ALAN MAZZOLA v. THE SOUTHERN NEW ENGLAND TELEPHONE COMPANY
Supreme Court of Connecticut
Argued May 7—decision released August 19, 1975
169 Conn. 344 | 353 A.2d 716
HOUSE, C. J., COTTER, MACDONALD, LONGO and SPEZIALE, JS.
There is no error.
In this opinion the other judges concurred.
Milton L. Jacobson, with whom were Jackson T. King, Jr., James B. Curtin, and Judith A. Maynes, for the appellee (defendant).
Robert M. Langer, assistant attorney general, with whom, on the brief, was Carl R. Ajello, attorney general, as amicus curiae.
COTTER, J. The plaintiff brought an action in the Superior Court seeking (1) injunctive relief, under
The proceedings on appеal as followed by the parties raise only the question of the jurisdiction of the trial court to adjudicate the plaintiff‘s complaint, a question which can be determined on the
I
Since the court declined to rule on the merits of the plaintiff‘s complaint, we need only determine whether its conclusion that it did “not have jurisdiction with this matter” was erroneous. It appears that the court based this conclusion upon two alternative theories: (1) that the public utilities commission (hereinafter the PUC) had “primary” jurisdiction of the matters complained of; or (2) that the activities of the defendant challenged by the plaintiff were “immune” from antitrust liability. We consider whether either of these theories, which are interrelated in antitrust cases involving a regulated industry, is a proper basis for the trial cоurt‘s decision as presented to us and as briefed by the parties and the amicus curiae.
Enacted in 1971,1 the act incorporates, in modified form, and with notable exceptions, various provisions of such federal antitrust laws as, for
II
The doctrine of primary jurisdiction is a rule of judicial administration created by court decision in order to promote “proper relationships between the courts and administrative agencies charged with particular regulatory duties.” United States v. Western Pacific R. Co., 352 U.S. 59, 63, 77 S. Ct. 161, 1 L. Ed. 2d 126. Its basis is the concept that courts and administrative agencies are, as Justice Frankfurter suggested, “collaborative instrumentalities of justice.” United States v. Morgan, 313 U.S. 409, 422, 61 S. Ct. 999, 85 L. Ed. 1429.
A
A premise upon which the primary jurisdiction doctrine is invoked is that the court itself has original “subject matter” jurisdiction of the questions raised in the complaint filed in that court. “‘Primary jurisdiction‘... applies where a claim is originally cognizable in the courts, and comes into play whenever enforcement of the claim requires the resolution of issues which, under a regulatory scheme, have been placed within the special competence of an administrative body; in such a case the judicial procеss is suspended pending referral of such issues to the administrative body for its views.” United States v. Western Pacific R. Co., supra, 64. The doctrine is thus distinguished from the concept of exclusive agency jurisdiction, which refers to matters which an agency alone has the power to adjudicate and of which the court has no jurisdiction. Terminal Warehouse Co. v. Pennsylvania R. Co., 297 U.S. 500, 514, 56 S. Ct. 546, 80 L. Ed. 827; see also Hughes Tool Co. v. Trans World Airlines, 409 U.S. 363, 93 S. Ct. 647, 34 L. Ed. 2d 577, reh. denied, 410 U.S. 975, 93 S. Ct. 1434, 35 L. Ed. 2d 707. Similarly, a court may not refer a controversy within its jurisdiction to an agency under this doctrine where the agency itself lacks jurisdiction; the court‘s jurisdiction in such cases is exclusive. Collens v. New Canaan Water Co., 155 Conn. 477, 480-81, 234 A.2d 825; 73 C.J.S., Public Administrative Bodies and Procedure, § 40.
