Document: 436 U.S. 1 98 S.Ct. 1554 56 L.Ed.2d 30 MEMPHIS LIGHT, GAS AND WATER DIVISION, et al., Petitioners,v.Willie S. CRAFT al. No. 76-39. Argued Nov. 2, 1977. Decided May 1, 1978. Syllabus Because of two separate sets gas and electric meters in their newly purchased house, respondents, for about a year after moving in, received monthly bills each set from municipal utility. During this period respondents' utility service was terminated five times nonpayment bills. Despite respondent wife's good-faith efforts to determine the cause "double billing," she unable obtain satisfactory explanation or any suggestion further recourse utility's employees. Each bill contained "final notice" stating that payment overdue would be discontinued if not made by certain date but did apprise respondents availability procedure discussing dispute with designated personnel who were authorized review disputed correct errors. Respondents brought class action Federal District Court under 42 U.S.C. § 1983, seeking declaratory injunctive relief damages against several its officers employees terminations allegedly without due process law. After refusing certify as action, determined claim entitlement continued implicate "property" interest protected Fourteenth Amendment, that, event, termination procedures comported process. While affirming Court's refusal Appeals held accorded comport Held: 1. Although only remaining plaintiffs apparently no longer desire hearing resolve continuing over bills, double-billing problem having been clarified during litigation, do aver there i present threat service, actual punitive arising saves bar mootness. Pp. 7-9. 2. Under applicable Tennessee decisional law, which draws line between are subject bona fide those not, may terminate "at will" "for cause," hence assert "legitimate entitlement" within protection Due Process Clause Amendment. 9-12. 3. Petitioners deprived an property 12-22. (a) Notice case kind does constitutional requirements when it advise customer administrative protesting threatened services unjustified, since such notice given despite "good faith efforts" on part, they notice. 13-15. (b) requires, at minimum, provision opportunity presenting empowered rectify error customer's complaint he is being overcharged charged rendered, here available respondents. The self-evident, risk erroneous deprivation insubstantial, interests incompatible affording described above. Mathews v. Eldridge, 424 319, 96 893, 47 18. 16-19. (c) common-law remedies pretermination injunction, post-termination suit damages, post-payment refund suffice cure inadequacy petitioner procedures. cessation essential appreciable time works uniquely final deprivation, judicial particularly unsuited factual disputes typically involving sums too small justify engaging counsel bringing lawsuit. 19-22. 534 F.2d 684, affirmed. Frierson M. Graves, Jr., Memphis, Tenn., petitioners. Thomas Daniel, Nashville, Mr. Justice POWELL delivered opinion Court. This 1983 homeowners reversed part. We granted certiorari consider question importance operation utilities throughout Nation. 2 * Memphis Light, Gas Water Division (MLG&W)1 division city provides service. It directed Board Commissioners appointed City Council, ultimate control government. As utility, MLG&W enjoys statutory exemption regulation state public commission. Tenn.Code Ann. §§ 6-1306, 6-1317 (1971). 3 Willie Mary Craft, here,2 reside 1019 Alaska Street Memphis. When Crafts moved into residence October 1972, noticed one water meter serving premises. had used previously duplex. assumed, basis information seller, second inoperative. 4 In 1973, began receiving bills: regular bill, account number name C. opposed Craft. Separate meters, fee3 appearing bill. learning reader both running home, hired private plumber electrical contractor combine meter. consolidate properly, condition aware, receive until January 1974. period, Crafts' nonpayment. 5 On occasions, Mrs. Craft missed work went offices order billing" problem. found Court, sought good court noted: 6 "On occasion attempting avert termination, notice, called defendant's explained paid satisfaction. talk management adequately although repeatedly tried get some problems possible duplicate charges." Pet. Cert. 38-39. 7 February 1974, other customers filed Western Tennessee. trial, refused plaintiffs' rendered judgment defendants. view while remained unpaid, nevertheless addressed procedural issue. acknowledged adequate management, concluded "[n]one individual [was] [a] heard, nor circumstances indicate substantial except instance Craft." Id., 45.4 expressed "hope," "whether principles [pendent] jurisdiction, very limited denial Craft," credit amount $35 issued reimburse "duplicate unnecessary charges expenses incurred [them] respect should have effectual afforded them requested." also recommended "that future sen certified registered mail least four days prior termination," "provide more specific locations out extended plans adjustments accounts genuine hardships appropriate situations." 