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PURSUANT TO THE PRIMARY JURISDICTION DOCTRINE, PLAINTIFFS’ COMPLAINTS ABOUT FINES IMPOSED BY DEFENDANT NATURAL-GAS PROVIDER MUST FIRST BE HEARD BY THE PUBLIC SERVICE COMMISSION (SECOND DEPT). ​

The Second Department, reversing Supreme Court, determined the “primary jurisdiction” doctrine required that plaintiffs bring their complaint against defendant natural-gas provider before the Public Service Commission:

“The doctrine of primary jurisdiction is intended to co-ordinate the relationship between courts and administrative agencies to the end that divergence of opinion between them not render ineffective the statutes with which both are concerned, and to the extent that the matter before the court is within the agency’s specialized field, to make available to the court in reaching its judgment the agency’s views concerning not only the factual and technical issues involved but also the scope and meaning of the statute administered by the agency” … . “[W]hile concurrent jurisdiction does exist, where there is an administrative agency which has the necessary expertise to dispose of an issue, in the exercise of discretion, resort to a judicial tribunal should be withheld pending resolution of the administrative proceeding” … .

Here, the Public Service Commission has primary jurisdiction over the plaintiff’s claims … . The defendant was permitted to impose a $100 fine on any customer who prevented or hindered Brooklyn Union from inspecting the gas meters and gas lines of a building (see Public Service Law § 65[9][b]). Thus, the plaintiff’s claim that she and other members of the prospective class were improperly charged a fine involves intricate questions of fact, thereby requiring the specialized knowledge and expertise of the Public Service Commission … . Calle v National Grid USA Serv. Co., Inc., 2024 NY Slip Op 04190, Second Dept 8-4-24

Practice Point: Here plaintiffs’ complaint against defendant natural-gas provider raised issues within the expertise of the Public Service Commission. The doctrine of primary jurisdiction required that the Commission, not the court, hear the case first.

 

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