Court Opinion

ID: 9692742
Source: CourtListenerOpinion
Date Created: 2023-08-25 16:03:07.69142+00
Date Added: 2024-06-11T18:19:36.570694
License: Public Domain

BLAIR, District Judge
(concurring in the result).
Since I reach the same result for different reasons I record my views separately.
I join in the court’s holdings that (1) suit is not barred by the Johnson Act, 28 U.S.C. § 1342, (2) this is not a proper case for abstention, and (3) plaintiffs have exhausted available administrative remedies and are required to do no more.
I would then reach and decide the claim that the P.S.C. Rule denies plaintiffs equal protection of the law.

Equal Protection

Plaintiffs assert that by state statute and common law they have a right to cross-examination and that the arbitrary restriction imposed by Rule IV-A denies them equal protection of the law in violation of the federal constitution. Defendants initially argue that plaintiffs have neither a statutory nor common law right to cross-examination since the Commission proceedings in question are legislative rather than judicial in nature. Alternatively, defendants contend that equal protection does not extend to plaintiffs and that even if it does, the contested Rule must be upheld as it has a reasonable basis.

Is the United States Entitled to Equal Protection?

At the outset, the right of the United States and the Administrator of its General *682Services Administration to assert equal protection claims must be determined. Defendants argue that by its wording the Fourteenth Amendment excludes the United States from the ambit of equal protection. The Amendment in pertinent part provides:
“nor shall any State deprive any person of life, liberty, or property, without due process of law; nor deny to any person within its jurisdiction the equal protection of the laws.”
Thus, the threshold equal protection question is whether the United States can be a “person” entitled to equal protection of Maryland law.1 Although there is a paucity of authority, I would hold that on the undisputed facts presented to us the plaintiffs are entitled to equal protection in this case.
Here, the United States, like many other consumers, is a purchaser of public utility services. As a consumer, it neither exercises nor asserts rights of sovereignty but submits to the state’s determination, through its regulatory agency, as to the availability and cost of public utility service. Congress has expressly authorized the acquisition of public utility services in this manner by the Federal Property and Administrative Services Act of 1949 (Property Act) which provides in relevant parts:
It is the intent of the Congress in enacting this legislation to provide for the Government an economical and efficient system for (a) the procurement and supply of personal property and nonpersonal services, including related functions such as contracting, .
40 U.S.C. § 471 (1969).
(a) The Administrator shall, in respect of executive agencies, and to the extent that he determines that so doing is advantageous to the Government in terms of economy, efficiency, or service, and with due regard to the program activities of the agencies concerned—
(4) with respect to transportation and other public utility services for the use of executive agencies, represent such agencies in negotiations with carriers and other public utilities and in proceedings involving carriers or other public utilities before Federal and State regulatory bodies; .
40 U.S.C. § 481(a)(4) (1969 & 1976 Supp.).
It is under the authority granted by the Property Act that the General Services Administration represents the United States in dealings with public utilities and in appearances before state regulatory agencies. When so situated in the market place, the United States is, like other consumers of utility services, engaged in a purely business and commercial transaction. I think it unreasonable to infer, in the absence of clear authority to the contrary, that when the United States goes to market in the same manner as any other consumer it should not be entitled to equal protection of the law. The sovereign asserting no rights of sovereignty has become merely a consumer. See United States v. City of Jackson, 318 F.2d 1 (5th Cir. 1963); United States v. Coumantaros, 165 F.Supp. 695, 697-98 (D.Md.1958) (sovereign more likely to be “person” where engaged in commercial or business transactions such as other persons are likely to conduct).

Is There a Right to Cross-Examination under Maryland Law?

