Wilson & Co. v. Oklahoma Gas & Elec. Co.

1942 OK 152, 126 P.2d 1009, 190 Okla. 528, 1942 Okla. LEXIS 137
CourtSupreme Court of Oklahoma
DecidedApril 14, 1942
DocketNo. 29950.
StatusPublished
Cited by4 cases

This text of 1942 OK 152 (Wilson & Co. v. Oklahoma Gas & Elec. Co.) 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
Wilson & Co. v. Oklahoma Gas & Elec. Co., 1942 OK 152, 126 P.2d 1009, 190 Okla. 528, 1942 Okla. LEXIS 137 (Okla. 1942).

Opinions

GIBSON, J.

This action was instituted in the district court of Oklahoma county by Oklahoma Gas & Electric Company and the trustees of Oklahoma Natural Gas Corporation, dissolved, against Wilson & Company and the Corporation Commission of the State of Oklahoma, to enjoin the enforcement of an alleged illegal order issued by said commission. From a judgment granting interlocutory injunction, Wilson & Company appeals.

The judgment appealed from restrains Wilson & Compny, until further order, from further prosecution of an action pending in said court, entitled Wilson & Company, Plaintiff, v. Oklahoma Gas & Electric Company and Fidelity & Casualty Company of New York, Defendants, No. 71898, in which action plaintiff is seeking to recover judgment on certain supersedeas bonds executed by said defendants to supersede the order of the commission aforesaid on appeal therefrom to the Supreme Court.

For a number of years the controversy over said order and bonds has been in the state and federal courts. The order was issued on April 13, 1926, under No. 3388, and purported to reduce the rate of charges on natural gas then being supplied to Wilson & Company by Oklahoma Gas & Electric Company. Appeal was taken to the Supreme Court by the latter company and Oklahoma Natural Gas Corporation, and the bonds in question were given to supersede the order. The Supreme Court affirmed the commission (Oklahoma Gas & Electric Co. v. Wilson & Co, 146 Okla. 272, 288 P. 316).

*529 Immediately thereafter the plaintiffs in the instant case, proceeding on the assumption that the order in question and its affirmance as aforesaid were merely the result of an administrative proceeding, filed an action in the District Court of the United States for the Western District of Oklahoma seeking, as they assert, to test the validity of the order by judicial review and to enjoin the enforcement thereof. After the questions involved had been before the Circuit Court of Appeals and the Supreme Court of the United States on a number of occasions, the latter court finally disposed of the case on jurisdictional grounds, holding that by reason of the provisions of 28 U.S.C.A. 379 the federal courts were prohibited from issuing injunctions in such cases to stay proceedings in state courts (Oklahoma Packing Co. et al. v. Oklahoma Gas & Electric Co. et al., 309 U. S. 4, 60 S. Ct. 215, 84 L. Ed. 537). In that case the court was apparently of the opinion that the plea interposed in the action on the bonds, No. 71898, attacking the validity of order No. 3388 was a proper method of obtaining a judicial determination of that question, and in this connection the court said:

“The present suit, therefore, is one for an injunction ‘to stay proceedings’ previously begun in a state court. The decree below is thus within the plain interdiction of an Act of Congress, and not taken out of it by any of the exceptions which this court has heretofore engrafted upon a limitation of the power of the federal courts dating almost from the beginning of our history and expressing an important congressional policy — to prevent needless friction between state and federal courts. . . .”

Thereupon the plaintiffs commenced the present action.

In the meantime, prior to the decision of the Supreme Court of the United States, 309 U. S. 4, supra, the action commenced by Wilson & Company, No. 71898, to recover on the bonds as aforesaid, was prosecuted to final judgment in favor of the plaintiff therein in the face of a motion to stay proceedings pending final disposition of the federal court action brought to test the validity of said order No. 3388. On appeal from the judgment in cause No. 71898 we held that the trial court erred in denying the motion to stay the proceedings, and remanded the cause with directions to stay the action in accordance with defendants’ motion (Oklahoma Gas & Electric Co. et al. v. Wilson & Co., Inc., 178 Okla. 604, 63 P. 2d 703). Subsequent to the mandate in that case the Supreme Court of the United States handed down its decision, supra, denying jurisdiction. Then, as stated above, this action followed.

Wilson & Company has interposed the following defenses to the present action:

First. The judgment of this court affirming Order No. 3388 on review thereof (146 Okla. 272, 288 P. 316) was res judicata of the issues pertaining to the primary obligation of the Oklahoma Gas & Electric Company to refund the overcharge for natural gas; that the proceedings on appeal constituted a judicial review as distinguished from a legislative review, and was final.

Second. That although the action of this court on said appeal may have constituted no more than the final step in a legislative proceeding to establish rates, the district court was nevertheless without jurisdiction to review or annul or to enjoin the enforcement of said order by reason of the provisions of section 20, art. 9, of the Constitution.

Third. That the jurisdiction of the district court to review the order in an equitable action is not essential to the validity of the same, since both this court and the federal district court have such jurisdiction.

Fourth. That another action between the parties, No. 71898, above, involving the same cause was pending in the same court; that the validity of said order No. 3388 could be tested by way of defense in said action No. 71898.

There were other defenses urged which would go to the merits of the order in question and not to the jurisdiction of the district court in testing *530 the validity of said order in an equitable action. They have no part in the proceedings to obtain the interlocutory injunction here on appeal.

The trial court in granting the injunction in this case held that the decision of this court on the former appeal (178 Okla. 604, 63 P. 2d 703) was clearly to the effect that the plaintiffs were justified in considering our review of order No. 3388 as being legislative and not judicial, and that the plaintiffs under the circumstances were entitled to maintain an action in equity to test the validity of the order, and that our decision was now the law of the case.

And such was our holding in that case. But the decision had specific reference to the injunction suit then pending in the federal court. The question of the propriety of such a suit in a state court was not before us. We also held that by reason of the particular circumstances involved, the plea in No. 71898 attacking the validity of order No. 3388 was not an effective method of obtaining a judicial review thereof; that where direct attack in equity is made on such an order the liability thereon is not final so as to support such an action as No. 71898 until its validity is judicially determined by direct attack in equity. Our opinion was before the Supreme Court of the United States when the opinion reported in 309 U. S. 4, above, was promulgated. Why the above pronouncement of this court was not there recognized, we are unable to say.

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Bluebook (online)
1942 OK 152, 126 P.2d 1009, 190 Okla. 528, 1942 Okla. LEXIS 137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilson-co-v-oklahoma-gas-elec-co-okla-1942.