THE STATE EX REL. THE ILLUMINATING COMPANY v. CUYAHOGA COUNTY COURT OF COMMON PLEAS ET AL.
No. 2002-0298
SUPREME COURT OF OHIO
October 16, 2002
97 Ohio St.3d 69 | 2002-Ohio-5312
Submitted August 27, 2002
IN PROHIBITION.
Per Curiam.
{¶1} Relator, The Illuminating Company, a.k.a. the Cleveland Electric Illuminating Company (“CEI”), is an Ohio corporation doing business as a regulated public utility in Ohio. In October 1994, CEI entered into an agreement to provide electric service to Parkbrook Development Corporation (“Parkbrook”) at 1600 East 55th Street, Cleveland, Ohio. In September 1995, respondent All Erection & Crane Rental Corporation (“AE”) acquired title to the property, although Parkbrook continued in possession. A dispute subsequently arose concerning unpaid electricity bills for the property. In September 1999, AE sent CEI $5,000 to be applied to the unpaid balance and a letter stating that “as owner of the referenced property [AE] will accept responsibility for all monies owed to C.E.I. for legitimate electric charges.” In July 2000, CEI disconnected the
{¶2} On January 23, 2001, CEI filed a complaint in respondent Cuyahoga County Court of Common Pleas against AE and Parkbrook to recover the arrearages. In its complaint, CEI alleged that AE had assumed responsibility for the arrearages by its September 1999 letter. CEI claimed that the letter constituted a guaranty.
{¶3} On March 8, 2001, AE filed a complaint against CEI with the Public Utilities Commission of Ohio. In its commission complaint, AE alleged that by seeking to collect the account arrearage in the common pleas court action, CEI violated
{¶4} On March 26, 2001, AE filed an answer and counterclaim to CEI’s complaint in the court of common pleas. In the introductory paragraph of its
{¶5} AE further alleged in the first 45 paragraphs of its counterclaim, which are nearly identical to the first 44 numbered paragraphs of its March 8, 2001 commission complaint against CEI, that CEI had violated
{¶6} In the three counts of AE’s counterclaim, each of which incorporated by reference those allegations of violations of a public-utility statute and commission regulations, AE raised claims of fraud, rescission based on fraud, and declaratory relief.
{¶7} In its fraud claim, AE alleged that in September 1999, CEI “falsely and fraudulently and without factual basis represented that [AE] bore responsibility for charges on other’s [sic] accounts, arguing right and authority to make such claims under Ohio regulatory and statutory law.” (Emphasis added.) AE further alleged that CEI knew “at the time that its statements were false, and that its conduct was expressly prohibited by Ohio law” and that “[i]t is a per se deceptive practice under Ohio law for an electric distribution company or electric service company to charge a customer for a service in which the customer did not make an initial affirmative order.” (Emphasis added.)
{¶8} In its rescission claim, AE alleged that if the common pleas court held that its September 1999 letter to CEI constituted a guaranty, AE would be entitled to rescission of the guaranty based on the fraud in its procurement set forth in AE’s fraud claim.
{¶10} On April 10, 2001, CEI filed a motion to dismiss AE’s counterclaim, in which CEI asserted that the common pleas court lacked subject-matter jurisdiction, because the commission had exclusive initial jurisdiction of the claims raised in the counterclaim.
{¶11} On October 1, 2001, respondent Judge Daniel O. Corrigan of the common pleas court overruled CEI’s motion to dismiss AE’s counterclaim.
{¶12} On October 9, 2001, the day before the scheduled commission hearing on its complaint against CEI, AE filed a notice of dismissal without prejudice of its commission action. In its notice, AE specified that it had “just received Notice from The Cuyahoga County Common Pleas Court of the overruling of The Illuminating Company’s Motion to Dismiss the [AE] counterclaim regarding many of the same issues alleged in the within complaint.” (Emphasis added.) Id. On October 24, 2001, upon AE’s notice, the commission dismissed AE’s complaint without prejudice. The commission has not rendered any findings that CEI violated any public-utilities statute or commission regulation.
