Allied Van Lines, Inc. v. Idaho Public Utilities Commission

• Decision Date: 02 July 1957
• Docket Number: No. 8522,8522
• Parties: , 19 P.U.R.3d 452 ALLIED VAN LINES, Inc., Appellant, v. IDAHO PUBLIC UTILITIES COMMISSION, Respondent. Matter of the Investigation of the Operations of Allied Van Lines, Broadview, Illinois.
• Court: Idaho Supreme Court

Page 1050

312 P.2d 1050

79 Idaho 220, 19 P.U.R.3d 452

ALLIED VAN LINES, Inc., Appellant, v. IDAHO PUBLIC UTILITIES COMMISSION, Respondent.

Matter of the Investigation of the Operations of Allied Van Lines, Broadview, Illinois.

No. 8522.

Supreme Court of Idaho.

July 2, 1957.

L. Charles Johnson, Pocatello, for appellant.

Graydon W. Smith, Atty. Gen., Edward Aschenbrenner, Wm. Roden, Asst. Attys. Gen., and Maurice H. Greene, Raymond D. Givens, Boise, for respondent.

PORTER, Justice.

Section 61-802, I.C., was amended by Chapter 291, 1951 Session Laws, to read as follows:

'Permit required--Scope of permit--Commission may refuse permit.--It shall be unlawful for any motor carrier, as the term is defined in this chapter, to operate any motor vehicle in motor transportation without first having obtained from the commission a permit covering such operation.

'A permit shall be issued to any qualified applicant authorizing the whole or any part of his operations covered by the application made to the commission in accordance with the provisions of this chapter, if it is found that the applicant is fit, willing, and able properly to perform the service proposed and to conform to the provisions of this chapter and the requirements, rules and regulations of the commission thereunder, and that the proposed service, to the extent authorized by the permit, is or will be in the public interest, provided that any motor carrier or a predecessor in interest shall have been in bona fide operation on January 1, 1952 over the route or routes or within the territory for which application is made and has so operated since that time, the commission shall issue such permit without requiring further proof that public interest will be served by such operation.' (Emphasis supplied.)

Section 61-808, I.C., was likewise amended by Chapter 291 of the 1951 Session Laws, and now reads in part as follows:

'The commission may at any time, after a hearing had upon notice to any permit holder hereunder, when it shall be proven that such holder has violated or refused to observe any of the orders, rules or regulations of the said commission or any of the laws of the state of Idaho applicable to such permit holder, by its order duly entered, suspend, revoke, alter or amend any permit issued under the provisions of this chapter: * * *.'

On January 2, 1952, appellant duly made application for a permit to operate motor vehicles in transportation of household goods over irregular routes over the entire State of Idaho. Such application was made under the so-called 'Grandfather Clause' contained in Section 61-802, I.C., being the part thereof emphasized by us. On January 3, 1952, respondent issued its Permit No. 1662 to appellant authorizing the transportation by appellant of household goods over irregular routes over the entire state.

Thereafter, by Order No. 3320, dated June 28, 1955, such permit was revoked. Upon application of appellant for reinstatement of such permit, a hearing was had and Order No. 3631 issued by respondent denying the re-issuance of such permit. Upon application of appellant for a rehearing, a rehearing was ordered and thereafter the respondent issued Order No. 3965 upholding the previous findings in the cause and denying re-issuance of the permit. Appellant has appealed to this court from Orders Nos. 3631 and 3965.

Appellant makes three assignments of error with numerous subdivisions of each assignment. These assignments of error are to the effect that the Public Utilities Commission did not regularly pursue its authority in making the challenged orders, and also attack the constitutionality of the 'Motor Carrier Act,' the same being the matters which may be considered on review in this court. Section 61-629, I.C. In order to determine whether the Public Utilities Commission regularly pursued its authority in the respects in which its actions are challenged by appellant, it is necessary to review the steps leading up to the issuance of such orders.

On May 3, 1955, respondent issued Order to Show Cause No. 101, the material part of which reads as follows:

'Whereas each of the below named motor carriers, holders of IPUC Permits, were issued their said permits originally under the so-called 'Grandfather Clause' as provided in Section 61-802, Idaho Code, and

'Whereas there appears to be some question whether each of the said carriers is entitled to all the authority contained in its said permit as granted under the aforementioned 'Grandfather Clause,' and

'Whereas there appears to be some question as to whether each of the said carriers is operating over the whole of its route as is required by Section 61-805, Idaho Code.

'Order

'It Is Therefore Ordered that each of the below named motor carriers shall appear at a hearing at the time and place designated below; and

'It Is Further Ordered that each of the said carriers shall be prepared to submit proof of its operations under the authority contained in its said permit consisting of original freight bills or abstracts thereof and supplemented by oral testimony on Idaho intrastate traffic handled by it for the years 1951, 1952, 1953 and the first six months of 1954;

* * *

* * *

'Tuesday--May 24, 1955, at 9:00 A.M.--House Caucus Room, Statehouse Boise, Idaho

'Allied Van Lines, Inc. No. 1662'

On June 28, 1955, the Commission issued Order No. 3320, the material part of which reads as follows:

'Whereas said carriers failed to appear at the hearing or to otherwise notify the Commission of reasons for not complying with the aforementioned Order to Show Cause.

'Whereas such non-compliance with an order of the Commission is deemed sufficient grounds for revocation of permit in accordance with Section 61-808, Idaho Code.

'Order

'It Is Therefore Ordered that the IPUC permits held by the above named carriers [including Allied Van Lines, Inc.] be, and the same is hereby revoked and held for naught.

'It Is Further Ordered that the above named motor carriers [including Allied Van Lines, Inc.] shall cease and desist from all operations as a motor common carrier in intrastate operation in the State of Idaho.'

Order to Show Cause No. 101 contains no direct charge that appellant is guilty of any act or omission by reason of which its permit should be canceled or revoked. The order merely states, (1), that there is some question as to whether appellant is entitled to all the authority contained in its permit and, (2), as to whether it is operating over the whole of its route. The order only requires that at the hearing appellant be prepared to submit proof of its operations both before and after the issuance of the permit.

The proceedings called for by such Order to Show Cause were non-adversary, were not for the trial of any charge against appellant, but were for the purpose of supplying information to the Commission. Upon the failure of appellant to appear and furnish the required information, the Commission was without authority to arbitrarily revoke appellant's permit and it was error to do so. Such failure might have been made the basis of a charge that the permit should be revoked under the procedure provided by Section 61-808, I.C.

A permit is a valuable property right and can only be revoked as provided by statute. There must be a definite charge that the permit holder has violated or refused to observe some order or regulation of the Commission or some applicable state law; the matter must be set for hearing and notice given; and proof must be adduced supporting the charge.

In State ex rel. Railroad & Warehouse Comm. v. Mees, 235 Minn. 42, 49 N.W.2d 386, at page 391, 27 A.L.R.2d 1197, at page 1205, the State Railroad and Warehouse Commission made a non-adversary investigation to secure information. In discussing same the court sai...