Plaintiffs assert that Rule IV-A limiting their cross-examination to thirty minutes and their recross to twenty minutes, where witness testimony has been prefiled, is a denial of equal protection of the law. Spe*683eifically, plaintiffs assert that this limitation of cross-examination by intervenors with no limitation of cross-examination by the public utilities applying for the rate adjustment or the People’s Counsel is without rational basis.2
Plaintiffs make no claim of a federal constitutional due process right to unrestricted cross-examination. Rather, plaintiffs claim that the right to reasonable cross-examination is guaranteed them both by Maryland statute and case law. Where rights, although perhaps not constitutionally required, are established by state law, any classification affecting or limiting those rights may be questioned on equal protection grounds. See Baxstrom v. Herold, 383 U.S. 107, 110, 86 S.Ct. 760, 15 L.Ed.2d 620 (1966) (civil insanity commitment after prison term requires right to jury where other such commitments subject to that right); Griffin v. Illinois, 351 U.S. 12, 18, 76 S.Ct. 585, 100 L.Ed. 891 (1956) (appellate review not constitutionally mandated but where statutorily provided, can’t deprive on basis of irrational classification); Truax v. Corrigan, 257 U.S. 312, 342, 42 S.Ct. 124, 66 L.Ed. 254 (1921) (right to equitable relief impermissibly abridged in context of employer/employee disputes). See generally Robinson v. Florida, 378 U.S. 153, 156, 84 S.Ct. 1693, 12 L.Ed.2d 771 (1964) (action by state administrative body subject to equal protection clause).
Plaintiffs rely for their claimed right of cross-examination on Annotated Code of Maryland, Art. 78, § 82 (1975 Repl.Vol.), entitled “Rights of parties to hearing,” which provides in pertinent part:
Any party to any hearing shall have, in addition to any other rights to which he may be entitled:
(b) The right of cross-examination and the right to submit rebuttal evidence, [emphasis supplied].3
Defendants contend that the above statute applies only to contested cases before the Commission involving quasi-judicial determinations. See Annotated Code of Maryland, Art. 78, § 79 (1975 Repl.Vol.) (right to hearing in contested cases). In contrast, defendants assert, the rate making proceedings, to which PSC Rule IV-A applies, are essentially legislative in character and do not necessitate a grant of the full panoply of procedural rights. See Albert v. PSC, 209 Md. 27, 120 A.2d 346, 350 (1956) (PSC order re: taxicab rates legislative/administrative; no hearing required); Gregg v. Laird, 121 Md. 1, 87 A. 1111, 1113 (1913) (establishment of public utility rates legislative, not judicial task). Cf. Bowles v. Willingham, 321 U.S. 503, 514, 64 S.Ct. 641, 88 L.Ed. 892 (1944) (administrative setting of maximum rents in defense areas legislative function).
Defendants’ construction of the Maryland statute providing for cross-examination in Commission proceedings as not pertaining to the rate cases at issue here does not comport with the statute’s clear language. As quoted supra, the Maryland statute (Art. 78, § 82(b)) guarantees cross-examination to “any party to any hearing,” not just to parties in hearings provided for contested cases. I find no warrant for holding that the statute means less than it says.4 There*684fore, I conclude that there is a right to cross-examination.

Is There a Rational Basis for the Classification Made by the Rule?

