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Collection of Utility Bills

JM
Jon Miller
Wed, Mar 5, 2025 9:34 PM

Okay, I feel like a putz that this question was not quickly answered, but before spending more time I wanted to ask here.  Is collection of utility bills a matter that involves public rights such that the statute of limitations will not bar the city from collecting unpaid utilities?  Or will limitations run on the city's ability to recover?  If you've got legal authority, that would help, too.

Jonathan E. Miller
City Attorney
City of Mustang
1501 N. Mustang Road
Mustang, Oklahoma 73064
Telephone: (405) 376-7746
Facsimile: (405) 376-7721

NOTICE: This e-mail message, and all attachments transmitted with it, may contain legally privileged and confidential information intended solely for the intended recipient(s). If the reader of this message is not the intended recipient or the employee or agent responsible for delivering this message in confidence to the intended recipient(s), you are hereby notified that you have received this transmittal in error and any reading, dissemination, distribution, copying or other use of this communication is strictly prohibited.  If you have received this message in error, please notify the sender immediately by reply email and delete this message and all attachments.

Okay, I feel like a putz that this question was not quickly answered, but before spending more time I wanted to ask here. Is collection of utility bills a matter that involves public rights such that the statute of limitations will not bar the city from collecting unpaid utilities? Or will limitations run on the city's ability to recover? If you've got legal authority, that would help, too. Jonathan E. Miller City Attorney City of Mustang 1501 N. Mustang Road Mustang, Oklahoma 73064 Telephone: (405) 376-7746 Facsimile: (405) 376-7721 NOTICE: This e-mail message, and all attachments transmitted with it, may contain legally privileged and confidential information intended solely for the intended recipient(s). If the reader of this message is not the intended recipient or the employee or agent responsible for delivering this message in confidence to the intended recipient(s), you are hereby notified that you have received this transmittal in error and any reading, dissemination, distribution, copying or other use of this communication is strictly prohibited. If you have received this message in error, please notify the sender immediately by reply email and delete this message and all attachments.
JH
John Hammons
Wed, Mar 5, 2025 9:51 PM

The collection of a debt owed to a municipality is not a matter of public right even though it arises between the government and a private person.  While the statute of limitations does not run against a municipality when it seeks to vindicate a public right, the underlying matter must "affect the public generally or to merely affect a class of individuals within the political subdivision.” Oklahoma City Mun. Imp. Auth. v. HTB, Inc., 1988 OK 149, ¶ 7, 769 P.2d 131, 133. Public rights are typically limited to only those matters which are "closely integrated into a public regulatory scheme."  Young v. Station 27, Inc., 2017 OK 68, ¶ 20, 404 P.3d 829, 839. This is in contrast to the liability of one person to another which is merely a matter of private right. Tenneco Oil Co. v. El Paso Nat. Gas Co., 1984 OK 52, 687 P.2d 1049, 1053.

The failure to pay a past due municipal utility bill would likely be deemed private contractual dispute between the municipality and the utility customers. The recovery of overpayment of compensation to a governmental employee has previously been so held (Board of County Commissioners v. Willet, 1915 OK 788, 152 P. 365). By contrast, actions to recover monies paid under a contract obtained by brides to involve a public right (State v. Shelton, 1986 OK CIV APP 11, 727 P.2d 103). Because failure to pay a utility bill does not likely involve some larger regulatory scheme, I believe the standard statute of limitations applies to such action.

JTH

John Tyler Hammons

HAMMONS HAMBY & PRICE

312 N. 4th Street

Muskogee, OK 74401

O: (918) 683-0309

F:  (918) 686-7510

E:  JTH@HammonsPrice.commailto:JTH@HammonsPrice.com

CONFIDENTIALITY NOTICE

This e-mail transmission and the documents accompanying may contain confidential information which is protected by the attorney-client privilege, other privileges, or by law.  The information is intended only for delivery to the individual or entity named above.  If you are not the intended recipient, you are hereby notified that any disclosure, copying, distributing or the taking of any action in reliance on the contents of this transmission is strictly prohibited.  If you have received this transmission in error, please immediately notify my office by telephone ay (918) 683-0309. Wrongful use of the information contained herein may subject you to criminal prosecution and penalties, as well as civil penalties.


From: Jon Miller via Oama oama@lists.imla.org
Sent: Wednesday, March 5, 2025 3:34 PM
To: oama (oama@lists.imla.org) oama@lists.imla.org
Subject: [Oama] Collection of Utility Bills

Okay, I feel like a putz that this question was not quickly answered, but before spending more time I wanted to ask here.  Is collection of utility bills a matter that involves public rights such that the statute of limitations will not bar the city from collecting unpaid utilities?  Or will limitations run on the city’s ability to recover?  If you’ve got legal authority, that would help, too.

