Title: GRAHAM FARMS, INC. v. Indpls. Power & Light
Citation: 233 N.E.2d 656, 249 Ind. 498
Docket Number: 30,815
State: Indiana
Issuer: Indiana Supreme Court
Date: February 5, 1968

249 Ind. 498 (1968)
233 N.E.2d 656
GRAHAM FARMS, INC. ET AL.
v.
INDIANAPOLIS POWER &amp; LIGHT COMPANY.
No. 30,815.

Supreme Court of Indiana.
Filed February 5, 1968.
*499 Claude M. Warren, of Indianapolis, Jack E. Hayes, and Robert O. Chambers, of Washington, for appellants.
Carl M. Gray, of Petersburg, Alvin Seal, of Washington, Ralph W. Husted, Marcus E. Wood, and Charles M. Wells, of Indianapolis, for appellee.
Von E. Livingston, David B. Keller, Dildine, Haynie &amp; Yoder, of Fort Wayne, of counsel, for Indiana &amp; Michigan Electric Co.; G.R. Redding, Dan R. Winchell, Joseph B. Carney, Baker &amp; Daniels, of Indianapolis, for Indianapolis Water Co., Panhandle Eastern Pipe Line Co., Truckline Gas Co., Harry T. Ice, George B. Gavit, Ice, Miller, Donadio &amp; Ryan, of Indianapolis, for Midwestern Gas Transmission Co., John C. Lawyer, of Hammond, William F. Welch, of Indianapolis, Lawyer, Schroer &amp; Eichhorn, of Hammond, for Northern Indiana Public Service Co., Paul G. Jasper, Greg K. Kimberlin, of Plainfield, McHale, Cook &amp; Welch, of Indianapolis, for Public Service Company of Indiana, Inc., Frederick P. Bamberger, William P. Foreman, and Bamberger, Foreman, Oswald &amp; Hahn, of Evansville, for Southern Indiana Gas and Electric Co., amici curiae.
*500 JACKSON, J.
The appellee, by its complaint, alleged that it is a corporation organized under the laws of this state and is authorized by its articles of incorporation to engage in the following activities among others: To furnish, supply and vend electricity for light, heat and power and engage in any and all business incident thereto; to acquire, construct, maintain, own and operate plants and facilities for the manufacture, generation, transmission and distribution of electricity and to furnish, supply and transmit and distribute electric energy to the public or to any town or city in the State of Indiana. Appellee is a public utility engaged in such business with its principal place of business in Indianapolis, Marion County, Indiana, and under the laws of the State of Indiana is authorized and empowered to take, acquire, condemn and appropriate land and real estate or any interest therein for carrying out such purposes and objects, together with all accommodations, rights and privileges deemed necessary to accomplish the purposes for which the property is taken. That the appellant, Graham Farms, Inc., is the owner of certain real estate in said complaint described. That the appellee is constructing an electric generating station on White River in Pike County, Indiana, in order to meet present and future requirements for electricity of its customers. To make said generating station an integral part of its public utility system it is necessary for appellee to construct, own, operate and maintain a high voltage electric transmission line for the delivery of electric energy from said generating station to plaintiff's electric transmission and distribution system in Marion County, Indiana.
Appellee's complaint further alleged that for the purpose of locating, constructing, reconstructing, operating, maintaining, replacing and removing said transmission line, it is necessary for appellee to appropriate and condemn an easement and right of way, together with the right of ingress and egress, in, over and upon a part of the real estate heretofore *501 described in the complaint. The tract to be appropriated for such purposes being more particularly described as follows:
Appellee's complaint contained other allegations relative to the type, construction, location, etc. of the proposed towers, lines, fences and other structures necessary to be located and/or removed therefrom and concluded with the allegations that it had endeavored to purchase said right of way and easement from the appellant, Graham Farms, Inc., but had been unable to agree with said appellant for its purchase. Judgment was asked accordingly.