The “rational basis” equal protection test is the test to be applied in this case.
Under the rational basis test, a classification “will not be set aside if any state of facts reasonably may be conceived to justify it.” McGowan v. Maryland, 366 U.S. 420, 426, 81 S.Ct. 1101, 1105, 6 L.Ed.2d 393 (1961). The burden is upon the one'assailing the classification to show that it does not rest upon any reasonable basis. Lindsley v. Natural Carbonic Gas Co., 220 U.S. 61, 78-9, 31 S.Ct. 337, 55 L.Ed. 369 (1911). The cases consistently recognize the rights of the states to draw classifications without mathematical nicety so long as the criteria for the classifications bear a reasonable relationship to the state’s objectives. Reed v. Reed, 404 U.S. 71, 75-6, 92 S.Ct. 251, 30 L.Ed.2d 225 (1971). To survive a rational basis analysis, a classification “must be reasonable, not arbitrary, and must rest upon some ground of difference having a fair and substantial relation to the object of the [classification], so that all persons similarly circumstanced shall be treated alike.” Royster Guano Co. v. Virginia, 253 U.S. 412, 415, 40 S.Ct. 560, 561, 64 L.Ed. 989 (1920).
From the preamble to the Rule and an affidavit from the then-chairman of the Commission, we are informed as to the reasons for the Rule. In sum, they are that the number of hearings held by the Commission is increasing, the Commission has a duty to render decisions within limited times and that undue delays have been occasioned by extended and repetitious cross-examination of witnesses. For these reasons, the Commission considered the Rule to be “necessary and essential to the prompt and proper conduct of its proceedings.” The Commission further concluded that its practice of requiring prefiled testimony and its exemption of People’s Counsel from the Rule ameliorated the time constraints placed upon intervenors in their cross-examination of witnesses.
Defendants insist that the Rule has a rational basis furthering a legitimate state objective. Plaintiffs contend that in furthering that objective the Rule is wholly arbitrary and impermissibly discriminatory. While recognizing the considerable latitude left to the states in drawing classifications under the rational basis test, I would conclude that plaintiffs have much the better of the argument.
As earlier noted, I believe that the plaintiffs have a statutory right to cross-examination when appearing before the Commission as intervenors in a case involving an application by a public utility for an adjustment in rates. The beneficial effects of cross-examination in the fact development process before judicial and administrative tribunals are too well known to require elaboration. By the Commission’s Rule, the rights of intervenors to cross-examination are severely limited.
While the intervenors do have the benefit of the prefiled testimony of adverse witnesses, I fail to see that this is a rational justification for imposing an arbitrary time limitation for cross-examination by intervenors. The prefiling of testimony does not assure that probative cross-examination may be adequately undertaken in thirty minutes. The opportunity to analyze prefiled testimony could often result in lengthier; rather than more concise, meaningful cross-examination.
The Commission also advances the argument that People’s Counsel, exempted from the limitations imposed by the Rule, and charged with representing “the interests of the public in general,” Annotated Code of Maryland, Art. 78, § 15 (1975), amended, (1975 Supp.), represents the interests of the intervenors as well as all other members of the public. This broad responsibility, the Commission suggests, provides ample reason for limiting the cross-examination by intervenors because the public interest, including that of the intervenors, will be served by the advocacy of People’s Counsel. This contention rests upon an entirely unsupported assumption. The interests of some consumers may be entirely antagonis*685tic to that of other consumers. This would appear to be so especially where as in the case of the plaintiffs the intervenor is a very large consumer of services from the public utility. In such instances, the apportionment of rates among the users may be as critical as the question of whether and to what extent a rate increase should be granted. Thus it is not difficult to foresee that in confronting these apportionment issues, the interests of People’s Counsel and of plaintiffs could diverge.
The strictures of time and an increasing workload are certainly legitimate factors for the Commission to consider in determining what reasonable measures it may exact for the conduct of its affairs. We note, however, in this regard that the members of the Commission were until recently all part-time employees and that the Commission is given considerable latitude in the time and methods by which it may consider and reconsider applications for rates. Under the Annotated Code of Maryland, Art. 78, §§ 70-71 (1975 Repl.Vol.), new utility rates go into effect on the date requested in the application unless the Commission orders their suspension. Such a suspension can last up to 150 days. Id., § 70(b). The rates then go into effect subject to refund upon later Commission determination that the rates were unjustified. Id., § 70(c). Additionally, the Commission can set temporary rates for up to one year pending completion of rate proceedings. Id., § 71.
Thus, while the Rule leaves the applicant for the rate increase and People’s Counsel unfettered in their cross-examination intervenors are strictly limited quite irrespective of the length, complexity or vulnerability of a witness’ direct examination. Skillful, noncumulative and fruitful cross-examination is treated no better than inept, redundant and unilluminating cross-examination. This limitation is not compensated by the fact that intervenors have the right to subpoena and present witnesses at a hearing. Annotated Code of Maryland, Art. 78, §§ 80, 82(a) (1975 Repl.Vol.). The fungibility of cross-examination and direct examination is surely open to question. Cross-examination often is the only effective means to attack the credibility of an expert for the opposition.
There is little doubt that the Rule would permit the Commission to dispatch its business in a shorter time, but we must be mindful also that “the Constitution recognizes higher values than speed and efficiency.” Stanley v. Illinois, 405 U.S. 645, 656, 92 S.Ct. 1208, 1215, 31 L.Ed.2d 551 (1972) (footnote omitted).
Administrative bodies, like judicial tribunals, may exercise a wide discretion in the conduct of proceedings before them. They have a substantial body of precedent upon which to rely in adopting permissible limits for the conduct of proceedings. That discretion includes the right to limit the subjects and length of inquiry based upon rational considerations. The Rule involved in this case gives no consideration to the magnitude of the interests involved, the complexity of the subject, the significance of the witnesses’ answers, the witnesses’ responsiveness to cross-examination, the extent to which the issues probed by cross-examination have not been previously addressed, nor the need for the parties to build an adequate record for judicial review. In short, it is purely procrustean and lacks a rational basis in advancing a legitimate state objective.
I would hold, therefore, that Commission Rule IV-A violates equal protection of the laws 5 and that defendants’ motions to dismiss and for summary judgment should be denied and that plaintiffs’ motion for summary judgment should be granted.

