GREATER ANCHORAGE AREA BOROUGH, a municipal corporation, Appellant, v. CITY OF ANCHORAGE and W. R. Grasle Company, Appellees.
No. 1569.
Supreme Court of Alaska.
Dec. 29, 1972.
492 P.2d 1027
Harold W. Tobey and John R. Spencer, City Attys., Anchorage, for appellee, City of Anchorage.
Clyde C. Houston, Houston and Lytle, Anchorage, for appellee, W. R. Grasle Co.
Before RABINOWITZ, C. J., and CONNOR, ERWIN and BOOCHEVER, JJ.
OPINION
CONNOR, Justice.
This is an appeal from an order of the superior court referring a controversy between the City of Anchorage [hereinafter referred to as the City] and the Greater Anchorage Area Borough [hereinafter re-
The facts of the instant case are relatively simple. The City had a contract to provide electrical power to the Wagner Estates Subdivision, a real estate development located within the limits of the City. On October 13, 1969, the City applied to the Borough for a permit to install certain utility poles and power lines in a Borough right of way which runs along Aero Avenue, an arterial situated within the Spenard Service Area of the Borough. On October 27, 1969, the Borough‘s Public Works Director denied the City‘s application for a permit.
The City appealed the decision of the Public Works Director to the Borough Assembly on November 10, 1969. The appeal was denied.
On Saturday, November 22, 1969, the City disregarded the Borough‘s decisions and, through its contractor W. R. Grasle Company, commenced the unauthorized installation of utility poles within the Aero Avenue right of way.
On the same day, the Borough sought to curtail the City‘s construction activities and filed a complaint for injunction with the superior court. Later that day, the superior court issued a restraining order, enjoining the City and its contractor from further installation of the power lines.
At the hearing on permanent injunctive relief before the superior court on December 5, 1969, all three parties orally stipulated to a plan by which the City‘s power lines would be installed. A written stipulation to the same effect was filed with the superior court on December 8, 1969. With the signing of that written stipulation, the outstanding restraining order was dissolved.
Believing the controversy over City construction work on Borough rights of way to be a continuing one, the parties in the same instrument further stipulated to submit the question of “... whether or not the Borough has the power to regulate construction along its road rights of way ...” to the superior court on memoranda.
The case remained inactive until June 29, 1971, when the City and the Borough1 filed a “Stipulation of Clarify Issue Submitted to Court.” In that instrument, the two parties stipulated that the only question being submitted to the lower court was “... whether the Greater Anchorage Area Borough has the authority to regulate the use of rights of way outside the City Limits, including construction in those rights of way ....”
The superior court handed down its written decision on July 20, 1971, in which the lower court declined to answer the stipulated question, but instead, “... ordered that the matter be referred to the Public Service Commission2 for their determination.”
The Borough appeals from the superior court‘s decision,3 arguing that the PUC lacks jurisdiction to determine the stipulated question referred to it.
The City challenges the existence of appellate jurisdiction, contending that the lower court‘s referral order was an interlocutory one and not a final decree. The City reaches this position by maintaining that the superior court retained jurisdiction and referred to the PUC only a “facet” of the case: the narrower issue of duplication of service and facilities. The City alternatively argues that if appellate jurisdiction
The Borough argues in reply that the question of duplication of service and facilities became moot with the parties’ first stipulation, and that only the second stipulated question was referred to the PUC.
The first question presented to this court is whether appellate jurisdiction exists so as to permit review of the superior court‘s referral order. The existence of appellate jurisdiction in the instant case depends initially upon whether the lower court‘s decision constitutes a “final judgment” within the meaning of
The requirement that a lower court judgment be “final” before an appeal therefrom is permissible is not a novel rule in American jurisprudence.5 A similar provision exists in the federal appellate scheme.6 However, as Justice Black observed in Will v. United States,7 the concept “final” is an “abstruse and infinitely uncertain term.”8 Thus, in order to ascertain whether the requirement of Rule 6 has been met in the instant case, it is first necessary for us to explicate the ambiguous concept “final.”