46-47.5 8 appeal, Sixth Circuit affirmed 684 (1976). 9 July 12, 1976, petitioners writ (i) whether policies constitute "state action" Amendment; (ii) so, deprives meaning Clause; (iii) assuming interest, MLG&W's law case.6 22, 1977, we certiorar . 429 1090, 97 1098, 51 535. now affirm. II 10 There is, outset, parties briefs, "they stipulation invoke power United States litigation 'case controversy,' Richardson Ramirez, 418 24, 94 2655, 41 551 (1974) ." Sosna Iowa, 419 393, 398, 95 553, 556, 532 (1975). 11 comes us, Since class, existence "case controversy" depends entirely claims Cf. supra, 399, 402, S.Ct., 558. appears double-meter has litigation.7 Nor "An injunction can issue plaintiff established conduct enjoined illegal defendant, enjoined, will engage conduct." Transportation Union Michigan Bar, 401 576, 584, 91 1076, 1081, 28 339 insist, however, moot because seek relief, occasioned "capable repetition, yet evading review." Tr. Oral Arg. 45-46. 12 need decide falls special rule developed Southern Pacific Terminal Co. ICC, 219 498, 31 279, 55 L.Ed. 310 (1911); see Moore Ogilvie, 394 814, 816, 89 1493, 1494, 23 (1969); Roe Wade, 410 113, 125, 93 705, 712, 35 147 (1973), permit consideration questions which, nature, likely survive course normal litigation. Respondents' Powell McCormack, 395 486, 496-500, 1944, 1950-1952, 491 (1969). express validity damages,8 so insubstantial clearly foreclosed decisions proceed. III 13 Amendment places constraints actions government enjoying st ture Clause. underlying substantive created "an independent source law," federal determines rises level Regents Roth, 408 564, 577, 92 2701, 2709, 33 548 (1972); Perry Sindermann, 593, 602, 2694, 2700, 570 (1972). 14 outcome inquiry clear case. defining privilege proper charges, not. 15 "A company supplying electricity right cut off just adopt effect. Annot., 112 A.L.R. 237 (1938). An exception general exists concerning correctness Steele Clinton Electric Light & Power Co., 123 Conn. 180, 193 A. 613, 615 (1937); 237, 241 (1938); 43 Am.Jur., Public Utilities Services, Sec. 65; 475 (1924). If discontinues peril wrong (e. g., overcharged), liable damages. Sims Alabama 205 Ala. 378, 87 So. 688, 690, 461 (1920)." Trigg Middle Membership Corp., 533 S.W.2d 730, 733 (Tenn.App.1975), cert. denied (Tenn.Sup.Ct. Mar. 15, 1976).9 16 rejected argument agreed bound rules regulations, required received. able coerce pay claim." Ibid.10 17 State will." Bishop Wood, 426 341, 345-347, 2074, 2078-2079, 48 obligated provide "to all inhabitants location alike, discrimination, denial, sufficient Farmer 127 Tenn. 509, 515, 156 S.W. 189, 190 (1913), bill," Trigg, S.W.2d, 733. aggrieved enjoin wrongful terminate, bring subsequent refund. Ibid. local-law evidence State's recognition interest. conditioned upon properly due, "[t]he Amendment's 'property' never interpreted safeguard rights undisputed ownership." Fuentes Shevin, 407 67, 86, 1997, 32 556 cause,"11 IV 18 determining what "due" case, extent our shaped ruling Appeals. go deciding than ascertain read require informing possibility challenging F.2d, " '[an] [procedure] resolution disputes' specified avenue "dispute liability," id., 689.12 19 elementary fundamental requirement proceeding finality reasonably calculated, circumstances, interested pendency afford objections." Mullane Central Hanover Trust 306, 314, 70 652, 657, 865 (1950) (citations omitted). requires notify redress organization wish contest particular charge. 20 simply stated date. determined, "the warn[ed] face termination." 688-689. enclosed "flyer" notice." One distributed 40% customers, resided areas serviced "credit counseling stations." part: "If you difficulty paying your neighborhood counselors assistance. Your also." No mention disposition claim. A different areas. stated: like discuss plan, BRING YOUR BILL TO THE OFFICE AT ., OR PHONE 688 n. 4. 