Thereafter on August 11, 1964, appellant, Graham Farms, Inc., filed its objections to the complaint. Appellee filed a demurrer to appellant's objections on August 20, 1964. On August 28, 1964, the trial court sustained appellee's demurrer to all of appellant's objections. On September 25, 1964, appellant, Graham Farms, Inc., filed its motion below to reconsider the ruling on appellee's demurrer. The trial court granted the motion to reconsider the ruling on the demurrer to the objections to appellee's complaint and, after hearing argument *502 of counsel, sustained said demurrer to objections numbered 1, 2, 3, 4, 5, 6, 10, 11, 12, 13 and 14 and overruled said demurrer to objections 7, 8 and 9. The objections withstanding the demurrer read as follows, to-wit:
On September 25, 1964, appellant, City of Washington, filed its petition for Leave to Intervene as a Party Defendant. Appellee filed its objections thereto. The court having heard argument thereon overruled appellee's objections, granted the petition and made the City of Washington a party defendant, to which ruling appellee excepted.
October 1, 1964, the City of Washington filed its objections to the complaint to condemn. Said objections, omitting heading, *503 formal parts and signatures, in pertinent part read as follows, to-wit:
October 3, 1964, appellee filed its demurrer to the objections filed by appellant, City of Washington. October 13, 1964, the trial court overruled appellee's demurrer to the objections of appellant City of Washington.
October 15, 1964, appellee filed motion for change of venue from Judge. October 17, 1964, appellant City of Washington filed objections to motion for change of venue. The trial court sustained objections of City of Washington and overruled appellee's motion for change of venue from Judge.
Thereafter, appellee sought and secured an alternative Writ of Mandate, later made permanent, in this Court. State ex rel Indianapolis Power &amp; Light Co. v. Daviess Circuit Court (1965), 246 Ind. 461, 206 N.E.2d 611. The trial court, *506 pursuant to such permanent writ, granted the change of venue from the Judge. May 12, 1965, the Special Judge was selected. May 13, 1965, the Special Judge qualified, took oath and assumed jurisdiction in the cause.
On May 27, 1965, the cause was submitted to the trial court, evidence presented and heard. At the trial appellee introduced Appellee's Exhibit 1, a certified copy of its articles of incorporation, which contains the following provision:
At the trial appellants introduced into evidence a certified copy of the ordinance of the City of Washington, Chapter 15 entitled "Improvement Location Permits," Chapter 20 entitled "Planning and Zoning," Chapter 23 entitled "Subdivision Control" and Chapter 25 entitled "Throughfare Plan."
The parties then stipulated as follows:
On June 24, 1965, the trial court entered its findings, judgment, ruling and order for the plaintiff, reciting therein, inter alia, "that plaintiff is entitled to and does hereby appropriate and condemn such easement and right-of-way for, and shall devote the same to, the uses hereinabove set forth, subject only to the conditions herein contained," being in conformity with the allegations in the appellee's complaint. The court appointed appraisers, who were directed to appear before the court on June 28, 1965, at 2:00 P.M. and be duly sworn as provided by law.
The appraisers took their oath. On July 12, 1965, they filed their report. Thereupon appellee excepted to the appraisers' award on the ground it was too high. At the same time appellee filed its motion for a change of venue from the county.
On July 13, 1965, appellant, Graham Farms, Inc., filed its exceptions to the appraisers' award on the ground that it was too low.
Thereafter on July 19, 1965, appellants filed their Praecipe for appeal to this court. The transcript and assignment of errors was filed in the clerk's office of this Court on September 13, 1965.
Appellants' Assignment of Errors, omitting formal parts and signatures, in pertinent part reads as follows:
In view of the importance of this case we have set out at some length the issues raised by the complaint, the objections *509 of Graham Farms, Inc. that survived appellee's demurrer and the objections of intervenor City of Washington.
Appellants in their brief say the issues in this cause may be grouped as follows:
Appellee in its beief says that only one question of substance is involved herein:
Without going into detail, the appellants challenge the statement in appellee's brief that certain issues are not before the court and allege appellant has brought such issues here by its assigned error No. 5.