Numerous definitions and tests of finality have been advanced by various courts in other jurisdictions.9 The United States Supreme Court has declined to embrace a single, uniform formula. Rather, as Chief Justice Warren observed in Brown Shoe Co. v. United States:10
“The Court has adopted essentially practical tests for identifying those judgments which are, and those which are not, to be considered ‘final.‘” (Citations omitted.)11
The basic thrust of the finality requirement is that the judgment must be one which disposes of the entire case, “... one which ends the litigation on the merits and leaves nothing for the court to do but execute the judgment.”12 Further, the reviewing court should look to the substance
The relevant, operational portion of the superior court‘s referral order in the instant case is this:
“My interpretation of the Chugach case leads me to believe that the Borough and the City should direct this matter to the PSC for determination. It is thus ordered that the matter be referred to the Public Service Commission for their determination.”
Whether the order disposes of the entire case, however, depends on what “matter” the superior court meant to refer to the PUC.
The City argues that despite the previous settlement between the City and the Borough, and despite their submission of a carefully worded, stipulated question to the superior court, the “matter” referred to the PUC was only one “facet” of the entire case: “... the question of duplication of service and facilities to the subdivision ....” Having thus referred only a narrow aspect of the case to the PUC, the superior court, in the City‘s view, must have retained jurisdiction in order to subsequently decide the remaining stipulated question. Hence, the referral order would be interlocutory rather than final in nature, and under Rule 6, no appellate jurisdiction would exist.
The Borough contends on the other hand, that the initial dispute was settled with the parties’ original stipulation, and that the only “matter” pending before the superior court at the time of its decision was the second stipulated question submitted on memoranda. Thus, the court could only have acted upon that stipulated question. By referring the sole remaining issue between the parties to the PUC for a determination, the lower court, in the Borough‘s view, completely and finally disposed of the entire case.
We are persuaded that the Borough‘s interpretation of the superior court‘s referral order is correct. The parties had settled their original dispute over the installation of utility poles and power lines within the Aero Avenue right of way. The restraining order pertaining thereto was dissolved. That particular controversy became moot when the parties signed their original stipulation. Accordingly, the dispute was no longer pending before the superior court at the time of its decision. For the lower court to have ignored the parties’ settlement and to have referred a moot question to the PUC for a fresh determination would have meant the unraveling of a private, working arrangement which had been in effect for some months. Certainly, this was not the superior court‘s intention. Sound judicial policy dictates that private settlements and stipulations between the parties are to be favored and should not be lightly set aside.15
Moreover, the superior court did not expressly retain jurisdiction in the case at bar. What the lower court said was:
“The Court is not dodging its duty, merely allowing the statutory agency charged with this responsibility to employ its expertise and knowledge to the present situation. Any appeal from their determination is not foreclosed by this decision, but the Court should not at this stage attempt to bypass the statutory duty imposed on the PSC, and attempt to substitute its judgment for that of the said PSC.” (Emphasis added.)
The superior court spoke in terms of “appeal” from the PUC‘s decision rather than “retained jurisdiction.” Appealing to a court for the purpose of obtaining review of an inferior tribunal‘s order and returning to a court with retained jurisdiction for the purpose of continuing litigation are separate and distinct legal processes. In this case, the lower court was merely apprising the parties of their rights to seek judicial review of an administrative adjudication under the Alaska Administrative Procedure Act.16 We conclude that the lower court did not mean to retain jurisdiction.
In view of our conclusions that the superior court meant to completely dispose of the sole remaining issue pending before it, and that it did not intend to retain jurisdiction, we hold that the lower court‘s decision of July 20 was a “final judgment” within the meaning of Rule 6. Accordingly, we hold that appellate jurisdiction exists in this case.
Having concluded that this court possesses the requisite authority with which to review the proceedings and judgment below, we turn next to the question of whether the superior court erred in referring the parties’ second stipulated question to the PUC. The resolution of this issue, however, depends upon the nature and scope of the PUC‘s jurisdiction.
