), it reciting: “The Commission has considered all the facts of this case, and it is of the opinion that the contract between United Gas Corporation and the City of West Monroe is binding; and that even if that contract did not exist, the Commission should not fix gas rates in West Monroe or in the remainder of the so-called Monroe District, until the question of the rates in Monroe is settled.

“It is accordingly ordered, that the application by United Gas Corporation for increased rates and charges for natural gas service in its so-called Monroe Division, exclusive of the City of Monroe, be and it hereby is denied.”

Thereupon United filed the present suit seeking to have that order set aside. The City of West Monroe and the Commission answered, they praying that the order be upheld. The Ouachita Parish School Board intervened in the action, alleging that it derived certain stipulated benefits from the rates fixed by the contract involved and, [444]*444accordingly, praying primarily that the Commission’s order be maintained.

The district court rendered judgment annulling and setting aside the assailed Order No. 7711. Further, it remanded plaintiff’s application to the Commission and directed that body to fix reasonable and just rates in the Monroe Division, less the City of Monroe.

The Commission, the City of West Monroe and the Ouachita Parish School Board are prosecuting the present appeal.

In their brief to this court in the instant cause appellants Louisiana Public Service Commission and the City of West Monroe state: * * * The issue of this case is whether the City of West Monroe can enter into a contract which will suspend the compulsory power of the Public Service Commission during the duration of said contract. * * *” And they conclude: “ * * * In the case of the City of West Monroe, the delegated contract power had been exercised, therefore, the compulsory power must lay in abeyance for the duration of the contract. This means that there can be no appeal to the Public Service Commission nor can the Public Service Commission exercise a compulsory power.”

The pleadings filed with the Commission and the district court (as well as the briefs presented here) prior to our decision in City of West Monroe v. Louisiana Public Service Commission, supra, clearly indicate that the stated issue has heretofore been presented to and considered by us, and such decision discloses that it has been definitely and finally resolved adversely to appellants.

Thus, in its jurisdictional exception originally filed with the Commission the City of West Monroe urged that that body was without right to consider the rate increase application of United Gas Corporation because of the existing contract or franchise.

Again, in the district court, in petitioning for the injunction, the City of West Monroe alleged that its plea to the jurisdiction should be upheld for several reasons, one of them-being: “Because since the Mayor and Board of Aldermen of the City of West Monroe, Louisiana, by a unanimous vote,, have authorized the execution of the franchise under consideration, since under the-law of Louisiana that is the only way that. United Gas Corporation could have a franchise granted to it by the City, and since said corporation has accepted said franchise- and has acted upon same continuously since 1947, it is clear that the only way that said franchise can be amended, modified, or its-consideration increased or decreased is by a majority vote of the Mayor and Board of Aldermen of the City of West Monroe, Louisiana.”

As before shown the trial court refused: to grant a preliminary injunction, and it subsequently denied a permanent injunction. The judgment denying the latter recited :

“This cause having been heard on a rule-for a preliminary injunction and this Court, having held:
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Bluebook (online)
118 So. 2d 442, 239 La. 368, 1960 La. LEXIS 933, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-gas-corp-v-louisiana-public-service-commission-la-1960.