Aero Mayflower Transit Co. v. Carpentier

167 F. Supp. 898, 1958 U.S. Dist. LEXIS 3477, 1958 WL 95239
CourtDistrict Court, S.D. Illinois
DecidedOctober 10, 1958
DocketNo. 2545
StatusPublished
Cited by4 cases

This text of 167 F. Supp. 898 (Aero Mayflower Transit Co. v. Carpentier) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aero Mayflower Transit Co. v. Carpentier, 167 F. Supp. 898, 1958 U.S. Dist. LEXIS 3477, 1958 WL 95239 (S.D. Ill. 1958).

Opinion

MERCER, Chief Judge.

The plaintiffs are Indiana Corporations and Common Motor Carriers engaged in the interstate transportation of household goods between all points and places in the United States, operating under and pursuant to authority issued by the Interstate Commerce Commission. The defendant, Charles F. Carpentier, is the Secretary of State of the State of Illinois and a citizen and resident thereof and is vested with administrative powers, duties and jurisdiction for the administration of the Illinois Motor Vehicle Law, Ill.Rev.Stat.1957, c. 95%, § 1-101 et seq., including the duty and authority to grant reciprocity to out-of-state motor vehicles operating within the State of Illinois and to make reciprocity agreements with the various states throughout the United States, including the State of Indiana. The jurisdiction of this Court is invoked by reason of diversity of citizenship and this proceeding is for declaratory judgment and injunctive relief under Title 28, Sections 2201-2202 of the United States Code.

On the 15th day of December, 1955 the defendant entered into a “Reciprocal Agreement” with the Reciprocity Commission of the State of Indiana, the agreement being made under the then existing Illinois Motor Vehicle Law by authority thereby vested in the defendant as Secretary of State, and was continued in force by reason of the present “Illinois Motor Vehicle Law.”

The plaintiffs in the conduct of their business as common motor carriers enter into long time lease agreements with the owner-operators of tractors, whereby [900]*900said owner-operators agree to use and operate their tractors in the service of plaintiffs and to pull plaintiffs’ vans in interstate commerce in connection with plaintiffs’ business which includes operations into and through the State of Illinois. The defendant, as Secretary of State, of the State of Illinois, pursuant to the Illinois Motor Vehicle Act, in granting reciprocity to those operating motor vehicles into and through the State of Illinois, requires that plaintiffs make application on prescribed forms under specific instructions and as evidence that application has been made the defendant issues “Illinois Reciprocity Plates” for each vehicle granted reciprocity and operating into or through the State of Illinois. Vehicles which do not bear said plates are considered as being not entitled to reciprocity and the agents and officers of the defendant have arrested the operators thereof for alleged violation of the Illinois Motor Vehicle Law.

The plaintiff, Aero Mayflower Transit Company, Inc., in January and March of 1958, made application to the defendant for reciprocity privileges for approximately 800 units of equipment under lease to said plaintiff. In January and April of 1958, the plaintiff, North American Van Lines, Inc., made application to said defendant for reciprocity privileges for approximately 600 units of equipment under lease to said plaintiff. The applications of these plaintiffs were returned with instructions that application for reciprocity would have to be made by the owners-lessors of each tractor in the name of the owner-lessor, and that reciprocal privileges were not extended to the plaintiffs herein. The plaintiffs contend that the denial of reciprocity to them is contrary to the laws of the State of Illinois and contrary to the terms and conditions of said reciprocity agreement and is discriminatory against the plaintiffs in that other common motor carriers that lease equipment from owner-operators are permitted to operate into and through the State of Illinois and are granted reciprocity.

Section 21 of the Reciprocal Agreement between the States of Illinois and Indiana, provides as follows:

“That each of the contracting parties of either state agree when a question as to whether reciprocity will be granted to the other state operator on a questionable case, that the final decision be left to the determination of the administrators of the two states.”

Pursuant to this Section, the plaintiff, Aero Mayflower Transit Company, on the 23d day of April, 1958, addressed Robert L. McMahan, Chairman of the Indiana Reciprocity Commission, appealing for a determination of their rights under Section 21 of the Reciprocity Agreement. Thereafter, on the 5th day of May, 1958, Mr. McMahan addressed the defendant as Secretary of State of the State of Illinois, advising of the appeal of plaintiff, Aero, and suggested that Section 21 be followed and further suggested that a meeting was necessary between the administrators of the two states. Subsequent thereto the same Mr. McMahan forwarded a telegram to the defendant in which the request for action under Section 21 be determined.

The complaint alleges that the defendant has denied the plaintiffs’ rights to a hearing under Section 21 and has refused and resisted the attempts of the Indiana authorities to r'esolve the matter concerning the rights of plaintiffs to reciprocity and allege that the defendant will continue to resist and refuse to permit plaintiffs to have their rights determined by a joint session of the administrators and will arbitrarily and unlawfully interfere with the operations of plaintiffs into and through the State of Illinois. The complaint further alleges that during the month of July, 1958, plaintiffs’ contract truckmen bearing Indiana license plates and operating on the highways of Illinois in interstate commerce, were stopped, arrested, charged with unlawful operations, convicted and fined, and that the free flow of interstate commerce is being seriously jeopardized if such enforcement is continued and [901]*901that the acts of the defendant herein are seriously jeopardizing the investment of these plaintiffs in their business.

The plaintiffs seek a temporary restraining order and a temporary restraining order has been entered by the Court. The complaint seeks a declaratory judgment and after a full hearing asks that the Secretary of State of the State of Illinois be enjoined from prohibiting vehicles owned and/or leased by plaintiffs and operated in interstate commerce and legally registered in the State of Indiana, from traversing the highways of the State of Illinois.

The defendant has filed a motion to dismiss the complaint, the principal grounds being that the complaint involves taxation and revenue of the State of Illinois; secondly, that the proper determination of whether or not a particular vehicle is entitled to reciprocity should be determined in a court of law where there is an adequate remedy where questions of fact may be determined; thirdly, that the complaint should be dismissed because the complaint shows on the face thereof that the plaintiffs have made application for reciprocity permits from an administrative agency of the State of Illinois and they are therefore, entitled to Administrative Review of any denial of such permits pursuant to the laws of the State of Illinois.

The Court is of the opinion there is no merit to the first two contentions. This case does not involve directly the question of taxation and revenue and does not involve the question of adequacy of remedy. There is merit to the contention that there is provision for an administrative review. It is necessary for the Court to determine whether or not the plaintiffs have exhausted their administrative remedies as provided by the Reciprocity Agreement.

Section 21 of the Reciprocity Agreement provides as follows:

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Bluebook (online)
167 F. Supp. 898, 1958 U.S. Dist. LEXIS 3477, 1958 WL 95239, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aero-mayflower-transit-co-v-carpentier-ilsd-1958.