Department of Public Utilities v. New England Telephone & Telegraph Co.
Department of Public Utilities v. New England Telephone & Telegraph Co.
Opinion of the Court
This is a petition for a writ of mandamus brought by the department in this court, purportedly under G. L. (Ter. Ed.) c. 159, § 40, and the last sentence of c. 25, § 5, for the purpose of compelling the company as a common carrier as defined in c. 159, § 12 (d), to charge for telephone service the rates contained in schedules filed by the company with the department on March 31,1949, as modified by rate sheets filed May 13, 1949, and to refrain from charging, as it is now doing, the higher rates contained in schedules previously filed by it on April 21, 1948.
The single justice of this court ruled that the company was properly charging the higher rates and entered judgment dismissing the petition. The department appealed to the full court. G. L. (Ter. Ed.) c. 213, § ID, inserted by St. 1943, c. 374, § 4.
Inasmuch as the case depends almost entirely upon the statutory system of this Commonwealth regulating intrastate activities of common carriers, including telephone companies, we have gathered in a footnote pertinent portions of the principal statutes involved.
On April 21, 1949, the company filed in this court a “Bill of Complaint under G. L. (Ter. Ed.) c. 25, § 5,” for the purpose of annulling the department’s order of March 18, 1949, which had disallowed the $15,000,000 rates filed April 21, 1948, and had substituted lower rates as hereinbefore set forth. By its bill it sought to establish its right to collect the rates of April 21, 1948, on the ground that the lower rates ordered by the department were unreasonable, confiscatory, and unconstitutional. It also sought a stay pendente lite of the order of the department of March 18, 1949. On May 13, 1949, after hearing, the department, in substance, granted the company’s petition of March 24, 1949, for the so called nine per cent rates. Thereupon the company filed with the department, for effect on May 14, the rate sheets necessary to realize the nine per cent rates allowed by the department’s order of May 13, and in its letter of transmittal it included a statement that its petition of March 24 was solely for the purpose of obtaining additional revenue to offset the wage increase which the department had not provided for in its order of March 18, but which was stated to be “necessary in order to permit the com-pony even to attain the 4.853% rate of return which the
On May 23, 1949, a single justice of this court, after hearing, entered an interlocutory decree in the equity suit, reciting that the company had filed with the department a bond in the sum of $1,000,000, conditioned upon the refund by the company to its customers of any sums that might be collected by it in excess of the sums which might be determined to have been legally collectible, and staying pendente lite the department’s order of March 18 disallowing the $15,000,000 rates filed April 21, 1948. This decree was equivalent to a temporary injunction to save the company from irreparable loss, if the court should ultimately decide that the rates imposed by the department were confiscatory. Two days later, on May 25, 1949, the single justice entered by consent a second decree staying pendente lite the order of the department of May 13, allowing the nine per cent rates. This consent decree was proposed by the department itself, because it feared that if its order of May 13 were not stayed the nine per cent rates allowed by that order might be charged in addition to the
The department contends that the company should now charge the nine per cent rates allowed May 13, 1949, and should be compelled to do so in this mandamus proceeding in spite of the fact that the department’s order of March 18, 1949, disallowing the $15,000,000 rates, out of which order all the subsequent proceedings arose, was stayed by the interlocutory decree of this court of May 23,1949, and in spite of the fact that the department’s order allowing the nine per cent rates was itself stayed by this court by the consent decree of May 25, which decree the department contends was beyond the jurisdiction of the court and void. The company contends that when the order of the department of March 18, 1949, disallowing the $15,000,000 rates filed April 21, 1948, and substituting other rates therefor, was stayed by this court the $15,000,000 rates went into efféct pendente lite and subject to the bond, and that it is now rightly charging those rates.
To this petition for a writ of mandamus the company demurred, and filed pleas, principally on the ground that the department has a complete remedy in the equity suit, which was pending in this court before the present petition was entered, and is still pending. The company contends that this petition for a writ of mandamus is a collateral attack upon the interlocutory decrees of this court above described, entered in the equity suit. If it were necessary to deal with these questions they would require careful consideration. But it is evident that the department and the company are in serious disagreement as to the present effect of the several orders of the department and decrees of this court hereinbefore set forth, and it seems desirable in the interest of orderly administration now and in the future that these differences be resolved as promptly as possible. We therefore turn at once, to a discussion of substantive rights and
In our opinion the rights of the parties, succinctly stated, were and are as follows: If it were not for the department’s statutory power to regulate rates the company would have had the full right to promulgate and put into effect the $15,000,000 rates filed April 21, 1948. It still had that right except as its acts were affected and modified by orders of the department. This appears from the language of G. L. (Ter. Ed.) c. 159, §§ 14, 17, 18, 19, and, particularly, the first two sentences of § 20, as amended by St. 1939, c. 18. We do not understand that the department disputes this. The order of the department of April 22, 1948, suspending the taking effect of the $15,000,000 rates was, prima facie, a valid order under c. 159, § 20, as amended by St. 1939, c. 18. That order, and that alone, prevented the $15,000,000 rates going into effect until the suspension should expire on March 21, 1949. But before the suspension expired the department made its decision and order of March 18, 1949, disallowing the $15,000,000 rates and requiring the com-pony to file in substitution therefor a new schedule of rates specified by the department. This also was, prima facie, a valid order and had the effect of continuing to prevent the $15,000,000 rates from taking effect and also put into effect the rates then ordered by the department; but this order was subject at all times and in all its parts to be reviewed, modified, amended, or annulled by this court under G. L. (Ter. Ed.) c. 25, § 5, to the extent of any “unlawfulness” therein, including of course any confiscatory or unconstitutional element contained in it. The order was also subject under § 5 and the rules of this court
The department contends, as we understand it, that the company has lost its right to charge the $15,000,000 rates filed April 21, 1948, by reason of having filed the schedules of the five per cent rates pursuant to the order of the department of March 18, 1949, and also by reason of having on March 24, 1949, petitioned for the nine per cent rates and having on May 13, 1949, after favorable action by the department on that petition, filed the schedules of the nine per cent rates. We cannot agree with either contention. When on March 18, 1949, the department specifically ordered the company to file new schedules of rates (which
Neither did the company lose its right by availing itself of the suggestion made by the department itself in its decision of March 18, 1949, that the department might, upon petition, allow the company increased rates (the nine per cent rates) in consequence of added labor costs. It was proper for the department to make this suggestion. We discover no reason why the company could not avail itself of the suggestion and acquire the added revenue, the need of which the department itself recognized, without abandoning the company’s right to insist upon having this court determine the constitutionality of the department’s order of March 18, 1949. See Lowell Gas Co. v. Department of Public Utilities, 324 Mass. 80, 81-82, and note. The department’s allowance of the nine per cent rates was not made, and could not have been made, conditional upon the
We do not find it necessary to determine whether the second interlocutory decree of the single justice of this court, entered by consent May 25, 1949, purporting to stay pen-dente lite the order of the department of May 13 permitting the nine per cent rates was beyond the power of the court, as the department now contends it was on the ground that there had been no “appeal” under G. L. (Ter. Ed.) c. 25, § 5, from the order allowing those rates. We do not imply
From what has been said it follows that the single justice rightly ruled that the company is now properly charging the $15,000,000 rates filed April 21, 1948, and rightly dismissed this petition.
