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Court rules in favor of steel company in dispute

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The Indiana Supreme Court affirmed Tuesday the Indiana Utility Regulatory Commission's grant of summary judgment in favor of a steel production facility in a contract dispute involving a public utility. Before ruling on the summary judgment, the high court first had to decide which standard of review to use.

In Northern Indiana Public Service Co. v. United States Steel Corp., No. 93S02-0809-EX-489, the Northern Indiana Public Service Co. and United States Steel Corp. disagreed on the application of a price adjustment provision based on a 1999 contract. NIPSCO believed it applied to both an energy charge and demand charge; U.S. Steel believed it only applied to the energy charge. The IURC approved the original contract based on a settlement agreement and contract for electric industrial power service submitted to the agency. U.S. Steel filed a complaint seeking to enforce its interpretation of the contract in 2006 and filed for summary judgment; the commission granted the motion. The Indiana Court of Appeals reversed.

NIPSCO wanted the Supreme Court to apply a de novo standard because the case involves summary judgment and a question of law. It argued the appeal isn't the product of a regulatory settlement but a contract dispute between two private parties.

The commission approved the contract, effectively making it an order of the commission, so when ruling on the summary judgment motion, that means the IURC interpreted its own order, not a contract, wrote Chief Justice Randal T. Shephard. Approving such contracts and resolving disputes is intrinsic to the commission's regulation of utility rates, he wrote.

Agencies, such as the Indiana Utility Regulatory Commission, aren't judicial bodies, but are executive branch institutions which the General Assembly has empowered with delegated duties. Adjudication by an agency deserves a higher level of deference than a summary judgment order by a trial court falling squarely within the judicial branch, so the high court applied the established standard for judicial review of commission orders, he wrote.

Using that standard of review, the high court ruled 4-1 the IURC didn't err in interpreting the contract. The commission determined that other documents the parties executed at the same time as the contract, but didn't submit to the commission, couldn't be used to explain, expand, or vary the contract's terms because the contract wasn't ambiguous.

NIPSCO argued adjustment applies to both the energy charge and demand charge, but the commission rejected its argument, finding the utility misapplied the adjustment based on the agreed upon contract terms and rates approved by the commission. NIPSCO's argument on appeal doesn't persuade the justices that the IURC's interpretation of the contract was unreasonable. Justice Frank Sullivan dissented without an opinion, because he would have denied transfer believing the Court of Appeals' conclusion was correct.

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  1. Poor Judge Brown probably thought that by slavishly serving the godz of the age her violations of 18th century concepts like due process and the rule of law would be overlooked. Mayhaps she was merely a Judge ahead of her time?

  2. in a lawyer discipline case Judge Brown, now removed, was presiding over a hearing about a lawyer accused of the supposedly heinous ethical violation of saying the words "Illegal immigrant." (IN re Barker) http://www.in.gov/judiciary/files/order-discipline-2013-55S00-1008-DI-429.pdf .... I wonder if when we compare the egregious violations of due process by Judge Brown, to her chiding of another lawyer for politically incorrectness, if there are any conclusions to be drawn about what kind of person, what kind of judge, what kind of apparatchik, is busy implementing the agenda of political correctness and making off-limits legit advocacy about an adverse party in a suit whose illegal alien status is relevant? I am just asking the question, the reader can make own conclsuion. Oh wait-- did I use the wrong adjective-- let me rephrase that, um undocumented alien?

  3. of course the bigger questions of whether or not the people want to pay for ANY bussing is off limits, due to the Supreme Court protecting the people from DEMOCRACY. Several decades hence from desegregation and bussing plans and we STILL need to be taking all this taxpayer money to combat mostly-imagined "discrimination" in the most obviously failed social program of the postwar period.

  4. You can put your photos anywhere you like... When someone steals it they know it doesn't belong to them. And, a man getting a divorce is automatically not a nice guy...? That's ridiculous. Since when is need of money a conflict of interest? That would mean that no one should have a job unless they are already financially solvent without a job... A photographer is also under no obligation to use a watermark (again, people know when a photo doesn't belong to them) or provide contact information. Hey, he didn't make it easy for me to pay him so I'll just take it! Well heck, might as well walk out of the grocery store with a cart full of food because the lines are too long and you don't find that convenient. "Only in Indiana." Oh, now you're passing judgement on an entire state... What state do you live in? I need to characterize everyone in your state as ignorant and opinionated. And the final bit of ignorance; assuming a photo anyone would want is lucky and then how much does your camera have to cost to make it a good photo, in your obviously relevant opinion?

  5. Seventh Circuit Court Judge Diane Wood has stated in “The Rule of Law in Times of Stress” (2003), “that neither laws nor the procedures used to create or implement them should be secret; and . . . the laws must not be arbitrary.” According to the American Bar Association, Wood’s quote drives home this point: The rule of law also requires that people can expect predictable results from the legal system; this is what Judge Wood implies when she says that “the laws must not be arbitrary.” Predictable results mean that people who act in the same way can expect the law to treat them in the same way. If similar actions do not produce similar legal outcomes, people cannot use the law to guide their actions, and a “rule of law” does not exist.

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