First impression in utility fee case

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In a matter of first impression, the Indiana Court of Appeals had to determine whether the Indiana Utility Regulatory Commission properly reviewed the rates and fees charged by a regional sewage district at the request of a campground owner.

LaGrange County Regional Utility District v. Jerry and Sandy Bubb, owners of Gordon's Campground, No. 93A02-0905-EX-442, was the first time a campground owner utilized a 2005 statute that let an owner request the IURC review the fees charged by certain regional utility districts, including regional sewage districts.

Indiana Code Section 13-26-11-2.1 also provides when a request is made, the IURC's appeals division (CAD) will conduct an informal review, including a "prompt and thorough investigation of the dispute."

The Bubbs sent a letter to the IURC in March 2006 asking for a review of rates charged by LaGrange County Regional Utility District. In April, the CAD director informed LaGrange's attorney she would be handling the review and the process would be governed by 170 Administrative Code 8.5-2-5 (the rule). Nearly a year later, the CAD director sent a letter to LaGrange saying it received the complaint from the Bubbs and would conduct an informal review pursuant to statute. LaGrange filed a motion to dismiss in April 2007 because it believed the IURC no longer had jurisdiction over the dispute because it didn't complete the review in a timely manner as required by statute or the rule. The motion was denied and in November 2008, the CAD determined LaGrange overcharged the Bubbs and the utility was ordered to reimburse them the difference between the appropriate rate and the rate paid from March 2006 until the order.

On appeal, LaGrange again argued IURC lost jurisdiction because it didn't act in a timely matter pursuant to statute and the rule. The Court of Appeals determined the rule, which specified the timeframe of a review, didn't apply to the IURC because it failed to adopt the rule. Even though the CAD director originally told LaGrange's attorney the rule would apply, the IURC isn't estopped from arguing the rule is inapplicable. LaGrange failed to show it detrimentally relied on the director's statement, wrote Chief Judge John Baker.

The Court of Appeals also found the CAD review and disposition was conducted in a timely manner pursuant to the statute. Even though the dispute could have been handled more quickly than 32 months after the Bubbs originally filed the complaint, there is no specific timeframe within the statute in which the CAD must investigate a complaint and issue an informal disposition. The statute doesn't also say the IURC loses jurisdiction if the CAD fails to resolve the dispute in a timely manner, wrote the chief judge.

The appellate court relied on Hancock County Rural Elec. Membership Corp. v. City of Greenfield, 494 N.E.2d 1294, 1295 (Ind. Ct. App. 1986), because the statutes in either case don't contain language that restrains the IURC from acting if the CAD fails to conduct a prompt investigation, wrote Chief Judge Baker. Also, the statute in the instant case doesn't provide for an adverse consequence or say that the IURC loses jurisdiction if the CAD doesn't conduct a prompt investigation.

If the IURC lost jurisdiction because the CAD failed to complete a timely investigation, that would frustrate the purpose of the statute, he continued. If the IURC was without jurisdiction in the instant case, then the Bubbs would have no recourse to recover the excessive fees.


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  1. This new language about a warning has not been discussed at previous meetings. It's not available online. Since it must be made public knowledge before the vote, does anyone know exactly what it says? Further, this proposal was held up for 5 weeks because members Carol and Lucy insisted that all terms used be defined. So now, definitions are unnecessary and have not been inserted? Beyond these requirements, what is the logic behind giving one free pass to discriminators? Is that how laws work - break it once and that's ok? Just don't do it again? Three members of Carmel's council have done just about everything they can think of to prohibit an anti-discrimination ordinance in Carmel, much to Brainard's consternation, I'm told. These three 'want to be so careful' that they have failed to do what at least 13 other communities, including Martinsville, have already done. It's not being careful. It's standing in the way of what 60% of Carmel residents want. It's hurting CArmel in thT businesses have refused to locate because the council has not gotten with the program. And now they want to give discriminatory one free shot to do so. Unacceptable. Once three members leave the council because they lost their races, the Carmel council will have unanimous approval of the ordinance as originally drafted, not with a one free shot to discriminate freebie. That happens in January 2016. Why give a freebie when all we have to do is wait 3 months and get an ordinance with teeth from Day 1? If nothing else, can you please get s copy from Carmel and post it so we can see what else has changed in the proposal?

  2. Here is an interesting 2012 law review article for any who wish to dive deeper into this subject matter: Excerpt: "Judicial interpretation of the ADA has extended public entity liability to licensing agencies in the licensure and certification of attorneys.49 State bar examiners have the authority to conduct fitness investigations for the purpose of determining whether an applicant is a direct threat to the public.50 A “direct threat” is defined as “a significant risk to the health or safety of others that cannot be eliminated by a modification of policies, practices or procedures, or by the provision of auxiliary aids or services as provided by § 35.139.”51 However, bar examiners may not utilize generalizations or stereotypes about the applicant’s disability in concluding that an applicant is a direct threat.52"

  3. We have been on the waiting list since 2009, i was notified almost 4 months ago that we were going to start receiving payments and we still have received nothing. Every time I call I'm told I just have to wait it's in the lawyers hands. Is everyone else still waiting?

  4. I hope you dont mind but to answer my question. What amendment does this case pretain to?

  5. Research by William J Federer Chief Justice John Marshall commented May 9, 1833, on the pamphlet The Relation of Christianity to Civil Government in the United States written by Rev. Jasper Adams, President of the College of Charleston, South Carolina (The Papers of John Marshall, ed. Charles Hobson, Chapel Hill: Univ. of North Carolina Press, 2006, p, 278): "Reverend Sir, I am much indebted to you for the copy of your valuable sermon on the relation of Christianity to civil government preached before the convention of the Protestant Episcopal Church in Charleston, on the 13th of February last. I have read it with great attention and advantage. The documents annexed to the sermon certainly go far in sustaining the proposition which it is your purpose to establish. One great object of the colonial charters was avowedly the propagation of the Christian faith. Means have been employed to accomplish this object, and those means have been used by government..." John Marshall continued: "No person, I believe, questions the importance of religion to the happiness of man even during his existence in this world. It has at all times employed his most serious meditation, and had a decided influence on his conduct. The American population is entirely Christian, and with us, Christianity and Religion are identified. It would be strange, indeed, if with such a people, our institutions did not presuppose Christianity, and did not often refer to it, and exhibit relations with it. Legislation on the subject is admitted to require great delicacy, because freedom of conscience and respect for our religion both claim our most serious regard. You have allowed their full influence to both. With very great respect, I am Sir, your Obedt., J. Marshall."