Jonathan E. Miller

City Attorney

City of Mustang

1501 N. Mustang Road

Mustang, Oklahoma 73064

Telephone: (405) 376-7746

Facsimile: (405) 376-7721

NOTICE: This e-mail message, and all attachments transmitted with it, may contain legally privileged and confidential information intended solely for the intended recipient(s). If the reader of this message is not the intended recipient or the employee or agent responsible for delivering this message in confidence to the intended recipient(s), you are hereby notified that you have received this transmittal in error and any reading, dissemination, distribution, copying or other use of this communication is strictly prohibited.  If you have received this message in error, please notify the sender immediately by reply email and delete this message and all attachments.

The collection of a debt owed to a municipality is not a matter of public right even though it arises between the government and a private person. While the statute of limitations does not run against a municipality when it seeks to vindicate a public right, the underlying matter must "affect the public generally or to merely affect a class of individuals within the political subdivision.” Oklahoma City Mun. Imp. Auth. v. HTB, Inc., 1988 OK 149, ¶ 7, 769 P.2d 131, 133. Public rights are typically limited to only those matters which are "closely integrated into a public regulatory scheme." Young v. Station 27, Inc., 2017 OK 68, ¶ 20, 404 P.3d 829, 839. This is in contrast to the liability of one person to another which is merely a matter of private right. Tenneco Oil Co. v. El Paso Nat. Gas Co., 1984 OK 52, 687 P.2d 1049, 1053. The failure to pay a past due municipal utility bill would likely be deemed private contractual dispute between the municipality and the utility customers. The recovery of overpayment of compensation to a governmental employee has previously been so held (Board of County Commissioners v. Willet, 1915 OK 788, 152 P. 365). By contrast, actions to recover monies paid under a contract obtained by brides to involve a public right (State v. Shelton, 1986 OK CIV APP 11, 727 P.2d 103). Because failure to pay a utility bill does not likely involve some larger regulatory scheme, I believe the standard statute of limitations applies to such action. JTH John Tyler Hammons HAMMONS HAMBY & PRICE 312 N. 4th Street Muskogee, OK 74401 O: (918) 683-0309 F: (918) 686-7510 E: JTH@HammonsPrice.com<mailto:JTH@HammonsPrice.com> CONFIDENTIALITY NOTICE This e-mail transmission and the documents accompanying may contain confidential information which is protected by the attorney-client privilege, other privileges, or by law. The information is intended only for delivery to the individual or entity named above. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distributing or the taking of any action in reliance on the contents of this transmission is strictly prohibited. If you have received this transmission in error, please immediately notify my office by telephone ay (918) 683-0309. Wrongful use of the information contained herein may subject you to criminal prosecution and penalties, as well as civil penalties. ________________________________ From: Jon Miller via Oama <oama@lists.imla.org> Sent: Wednesday, March 5, 2025 3:34 PM To: oama (oama@lists.imla.org) <oama@lists.imla.org> Subject: [Oama] Collection of Utility Bills Okay, I feel like a putz that this question was not quickly answered, but before spending more time I wanted to ask here. Is collection of utility bills a matter that involves public rights such that the statute of limitations will not bar the city from collecting unpaid utilities? Or will limitations run on the city’s ability to recover? If you’ve got legal authority, that would help, too. Jonathan E. Miller City Attorney City of Mustang 1501 N. Mustang Road Mustang, Oklahoma 73064 Telephone: (405) 376-7746 Facsimile: (405) 376-7721 NOTICE: This e-mail message, and all attachments transmitted with it, may contain legally privileged and confidential information intended solely for the intended recipient(s). If the reader of this message is not the intended recipient or the employee or agent responsible for delivering this message in confidence to the intended recipient(s), you are hereby notified that you have received this transmittal in error and any reading, dissemination, distribution, copying or other use of this communication is strictly prohibited. If you have received this message in error, please notify the sender immediately by reply email and delete this message and all attachments.
JM
Jon Miller
Thu, Mar 6, 2025 2:04 PM

Thanks, John.  I appreciate the thorough response.  I was hoping to find a different answer.  Since the utility payments support the provision of water and treatment of waste water, both of which seem to be matters of public interest, I was trying to think how to craft an argument that utility payment would be a matter of pubic interest. I was surprised that our courts have not addressed this question.