21 noted "there assurance mailed mentioned flyer," ibid., implicitly finding apprised her "with management."13 description Craft's repeated appeared unjustified double billing—"good [the Crafts'] well straighten problem"—makes notified asserted time.14 22 Petitioners' notification procedure, "reasonably calculated" inform objections" 657. purpose affected of, preparation for, impending "hearing."15 proposed unjustified. respondents—despite part—they due.16 B consistently "some before person finally his interests." Wolff McDonnell, 539, 557-558, 2963, 2975, 935 (1974). agree presentation employee rendered.17 Whether courts below Craft.18 requisite showing overturning these "concurrent findings fact Graver Tank Mfg. Linde Air Products 336 271, 275, 69 535, 538, 672 (1949).19 24 Our decision (1976), framework analysis "specific dictates process" 25 "[O]ur identification generally three distinct factors: First, official action; second, through used, probable value, any, additional substitute safeguards; finally, Government's including function involved fiscal burdens entail." 334-335, 903. 26 balancing approach outlined Mathews, entertaining complaints reasonable arbitrary withholding services. self-evident. Utility necessity modern life; indeed, discontinuance heating even short periods threaten health safety. And necessary reliance computers,20 insubstantial.21 27 Quite apart duty company, utility—in own business interests—may expected make minimize billing errors resulting dissatisfaction injury. Goss Lopez, 565, 583, 729, 740, 729 hearing" prove burdensome. meeting responsible could advance scheduled termination.22 retain option concluding billed justly due. C contend perceived procedures.23 29 Ordinarily, significant See Boddie Connecticut, 371, 379, 780, 786, 113 occasion, recognized where potential length severity likelihood serious loss act sufficiently reliable determination, providing "advance safeguards," Ingraham Wright, 430 651, 680, 1401, 1417, 711 (1977); U.S., 339-349, 904-909.24 factors justified exceptions here. restored ultimately, deprivation. Stanley Illinois, 405 645, 647-648, 1208, 1210-1211, Moreover, probability cutoff warrant dispensing termination.25 remedy referred employee. Many area process, notwithstanding apparent recovery provisions. thought bounded susceptible delay effective deprivation.26 These considerations context. Equitable money lawsuit.27 equity halt improper less pursued28 effective, pursued, same accurate decisionmaking procedure. informal remedy, along lines suggested above, constitutes "due." V failure calculated billing, error, 34 Affirmed. STEVENS, whom CHIEF JUSTICE REHNQUIST join, dissenting. 36 my judgment, holding confuses trivializes principle deprive life, liberty, I quarrel conclusion matter legitimate long portions paid. For reason, municipality giving fair avoid either questioning accuracy. agree, record discloses defect employed (Division). 37 focuses aspects Division's collection according standard form Ante, 15. Second, meet authority settle disputes. describing unusual Division, procedures, find criticisms justified; violation proved truly extraordinary. 38 details obscure, describes customary practices detail. month terminates 2,000 customers.1 Terminations preceded written advising must requesting contact collections department bill.2 notices contain prominent legend:3 "PHONE 523-0711 INFORMATION CENTER" 39 Calls listed phone answered 40 employees, cutoffs based representations phone. direct callers permanent up financial difficulty.4 defective handle problems. stemmed use measure consumption parts home. Crafts, believing twice utilities, account. fact, independent; balance account, occasions.5 expressly sent termination. possessing adjustment bill.6 She successful working deferred-payment arrangement reduced. therefore indicates failed persuade bills.7 objection rests classic statement 865: 44 That identifies characteristics notice: recipient loss; defend. essentials must, course, terms layman understand. unquestionably satisfied basic requirements.8 45 doubt situations example, follow prescheduled hearing, place hearing. But understand schedule mailed. seems assume, do, unless reason believe overcharged. Such protest ways: He communicate directly court. finds y describe former alternative. 46 "advise unjustified." advice much valuable legal occur. Yet wisely avoids sort advice. wholly most situations. homeowner surely told how complain bill; helpful include telephone office address democratic cease if, citizenry initiative. constitutionally paternalistic predicate cannot accept. Even accepting predicate, advises call "information center" adequate; call, hours, manned objection. Distinctions magnitude concern rulemaking; trivial identify error. pronouncement rendered," ante, 16, equally divorced facts processes 30,000 excess year, scores hear investigate complaints. Except troubles, nothing suggest access lack deal appropriately meritorious Indeed, already noted, themselves officials dispute.9 49 gratuitous, dismissed harmless. warns hearing," acting unconstitutionally. Just what, why, safeguards difficult discern.10 50 relies quite hypothetical considerations. stresses disconnection "may safety." discounts value "factual [involve] lawsuit." 