Certain utilities sought and obtained leave of this Court to file a brief Amici Curiae after the appeal herein had been filed. Such brief together with those of appellants and appellee have been given due consideration in arriving at our determination herein.
In order to keep in proper perspective the issues involved in the case at bar, we must not lose sight of the fact that this is an interlocutory appeal from an order and judgment of the Daviess Circuit Court appointing appraisers.
Appellee produced two witnesses, George Switzer and Paul Crawford. Switzer, who is Vice President in charge of Engineering and Construction for appellee and a registered engineer with experience in the electrical utility field, testified as to the need and purpose for the land in question to transmit bulk power from the power plant near Petersburg, Indiana to Marion County. He described the steps taken to determine the route and described the type of proposed transmission line, also that the route laid out was the most feasible and practical route. Crawford, Chief Transmission Engineer of L.E. Myers Company, graduated in 1934 with a Bachelor of Science degree and since that time has been active in transmission line engineering work for various electric utilities. Crawford participated in the selection of the route of the transmission line in this case and is of the opinion the selected route is the most feasible and practical.
We now address the legal questions arising from the factual situation developed in this action. Actions in condemnation in this state now proceed under and by virtue of Acts 1905, ch. 48, being § 3-1701 et seq. Burns', or some Act amendatory *511 thereof. What shall constitute the necessary allegations of the complaint is specifically declared in Acts 1905, ch. 48, § 2, p. 59; 1935, ch. 76, § 1, p. 228, being § 3-1702 Burns'.
Appellee herein was incorporated by Articles dated October 26, 1926, and filed in the office of the Secretary of State of the State of Indiana on October 27, 1926.
On November 19, 1931, appellee reorganized and filed articles of reorganization in the office of the Secretary of State of the State of Indiana on November 23, 1931. Such articles, in part, read as follows:
...."
The Indiana General Assembly passed an act in 1929 "authorizing certain corporations to appropriate and condemn lands and easements in lands." Acts 1929, ch. 218, being § 3-1713 et seq. Burns'. Section 1 of the statute provides:
Section 2 of the 1929 statute, being § 3-1714 Burns' gives the condemnors the right to take the amount of land "it deems necessary for its proper uses and purposes, except that for rights of way, the condemnor shall take, acquire, condemn and appropriate an easement."
Section 3 of the 1929 statute, being § 3-1715 Burns', reads as follows:
We are inclined to agree with appellee that appellants' contention that appellee was required to obtain from the Public Service Commission of Indiana a certificate of convenience, economy or necessity under Acts 1921, ch. 98, being § 54-723 et seq. Burns' and particularly § 54-724 Burns', before condemning such easement is insubstantial. We fail to see how the appellee is affected by § 54-723 et seq., supra. In the first place, § 54-723 provides in part:
Section 2 of the 1921 statute, being § 54-724 Burns', reads as follows:
Section 3 of the 1921 statute, being § 54-725, reads as follows:
As the act in question by its very terms relates back to and provides for procedure in conformity to Acts 1905, ch. 48, it is understandable that the legislature did not want to repeal that act. Neither could it bind the hands of future general assemblies. We agree that any of the public utilities named in the act could proceed under the terms thereof, if they possessed no other power to exercise the right of eminent, and desired to, so long as they followed the procedure established by the eminent domain act of 1905.
As we have previously pointed out, § 3-1713, supra, permits any corporation qualified thereunder, and appellee by the nature of its articles of incorporation and its business is so *514 qualified, to exercise the right of eminent domain, without first obtaining from the Public Service Commission of Indiana the certificate required under § 54-724 Burns', supra. Therefore there can be no question as to the jurisdiction of this Court over the subject matter of the action.
Appellee has contended throughout this litigation that it is acting under and by virtue of the 1929 Act. The content of the complaint indicates such fact. Nothing in the record indicates otherwise. Thus, by statute and by precedent appellee was and is lawfully proceeding. Reuter v. Milan Water Co., Inc. (1935), 209 Ind. 240, 198 N.E. 442.