In addition, the primary jurisdiction doctrine is distinguishable from the concept of “exhaustion of administrative remedies.” The latter requires a party to exhaust such remedies before seeking judicial relief and “contemplates the situation in which
B
Within the context of antitrust law enforcement, it has been stated that all that the doctrine of primary jurisdiction is designed to do,7 “and all that it properly does is to assure that the substantive exemptions from the antitrust laws created by ... [the legislature] or required by the logic and structure of the regulatory scheme are not destroyed through by-passing the forum chiefly concerned with the regulation of the industry in question.” Von Mehren, “The Antitrust Laws and Regulated Industries: The Doctrine of Primary Jurisdiction,” 67 Harv. L. Rev. 929, 932. However, the mere existence of a “special regulatory scheme for particular aspects of an industry” does not, without more, “render the more general provisions of the antitrust laws wholly inapplicable to that industry,” so that the court need not stay its hand on an antitrust controversy and await action by the agency involved simply because the defendant in an anti-
III
In this case, the complaint filed in the Superior Court alleged that the plaintiff is a subscriber to thе telephone service provided by the defendant (a “public service company” as defined by
The complaint further alleged that the defendant requires the subscriber to lease this protective link apparatus even if the answering devices obtained privately do not damage the defendant‘s property or interfere with its service. The plaintiff claimed that he obtained from a private supplier a telephone answering and message taking device; upon his refusal to comply with the defendant‘s demand that he lease a coupler, interface, or protective link to
On the basis of these allegations, the plaintiff claimed that the defendant‘s cited practices constituted “price-fixing” and “refusals to deal” of the kind prohibited by the act, which makes unlawful “every contract, combination, or conspiracy” when such are “for the purpose, or have the effect, of: (a) Fixing, controlling, or maintaining prices, rates, quotations, or fees in any pаrt of trade or commerce; (b) fixing, controlling, maintaining, limiting, or discontinuing the production, manufacture, mining, sale, or supply of any part of trade or commerce; (c) allocating or dividing customers or markets, either functional or geographical, in any part of trade or commerce; or (d) refusing to deal, or coercing, persuading, or inducing third parties to refuse to deal with another person.”
A
The act “applies to every contract, combination, or conspiracy in restraint of any part of trade or commerce or every contract, combination or conspiracy to monopolize, or every attempt to monopolize, or every monopolization of any part of trade or commerce when any part thereof was entered into or effectuated in whole or in part in this state.”
Nonetheless, the act itself contains four classes of express “exceptions” from liability under the act.
1
The immunity recognized in Parker, supra, related to a program expressly authorized under the California Agricultural Prorate Act. The plaintiff there, unlike the plaintiff in this case, did not allege particular violations of the antitrust laws by a regulated private company but claimed, rather, that the entire state regulatory scheme itself was
2
Under this analysis, the process provided in
phone company had sought to restrain unduly competition by deliberately delaying the procurement of “interface devices” necessary for the interconnection of the plaintiff‘s equipment to the defendant‘s network. The theory underlying Washington Gas Light, also followed in Gas Light Co. of Columbus v. Georgia Power Co., 440 F.2d 1135 (5th Cir.), cert. denied, 404 U.S. 1062, 92 S. Ct. 732, 30 L. Ed. 2d 750, reh. denied, 405 U.S. 969, 92 S. Ct. 1162, 31 L. Ed. 2d 244, has elsewhere been widely criticized. See, e.g., Hecht v. Pro-Football, Inc., 444 F.2d 931, 937 n.17 (D.C. Cir.), cert. denied, 404 U.S. 1047, 92 S. Ct. 701, 30 L. Ed. 2d 736; Norman‘s on the Waterfront, Inc. v. Wheatley, 444 F.2d 1011, 1018 (3d Cir.); George R. Whitten, Jr., Inc. v. Paddock Pool Builders, Inc., 424 F.2d 25, 30 (1st Cir.), cert. denied, 400 U.S. 850, 91 S. Ct. 54, 27 L. Ed. 2d 88; Jacobs, “State Regulation and the Federal Antitrust Laws,” 25 Case W. Res. L. Rev. 221, 233-34; note, 85 Harv. L. Rev. 670, 673-74.
