United Gas Pipe Line Company v. Louisiana Public Service Commission

279 So. 2d 195, 1 P.U.R.4th 92
CourtSupreme Court of Louisiana
DecidedJune 11, 1973
Docket52608, 52609
StatusPublished
Cited by6 cases

This text of 279 So. 2d 195 (United Gas Pipe Line Company 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 Pipe Line Company v. Louisiana Public Service Commission, 279 So. 2d 195, 1 P.U.R.4th 92 (La. 1973).

Opinion

279 So.2d 195 (1973)

UNITED GAS PIPE LINE COMPANY, Plaintiff-Appellee,
v.
LOUISIANA PUBLIC SERVICE COMMISSION et al., Defendants-Appellants.

Nos. 52608, 52609.

Supreme Court of Louisiana.

June 11, 1973.

Marshall B. Brinkley, Baton Rouge, Arnold D. Berkeley, Washington, D. C., for defendants-appellants.

Lemle, Kelleher, Kohlmeyer, Matthews & Schumacher, Harry B. Kelleher, New Orleans, Baker & Botts, Houston, Tex., for plaintiff-appellee.

CALOGERO, Justice.

This is an appeal by the Louisiana Public Service Commission from a ruling of the Nineteenth Judicial District Court for the Parish of East Baton Rouge decreeing that United Gas Company is under no legal obligation to pay the fee of a Washington, *196 D. C. attorney, Arnold D. Berkeley, hired by appellant in a matter before them, entitled Louisiana Public Service Commission versus United Gas Pipe Line Company, their Docket No. 11,009. Procedurally the matter arose as follows:

In 1971, the Commission instituted a proceeding or investigation having to do with establishing their jurisdiction over certain activities of the United Gas Pipe Line Company. Incident to that matter the Commission, on September 28, 1971, issued its Special Order 7-71 stating among other things that:

"F. United shall pay any and all expenses incurred by this Commission in conducting the proceeding instituted by this Order, including the expenses and fees of engineers, consultants, accountants, special counsel, and clerical assistants specially employed therefor. The Commission will certify to United, on a monthly basis, the expenses thus incurred.
G. Any party objecting to any provision of this Order shall file written objections thereto on or before October 7, 1971."

While United did not respond to the order's direction to file written objections on or before October 7, 1971 to the Commission's stated intention to bill United for the fees of Special Counsel, United did none-theless, upon receipt of bills of Mr. Berkeley, certified by the Commission, within fifteen (15) days of receipt of such bills, file a Rule to Show Cause why there should not be a judgment decreeing that United should have no legal obligation to pay and discharge said fees. There were two separate certified bills, one in the sum of $2,827.41 and the other, $1,710.00. Two separate rules to show cause incident thereto, were consolidated for trial in the District Court and are brought here for our consideration under the above docket numbers.

The Commission, in the District Court, filed a "peremptory exception" seeking to dismiss United's rule on the basis that their Special Order 7-71 barring complaint to certified billings after October 7, 1971 because of United's failure to file written objections prior to that date, had the effect of law under the provision of Article VI, Sections 4 through 6 of the Louisiana Constitution which gives the Commission the right and power to set its own methods of procedure. The Commission further complains that United's not lodging objection in accordance with the order but complaining by rule to show cause within fifteen (15) days of receipt of the certified billings, had the effect of prejudicing the ability of the Commission to prosecute the matter inasmuch as the Commission had interpreted and relied upon United's failure in this regard, as an acquiescence, and the Commission had therefore not sought additional funds to employ Special Counsel.

The trial court found no merit in the exception, nor do we.

The Constitutional Article relied on affords the Commission general power and right to set its own methods of procedure but does not at all concern itself with expenses chargeable to regulated utilities.

The statutory law on the other hand, is very clear. R.S. 45:1181 provides that if the person to whom the expense is certified deems the amount unreasonable or contrary to the provision of R.S. 45:1180 through 45:1181, he may within fifteen (15) days after receipt of the certified bill, take a rule against the Commission to test the reasonableness and legality of the expenses certified by the Commission. This is precisely what United has done in this case.

Accordingly, the Commission's right to have United Gas pay fees of the Commission's utilities experienced Special Counsel is properly before us.

At the outset in considering this issue it is well to quote pertinent language from the two billings:

"For Professional Services Rendered *197 November 13 through 30, 1971 Re: Preparation of Order Affirming Jurisdiction and to Show Cause and related legal research;
Acting as Special Counsel at Informal Conference; Conferences with Commission

. . . . . .

$2,827.41"
"For Professional Services Rendered
December 1 through December 31, 1971
Docket No. 11009 and 11010: Examination and investigation of data concerning rates and services of United Gas Pipe Line Company
Attendance at Informal Hearing of November 29, 1971, regarding such data.
Conferences with Mr. James Lim of Hess and Lim, Consultant to the Commission regarding such data.
Preparation of Order Denying Relief from Operating Restrictions.
$1,710.00"

As is the prevailing practice by regulatory agencies in this country, Louisiana Public Service Commission has the legal right and authority to charge to the regulated utility company, the expenses incurred by the Commission in conducting an examination of the affairs of the utility, for the purpose of fixing and regulating the rates charged or to be charged or services to be rendered by such public utility business. The right to recover those expenses, however, is statutory. R.S. 45:1180[1] provides essentially that whenever the Commission makes such an examination "all expenses incurred by the Commission in conducting such examination including expenses and fees of engineers, consultants, accountants, or clerical assistants, specially employed to make the examination shall ... be paid by the person so examined." Section 1181[2] says that only such engineers, consultants, accountants or clerical assistants as are actually necessary to conduct the examination shall be employed and their compensation shall be fixed according to the time actually devoted to the work of conducting the examination and making their reports thereon whether as witness *198 before the Commission in open hearing, or by written report, under oath, as required by law.

The Commission relies in their effort to recover these legal expenses upon language of Sec. 1180 that all expenses incurred by the Commission shall be paid. They further assert that though "expenses of counsel" do not follow the word "including" in Section 1180, that the words that do follow it are illustrative only. United on the other hand, accents the language of Section 1180 that all expenses incurred by the Commission in conducting the examination are payable; and that Section 1181 illustrates the type of work contemplated when it refers to the consultants, et al., making their reports as witnesses before the Commission in often hearing or by written report under oath, etc.

Furthermore, United points out that nowhere in 1180 or 1181 is provision made for paying fees of attorneys, while there is specific provision in sub-section C, Section 1177[3]

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Bluebook (online)
279 So. 2d 195, 1 P.U.R.4th 92, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-gas-pipe-line-company-v-louisiana-public-service-commission-la-1973.