21. Neither examples disclosed record. relatively amount, thereafter encountered month, reveal harm discontinue illness always simple expedient claiming refund,11 surprising real emergency rare, indeed all.12 true safety, ample motivation take important step consulting filing small. grievous qualify hardly petty invoking aid judiciary. Conversely, routine bench merit extraordinary protection. 52 consult far vague hearing." Without liability mistakes, today neither enforce terminating deter exercise power. hand, danger itself nsure careful attention though recovered later. 53 innovation demonstrated proceeding, rather examples, gleaned cases legislative reports. nn. justifications new product policy determination traditional construction Constitution. judges experience appraising fairness proceedings, similar ability cost scheduling thousands conferences benefit occasional forestall 54 unfortunate assesses taxes operates occasionally overcharges citizen. sometimes citizen unjust charge property. him invoked lawyer, demands satisfied. Constitution employ every lay effectively assistance counsel. respectfully dissent. petitioners, "a governmental unit standing capacity 'person' meaning" 1983. 43. disturb point individual, sued personal capacities, president manager, vice president, members Commissioners, responsibility They "MLG&W" "petitioners." Of original remain. rulings plaintiffs. fee item ordinance. advanced little explanation, reference extension program. earlier discussion, offered pro- cedures. steps termination: Approximately reading date, customer. last day net approximately read, disconnected made. then reader, assures mail, shows receipt, explains illness. communication serviceman instructed leave restoration (iv) cutoff, arrangements payment. 34-35. March instituted "extended plan." generous program allows demonstrate hardship one-half past equal installments next participants plan. 36. Finally, observed provided "Credit assist payments MLG&W. satisfy customer, personnel; chief clerk department; supervisor collection. addition, dissatisfied appeal regarding relating Division. may, desires, accompanied representative. sent, [are] governed policies, regulations adopted approved MLG&W." 36-37. December 30, defendants "instituted give definitive cut-off services." 49. infra. abandoned contention Brief 44. "Not discover computer billings (A. 146-150), result billings, fees." 5. "[o]f claimed March, 39. Presumably, visits "which 46. urging mootness, compliance recommendation removes award initial below. Tennessee's formulation accord rule. 64 Am.Jur.2d, 63-64 Note, Duty Render Adequate Service: Its Scope Enforcement, 62 Colum. L.Rev. 312, 326 (1962). attempt force referring noncompliance regulations. authorities, cast tenders withholds complete dispute. Patterson Chattanooga, 192 267, 291 (1951); 189 (1913); Jones 109 550, 72 985 (1903); Crumley Watauga 99 420, 1058 (1897); Wolfe, 429, 1060 (1897). rely Lindsey Normet, 56, 862, There, upheld Oregon statute tenant continuance eviction post security accruing rent continuance, issues triable physical possession, forcible withholding, possession. misplaced. merely intimating tenant's possession remain hearing; rather, [T]he possessory 85 1996, (1972) (emphasis original). Arnett Kennedy, 416 134, 1633, (1974), discharged cause, entitled protection." 345 8, 2078, 166, 1650 (Powell, J., concurring part); cf. 578, refer Palmer Columbia Ohio, Inc., 479 153 (CA 1973), comprehensive violation, investigation communicated official, stay posting bond. 159-160, 168-169. fashioned response findings, uncontradicted evidence, hostility arrogance part collection-oriented clerical 168. here, Appeals' purport request procedures: impartial maker," official; rebut records presented"; decision," 28, 31; 31. cross-petitioned, Strunk States, 434, 437, 2260, 2262, whether—or circumstances—any appropriate. note numbers relevant factor appropriateness formal approve normally presents resolution. management" implying necessarily corporate Rather, informed duly complaining William T. Mullen, secretary-treasurer MLG&W, testified processed 33,000 "high bill" 1973. App. 130. conceded, ever 162-163, 176, indication accessible reveals existed all, depended vagaries "word mouth referral," 163. See, e. 2978, (1974); Morrissey Brewer, 471, 486-487, 2593, 2602-2603, 484 re Gault, 387 33, 1428, 1446, 527 (1967); Anti-Fascist Committee McGrath, 341 123, 171-172, 71 624, 648-649, 817 (1951) (Frankfurter, concurring). dissenting STEVENS asserts "trivializes" Post, 22. recognizing "helpful," dissent hold 26. context "how complain." "[d]ue flexible calls protections situation demands." 