In this connection, it is likewise significant that the Connecticut act does not purport to immunize activities merely “approved” or “permitted” by regulatory agencies, a measure adopted in several other jurisdictions. See, e.g.,
Under these circumstances, the role that is statutorily assigned to the PUC in rendering effec-
B
Implied power on the part of the PUC to determine the defendant‘s liability under the act cannot be inferred from any of the pertinent provisions of the Public Service Companies Act. Such power can be implied only in cases of “plain repugnancy” between the regulatory scheme and the antitrust law. Otter Tail Power Co. v. United States, 410 U.S. 366, 372, 93 S. Ct. 1022, 35 L. Ed. 2d 359 (1973), reh. denied, 411 U.S. 910, 93 S. Ct. 1523, 36 L. Ed. 2d 201; United States v. Philadelphia National Bank, 374 U.S. 321, 350-51, 83 S. Ct. 1715, 10 L. Ed. 2d 915 (1963); see also King, op. cit., pp. 648-49 n.143. The necessary repugnancy is sometimes found to be inherent in the fact, inter alia, that the regulatory scheme in question was enacted after the antitrust law in question went into effect (although such “repeals” of the antitrust laws arе “strongly disfavored“); Ricci v. Chicago Mercantile Exchange, 409 U.S. 289, 301, 93 S. Ct. 573, 34 L. Ed. 2d 525 (1973), reh. denied, 410 U.S. 960, 93 S. Ct. 1411, 35 L. Ed. 2d 697; Otter Tail Power Co. v. United States, supra; United States v. Philadelphia National Bank, supra; or where the agency is under a specific obligation to consider the potentially anticompetitive effects of a practice proposed
In this case, the Public Service Companies Act provisions in question antedated the enactment of the Connecticut Anti-Trust Act, so that no “repeal” of the latter can be inferred therefrom. Moreover, the PUC has no obligation under the Public Service Companies Act to take into account the possibly anticompetitive effects of proposed tariffs filed with
In sum, no “repeal” of the Connecticut Anti-Trust Act can be inferred from the provisions of the Public Service Companies Act. Nor is there any binding requirement on the part of the PUC to take into account antitrust law policies when reviewing the validity of such activities of a regulated telephone company as those purportedly authorized by the defendant telephone company‘s tariff in this case. Accordingly, we find no “plain repugnancy” between the Connecticut Anti-Trust Act and the Public Service Companies Act warranting a conclusion that the PUC has an “implied”
C
The courts in Carter, Macom Products, and Chastain, supra, in referring the antitrust controversies therein to the primary jurisdiction of the FCC, also attached great significance to the fact that specific procedures existed empowering the plaintiffs to raise before the commission factual issues of decisive importance to the resolution of the antitrust suits in question. Carter v. American Telephone & Telegraph Co., supra, 499 n.27; Macom Products Corporation v. American Telephone & Telegraph Co., supra, 976; Chastain v. American Telephone & Telegraph Co., supra, 1323, citing Carter, supra; cf. Ricci v. Chicago Mercantile Exchange, supra, 304-305 n.14. However, there is no way that a person in the plaintiff‘s position can raise before the PUC any of the critical factual questions in this case arguably within the PUC‘s competence, viz., whether the activities of the telephone company challenged in this case are so essential to the public interest as to override any possibly anticompetitive effects on the communications industry in the private sector of the economy, or whether the privately obtained devices secured by the plaintiff would in some way be harmful to the defendant‘s network. See Macom Products Corporation v. American Telephone & Telegraph
IV
Neither the Public Service Companies Act nor the Connecticut Anti-Trust Act expressly or impliedly confers power upon the PUC to immunize from antitrust liability activities such as those complained of in this case. Moreover, no procedure exists empowering the plaintiff to raise before the PUC the kind of factual issue whose determination would be of crucial importance to the court in its resolution of the antitrust controversy. Accordingly, the trial court should not have declined to take jurisdiction of this controversy on the grounds stated.
The case is remanded to the Superior Court for further аction according to law.
In this opinion MACDONALD, LONGO, and SPEZIALE, Js., concurred.
HOUSE, C. J. (dissenting). I do not agree with the conclusion reached in the majority opinion and think that an order should be entered dismissing the appeal since it is not taken from a final judgment—or from any judgment whatsoever. It is an appeal from an interlocutory ruling of a judge of the Superior Court denying an application for a
The law as it has been established up until the present decision was well expressed by Chief Justice King in Devine Bros., Inc. v. International Brotherhood, 145 Conn. 77, 79, 139 A.2d 60. In that case the trial court issued a temporary injunction forbidding the picketing of the plaintiff‘s place of business until there would be a trial on the merits and the defendant appealed on many grounds. This court, in a unanimous opinion, stated the law thusly: “At the outset we are faced with a jurisdictional question as to whether an appeal is possible in this case. This question must be resolved before we can consider the appeal on the merits. Riley v. Board of Police Commissioners, 145 Conn. 1, 6, 137 A.2d 759. The taking of an appeal from the granting or denial of a temporary injunction is ordinarily impossible, since such an order is not a final judgment. Olcott v. Pendleton, 128 Conn. 292, 295, 22 A.2d 633. . . . [S]uch an appeal lies if, but only if, the injunction was granted in a case ‘involving or growing out of a labor dispute.’ H. O. Canfield Co. v. United Construction Workers, 134 Conn. 358, 360, 57 A.2d 624. Unless the present case falls in that category, this appeal must be dismissed.”
