Allen v. Omaha Transit Co.

187 N.W.2d 760, 187 Neb. 156, 1971 Neb. LEXIS 573
Nebraska Supreme Court·Decided June 18, 1971·No. No. 37991·Published·Cited by 5 cases

Opinions

White, C. J.

The issue in this case is whether the Nebraska State Railway Commission,. hereinafter referred to as the Railway C'ommisison, may summarily deny an application for a reduction of rates without holding a hearing [157] specifically requested by the applicants senior citizens of Omaha, Nebraska. The Railway Commission denied the application and denied the applicants an opportunity to be heard before the Railway Commission. We reverse the Railway Commission’s order for failure to hold a hearing.

The applicants are senior citizens in the City of Omaha, Nebraska, and filed this application before the Railway Commission requesting a special rate for senior citizens over the age of 62 years during specified hours during the week. The proposed fare to be charged was 20 cents per ride with no charge for transfers. It was requested that the rate be instituted for 1 year.

At the outset it should be clearly pointed out that the issue here is not the determination of the merits of such a request or whether such a classification of “senior citizens” over the age of 62 years is a proper one that may or may not be made by the Railway Commission. The specific issue before this court is whether the Railway Commission should have given the applicants an opportunity to be heard. A notice of public hearing on the application was given. Prior to the time of the holding of the hearing according to the notice, and after receiving an opinion from the Attorney General of Nebraska that the Railway Commission was without authority to fix such a classification and to require reduced fares for any special class of passengers, the Railway Commission entered an order on December 7, 1970, dismissing the applicants’ application for lack of jurisdiction and subsequently overruled applicants’ motion for a hearing according to the terms of the public notice.

At common law, common carriers were required to carry passengers or freight without “unjust” discriminar tion. Jurisdiction in the Railway Commission to inquire into allegations or complaints about unjust discrimination in the charging of fares by common carriers is founded in the Constitution of Nebraska, Article X, section 7, which states: “The Legislature shall pass [158] laws to correct abuses and prevent unjust discrimination and extortion in all charges of express, telegraph and railroad companies in this state and enforce such laws by adequate penalties to the extent, if necessary for that purpose, of forfeiture, of their property and franchises.” (Emphasis supplied.) In accordance with this section, the Legislature delegated this general constitutional power to inquire into discriminatory rates; to the Railway Commission. Section 75-126, R. S. Supp., ■1969, provides: “(1) Except as. otherwise provided in this section, no common carrier shall:

“(a) Charge, demand, collect, or receive from any person a greater or less compensation for any services rendered than it charges, demands, collects, or receives from any other person for doing a like or contemporaneous service;
“(b) Make or give any -undue or unreasonable preference or advantage to any particular person; * * * “(2) Nothing contained in this section shall prohibit any common carrier from, and no common carrier shall be subject to any fine, penalty or forfeiture, for performing services free or at reduced rates to:
“(a) The United States, the State of Nebraska, or any governmental subdivision thereof;
“(b) Any person transporting property to and from fairs and expositions' for exhibition thereat;
“(c) The employees, both present and retired, of such common carrier;
“(d). Any person wherein the object is to provide relief in case of any calamitous visitation;
“(e) Any person transporting property for charitable purposes; or
“(f) Ministers- and others giving their entire time to religious or charitable work.”

. It is clear that exclusive power and jurisdiction to fix the rates of- common carriers and to determine all matters with relation to unjust -discrimination as to .fares and rates is vested in the Railway Commission. It. is [159] further clear that the Legislature has ■ delegated this power by setting up rather precise guidelines, standards, and principles to guide the Railway Commission in its deliberations. The Railway Commission had jurisdiction of the subject matter of the application filed by the applicants, and it appears that in entering the order of dismissal it was exercising its quasi-judicial power to make determinations of fact and law, and enter a judgment, disposing of the merits of the application. This observation is necessary in this case because in Furstenberg v. Omaha & C. B. St. Ry. Co., 132 Neb. 582, 272 N. W. 756, we held that the Railway Commission generally exercises legislative, administrative, and judicial powers. It is . clear from the nature of the application and the authority sought to be invoked, the power the Railway Commission was exercising here was quasi-judicial or judicial in nature.

From what we have said, it appears clear, therefore, that the Railway Commission did, without holding a hearing, exercise its judicial power to determine the facts and the law and enter a judgment of dismissal.

The precise and only issue presented in this case is whether applicants were entitled to a hearing of some nature before the Railway Commission. We have no doubt, in proper context, that legislative or administrative power may be exercised without the holding of a hearing and an opportunity to be heard. But here the Legislature has properly delegated judicial power to the Railway Commission. It has required the Railway Commission to inquire into and to determine the facts and make lawful disposition of applications of citizens and carriers alike. The application here invoked the Railway Commission’s power to determine the facts, to apply the law, and to enter a judgment thereon. The rules and regulations of the Railway Commission itself set up an orderly procedure by which such applications could be made and the matter brought to the attention of the Railway Commission, with full' opportunity to be [160] heard, either on questions of law or questions of fact, if such there may be. It appears clear that once the judicial or quasi-judicial powers of the Railway Commission are properly invoked, according to the authorized rules and regulations which the Railway Commission itself has promulgated, its judicial power may not be exercised summarily and without hearing the adversary parties to such applications.

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Allen v. Omaha Transit Co., 187 N.W.2d 760, 187 Neb. 156, 1971 Neb. LEXIS 573 (Neb. 1971).

187 N.W.2d 760 (Allen v. Omaha Transit Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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