Hartwell Corporation v. Superior Court

I concur and write separately to explain why I believe regulation of water quality is among the “official duties” of the Public Utilities Commission (PUC or commission). (Pub. Util. Code, § 1759.) 1 Some of my reasons go beyond those described by the majority and relate more specifically to the commission’s authority to promulgate water quality standards stricter than those of the California Department of Health Services (DHS), an issue central to the jurisdictional dispute.

Plaintiffs in these actions maintain that the 1976 amendment to section 770—which eliminated the prohibition on the PUC applying its water quality standards to regulated utilities and provided instead that any such standards it may apply shall not be “inconsistent” with DHS standards—means that PUC water quality standards may not differ in any way from those promulgated by DHS, which would bar the commission from imposing standards higher than those of DHS. Plaintiffs’ construction of the amendment renders it meaningless. If, as plaintiffs argue, the amendment means the PUC cannot apply its own standards, but only those of DHS, the amendment would have no different effect than the language it replaced, and…

Plaintiffs, residents of the San Gabriel Valley in Southern California, filed lawsuits in superior court, alleging, inter alia, that certain water companies provided them unsafe drinking water causing death, personal injury, and property damage. Public Utilities Code section 1759, 1 however, precludes superior court jurisdiction to review any order or decision of the California Public Utilities Commission (PUC) or to interfere with the PUC in the performance of its official duties. We granted review in this case to determine whether section 1759 bars the superior court actions. As explained below, we conclude that the PUC’s regulation of water quality and safety does not preempt damage claims alleging violations of federal and state drinking water standards against the water providers subject to PUC regulation, but that the remaining claims against those water providers are preempted. We further conclude that the causes of action against those defendants not subject to PUC regulation are not barred.

Procedural History

A. Superior Court Actions

1. Adler, Celi and Boswell Actions

Three groups of plaintiffs, Jeff Adler and over 100 coplaintiffs, Loretta Celi and about 20…

Proskauer Rose, Aaron P. Allan, Barry C. Groveman, Gregory J. Patterson, Los Angeles; Musick, Peeler & Garrett, Barry

C. Groveman, Los Angeles; Timothy J. Ryan, Los Angeles; Chapin Shea McNutt & Carter and Steven J. Renshaw, for Petitioner and Real Party in Interest San Gabriel Valley Water Company.

Haight, Brown & Bonesteel, Gary C. Ottoson, Rita Gunasekaran, Santa Monica; Bacalski, Byre & Koska, William K. Koska, San Diego; Hatch & Parent, Steven A. Amerikaner and Scott S. Slater, Santa Barbara, for Petitioner and Real Party in Interest Southern California Water Company.

Daniels, Baratta & Fine, Daniels, Fine, Israel & Schonbuch, Mary Hulett, Mark A. Vega, Paul Fine, Los Angeles; Ragsdale Liggett and Mary Hulett, Raleigh, NC, for Petitioners and Real Parties in Interests Suburban Water Systems and Southwest Water Company, Inc.

Crosby, Heafey, Roach & May, Randall D. Morrison and Joan M. Haratani, Oakland, for Petitioner and Real Party in Interest Baxter Healthcare Corporation.

Shapiro, Mitchell & Dupont, Shapiro & Dupont, Shapiro, Borenstein & Dupont and Norman A. Dupont, Santa Monica, for Petitioner and for Real Party in Interest Reichhold.

No appearance for Respondent…