...
In the present case, the plaintiff sought a temporary and a permanent injunction by a writ, summons and complaint dated August 27, 1974, and returnable to the Superior Court in Windham
Not only were the pleadings never closed but no judgment whatsoever was ever entered and, for obvious reasons in this state of the record, no finding ever requested or filed. The only action taken by the presiding judge was to make an interlocutory ruling whiсh denied “without prejudice” the application for a temporary injunction. Under our heretofore settled law, no appeal lies from such an interlocutory ruling and the majority opinion cites no authority of this court to the contrary.
It suffices to conclude with a quotation from the opinion of Chief Justice Maltbie in Marcil v. Merriman & Sons, Inc., 115 Conn. 678, 682, 163 A. 411: “There is no warrant in law for such an appeal as the one before us. Whenever the absence of juris-
The appeal from the denial, without prejudice, of the plaintiff‘s application for a temporary injunction should be dismissed.
Notes
It is also well to note that different rules apply to investigations into proposals submitted by a gas or electric company under
“[General Statutes] Sec. 16-9. ORDERS. All decisions, orders and authorizations of the commission shall be in writing and shall specify the reasons therefor, shall be filed and kept in the office of the commission and recorded in a book kept by it for that purpose and shall be public documents. Said commission may, at any time, for cause shown, upon hearing had after notice to all parties in interest, rescind, reverse or alter any decision, order or authorization by it made. Written notice of all orders, decisions or authorizations issued by the commission shall be given to the company or person affected thereby, by personal service upon such company or person or by registered or certified mail, as the commission determines.”
“[General Statutes] Sec. 16-20. RATES AND SERVICE AFFECTING A SINGLE PERSON. If any public service company unreasonably fails or refuses to furnish adequate service at reasonable rates to any person within the territorial limits within which such company has, by its charter, authority to furnish such service, such person may bring his written petition to the commission alleging such failure or refusal. Thereupon the commission shall fix a time and place for a hearing upon such petition and shall mail notice thereof to the parties in interest at least one week prior to such hearing. Upon such hearing, the commission may, if it finds that such company has unreasonably failed or refused to furnish such person with adequate service at reasonable rates, prescribe the service to be furnished by such company to such person and the conditions under which, and maximum rates or charges at which, such service shall be furnished. Such company shall thereafter furnish such service to such person in
accordance with the conditiоns so prescribed and shall not thereafter demand or collect any rate or charge for such service in excess of the maximum rate or charge so prescribed. This section shall be construed to include telephone exchange areas.”
“[General Statutes] Sec. 16-21. CHANGE OF RATES FIXED PURSUANT TO CHARTER OR CONTRACT. Whenever any rate of any public service company chartered by or organized under the laws of this state exists or is charged pursuant to charter, contract or any agreement or understanding, and is in whole or in any respect discriminatory or more or less than just, reasonable and adequate to provide properly for the public convenience, necessity and welfare, such company or any town, city or borough within which, or between which and any other town, city or borough in this state, any such company is furnishing service, or any ten patrons of any such company, may bring a written petition to the commission alleging that such rate is discriminatory or more or less than just, reasonable and adequate. Thereupon the commission shall fix a time and place for a hearing upon such petition and shall mail notice thereof to the parties in interest and give public notice thereof at least one week prior to such hearing. Upon such hearing, the commission may, if it finds such rate to be discriminatory or more or less than just, reasonable and adequate to enable such company to provide properly for the public convenience, necessity and welfare, determine and prescribe just and reasonable maximum rates or charges to be thereafter made by such company.”
