Indianapolis Water Co. v. Moynahan Properties Co.
| Decision Date | 21 November 1935 |
| Docket Number | 26204 |
| Citation | 198 N.E. 312,209 Ind. 453 |
| Parties | INDIANAPOLIS WATER CO. v. MOYNAHAN PROPERTIES CO. et al |
| Court | Indiana Supreme Court |
Action by the Moynahan Properties Company and others against the Indianapolis Water Company. A temporary injunction issued and defendant appeals.
Judgment reversed, with instructions.
Appeal from Superior Court, Marion County; Joseph R. williams judge.
Wm. L Ransom, of New York City, and Joseph J. Daniels, Baker & Daniels, and G. R. Redding, all of Indianapolis, for appellant.
Carl Wilde and A. B. Cronk, both of Indianapolis, for appellee.
Appellees instituted this action seeking an injunction which would prevent appellant from collecting certain increases in water rates prescribed and authorized by the Public Service Commission in an order entered April 1, 1932. The Public Service Commission was not made a party, nor was it sought to enjoin the operation of the rate structure established by the order, nor was it sought to affect the rates charged by appellant, otherwise than in so far as they operated as an increase in charges for water used by appellees in certain apartment house and residence properties owned and operated by them. Upon hearing a temporary injunction issued.
The only error assigned questions the sufficiency of the facts to sustain the court's ruling in issuing the temporary injunction.
The injunction seems to have been issued upon the theory that the order of the commission is for several reasons void. Rate making is a legislative function in which the courts are not concerned so long as rights guaranteed by the Constitution are not invaded, except to see that delegated powers are lawfully exercised. The Public Service Commission is a ministerial body established by the Legislature for the purpose of ascertaining facts and carrying into effect legislative rules concerning rates and charges.
It is provided by section 77 of the Public Service Commission Act (section 12748, Burns' 1926): 'All rates, tolls, charges, schedules and joint rates fixed by the commission shall be in force and be prima facie lawful, and all regulations, practices and services prescribed by the commission shall be in force and shall be prima facie reasonable unless finally found otherwise in an action brought for that purpose pursuant to the provisions of sections 78 to 85.' Sections 78 to 85 (Burns' Ann. St. 1926 §§ 12749-12756), referred to, provide for an action in the circuit or superior court against the commission. Those sections were superseded by chapter 169 of the Acts of 1929 (Burns' Ann. St. Supp. 1929, § 12749 et seq.), which provide that any person adversely affected by any ruling of the commission may commence an action against the commission in the circuit or superior court of any county in which the affected utility operates, to vacate, set aside, or enjoin the enforcement of the ruling or order. It provides that the action shall be brought within 60 days after the order is made. Section 7 (Burns' Ann. St. Supp. 1929, § 12751) provides that: 'No injunction shall issue in any such action suspending or staying any order of the commission except after notice to the commission and hearing.' Section 125 (section 12798, Burns' 1926) provides that: 'A substantial compliance with the requirements of this act shall be sufficient to give effect to all the rules, orders, acts and regulations of the commission, and they shall not be declared inoperative, illegal or void for any omission of a technical nature in respect thereto.' The commission is charged by statute with the enforcement of the act, and it is provided that the commission shall be the party plaintiff in actions for forfeitures provided for in the act.
One of the purposes of public rate regulation is to require and insure uniform and equal rates for service to all who are in like situation; to prevent undue discrimination. That it is competent for the public to regulate rates through governmental agencies for the purpose of accomplishing those purposes cannot...
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