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Judges split on district's need to pay for new water main

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The Indiana Court of Appeals split today on whether a school district was required to pay for the installation of a new water main as opposed to privately putting in its own water service line to connect to a new school.

The majority agreed with the Indiana Utility Regulatory Commission’s determination that the Indianapolis Department of Waterworks rules don’t prevent the Southern Hancock School Systems from connecting a service pipe to its new school from an existing main instead of paying to install a new water main.

In Department of Waterworks for the Consolidated City of Indianapolis v. Community School Corp. of Southern Hancock County, No. 93A02-1002-EX-218, the school system is building a new school and wanted to run a service pipe to a water main that runs along County Road 600 West, which services two other schools. The water company argued that the school needed to pay for a new water main along County Road 200 South in order to have adequate water for the school. The cost would be around $330,000. The school could install a service pipe and connect to the existing water main for around $170,000.

The informal disposition of the Consumer Affairs Division of the IURC concluded the water company provided sufficient reasoning to request the installation of a water main. The IURC reversed and held the school should be allowed to connect to the existing main.

The judges split not only on whether the school is required to install a new water main, but also on the standard of review that should be applied. Chief Judge John Baker and Judge Paul Mathias decided the standard of review should be a “multiple tiered review” focused on the facts with a “high level of deference,” as outlined in NIPSCO v. U.S. Steel Corp., 907 N.E.2d 1012, 1018 (Ind. 2009). Judge Patricia Riley in her dissent instead would rely on a passage from Citizens Action Coalition of Indiana v. NIPSCO, 485 N.E.2d 610, 612-13 (Ind. 1985), which says agency action reviews are limited to whether the commission stayed within its jurisdiction and conformed to the statutory standards and legal principles involved in its ruling.

At issue is the water company’s Rule 7(J), which states “A service pipe which is irregularly located shall, at [the Water Company’s] expense, be relocated and connected to a new main abutting the premises when subsequently installed for other purposes. [The Water Company] shall not be under any obligation to permit connection or to supply service to any customer whose premises does not abut a main.”

The majority found the water company’s proposition that each “new premise” has to be served by a main extension directly contradicts with the definition of premises that explicitly contemplates multiple premises or buildings on a single parcel or contiguous parcels of real estate being connected to the same main and each served by a separate service pipe, wrote Chief Judge Baker.

“In essence, none of the rules allows the Water Company to deny a connection to an existing main abutting a customer’s property and force a main extension because it can get a new main closer to the premises,” he wrote.

Judge Riley believed the IURC misinterpreted Rule 7(J) and exceeded its jurisdiction. The new school will be built on its own parcel of land within the school corporation’s campus.

“As far as I can discern, this new construction is not attached to any existing building but is an independent structure at the far end of the campus. Mindful of the rule and its accompanying definitions, the new school should be considered a ‘premise,’ pursuant to Rule 7(J), and thus it would be appropriate to require the School to pay for a new main extension,” she wrote.


 

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  1. So that none are misinformed by my posting wihtout a non de plume here, please allow me to state that I am NOT an Indiana licensed attorney, although I am an Indiana resident approved to practice law and represent clients in Indiana's fed court of Nth Dist and before the 7th circuit. I remain licensed in KS, since 1996, no discipline. This must be clarified since the IN court records will reveal that I did sit for and pass the Indiana bar last February. Yet be not confused by the fact that I was so allowed to be tested .... I am not, to be clear in the service of my duty to be absolutely candid about this, I AM NOT a member of the Indiana bar, and might never be so licensed given my unrepented from errors of thought documented in this opinion, at fn2, which likely supports Mr Smith's initial post in this thread: http://caselaw.findlaw.com/us-7th-circuit/1592921.html

  2. When I served the State of Kansas as Deputy AG over Consumer Protection & Antitrust for four years, supervising 20 special agents and assistant attorneys general (back before the IBLE denied me the right to practice law in Indiana for not having the right stuff and pretty much crushed my legal career) we had a saying around the office: Resist the lure of the ring!!! It was a take off on Tolkiem, the idea that absolute power (I signed investigative subpoenas as a judge would in many other contexts, no need to show probable cause)could corrupt absolutely. We feared that we would overreach constitutional limits if not reminded, over and over, to be mindful to not do so. Our approach in so challenging one another was Madisonian, as the following quotes from the Father of our Constitution reveal: The essence of Government is power; and power, lodged as it must be in human hands, will ever be liable to abuse. We are right to take alarm at the first experiment upon our liberties. I believe there are more instances of the abridgement of freedom of the people by gradual and silent encroachments by those in power than by violent and sudden usurpations. Liberty may be endangered by the abuse of liberty, but also by the abuse of power. All men having power ought to be mistrusted. -- James Madison, Federalist Papers and other sources: http://www.constitution.org/jm/jm_quotes.htm RESIST THE LURE OF THE RING ALL YE WITH POLITICAL OR JUDICIAL POWER!

  3. My dear Mr Smith, I respect your opinions and much enjoy your posts here. We do differ on our view of the benefits and viability of the American Experiment in Ordered Liberty. While I do agree that it could be better, and that your points in criticism are well taken, Utopia does indeed mean nowhere. I think Madison, Jefferson, Adams and company got it about as good as it gets in a fallen post-Enlightenment social order. That said, a constitution only protects the citizens if it is followed. We currently have a bevy of public officials and judicial agents who believe that their subjectivism, their personal ideology, their elitist fears and concerns and cause celebs trump the constitutions of our forefathers. This is most troubling. More to follow in the next post on that subject.

  4. Yep I am not Bryan Brown. Bryan you appear to be a bigger believer in the Constitution than I am. Were I still a big believer then I might be using my real name like you. Personally, I am no longer a fan of secularism. I favor the confessional state. In religious mattes, it seems to me that social diversity is chaos and conflict, while uniformity is order and peace.... secularism has been imposed by America on other nations now by force and that has not exactly worked out very well.... I think the American historical experiment with disestablishmentarianism is withering on the vine before our eyes..... Since I do not know if that is OK for an officially licensed lawyer to say, I keep the nom de plume.

  5. I am compelled to announce that I am not posting under any Smith monikers here. That said, the post below does have a certain ring to it that sounds familiar to me: http://www.catholicnewworld.com/cnwonline/2014/0907/cardinal.aspx

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