Pacific Indemn. Ins. Co. v. Illum. Co., Unpublished Decision (7-24-2003)
Pacific Indemn. Ins. Co. v. Illum. Co., Unpublished Decision (7-24-2003)
Opinion of the Court
{¶ 2} Plaintiff-appellant, Pacific Indemnity Insurance Company appeals the trial court granting a motion to dismiss for lack of subject matter jurisdiction filed by defendant-appellee, The Illuminating Company ("CEI"). In February 2001, plaintiff insured Harriet Leedy against property loss and fire damage to her property located in the city of Gates Mills, Ohio. On February 28, 2001, after a severe storm, CEI attempted to restore electrical service to Leedy's property. According to plaintiff, during the course of CEI's work, a power surge occurred when CEI jerry-rigged an electric service cable without Leedy's knowledge or consent.
{¶ 3} Plaintiff filed a complaint1 against CEI in which it alleges the power surge caused more than $40,000 personal property damage. Plaintiff asserts two claims in its complaint: first, that CEI was negligent in failing to use due care at Leedy's property; second, that CEI breached an oral contract to perform its work in a workmanlike manner.
{¶ 4} CEI responded to plaintiff's complaint by filing a motion to dismiss pursuant to Civ.R. 12(B)(1). In its motion, CEI argued the trial court lacked subject matter jurisdiction because The Public Utilities Commission of Ohio ("PUCO") has exclusive jurisdiction over plaintiff's claims. CEI argued plaintiff's claims are governed by R.C.
{¶ 5} The trial court erred in dismissing appellant's common law tort claim and common law contract claim since the puco does not have exclusive jurisdiction over these claims and the claims neither involved a "service-oriented" claim, a filed tariff nor concerned a "practice" of the public utility.
{¶ 6} Plaintiff maintains that PUCO does not have exclusive jurisdiction over its claims because they are not related to the type of service problems included in R.C.
{¶ 7} Once a party files a Civ.R. 12(B)(1) motion to dismiss, the trial court determines whether the complaint contains a cause of action that it has authority to decide. Brethauer v. Federal ExpressCorporation, et al. (2001),
{¶ 8} "[W]here circumstances determining jurisdiction may be subject to more than one interpretation, then the basis of the complaint alone is insufficient to support a dismissal in absence of additional inquiry." Harris v. Ohio Edison Co. (Aug. 17, 1995), Mahoning App. No. 94 C.A. 84, 1995 Ohio App. LEXIS 3381, at *7.
{¶ 9} In the case at bar, CEI's motion to dismiss plaintiff's complaint was based entirely on the face of that complaint. CEI did not attach any evidentiary materials to its motion. CEI simply argued that plaintiff's two claims, negligence and breach of contract, were subject to PUCO's exclusive jurisdiction because both of them were unambiguously related to the type of utility service described in R.C.
{¶ 10} R.C.
{¶ 11} "The commission has exclusive jurisdiction over various matters involving public utilities, such as rates and charges, classifications, and service, effectively denying to all Ohio courts (except this court) any jurisdiction over such matters." State ex rel.Cleveland Elec. Illum. Co. v. Cuyahoga Cty. Court of Common Pleas
(2002),
{¶ 12} In some circumstances, however, courts "retain limited subject-matter jurisdiction over pure common-law tort and certain contract actions involving utilities regulated by the commission." Id. InCuyahoga Cty. Court of Common Pleas, supra, the Ohio Supreme Court determined that respondent's contract claims against relator utility did not fall within the exclusive jurisdiction of PUCO. In that case, respondent had asserted that its contract with relator was void because of indefiniteness and lack of consideration. Id., at 75.
{¶ 13} In 1995, the Ohio Supreme Court listed several tort and contract cases in which various courts determined PUCO did not have exclusive jurisdiction. The Court stated as follows: "Other courts retain limited subject matter jurisdiction over tort and some contract claims involving utilities regulated by the commission. See, e.g., KazmaierSupermarket, Inc. v. Toledo Edison Co., supra,
{¶ 14} In State ex Rel. Ohio Edison Co. v. Morris (Dec. 3, 1984), Stark App. No. CA-6432, 1984 Ohio App. LEXIS 11825, plaintiff filed in common pleas court a complaint alleging damage to his livestock as a result of stray voltage after the utility company had installed electrical service. The court determined that because plaintiff's claim was not a "service" complaint as described in R.C.