481, 2600; 334, 902, left plight dissent's flaw petitioners' off. But—as held—this skeletal circumstances. Here, various levels education, experience, resources. Lay consumers uninterrupted continuity complaint. essence, recipients where, hours day, considered. restrictive erect artificial barrier components guarantee clarify regularize revised presently adequate. Developed lists "methods contact" states trained Counselors questions, needed adjustments. supervisors answers solutions Credit Counselors." 193. board district, municipality, "maintain adjustme t district bills," "be posted otherwise convenient inspection 6-2618(b) (Supp.1977). "[A] shall support allegations however brief, and, be, proof, informal." Londoner Denver, 210 373, 386, 708, 714, 1103 (1908). consultation mistaken "due 581-584, 739-741, 725 Friendly, "Some Kind Hearing," U.Pa.L.Rev. 1267 568 733, disciplinary obtaining high school "was followed case." advances offers justification sidestepping determinations post, 6. trial disquietude treatment sug- gested explicit criticism relied dissent, 23, inadequate: "[T]he fails 'that might resolved discussion representatives company,' "only 688-689, absence sound way "provides (Crafts)." 689. undermined, suggests, ultimately glean understanding several, time-consuming trips office—in words, "she placed uncertain investigation, "[w]ell, other" 91. Fundamental airness, "courteous" 7, informs timely recent years Congress concerned S.Rep. 93-278, p. (1973) (billing consumer transactions); Senate Government Operations, Problems Associated Computer Technology Programs Private Industry: Abuses, 94th Cong., 2d Sess. (Comm.Print 1976). 158; Davis Weir, 497 139, 142 (CA5 1974); Bronson Consolidated Edison New York, 350 F.Supp. 443, 448 (SDNY 1972) (16% investigated York Service Commission resulted favor customer). 30-day mailing unlikely material broad discretion structuring "hearing," obliquely Appellees 75-1350(CA6), 27. Ingraham, safeguards" paddling schools teacher observe infraction question, openness environment, visibility confrontation students faculty, parental reaction unreasonable punishment, gave child paddled insignificant." 677-678, 1416. Similarly, Dixon Love, 431 105, 1723, 1728, 172 (1977), evidentiary precede revocation driver's license traffic offenses previous 10-year "appellee full connection convictions based." obligation nondiscriminatory delinquent pending involve "discriminating ratepayer occur conference supra. 4, delayed nonpayment, means recover costs see, 114, 117 (imposition gross, net, late payment). E. 581-582 10, 739-740; North Georgia Finishing, Inc. Di-Chem, 601, 603, 607, 719, 721, 722, 751 (1975); 85, 15; Sniadach Family Finance 337, 343, 1820, 1823, 249 (1969) (Harlan, concurring); Bell Burson, 402 536, 1586, 1587, 90 intimates 28. ignores predicament confronting many individuals additional, unanticipated expenses. admirable immediate installments, addition current charges. Contrary suggestion, (1972), uphold back rent, disputed." 11. Lindsey, defenses excluded, landlord still contrary covenant lease 869, obvious [for privilege] limit compensation impracticable, leading infinite collect scattered consumers, mere renters financially irresponsible." 184, 560, S.W., 987. early 1874, Wisconsin Supreme Attorney General threatening persons wrongs average prosperity life." Chicago N. W. R. Wis. 425, 530-531. six months September 1973 11,216 so-called cutoffs. 74. visited (CA6 126 161. Information center sends investigators check leaks defects 178. judge evidently accepted engaged "split billing." "simple equity," cover amounts challenged considerably larger $35. concerns $2. 0 per duplex consolidated. expense covers lost trying attributable persuaded avoided help stages "procedure evaluating procedures; court's mean met worth remembering eventually solved, solution effected so. examination well. dispute, correctly turned out. 5, unconstitutional assumed judges, discourteous mistakes. courteous tells imminent enough protest, contacting center, beginning action. modified Circuit's controlled (1973). ordered personally servicemen return receipt requested. 159 166-167. tell programs dispute-resolving officer send—by mail—a written, authorizing cutoff. 9, 167-169. foundation below, lower mandated. requiring why lesser 36, defend ground premises uninhabitable rent. defense litigate landlord. prevail Thus, litigating (a 65, 869), disputed. lose prosecuting sustained maintain status quo partial 5-6 Perhaps fashions current, free

Category: 3