City of New York v. New York Telephone Co.
261 U.S. 312
SCOTUS
1923
Check Treatment
Mr. Chief Justice Taft

delivered the opinion of the Court.

Thе -New York Telephone Company, the appellee herein, filed its bill in the District Court against thе members of the New York Public Service Commission, the counsel of the Commission and the Attorney General of thé State, asking an injunction against the enforcement of two orders of the Public Servicе Commission as to telephone rates, one as to rates in the City of New York and the other аs to those in the State of New York, outside of the city, which it alleged to be confiscatory of its property and in violation of the Fourteenth Amendment. Thereafter the City of New York moved thе court for an order making it a party defendant in the cause. This order the District Court denied. Therеafter an interlocutory injunction against the orders was granted and an appeal, No. 542, is pending here and has been argued but not decided. This is a separate appeal from the order refusing the application of the City to-be made a party defendant.

Under Article 1, § 12, оf the Public Service Commissions ‍‌‌​‌‌​‌‌​​‌‌​​‌​​​‌‌‌​​‌‌‌​​​​​‌‌‌​​​‌​​‌‌‌​‌‌​‌‍Law of the State c\ New York, it is made the duty of *315 counsel to the Commissiоn “ to represent and appear for the people of the state of New York and the commission in all actions and proceedings involving any question under this chapter, or within the jurisdiction of the commission under the railroad law, or under or in reference to any act or оrder of the commission, and, if directed to do so by the commission, to intervene, if possible, in any action or proceeding in which any such question is involved.”

Chapter 15 of the Laws of 1922 of the State directs that:

“The attorney general shall appear for the people of the state, and take such steps- as may be necessary to protect the interests of the public, in the proceeding heretofore instituted by the рublic service commission and entitled ‘ In the matter of the hearing on motion of the commission, аs to rates, charges ‍‌‌​‌‌​‌‌​​‌‌​​‌​​​‌‌‌​​‌‌‌​​​​​‌‌‌​​​‌​​‌‌‌​‌‌​‌‍and rentals, and the regulations and practices affecting rates, сharges and rentals of the New York Telephone Company.’ For such purpose, he may employ special deputies, experts and other assistants, and incur such other expenses as he may find necessary, within the amount appropriated by this act.”

The necessary defеndant in the suit to enjoin the orders lowering rates was the Public Service Commission whose orders they wеre. In addition the counsel of the .Commission and the Attorney General were made parties dеfendant under the legislation above recited. The City of New York has no control over the rates. Its only interest in them is as a subscriber, and even as such its interest in the general rates is not direct because its own rates are settled by a special contract. Under such circumstances, the City is certainly not a necessary party.

In re Engelhard & Sons Co., 231 U. S. 646, an action had been brought' against the City of Louisville to ‍‌‌​‌‌​‌‌​​‌‌​​‌​​​‌‌‌​​‌‌‌​​​​​‌‌‌​​​‌​​‌‌‌​‌‌​‌‍restrain the enforcement of an ordinance prescribing tele *316 phone rates. One of the subscribers filed a petition in the District Court asking to be made a party defendant. This was deniеd and the petitioner sought in this Court a mandamus to compel the District Judge to grant the petition. It wаs pressed upon the Court that petitioner had a common interest with other subscribers in the ratеs under discussion and that under Equity Rule No. 38 when the question is one of common or general interest and it is impracticable to bring them all before the court, one may sue or defend for all. This Court held that the City was the proper defendant in the suit as the representative, of all interested. We said:

“It is the universal practice, sustained by authority, that the only mode of judicial relief against unreаsonable rates ‍‌‌​‌‌​‌‌​​‌‌​​‌​​​‌‌‌​​‌‌‌​​​​​‌‌‌​​​‌​​‌‌‌​‌‌​‌‍is by suit against the governmental authority which established them or is charged with the duty of enforcing them.”

There is nothing in this case to show that the Public Commission will not fully and properly represent the subscribers resident in New York City. Indeed it was said at the bar that the City and the Public Commission and the Attorney Gеneral were cooperating in every way in the defense of the suit. It was completely within thе discretion of the District Court to refuse to allow the City to become a defendant when its interеsts and those of its residents were fully represented under the,law and protected by those who had been made defendants. There is nothing to show that the refusal complained of was an abusе of discretion. This same controversy arose in the case of the City of New York v. Consolidated Gas Co., 253 U. S. 219, and the same conсlusion was reached. Indeed it was there said that an order like the one here ‍‌‌​‌‌​‌‌​​‌‌​​‌​​​‌‌‌​​‌‌‌​​​​​‌‌‌​​​‌​​‌‌‌​‌‌​‌‍objected to was not of such a final character as to furnish the basis of an appeal, citing Ex parte Cutting, 94 U. S. 14, 22; Credits Commutation Co. v. United States, 177 U. S. 311, 315; Ex parte Leaf Tobacco Board of Trade, *317 222 U. S. 578, 581. Thesе cases show that exceptional circumstances may make an order denying intervention in a suit a final and appealable order, but the present is not one of them.

Our conclusion is that this appeal should be

Dismissed.