Under the so-called “doctrine of primary jurisdiction“, a court may, in appropriate cases, stay or dismiss pending litigation so as to enable a proper agency to initially pass upon an aspect of the case calling for administrative expertise.17 In
The general powers and duties of the PUC are set forth in
“Alaska Public Utilities Commission may
(1) regulate every public utility engaged or proposing to engage in such a business inside the state, except to the extent exempted by § 711 of this chapter and the powers of the commission shall be liberally construed to accomplish its stated purposes;
(2) investigate, upon complaint or upon its own motion, the rates, classifications, rules, regulations, practices, services and facilities of a public utility and hold hearings on them;
(3) make or require just, fair and reasonable rates, classifications, regulations, practices, services and facilities for a public utility;
(4) prescribe the system of accounts and regulate the service and safety of operations of a public utility;
(5) require a public utility to file reports and other information and data.”
The essence of the administrative power conferred upon the PUC is regulatory; the Commission is empowered to set rates, promulgate regulations, collect information, process complaints against utilities and the like. The statutory framework, however, does not grant unlimited adjudicatory authority to the PUC. The agency is not empowered to decide disputes between municipalities over the control of construction activities within rights of way belonging to one of the disputants. The City‘s reliance on
Moreover, Chugach Electric Association v. City of Anchorage21 does not command a contrary result. Both the superior court22 and the City mistakenly interpret and apply our decision in that case. In Chugach, the City provided electrical service to a bowling alley. The bowling alley, however, requested Chugach (a nonprofit electric cooperative) to provide the same utility service. The bowling alley was located within both the city limits and the service area as described in Chugach‘s certificate of public convenience and necessity issued by the PSC. Chugach commenced installation of power lines, applying for a permit under a city ordinance some time after the initiation of the construction work. The permit was refused since the City believed it could adequately provide the electrical service. The City later obtained a permanent injunction, enjoining Chugach from serving the area. On appeal, this court held that the City could not deny Chugach the right to provide electrical service to the bowling alley.
Chugach and the instant case are distinguishable. In Chugach, the underlying legal controversy was a conflict between state statutes and a municipal ordinance.23 Here, no such conflict exists. Rather, the controversy submitted to the superior court and referred to the PUC in the instant case concerns only the regulation of construction activities within a right of way.
Chugach involved the problem of the duplication of service and facilities by competing utilities to a single consumer located within a common service area. Here, there is no dispute over any duplicative provision of services. Nor is the customer located within a common service area. The consumer is located within the City limits and has contracted only with the City for the provision of electrical services. Further, two utilities are not in competition with each other in the instant case. The only dispute in the present action is over the control of construction work within the Borough‘s right of way.
In Chugach the superior court did not refer any controversy to a state agency for
In view of our conclusions that the Alaska Public Utilities Commission Act does not confer broad adjudicatory jurisdiction upon the PUC, and that Chugach does not compel a contrary result, we hold that the PUC lacks authority to decide the parties’ second stipulated question. Accordingly, the superior court‘s referral order was erroneous.
Our holding that the PUC lacks jurisdiction to decide the parties’ stipulated inquiry, however, does not necessarily compel the superior court to decide the question. That is, we interpret the parties’ submission of the stipulated question to the lower court to be substantially in the nature of an application for declaratory relief. Their original dispute was settled with the signing of the first stipulation and the subsequent dissolution of the restraining order. The City and the Borough, however, apparently feared “... that the dispute over rights of way was a continuing one. ...” Accordingly, they drafted, clarified and submitted to the superior court the stipulated question. With the foregoing modification of their original action, the parties effectively transformed their lawsuit into a declaratory judgment action.
Not all issues raised in applications for declaratory relief are justiciable. In order for such questions to be appropriate for adjudication, they must present an “actual controversy.” While
“(b) In case of an actual controversy within the state, the superior court, upon the filing of an appropriate pleading, may declare the rights and legal relations of an interested party seeking the declaration, whether or not further relief is or could be sought. The declaration has the force and effect of a final judgment or decree and is reviewable as such. Further necessary or proper relief based on a declaratory judgment or decree may be granted, after reasonable notice and hearing, against an adverse party whose rights have been determined by the judgment.”
