CITY OF SURPRISE v. ARIZONA CORP. COM'N

No. CV-18-0137-SA.

437 P.3d 865 (2019)

CITY OF SURPRISE, an Arizona Municipal Corporation, Petitioner, v. ARIZONA CORPORATION COMMISSION; Tom Forese, in His Official Capacity As a Member of the Arizona Corporation Commission; Bob Burns, in His Official Capacity As a Member of the Arizona Corporation Commission; Andy Tobin, in His Official Capacity As a Member of the Arizona Corporation Commission; Boyd W. Dunn, in His Official Capacity As a Member of the Arizona Corporation Commission; and Justin Olson, in His Official Capacity As a Member of the Arizona Corporation Commission, Respondents, and Lake Pleasant 5000, L.L.C., an Arizona Limited Liability Company; Harvard Investments, Inc., a Nevada Corporation; and Circle City Water Company, L.L.C., an Arizona Limited Liability Company, Real Parties in Interest.

Supreme Court of Arizona.

Filed March 28, 2019.


Attorney(s) appearing for the Case

Andrew M. Jacobs (argued), Timothy J. Sabo , Snell & Wilmer L.L.P., Phoenix; and Robert Wingo, Surprise City Attorney, Surprise, Attorneys for City of Surprise.

Andy M. Kvesic (argued), Robin R. Mitchell , P. Robyn Poole , Arizona Corporation Commission Legal Division, Phoenix, Attorneys for Arizona Corporation Commission, Commissioner Tom Forese, Commissioner Bob Burns, Commissioner Andy Tobin, Commissioner Boyd W. Dunn, and Commissioner Justin Olson.

Dale S. Zeitlin (argued), Zeitlin & Zeitlin, P.C., Phoenix; and Garry D. Hays , Law Offices of Garry Hays, Phoenix, Attorneys for Lake Pleasant 5000, L.L.C. and Harvard Investments, Inc.

Meghan H. Grabel (argued), Osborn Maledon, P.A., Phoenix, Attorney for Circle City Water Company, L.L.C.

Christina Estes-Werther , General Counsel, League of Arizona Cities and Towns, Phoenix, Attorney for Amicus Curiae League of Arizona Cities and Towns.

VICE CHIEF JUSTICE BRUTINEL authored the opinion of the Court, in which CHIEF JUSTICE BALES and JUSTICES TIMMER, GOULD, LOPEZ and PELANDER (RETIRED) joined. JUSTICE BOLICK filed an opinion concurring in part and dissenting in part.


¶1 The Arizona Corporation Commission ("Commission") has broad authority under A.R.S. § 40-285(A) to approve the sale or disposition of a public service corporation's assets. In this special action, we hold that § 40-285(A) does not give the Commission power over a city's exercise...

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