. See generally Shelley v. Kraemer, 334 U.S. 1, 22, 68 S.Ct. 836, 92 L.Ed. 1161 (1948) (Fourteenth Amendment protects personal rights); Wisconsin v. Zimmerman, 205 F.Supp. 673, 675 (W.D.Wisc.1962) (state not a person within meaning of Fourteenth Amendment). Cf. Williams v. Mayor & C.C. of Baltimore, 289 U.S. 36, 40, 53 S.Ct. 431, 77 L.Ed. 1015 (1933) (municipality can’t raise constitutional claims against the state). But see Ligett Co. v. Lee, 288 U.S. 517, 536, 53 S.Ct. 481, 77 L.Ed. 929 (1933) (corporation person within Fourteenth Amendment); Safeguard Mutual Ins. Co. v. Miller, 472 F.2d 732, 733 (3d Cir. 1973) (id.); Township of River Vale v. Town of Orangetown, 403 F.2d 684, 686 (2d Cir. 1968) (municipal corporation person within Fourteenth Amendment).

. By stipulation the parties have agreed that these time limitations do not apply to the applicant for the rate change. The PSC Rule, by its express language, provides that the time limitations do not pertain to People’s Counsel.

. Plaintiffs do not dispute that the Commission has the statutory right to promulgate reasonable rules to assist in the accomplishment of its responsibilities. See Annotated Code of Maryland, Art. 78, § 64 (1975 Repl.Vol.). Further the Commission is not constrained by the technical rules of evidence or strict judicial procedure. See id. § 76. The Maryland Administrative Procedure Act is not applicable to the Commission. See id., Art. 41, § 244(a) (1975 Supp.); PSC v. Hahn Transportation, Inc., 253 Md. 571, 253 A.2d 845, 852 (1969).

. Having reached this conclusion, there would be no need to resolve the question of whether Maryland case law similarly guarantees a right to cross-examination in Commission rate proceedings, a position urged by the plaintiffs. See PSC v. Hahn Transportation, Inc., 253 Md. 571, 253 A.2d 845, 849-50 (1969);. Hyson v. Montgomery County Council, 242 Md. 55, 217 A.2d 578, 582-86 (1966). But see Albert v. PSC, 209 Md. 27, 120 A.2d 346, 350 (1956).

. Having reached this conclusion, it would not be necessary to reach the issue of whether Commission Rule IV-A impermissibly abridges any right of effective appellate review. See Powhatan Mining Co. v. Ickes, 118 F.2d 105, 110 (6th Cir. 1941); Grimm v. Brown, 291 F.Supp. 1011, 1014 (N.D.Cal.1968), aff'd, 449 F.2d 654 (9th Cir. 1971).