Webb v. Philadelphia Gas Works (In Re Webb)

38 B.R. 541, 1984 Bankr. LEXIS 6021
CourtUnited States Bankruptcy Court, E.D. Pennsylvania
DecidedMarch 27, 1984
Docket19-11680
StatusPublished
Cited by15 cases

This text of 38 B.R. 541 (Webb v. Philadelphia Gas Works (In Re Webb)) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Webb v. Philadelphia Gas Works (In Re Webb), 38 B.R. 541, 1984 Bankr. LEXIS 6021 (Pa. 1984).

Opinion

OPINION

WILLIAM A. KING, Jr., Bankruptcy Judge.

This case reaches the Court on a complaint for an injunction filed by the debtor against Philadelphia Gas Works (“PGW”). After filing for relief under the Bankruptcy Code, the debtor sought restoration of gas service to her home and offered the utility company a security deposit pursuant to § 366 of the Code. PGW refused to accept the amount offered or restore service because there was evidence of illegal tampering with PGW equipment and receipt of stolen gas at the debtor’s premises prior to the bankruptcy filing.

The debtor claims that PGW’s policy of requiring voluntary restitution in cases of gas tampering and stolen gas violates §§ 366 and 525 of the Code. The position of PGW is that a debtor who tampers with equipment, thereby endangering not only herself but the safety of the entire neighborhood, should not be afforded the protections and remedies normally available under § 366 to debtors who do not tamper.

For the reasons stated herein, we will grant the motion of PGW to dismiss the complaint and deny the debtor’s request for injunctive relief. 1

FACTS

The gas service of the debtor was initially terminated by PGW on April 25, 1983 for failure to pay arrearages of $1,035.92. 2 The method used by PGW to terminate service was to shut off the gas connection to the debtor’s home at the curbbox valve.

On May 21, 1983, a PGW representative discovered that the service valve in the curbbox had been turned into an “on” posi *543 tion and that the debtor was receiving stolen gas. 3 The representative shut off the valve for a second time and reported his findings to supervisors at PGW. On June 8, 1983, another PGW employee found that the debtor’s gas service had been illegally turned on again. 4 He attempted to gain access to the debtor’s home to inspect the meter and gas pipings for safety reasons, but was unsuccessful. On June 10, 1983, a PGW crew excavated the street in front of the debtor’s home and permanently shut off the gas at the gas main connection in order to prevent future tampering. 5

The debtor filed for protection under Chapter 7 of the Bankruptcy Code on September 2, 1983 and converted the case to one under Chapter 13 on September 12, 1983. Pursuant to § 366(b) of the Code, the debtor offered to pay a security deposit of $162.00 and a reconnection fee of $20.00 in order to have PGW reconnect gas service to her home. Section 366(b) provides:

Such utility may alter, refuse, or discontinue service if neither the trustee nor the debtor, within 20 days after the date of the order for relief, furnishes adequate assurance of payment, in the form of a deposit or other security, for service after such date.

Section 366(a) provides:

Except as provided in subsection (b) of this section, a utility may not alter, refuse, or discontinue service to, or discriminate against, the trustee or the debtor solely on the basis that a debt owed by the debtor to such utility for service rendered before the order for relief was not paid when due.

When PGW refused to restore service for the amount offered, the debtor filed the instant complaint against PGW. We did not issue a temporary restraining order, although one was requested by the debtor on December 13, 1983, because there was an insufficient showing of irreparable harm in order to merit the granting of such extraordinary relief.

At trial on the preliminary injunction, the debtor did not refute the testimony of PGW’s witnesses concerning tampering and unauthorized gas usage. Debtor’s counsel focused on presenting to the Court a description of PGW’s policy in tampering cases from the testimony of a PGW employee. That policy is to refuse to restore gas service unless the customer makes voluntary restitution of certain costs incurred by PG” because of the tampering, such as excavation charges and the cost of the unauthorized gas used. 6 PGW policy toward tampering is the same regardless of whether the customer files for bankruptcy. Furthermore, no assurances are made to the customer that gas service will be reconnected even if restitution is made. 7

The debtor says she was informed by a PGW employee that her service would be restored if she paid $246.00 in digging charges, $60.32 for unauthorized gas usage, plus a security deposit and turn-on charge. She also offered proof that PGW restored service to other customers when they paid all of the charges surrounding their alleged tampering with PGW equipment. Therefore, the debtor contends, PGW’s policy is discriminatory because payment of these pre-petition costs which would otherwise be dischargeable under Chapter 13 is the only thing which separates her from the class of other “tampering” customers who have had their service restored. PGW’s policy, the debtor argues, is in effect a refusal to restore service on the basis of an unpaid pre-petition debt which violates §§ 366 and 525 of the Code.

PGW contends that no monetary demands were made on the debtor after the petition was filed and that it is incorrect to state that payment of these charges will automatically entitle a person who has tampered or used unauthorized gas to restored service. The final decision to restore ser *544 vice, according to PGW, is based on a management evaluation of the safety factors involved. 8

PGW asks the Court to take notice of the dangers involved in gas tampering, particularly in Philadelphia where most homes are situated in row formations. Every time an unauthorized person tampers with PGW gas lines and equipment, there is a risk of explosion. Therefore, PGW suggests that any decision regarding the restoration of service in tampering and theft cases should be within its discretion as a public utility supervised by the Philadelphia Gas Commission with a strong duty to insure the public health, safety and welfare.

Other facts produced at trial are that the debtor suffers from a medical disability and receives Supplemental Security income and welfare to provide for herself and her daughter. Since her gas service was terminated last June, the debtor’s electric bills have increased because she must boil water on an electric hotplate to get hot water. She has depended on a kerosene heater to heat her home during the recent winter months which she claims is inadequate. As a result of the lack of heat, she and her daughter have been in poor health, further aggravating her disability. She also fears permanent damage to her water and sewer systems as a result of the lack of gas heat. It is on the basis of these factors that the debtor seeks to prove irreparable harm if injunctive relief is not obtained against PGW.

CONCLUSIONS OF LAW

The appropriate standard for the issue of a preliminary injunction has been stated by the Third Circuit as follows:

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Cite This Page — Counsel Stack

Bluebook (online)
38 B.R. 541, 1984 Bankr. LEXIS 6021, Counsel Stack Legal Research, https://law.counselstack.com/opinion/webb-v-philadelphia-gas-works-in-re-webb-paeb-1984.