Sixth Circuit Revives Suit Involving Energy Rebates

In Williams et al. v. Duke Energy International, Inc. et al., the Sixth Circuit found that a putative antitrust class action, alleging that Duke Energy Corp. gave unlawful rebates to General Motors Co. and several major corporations, was wrongfully dismissed by an Ohio federal court.  In 2009, the lower court ruled that because of the filed-rate doctrine — which prevents challenges to the reasonableness of utility rates that have been approved by regulatory bodies — the case belonged in front of the Public Utilities Commission of Ohio.  The Sixth Circuit disagreed, holding that plaintiffs do not challenge whether the rates set by the PUCO were reasonable; rather, they contend that Duke conspired to aid certain favored companies in avoiding paying the actual filed-rate, which harmed plaintiffs by giving the favored companies a competitive advantage.  The court further held that the filed-rate doctrine is inapplicable in this case because it applies only to challenges to the underlying reasonableness or setting of filed rates.  Since the federal filed-rate doctrine does not apply, the district court mistakenly dismissed the suit on the grounds that it didn’t have standing to rule on the plaintiffs’ state law claims.

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