Bd. of Pub. Util. Com'rs v. Sheldon

• Decision Date: 18 March 1924
• Docket Number: No. 54/95.,54/95.
• Citation: 124 A. 65
• Parties: BOARD OF PUBLIC UTILITY COM'RS v. SHELDON et al.
• Court: New Jersey Court of Chancery

124 A. 65

BOARD OF PUBLIC UTILITY COM'RS

v. SHELDON et al.

No. 54/95.

Court of Chancery of New Jersey.

March 18, 1924.

Suit by the Board of Public Utility Commissioners against Frederick D. Sheldon and another. Injunction granted.

Thomas Brown, of Perth Amboy, for complainant.

James H. Bolitho, of Rockaway, for defendants.

BACKES, V. C. The defendants and one Jewell obtained a license from the town of Dover to operate two jitney busses over a route in the town, which route extends into the adjoining borough of Wharton. Wharton has no bus ordinance. The route, in part, parallels, upon the same street, the street railway of the Morris County Traction Company. The board of public utility commissioners approved the municipal license, but imposed the condition:

"That the operation of said busses, while operating on Main street, and Blackwell street, shall not take on or discharge passengers who begin and end their trips between the intersection of Salem street and Blackwell street, town of Dover, and the intersection of Main street and Morris Canal Bridge, borough of Wharton," and "that said approval shall be revocable for violation of the board's rules, regulations and restrictions or for other good cause."

The defendants violated the condition, and thereupon the board, after notice and hearing, revoked its approval and ordered the defendants "to cease the operation of any auto bus or busses upon a route which in whole or in part parallels on the same street the lines of the said Morris County Traction Company"; i. e., between the intersection of Salem street and Blackwell street in the town of Dover and the intersection of Main street and Morris Canal Bridge in the borough of Wharton. The defendants refused to stop, and the board filed this bill to restrain them. A preliminary injunction issued.

The defendants set up that the board is without power to impose the conditions, because "such conditions amounted to a confiscation of defendants' license or consent obtained in the town of Dover and interfered with the rights obtained by the defendants under that license or permit, and the license obtained by the defendants from the motor vehicle department of the state of New Jersey"; that the conditions "placed defendants in a position where they either had to incur a penalty or suffer a forfeiture by reason of violation of the ordinance of the town of Dover under which they had obtained their license or consent, or incur a penalty or suffer a forfeiture imposed by complainant for violation of its alleged regulation or order"; and that equity is without jurisdiction because there is an adequate remedy at law.

1. The board has "general supervision and regulation, jurisdiction and control over, all public utilties and also over their property, property rights, equipment facilities and franchises so far as may be necessary for the purpose of carrying on the provisions of this act." P. L. 1911, p. 374. And a jitney, "the route of which in whole or in part parallels upon the same street the line of any street railway or traction railway," is a public utility. P. L. 1921, p. 390. A municipal license to operate a public utility jitney is not valid until approved by the board, and such approval may be conditional under section 24 of the Utility Act of 1911. The privilege to approve the municipal license implies the power to revoke the approval for broach of condition or for any other lawful cause. The right to operate a public utility jitney depends upon the coincidence of the municipal license and the approval of the board, and no rights are acquired by the license...