A B C Auto Sales, Inc. v. Marcus

Decision Date12 July 1949
Citation38 N.W.2d 708,255 Wis. 325
PartiesA B C AUTO SALES, Inc., v. MARCUS.
CourtWisconsin Supreme Court

OPINION TEXT STARTS HERE

Appeal from a judgment of the Circuit Court for Done County; Kenneth S. White, Judge.

Reversed.

The Circuit Court judgment adjudged that certain provisions in Sec. 85.02(1)(c), Stats., which prescribe that the state ‘motor vehicle department shall issue a certificate of registration to an applicant for the sale of motor vehicles at retail only if he owns or leases a permanent building wherein there are facilities to display and repair functional and nonfunctional parts of automobiles * * *’ violates certain provisions in the state and federal Constitutions; and the judgment reversed an order which was made by B. L. Marcus as commissioner of said Department, and which denied the application of A B C Auto Sales, Inc., for such a certificate. From that judgment Marcus, individually and as Commissioner, appealed.Thomas E. Fairchild, Atty. Gen., Stewart G. Honeck, Deputy Atty. Gen., William E. Torkelson, Asst. Atty. Gen., for appellant.

Posner & Perkins, Milwaukee, for respondent.

L. L. Rieselbach, Milwaukee, amicus curiae.

FRITZ, Justice.

In so far as material on this appeal, Sec. 85.02(1)(c), Stats., reads:

‘The motor vehicle department shall issue a certificate of registration to an applicant for the sale of motor vehicles at retail only if he owns or leases a permanent building wherein there are facilities to display and repair functional and nonfunctional parts of automobiles and where replacement parts, repair tools and equipment to service automobiles are kept, and at which place of business shall be kept and maintained the books, records and files necessary to conduct the business, and such place shall not mean residence, tents or temporary stands. An approved service contract with an established repair shop having the above repair facilities and the requirement for replacement parts, repair tools and equipment to service automobiles shall serve in lieu of an applicant's repair facilities and the requirement for replacement parts, repair tools and equipment to service automobiles, provided that such service connection is within reasonable distance from the applicant's place of business, and provided further that such service connection guarantees in writing the making of the repairs or replacements ordered by the dealer.’

Upon an application of A B C Auto Sales, Inc., to the state motor vehicle department in November, 1948 for a certificate of registration under sec. 85.02(1)(c), Stats., an investigator for the department, who examined the applicant's premises, stated, in answer to questions in the commission's forms for a report-‘that the applicant (so far as here material) leases a lot 60' x 120' with a permanent frame building 10' by 18' which is only an office with no inside floor space which will be used for displaying or repairing cars; that the applicant does not operate a repair garage or have sufficient shop equipment and tools to perform a complete mechanical repair job or have a parts stock and service equipment sufficient to comply with Sec. 85.02(1)(c) and has no investment in new or used mechanical replacement parts or in repair shop equipment or mechanics' tools; that no mechanics are employed by applicant and it does not do its own repairing and service work, and in the investigator's opinion the applicant did not have adequate facilities to repair and service the cars he sells; but that it had definite arrangements with a qualified person or firm which is properly equipped to repair and service the cars the applicant sells and which is five blocks from applicant's place of business.’

Upon that report the applicant's petition was denied. Thereupon it duly requested a hearing for the commissioner's review of the denial; and pursuant to its request a hearing was duly ordered and held before Marcus as the commissioner of the motor vehicle department. At this hearing the president of the applicant corporation testified in relation to his place of business as follows: ‘I do not own or lease a permanent building wherein there are facilities of any kind to display functional or non-functional parts of automobiles, or automobiles. I do have a building on my property wherein I conduct my business at 4835 South Packard Avenue. It's an office where we keep all our books and records and so forth. This office is a building about 10 by 16 and has place for office space and for all my records and for conducting my business there. * * * There are no permanent fixtures on my lot other than the building which I use as an office. The construction of the building that I occupy as an office is just a plain wooden one set up on blocks. It is about 10 by 16, and it has plenty of space for a desk and so forth. * * * I have a service contract with Havey Motors. I first knew there was a law on the books that required a permanent building in 1947 when the legislature amended the law. * * * The building on the place is now owned by me and put up by me. It's not attached to the real estate but is on cement blocks. * * * It's just a small affair and I don't think it would amount to much either way. * * *’

On the evidence submitted on the hearing before the commissioner, he made findings that--

(1) Applicant corporation neither owns nor leases a permanent building wherein there are facilities to display automobiles.

(2) Applicant corporation has met all the requirements for a motor vehicle dealer's license other than the ownership or lease of a permanent building as stated in the preceding numbered paragraph.’

Upon these findings the commissioner concluded:

(1) Applicant corporation is not entitled to a motor vehicle dealer's license for the calendar year 1949.’

Upon the applicant's petition for a review of the commissioner's decision by the Circuit Court under Ch. 227, Stats., the Court adjudged--

(1) That in so far as Sec. 85.02(1)(c), Stats., provides that the Motor Vehicle Department shall issue a certificate of registration to an applicant for the sale of motor vehicles at retail only if he owns or leases a permanent building wherein there are facilities to display automobiles, the statute is not a proper or valid exercise of the police power of the State; and it is in violation of the Fourteenth Amendment of the United States Constitution and Secs. 1 and 13 of Article I of the Wisconsin Constitution; and

(2) That the...

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