We need hardly add that if on the hearing on the merits of the equity suit pending in this court the company shall be unable to maintain its contention that the order of the department of March 18, 1949, was confiscatory and unlawful, an entirely different situation will be presented.
Judgment affirmed.
G. L. (Ter. Ed.) o. 25, § 5, second paragraph: “The supreme judicial court shall have jurisdiction in equity to review, modify, amend or annul any ruling or order of the commission, or of any member or members representing the commission, but only to the extent of the unlawfulness of such ruling or order. The procedure before said court shall be that prescribed by its rules, which shall state upon what terms the enforcement of the order shall be stayed. . . . The burden of proof shall be upon the party adverse to the commission to show that its order is invalid. . . .” Third paragraph: “The supreme judicial court shall also have jurisdiction, upon application of the commission, to enforce all valid orders of the commission and the provisions of this chapter and of chapter one hundred and fifty-nine.”
G. L. (Ter. Ed.) c. 159, § 14, first paragraph: “Whenever the department shall be of opinion, after a hearing had upon its own motion or upon complaint, that any of the rates, fares or charges of any common carrier for any services to be performed within the commonwealth, or the regulations or practices of such common carrier affecting such rates, are unjust, unreason
G. L. (Ter. Ed.) c. 159, § 18: “Subject to the powers of the department to regulate and prescribe rates and charges, a common carrier may make commodity, transit or other classes of rates. . .
G. L. (Ter. Ed.) c. 159, § 19: “Every common carrier shall file with the department and shall plainly print and keep open to public inspection schedules showing all rates, joint rates, fares, telephone rentals, tolls, classifications and charges for any service, of every kind rendered or furnished, or to be rendered or furnished, by it within the commonwealth, and all conditions and limitations, rules and regulations and forms of contracts or agreements in any manner affecting the same, in such places, within such time, and in such form and with such detail as the department may order. . . . No common carrier shall, except as otherwise provided in this chapter, charge, demand, exact, receive or collect a different rate, joint rate, fare, telephone rental, toll or charge for any service rendered or furnished by it, or to be rendered or furnished, from that applicable to such service as specified in its schedule filed with the department and in effect at the time. . . . Unless the department otherwise orders, no change shall be made in any rate, joint rate, fare, telephone rental, toll, classification or charge, or in any rule or regulation or form of contract or agreement in any manner affecting the same as shown
G. L. (Ter. Ed.) c. 159, § 20, as amended by St. 1939, c. 18: “Whenever the department receives notice of any changes proposed to be made in any schedule filed under this chapter, it may, either upon complaint or upon its own motion, and after notice, hold a public hearing and make investigation as to the propriety of such proposed changes. Pending any such investigation and the decision thereon, the department may, by order served upon the common carrier affected, suspend, from time to time, the taking effect of such changes, but not for a longer period than ten months in the aggregate beyond the time when the same would otherwise take effect. After such hearing and investigation, the department may make, in reference to any new rate, joint rate, fare, telephone rental, toll, classification, charge, rule, regulation or form of contract or agreement proposed, such order as would be proper in a proceeding under section fourteen. ...”
G. L. (Ter. Ed.) c. 159, § 40: “Whenever the department is of opinion that a common carrier subject to its supervision is failing or omitting or about to fail or omit to do anything required of it by law or by order of the department, or is doing anything or about to do anything or permitting anything or about to permit anything to be done, contrary to or in violation of the law or of any order of the department, it shall direct its counsel to begin, subject to the supervision of the attorney general; an action or .-proceeding in the supreme judicial court in the name of the department for the purpose of having such violations or threatened violations stopped and prevented either by mandamus or injunction.”
Equity Rule 34, 252 Mass. 610.
If the use in this order of the word “may” in connection with the additional five per cent is to be construed as giving the company an option whether or not it should take the additional five per cent, which we do not decide, at least the order required the company to file new schedules no more advantageous to it than the five per cent rates.
Reference
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- Department of Public Utilities v. New England Telephone and Telegraph Company
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