Jonathan E. Miller
City Attorney
City of Mustang
1501 N. Mustang Road
Mustang, Oklahoma 73064
Telephone: (405) 376-7746
Facsimile: (405) 376-7721

NOTICE: This e-mail message, and all attachments transmitted with it, may contain legally privileged and confidential information intended solely for the intended recipient(s). If the reader of this message is not the intended recipient or the employee or agent responsible for delivering this message in confidence to the intended recipient(s), you are hereby notified that you have received this transmittal in error and any reading, dissemination, distribution, copying or other use of this communication is strictly prohibited.  If you have received this message in error, please notify the sender immediately by reply email and delete this message and all attachments.

From: John Hammons JTH@hammonsprice.com
Sent: Wednesday, March 5, 2025 3:52 PM
To: oama (oama@lists.imla.org) oama@lists.imla.org; Jon Miller JMiller@cityofmustang.org
Subject: Re: Collection of Utility Bills

The collection of a debt owed to a municipality is not a matter of public right even though it arises between the government and a private person.  While the statute of limitations does not run against a municipality when it seeks to vindicate a public right, the underlying matter must "affect the public generally or to merely affect a class of individuals within the political subdivision." Oklahoma City Mun. Imp. Auth. v. HTB, Inc., 1988 OK 149, ¶ 7, 769 P.2d 131, 133. Public rights are typically limited to only those matters which are "closely integrated into a public regulatory scheme."  Young v. Station 27, Inc., 2017 OK 68, ¶ 20, 404 P.3d 829, 839. This is in contrast to the liability of one person to another which is merely a matter of private right. Tenneco Oil Co. v. El Paso Nat. Gas Co., 1984 OK 52, 687 P.2d 1049, 1053.

The failure to pay a past due municipal utility bill would likely be deemed private contractual dispute between the municipality and the utility customers. The recovery of overpayment of compensation to a governmental employee has previously been so held (Board of County Commissioners v. Willet, 1915 OK 788, 152 P. 365). By contrast, actions to recover monies paid under a contract obtained by brides to involve a public right (State v. Shelton, 1986 OK CIV APP 11, 727 P.2d 103). Because failure to pay a utility bill does not likely involve some larger regulatory scheme, I believe the standard statute of limitations applies to such action.

JTH

John Tyler Hammons

HAMMONS HAMBY & PRICE

312 N. 4th Street

Muskogee, OK 74401

O: (918) 683-0309

F:  (918) 686-7510

E:  JTH@HammonsPrice.commailto:JTH@HammonsPrice.com

CONFIDENTIALITY NOTICE

This e-mail transmission and the documents accompanying may contain confidential information which is protected by the attorney-client privilege, other privileges, or by law.  The information is intended only for delivery to the individual or entity named above.  If you are not the intended recipient, you are hereby notified that any disclosure, copying, distributing or the taking of any action in reliance on the contents of this transmission is strictly prohibited.  If you have received this transmission in error, please immediately notify my office by telephone ay (918) 683-0309. Wrongful use of the information contained herein may subject you to criminal prosecution and penalties, as well as civil penalties.


From: Jon Miller via Oama <oama@lists.imla.orgmailto:oama@lists.imla.org>
Sent: Wednesday, March 5, 2025 3:34 PM
To: oama (oama@lists.imla.orgmailto:oama@lists.imla.org) <oama@lists.imla.orgmailto:oama@lists.imla.org>
Subject: [Oama] Collection of Utility Bills

Okay, I feel like a putz that this question was not quickly answered, but before spending more time I wanted to ask here.  Is collection of utility bills a matter that involves public rights such that the statute of limitations will not bar the city from collecting unpaid utilities?  Or will limitations run on the city's ability to recover?  If you've got legal authority, that would help, too.

Jonathan E. Miller

City Attorney

City of Mustang

1501 N. Mustang Road

Mustang, Oklahoma 73064

Telephone: (405) 376-7746

Facsimile: (405) 376-7721

NOTICE: This e-mail message, and all attachments transmitted with it, may contain legally privileged and confidential information intended solely for the intended recipient(s). If the reader of this message is not the intended recipient or the employee or agent responsible for delivering this message in confidence to the intended recipient(s), you are hereby notified that you have received this transmittal in error and any reading, dissemination, distribution, copying or other use of this communication is strictly prohibited.  If you have received this message in error, please notify the sender immediately by reply email and delete this message and all attachments.

