CLEMENTS v. SOUTHWESTERN BELL TELEPHONE
2017 OK 107
Okla.2017Background
- In 1989 the Oklahoma Corporation Commission issued Order No. 341630 (Cause PUD 260) deciding that surplus funds generated for Southwestern Bell Telephone (SWBT) by federal tax changes would not be refunded to ratepayers and prescribing uses for the funds.
- Commissioner Robert E. Hopkins voted for the 1989 Order; years later he was convicted of accepting a bribe tied to that vote. Commissioner Bob Anthony dissented in 1989 and later disclosed information to investigators.
- The 1989 Order was appealed; this Court in Henry v. Southwestern Bell Telephone Co. held the surplus was not an overcharge under 17 O.S. §121 and therefore not refundable as a matter of law.
- After Hopkins’s conviction the Commission on remand (1997) declined to reopen the 1989 cause, noting no benefit to rehearing and that earlier appellate rulings limited its authority; that remand order was not appealed.
- In 2015 six customers filed an application asking the Commission to vacate or modify the 1989 Order based on Hopkins’s bribery; SWBT moved to dismiss and the Commission granted dismissal (Order No. 655899).
- The Oklahoma Supreme Court affirmed the Commission’s dismissal, holding the Commission acted within its authority and its conclusions were supported by law and substantial evidence, including preclusion of re-litigating the refund issue.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Commission had authority to summarily dismiss Customers’ application | Customers: Commission must reopen/vacate 1989 Order because Hopkins’s bribery tainted it | SWBT/Commission: Commission lacks basis to reopen; matter previously litigated and re-reviewed | Held: Commission acted within its authority to dismiss; dismissal affirmed |
| Whether Hopkins’s bribery requires vacatur or full rehearing of 1989 Order | Customers: bribery taints the Order and warrants vacatur/rehearing | SWBT/Commission: prior proceedings and appellate rulings foreclose relief; no showing staff or hearing officer misconduct | Held: No relief; remand in 1997 and appellate decisions foreclose reopening; dismissal upheld |
| Whether claim/issue preclusion bars relitigation of refund claim | Customers: seek reconsideration of remedies given misconduct | SWBT/Commission: refund issue already decided (Henry); barred from redetermination | Held: Issue preclusion applies; refund claim already decided as a matter of law |
| Proper standard of review when constitutional violation alleged (independent review?) | Customers: bribery raises constitutional concerns requiring independent review of facts and law | SWBT/Commission: ordinary limited review applies; Commission properly applied law and evidence | Held: Court rejected need for heightened review; applied constitutional standard and still found Commission’s order supported by law and substantial evidence |
Key Cases Cited
- State ex rel. Henry v. Southwestern Bell Telephone Co., 825 P.2d 1305 (Okla. 1991) (held tax-created surplus was not an overcharge under §121 and no mandatory refund was required)
- Southwestern Bell Telephone Co. v. Oklahoma Corp. Comm., 873 P.2d 1001 (Okla. 1994) (discusses Commission authority and related post-decision events)
- State ex rel. Dep’t of Transp. v. Little, 100 P.3d 707 (Okla. 2004) (issue preclusion principles applied)
- Nealis v. Baird, 996 P.2d 438 (Okla. 1999) (res judicata/claim preclusion discussion)