{¶13} On February 15, 2002, CEI filed a complaint in this court for a writ of prohibition to prevent the common pleas court and Judge Corrigan from exercising jurisdiction over AE’s counterclaim. The common pleas court and Judge Corrigan filed a motion to dismiss, and AE filed an application to intervene and a
{¶14} CEI requests a writ of prohibition to prevent the common pleas court and Judge Corrigan from exercising jurisdiction over AE’s counterclaim. In order to be entitled to the requested extraordinary relief in prohibition, CEI must establish that (1) the common pleas court and Judge Corrigan are about to exercise judicial or quasi-judicial power, (2) the exercise of that power is unauthorized by law, and (3) denial of the writ will cause injury for which no other adequate remedy in the ordinary course of law exists. State ex rel. Sartini v. Yost, 96 Ohio St.3d 37, 2002-Ohio-3317, 770 N.E.2d 584, ¶ 23.
{¶15} CEI has established the first prerequisite for the issuance of the writ. Judge Corrigan and the common pleas court have exercised and will continue to exercise judicial power in the underlying case by denying CEI’s motion to dismiss AE’s counterclaim for lack of subject-matter jurisdiction and will continue to exercise judicial power as the case proceeds.
{¶16} Concerning the remaining requirements for a writ of prohibition, “[w]here an inferior court patently and unambiguously lacks jurisdiction over the cause, prohibition will lie both to prevent the future unauthorized exercise of jurisdiction and to correct the results of prior actions taken without jurisdiction.” Hughes v. Calabrese, 95 Ohio St.3d 334, 2002-Ohio-2217, 767 N.E.2d 725, ¶ 15.
{¶17} The dispositive issue here is whether, as CEI claims, the common pleas court and Judge Corrigan patently and unambiguously lack jurisdiction over AE’s counterclaim because the counterclaim is within the exclusive jurisdiction of the commission.
{¶19} Therefore, “ ‘[t]he jurisdiction specifically conferred by statute upon the Public Utilities Commission over public utilities of the state * * * is so complete, comprehensive and adequate as to warrant the conclusion that it is likewise exclusive.’ ” State ex rel. N. Ohio Tel. Co. v. Winter (1970), 23 Ohio St.2d 6, 9, 52 O.O.2d 29, 260 N.E.2d 827, quoting State ex rel. Ohio Bell Tel. Co. v. Cuyahoga Cty. Court of Common Pleas (1934), 128 Ohio St. 553, 557, 1 O.O. 99, 192 N.E. 787; see, also, Kazmaier Supermarket, Inc. v. Toledo Edison Co. (1991), 61 Ohio St.3d 147, 152, 573 N.E.2d 655.
{¶20} As the parties acknowledge, however, courts retain limited subject-matter jurisdiction over pure common-law tort and certain contract actions involving utilities regulated by the commission. See, e.g., State ex rel. Ohio Edison Co. v. Parrott (1995), 73 Ohio St.3d 705, 708, 654 N.E.2d 106, and cases cited therein; see, also, Suleiman v. Ohio Edison Co. (2001), 146 Ohio App.3d 41, 45, 764 N.E.2d 1098.