Thanks, John. I appreciate the thorough response. I was hoping to find a different answer. Since the utility payments support the provision of water and treatment of waste water, both of which seem to be matters of public interest, I was trying to think how to craft an argument that utility payment would be a matter of pubic interest. I was surprised that our courts have not addressed this question. Jonathan E. Miller City Attorney City of Mustang 1501 N. Mustang Road Mustang, Oklahoma 73064 Telephone: (405) 376-7746 Facsimile: (405) 376-7721 NOTICE: This e-mail message, and all attachments transmitted with it, may contain legally privileged and confidential information intended solely for the intended recipient(s). If the reader of this message is not the intended recipient or the employee or agent responsible for delivering this message in confidence to the intended recipient(s), you are hereby notified that you have received this transmittal in error and any reading, dissemination, distribution, copying or other use of this communication is strictly prohibited. If you have received this message in error, please notify the sender immediately by reply email and delete this message and all attachments. From: John Hammons <JTH@hammonsprice.com> Sent: Wednesday, March 5, 2025 3:52 PM To: oama (oama@lists.imla.org) <oama@lists.imla.org>; Jon Miller <JMiller@cityofmustang.org> Subject: Re: Collection of Utility Bills The collection of a debt owed to a municipality is not a matter of public right even though it arises between the government and a private person. While the statute of limitations does not run against a municipality when it seeks to vindicate a public right, the underlying matter must "affect the public generally or to merely affect a class of individuals within the political subdivision." Oklahoma City Mun. Imp. Auth. v. HTB, Inc., 1988 OK 149, ¶ 7, 769 P.2d 131, 133. Public rights are typically limited to only those matters which are "closely integrated into a public regulatory scheme." Young v. Station 27, Inc., 2017 OK 68, ¶ 20, 404 P.3d 829, 839. This is in contrast to the liability of one person to another which is merely a matter of private right. Tenneco Oil Co. v. El Paso Nat. Gas Co., 1984 OK 52, 687 P.2d 1049, 1053. The failure to pay a past due municipal utility bill would likely be deemed private contractual dispute between the municipality and the utility customers. The recovery of overpayment of compensation to a governmental employee has previously been so held (Board of County Commissioners v. Willet, 1915 OK 788, 152 P. 365). By contrast, actions to recover monies paid under a contract obtained by brides to involve a public right (State v. Shelton, 1986 OK CIV APP 11, 727 P.2d 103). Because failure to pay a utility bill does not likely involve some larger regulatory scheme, I believe the standard statute of limitations applies to such action. JTH John Tyler Hammons HAMMONS HAMBY & PRICE 312 N. 4th Street Muskogee, OK 74401 O: (918) 683-0309 F: (918) 686-7510 E: JTH@HammonsPrice.com<mailto:JTH@HammonsPrice.com> CONFIDENTIALITY NOTICE This e-mail transmission and the documents accompanying may contain confidential information which is protected by the attorney-client privilege, other privileges, or by law. The information is intended only for delivery to the individual or entity named above. If you are not the intended recipient, you are hereby notified that any disclosure, copying, distributing or the taking of any action in reliance on the contents of this transmission is strictly prohibited. If you have received this transmission in error, please immediately notify my office by telephone ay (918) 683-0309. Wrongful use of the information contained herein may subject you to criminal prosecution and penalties, as well as civil penalties. ________________________________ From: Jon Miller via Oama <oama@lists.imla.org<mailto:oama@lists.imla.org>> Sent: Wednesday, March 5, 2025 3:34 PM To: oama (oama@lists.imla.org<mailto:oama@lists.imla.org>) <oama@lists.imla.org<mailto:oama@lists.imla.org>> Subject: [Oama] Collection of Utility Bills Okay, I feel like a putz that this question was not quickly answered, but before spending more time I wanted to ask here. Is collection of utility bills a matter that involves public rights such that the statute of limitations will not bar the city from collecting unpaid utilities? Or will limitations run on the city's ability to recover? If you've got legal authority, that would help, too. Jonathan E. Miller City Attorney City of Mustang 1501 N. Mustang Road Mustang, Oklahoma 73064 Telephone: (405) 376-7746 Facsimile: (405) 376-7721 NOTICE: This e-mail message, and all attachments transmitted with it, may contain legally privileged and confidential information intended solely for the intended recipient(s). If the reader of this message is not the intended recipient or the employee or agent responsible for delivering this message in confidence to the intended recipient(s), you are hereby notified that you have received this transmittal in error and any reading, dissemination, distribution, copying or other use of this communication is strictly prohibited. If you have received this message in error, please notify the sender immediately by reply email and delete this message and all attachments.