Court Opinion

ID: 9744144
Source: CourtListenerOpinion
Date Created: 2023-08-26 21:54:40.839034+00
Date Added: 2024-06-11T07:24:46.994423
License: Public Domain

MR. JUSTICE UNDERWOOD, dissenting: My disagreement with the majority stems not from the resolution of the narrow tax question involved herein, but from the fact that my colleagues felt compelled to address that issue at all. In my opinion, the plaintiffs should be required to exhaust their administrative remedies before seeking judicial relief. The majority refers to our recent decision in Northwestern University v. City of Evanston (1978), 74 Ill. 2d 80, as support for the conclusion that the plaintiffs should not be required to exhaust their administrative remedies before the Illinois Commerce Commission. While requiring exhaustion in the Northwestern University case, we cited Van Laten v. City of Chicago (1963), 28 Ill. 2d 157, and County of Lake v. MacNeal (1962), 24 Ill. 2d 253, for the proposition that “[a] party will not, of course, be required to exhaust his administrative remedies when it would be patently useless to seek relief before local bodies.” (74 Ill. 2d 80, 88.) The crucial determination which must be made, of course, concerns the precise meaning of the phrase “patently useless.” In Van Laten, the plaintiff brought a declaratory judgment action seeking a judicial determination that a certain Chicago zoning ordinance which classified plaintiff’s property as residential was void. The court held that it was unnecessary for the plaintiff to exhaust his local administrative remedies where the city of Chicago had twice amended its zoning ordinance after the plaintiff had filed his declaratory judgment action, and the amendments retained the residential classification despite an adverse recommendation by the master after evidence had been taken. In County of Lake, the court held that where a municipality institutes an action in court against a property owner for violation of a zoning ordinance, the property owner is entitled to defend on the grounds that the ordinance is invalid even though he has not first sought local administrative relief, since the action of the municipality in filing a complaint indicates that such a step would be useless. What is involved in the present case, however, is quite a different matter. Apparently, no one has appeared before the Commerce Commission to challenge the method of computation that is employed in calculating the amount of the municipal message tax. While it is true that the Commerce Commission staff was involved in the development of the present formula for computation of the tax, there is no evidence that, given the opportunity, the Commission . would not act fairly and competently in resolving a challenge to the tax. In short, under the facts and circumstances of the present case, I do not think it can be said that it would be “patently useless” for the plaintiffs to present their complaint to the Illinois Commerce Commission. Therefore, the narrow exception to the exhaustion requirement recognized by this court in the Northwestern University case would appear to be inapplicable here. Furthermore, contrary to the conclusion of the majority, I think the administrative procedures set forth in the Public Utilities Act (Ill. Rev. Stat. 1977, ch. 111 2/3) provide plaintiffs with an adequate remedy. Section 72 of the Act provides in part, as follows: “When complaint has been made to the Commission concerning any rate or other charge of any public utility and the Commission has found, after a hearing, that the public utility has charged an excessive or unjustly discriminatory amount for its product, commodity or service, the Commission may order that the public utility make due reparation to the complainant therefor, with interest at the legal rate from the date of payment of such excessive or unjustly discriminatory amount.” Ill. Rev. Stat. 1977, ch. 111 2/3, par. 76. While plaintiffs could have proceeded under section 72, an alternative, and more specific, remedy is provided in section 36(a): “The Commission shall have power to investigate whether or not such supplemental schedule correctly specifies such additional charge, but shall have no power to suspend such supplemental schedule. If the Commission finds, after a hearing, that such supplemental schedule does not correctly specify such additional charge, it shall by order require a refund to the appropriate customers of the excess, if any, with interest, in such manner as it shall deem just and reasonable, and in and by such order shall require the utility to file an amended supplemental schedule corresponding to the finding and order of the Commission.” (Emphasis added.) Ill. Rev. Stat. 1977, ch. 111 2/3, par. 36(a). In contrast to the majority’s statement that the customer’s only remedy is a refund, this section clearly grants the Commerce Commission authority to investigate the “additional charge,” hold hearings on the matter, order refunds with interest, and require the utility to file an amended supplemental schedule in accordance with the Commission’s findings. It is difficult to conceive of a more complete and adequate remedy. The majority’s concern about the Commission’s lack of power to “suspend the additional charge” is misplaced. Although the Commission is given the power to suspend certain rate schedules in section 36 of the Public Utilities Act, but not in section 36(a), this in no way impairs the effectiveness of the remedies provided in section 36(a). The procedure for suspension of a proposed rate change is set forth in section 36 as follows: “Whenever there shall be filed with the Commission any schedule stating an individual or joint rate or other charge *** the Commission shall have power *** to enter upon a hearing concerning the propriety of such rate or other charge *** and pending the hearing and decision thereon, such rate or other charge *** shall not go into effect. *** All such rates or other charges *** not so suspended shall, on the expiration of 30 days from the time of filing the same with the Commission *** go into effect and be the established and effective rates or other charges ***.” (Ill. Rev. Stat. 1977, ch. 111 2/3, par. 36). The language was interpreted in Antioch Milling Co. v. Public Service Co. (1954), 4 Ill. 2d 200, 204, to mean “that the commission shall analyze a proposed rate change, and reach a conclusion as to whether it is to be permitted to go into effect without a formal hearing, or whether it is to be suspended until a formal hearing has been had.” In contrast, section 36(a) provides that the supplemental schedule specifying the “additional charge” becomes effective upon filing and may not be suspended by the Commission. All this means, however, is that the supplemental schedule is effective pending any investigation and hearing by the Commission. If, after a hearing, the Commission determines that the supplemental schedule does not specify correctly the additional charge, it has the power to order a refund with interest and can require the utility to file an amended supplemental schedule correctly stating the additional charge. Despite the Commission’s lack of authority to suspend the supplemental schedule pending a hearing thereon, it can hardly be said that the plaintiffs lack an adequate remedy before the Commission. Therefore, I would require the plaintiffs to exhaust their administrative remedies before the Commerce Commission. MR. JUSTICE RYAN joins in this dissent.