Appellant's, Graham Farms, Inc., objections Nos. 7, 8 and 9 and appellant's, City of Washington, objections 1 to 9 inclusive all deal with the Acts 1947, ch. 174, being § 53-701 et seq. Burns', which is an enabling act permitting the creation by ordinance of plan commissions to promote orderly growth of the community.
Intervenor City of Washington has such an ordinance. The parties stipulated that such ordinance was in force at the time of the filing of appellee's complaint to condemn right of way.
It is the contention of the appellants that the Act of 1947, ch. 174, gives authority to the municipalities operating thereunder to create a plan commission to prepare a master plan for the efficient and economic development of public ways, places, structures and utilities. They also claim such act authorizes the master plan to include locations, extent and character of public and private utilities. In brief, it is appellants' contention that appellee "is required to file application with the Board of Zoning Appeals of the City of Washington for authority to construct said line in said area, and that such authority from such Board is a condition precedent to the Plaintiff's right to exercise the power of eminent domain for the use sought."
The first two paragraphs of § 53-701, supra, read as follows:
Section 93 of the 1947 statute, being § 53-794 Burns', declares that:
The question of powers of other agencies of state government becomes important from the standpoint of (1) the regulatory powers of the Public Service Commission and (2) the powers of a public utility acting as an agency of the state in its exercise of the right of eminent domain.
*516 The 1947 statute does not specifically provide, and it cannot be assumed that the legislature would authorize, a municipality or a county to regulate a public utility when the utility is serving the larger interest in the general public. The utility is regulated by the Public Service Commission, and local regulation is inimical to that larger interest.
It was to relieve public utilities from the burden of local regulation that the legislature created the Public Service Commission. City of Huntington v. Northern Indiana Power Co. (1937), 211 Ind. 502, 5 N.E.2d 889, 6 N.E.2d 335.
When local regulation attempts to control an activity in which the whole state or a large segment thereof is interested, local regulation must fall.
The Public Service Commission Act provides:
The commission would be powerless to order improved service if local zoning regulations are allowed to override the powers of the commission.
All powers previously given to the prior Public Service Commission by the Shively-Spencer Act, Acts 1913, ch. 76, p. 167, are conferred on the present Public Service Commission by Acts 1941, ch. 101, § 12, p. 255, being § 54-119 Burns'. This Court has held that the Shively-Spencer Act vested in the commission (as then constituted) all powers over public utilities theretofore vested in municipalities, except certain powers (not here applicable) expressly reserved to the municipalities. City of Vincennes v. Vincennes Traction Co. (1918), 187 Ind. 498, 120 N.E. 27.
*517 Appellants take the position that if no certificate of convenience and necessity is required from the Public Service Commission, then a regulatory gap exists in the powers of the commission as respects the location of public utility facilities. From appellants' reasoning it would follow that regulation by local zoning authorities would not conflict with any effective power of the commission. Such is not the case, for no such gap exists. The Public Service Commission Act sets up adequate machinery for control by the commission of all improper acts of public utilities.
It is apparent that the commission would have jurisdiction under this statutory provision of a proper complaint relating to the location of utility facilities.
To adopt the position of appellants in the case at bar would mean that the 1947 Legislature intended by implication wholesale repeal and amendment of the eminent domain acts of Indiana. In view of the chaos that would result we are certain that was neither the act nor intent of the Legislature. We find no merit or authority for appellants' position in the Act.
Having given careful, even extended consideration to the issues presented on appeal, we find no reversible error below. The allegations of the complaint were found to be true. The court entered its proper judgment in condemnation, appointed appraisers to assess the damages the appellant will sustain by reason of such appropriation. The appraisers appeared, *518 took their oath, proceeded to discharge their duties and filed their report, to which appellants and appellee excepted.
The judgment is affirmed.
Lewis, C.J. and Hunter and Mote, JJ. concur. Arterburn, J. concurs in result.
NOTE.  Reported in 233 N.E.2d 656.