The Orloff Case: California Supreme Court Holds that Public Enforcement Agencies Can Bring Action Against CPUC-Regulated Entities.

Mondaq Business Briefing, January, 2004

Morrison & Foerster has been monitoring developments in a case recently decided by the California Supreme Court which may have important consequences for companies seeking judicial relief against public utilities regulated by the California Public Utilities Commission ("CPUC"). Public Utilities Code Section 1759 provides that no California court, except the Supreme Court and the Court of Appeal, may "interfere with" the CPUC in the performance of its official duties. In The People, ex rel. Orloff v. Pac. Bell, 2003 Cal. LEXIS 9459 (Dec. 15, 2003) ("Orloff"), the Supreme Court held that Section 1759 did not bar a judicial action brought by public enforcement agencies against utilities that are subject to administrative proceedings at the CPUC. Although the impact of the case is...