300 Ga. 689
Ga.2017Background
- Southern LNG, Inc. sought a writ of mandamus to force the State Revenue Commissioner to treat it as a "public utility" under OCGA § 48-1-2(21) and accept its ad valorem tax returns under OCGA § 48-5-511(a).
- This is the third appeal: Southern I (290 Ga. 204) held sovereign immunity did not bar the mandamus claim; Southern II (294 Ga. 657) vacated summary judgment for the Commissioner and remanded to determine whether county tax appeals provided an "equally convenient, complete and beneficial" alternative and whether the Commissioner could be bound or joined in those proceedings.
- On remand the trial court granted Southern summary judgment, concluding no adequate alternative remedy existed and ordering the Commissioner to accept Southern’s returns; the Commissioner appealed.
- The Supreme Court reversed, holding Southern failed to show the Commissioner violated a clear legal duty by refusing to classify Southern as a "gas company"/"public utility."
- Key factual regulatory points: Southern operates an FERC-authorized LNG transfer station in Chatham County; it receives LNG owned by others, converts it to gas, and places gas into third-party pipelines; it does not sell or hold title to gas and appears to be an LNG terminal rather than a certificated gas pipeline or distributor.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Southern has no adequate legal remedy other than mandamus | Mandamus necessary because Commissioner refuses to accept returns and county appeals cannot bind the Commissioner | County tax-appeal process is an adequate alternative and could resolve status; Commissioner may be joined or bound in county proceedings | Court did not reach adequacy question on merits; reversed on alternative ground (no clear legal duty) |
| Whether Commissioner had a clear legal duty to accept Southern’s returns under OCGA § 48-5-511(a) | Southern is a "gas ... company"/"public utility" and thus must file returns with the Commissioner | Southern is not a certificated gas company; its activities are limited by charter and federal regulation (FERC); Commissioner had discretion to refuse returns | Held for Commissioner: Southern did not show a clear legal duty; mandamus inappropriate |
| Whether Southern’s corporate charter and prior case law (Colonial/Southland) compel classification as "gas company" | Reliance on Colonial and Southland to show charter powers can classify a company even if not presently doing the business | Southern’s charter and federal authorization are more limited; it functions as an LNG terminal, not a pipeline or distributor | Held: Colonial and Southland distinguishable; Southern lacks statutory/regulatory attributes of a gas company |
| Whether the Commissioner’s discretionary decision was arbitrary, capricious, or an abuse of discretion | Commissioner acted unreasonably in refusing to accept returns | Commissioner’s refusal was consistent with statutory definitions and federal regulation; not arbitrary | Held: No showing of arbitrary, capricious, or gross abuse of discretion; mandamus not warranted |
Key Cases Cited
- Southern LNG, Inc. v. MacGinnitie, 290 Ga. 204 (Plaintiff’s sovereign-immunity ruling on initial appeal)
- Southern LNG, Inc. v. MacGinnitie, 294 Ga. 657 (Remand guidance on adequacy of alternative remedies and joinder issues)
- Undercofler v. Colonial Pipeline Co., 114 Ga. App. 739 (charter powers used to classify company under tax statute)
- Southland Steamship Co. v. Dixon, 151 Ga. 216 (company treated as navigation company based on charter powers)
- Bibb County v. Monroe County, 294 Ga. 730 (mandamus requires clear legal right and public duty)
- Gilmer County v. City of East Ellijay, 272 Ga. 774 (mandamus unavailable absent arbitrary or capricious official action)