In Jefferson v. Asplund,26 this court interpreted the Alaska Declaratory Judgment Act and stressed the need for the existence of an “actual controversy”27
“Both Alaska‘s Declaratory Judgment Act and the federal act require a ‘case of ... actual controversy’ as a prerequisite to the grant of declaratory relief.”28
Parties seeking a judicial determination of a hypothetical, advisory or moot question will be denied declaratory relief. As we said in Jefferson:
“It follows that declaratory relief will be withheld when declarations are sought concerning hypothetical or advisory questions or moot questions.” (Footnotes omitted.)29
Thus, the justiciability of the second stipulated question in the instant case depends upon whether such inquiry concerns an “actual controversy” or merely presents a hypothetical question calling for an advisory opinion.
In Jefferson, this court observed that a federal court‘s exercise of judicial discretion in an action brought under the federal Declaratory Judgment Act was subject to review.30 We further noted, without comment, Professor Moore‘s interpretation of the proper scope and nature of appellate review in declaratory judgment actions:
“... [I]n reviewing the trial court‘s exercise of discretion to grant or refuse declaratory relief, a sound position is that the appellate court may substitute its judgment for that of the lower court. The determination of the trial court may, therefore, be reversed where, though not arbitrary or capricious, it was nevertheless erroneous. This view of the appellate court‘s power to review and reverse the action of the trial court in respect to its discretionary power to grant or refuse declaratory relief permits greater uniformity than would otherwise be possible.” (Footnote omitted.)31
In the case at bar, the superior court made no determination regarding the second stipulated question or the requested declaratory relief. Additionally, the parties have not clearly demonstrated nor does the instant record disclose how the litigants’ “... dispute over the control of rights of way was a continuing one ...“; or how the stipulated question involved an “actual controversy.” Under such circumstances, we decline to advance our own view as to whether the stipulated question submitted in the present case involves the requisite “actual controversy.” We further decline to substitute our own judgment for that of the lower court‘s on the issue of whether the requested declaratory relief should be granted or refused. Rather, we agree with Professor Borchard that a sound disposition of an appeal in a declaratory judgment action containing an insufficient record is to remand the case for further pleading and evidence.
“Perhaps it goes without saying that normally on appeal the whole case is before the appellate tribunal, even though the appellant excepts to only a part of the judgment below. All the facts as developed by the pleadings and evidence are before the appellate court and it may and should exercise its independent judgment on the propriety of granting declaratory relief. And the appellate court has a free hand in granting such judg-
ment as it considers proper, instead of reversing for some minor error. It may, however, remand the case for further pleading and evidence if it considers the record insufficient for a reasoned judgment, and may consider errors not apparent in the record.” (Emphasis added.)32
Accordingly, we reverse the referral order of the superior court and remand the action for further proceedings consistent with this opinion.
Reversed and remanded.
RABINOWITZ, Chief Justice (concurring in part, dissenting in part).
While I agree that under
In 1969, the Borough instituted an action seeking to resolve a dispute involving the right to regulate certain electrical powerline construction activity along its Aero Avenue right of way. On December 8, 1969, the parties stipulated to a settlement of the Aero Avenue dispute. This stipulation also attempted to reserve for judicial decision the question of whether “the Borough has the power to regulate construction along its road rights of way.” In my opinion this stipulation mooted the 1969 action, since the parties agreed to abide by the settlement “regardless of the outcome” of the reserved question.
In June 1971, the parties filed with the superior court a document entitled “Stipulation to Clarify An Issue Submitted to Court.” Apparently referring to the question “reserved” in 1969, this stipulation sought to raise the issue of “whether the [Borough] has the authority to regulate the use of rights of way outside the city limits, including construction in those rights of way ....” I agree with the majority that we may construe this 1971 stipulation as an attempt to commence an action for declaratory relief under
‘A justiciable controversy is thus distinguished from a difference or dispute of a hypothetical or abstract character; from one that is academic or moot. ... The controversy must be definite and concrete, touching the legal relations of parties having adverse legal interests. ... It must be a real and substantial controversy admitting of specific relief through a decree of a conclusive character, as distinguished from an opinion advising what the law would be upon a hypothetical state of of facts.’3
Though the 1971 stipulation can be construed as an attempt to commence a declaratory judgment action, the parties are not relieved from Jefferson‘s requirement of a simple statement of facts demonstrating that the superior court has jurisdiction and that an actual justiciable case or controversy is presented.4
In the case at bar the parties have made no effort to show that they are currently involved in a disagreement over power-line