{¶ 15} The court explained: It is apparent that the P.U.C.O. has adopted no specific regulations dealing with the phenomenon of neutral-to-earth voltage or stray voltage. There is a sense in which every claim against a public utility of negligence (be it violation of a common law or statutory duty), is a complaint involving the "service" of such utility. A person injured as a result of the negligent operation of a utility's vehicle on the public highway, in a sense, has a complaint about the service of the utility. If utility lines are strung sufficiently close to a building that in a wind shingles are knocked off, the claim is arguably a complaint about the service rendered by the public utility. Id., at *11-12.
{¶ 16} In deciding whether an action is service-related and belongs under PUCO's exclusive jurisdiction, some courts approach the issue by posing two questions. First, is PUCO's administrative expertise required to resolve the issue in dispute? Second, does the act complained of constitute a "practice" normally authorized by the utility? If the answer to either question is in the negative, courts routinely find that those claims fall outside PUCO's exclusive jurisdiction.3
{¶ 17} In Gayheart v. Dayton Power Light Co. (1994),
{¶ 18} We reject CEI's reliance upon the case of Lawko v.Ameritech Corporation, (Dec. 7, 2000), Cuyahoga App. No. 78103, 2000 Ohio App. LEXIS 5687. First, Lawko is inapposite to the facts before us because, contrary to CEI's characterization of the case, Lawko did not involve a power surge. Moreover, Lawko rejected Gayheart's use of a "practice" standard in determining whether plaintiff's claim was related to the type of service described in R.C.
{¶ 19} In Lawko, supra, this court stated: "We do not find the analysis in Gayheart persuasive. As the Supreme Court of Ohio noted inKazmaier Supermarket, supra, the basis for determining whether PUCO has exclusive jurisdiction is a determination regarding whether a matter involves claims which are in essence rate or service-oriented — not whether a claim involves a common "practice" of the utility * * *." Id., at *12.
{¶ 20} In the present case, we comfortably rely on Judge Brogan's use of a "practice" standard in Gayheart because that standard is expressly part of the legislative scheme under
{¶ 21} In Harris, supra, plaintiffs sustained property damage as a result of a power surge. Plaintiffs argued their electrical system surged because of the utility company's negligence in connecting a neutral tap. The court held that because plaintiff's claims — failure to investigate and failure to correct a dangerous condition — were subject to more than one interpretation, the action constituted a common-law negligence matter and thus PUCO did not have jurisdiction.
{¶ 22} In Mid-American Fire Cas. Co. v. Gray (June 15, 1993), Montgomery App. No. 13763, 1993 Ohio App. LEXIS 3036, the court determined the utility company's serviceman had failed to respond promptly to repeated requests for assistance after a tree-cutting service severed utility lines at the insured's property. The court determined that PUCO did not have exclusive jurisdiction because the serviceman's "failure to act did not constitute a `practice related to service' as contemplated by the statute * * * but was an isolated individual act of negligence falling within the jurisdiction of the court of common pleas." at *7.
{¶ 23} In the case at bar, we find the analysis and facts of the above-cited cases applicable to the events described in this case. From the face of plaintiff's complaint alone, we cannot say the substance of its claims fall unequivocally within PUCO's exclusive jurisdiction. CEI has failed to present any evidence that jerry-rigging utility service lines is one of its regular "practices." Further, CEI has not shown why the decision to jerry-rig Leedy's service line requires PUCO's administrative expertise.
{¶ 24} Plaintiff's claims can be easily characterized as pure tort and contract claims rather than the type of service claims described in R.C.
{¶ 25} For all the foregoing reasons, plaintiff's sole assignment of error is sustained. The judgment of the trial court is reversed and this matter remanded for proceedings consistent with this opinion.
Judgment accordingly.
This cause is reversed.
ANNE L. KILBANE, P.J., and ANN DYKE, J., concur.
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