{¶21} Consequently, we must determine whether the claims raised by AE in its counterclaim are within the exclusive initial jurisdiction of the commission or are pure tort and contract claims that do not require a consideration of statutes and regulations administered and enforced by the commission. In this regard, we must
{¶22} We conclude that the common pleas court and Judge Corrigan patently and unambiguously lack jurisdiction over the majority of AE’s claims. Allegations of violations of
{¶23} The introductory paragraph of AE’s counterclaim specifies that the counterclaim is based on conduct by CEI that is illegal because it is “expressly forbidden by the Ohio Administrative Code regulations promulgated by the Ohio Public Utilities Commission.” AE, using language substantially similar to the language of its complaint against CEI filed with the commission, expressly alleges violations of
{¶24} In its counterclaim, AE’s first claim of common-law fraud is expressly premised upon the incorporated alleged violations of
{¶25} AE’s fraud claim is specifically dependent upon its assertion that CEI’s misrepresentation to AE that AE was liable for Parkbrook’s unpaid electricity bill violated
{¶26} AE essentially admits that resolution of its fraud claim requires this initial determination that CEI’s representations violated Ohio statutory and regulatory law on public utilities by contending in its dismissal motion that the trial court may find it “necessary to view Ohio statutory and regulatory law to determine if such a representation was outside the bounds of Ohio law.”
{¶28} AE’s third claim, for a declaratory judgment that the alleged guaranty is ineffective, is also based for the most part on the previous allegations of fraud and violation of the specified statutory and regulatory provisions relating to utilities. Therefore, the portions of AE’s complaint for a declaration that the guaranty was procured by fraud, obtained in violation of “numerous OAC and Revised Code provisions, as identified above,” and generally illegal were beyond the court’s jurisdiction. These claims were founded on the same alleged violations of public-utilities statutes and regulations that the common pleas court lacks jurisdiction to consider before the commission makes its determination.
{¶29} AE in effect conceded that the common pleas court lacked jurisdiction over these claims when it dismissed its complaint filed with the commission because its counterclaim comprised “many of the same issues.”
{¶30} In addition, the main cases relied on by respondents are inapposite. Unlike AE’s counterclaim, the claims in these cases did not include specifically alleged violations of statutes and regulations involving public utilities. Cf. State ex rel. Dayton Power & Light Co. v. Riley (1978), 53 Ohio St.2d 168, 7 O.O.3d 317, 373 N.E.2d 385; State ex rel. Ohio Power Co. v. Harnishfeger (1980), 64 Ohio St.2d 9, 18 O.O.3d 130, 412 N.E.2d 395; Gary Phillips & Assoc. v. Ameritech Corp. (2001), 144 Ohio App.3d 149, 759 N.E.2d 833.
{¶31} Based on the foregoing, the court of common pleas and Judge Corrigan patently and unambiguously lack jurisdiction over AE’s fraud and rescission claims as well as those portions of AE’s counterclaim relying on fraud, violation of the public-utility statutory and regulatory provisions, and general illegality, until the commission determines AE’s claims regarding whether CEI
{¶32} Nevertheless, the court of common pleas and Judge Corrigan do not patently and unambiguously lack jurisdiction over AE’s claims for declaratory judgment based upon indefiniteness and lack of consideration. These are purely contractual claims that are independent of any claim that CEI violated any provision of
{¶33} Therefore, we grant a writ of prohibition to prevent the common pleas court and Judge Corrigan from exercising jurisdiction over AE’s fraud and rescission claims, and those declaratory relief claims not involving indefiniteness and lack of consideration, and deny the writ regarding AE’s remaining claims for declaratory relief.
Writ granted in part and denied in part.
MOYER, C.J., RESNICK, F.E. SWEENEY and LUNDBERG STRATTON, JJ., concur.
DOUGLAS, J., concurs in judgment only.
PFEIFER, J., dissents and would dismiss the cause.
COOK, J., not participating.
Jones, Day, Reavis & Pogue, David A. Kutik and Mark A. Whitt; Weltman, Weinberg & Reis Co., L.P.A., and Robert B. Weltman; and James W. Burk, for relator.
William D. Mason, Cuyahoga County Prosecuting Attorney, and Charles E. Hannan, Assistant Prosecuting Attorney, for respondents Cuyahoga County Court of Common Pleas and Judge Daniel O. Corrigan.
Michael R. Gareau & Associates Co., L.P.A., Michael R. Gareau, Michael R. Gareau, Jr. and David M. Gareau, for respondent All Erection and Crane Rental Corporation.