Continental Air Transport Co. v. Illinois Commerce Commission

232 N.E.2d 728, 38 Ill. 2d 563, 1967 Ill. LEXIS 345
CourtIllinois Supreme Court
DecidedNovember 30, 1967
Docket40530
StatusPublished
Cited by8 cases

This text of 232 N.E.2d 728 (Continental Air Transport Co. v. Illinois Commerce Commission) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Continental Air Transport Co. v. Illinois Commerce Commission, 232 N.E.2d 728, 38 Ill. 2d 563, 1967 Ill. LEXIS 345 (Ill. 1967).

Opinion

Mr. Justice Klingbiel

delivered the opinion of the court :

On' application of Waukegan-North Chicago Transit Company the Illinois Commerce Commission granted it a certificate of public convenience and necessity to render direct airline ground transportation services between the Waukegan-Great Lakes area and O’Hare International Airport. An application subsequently filed by Continental Air Transport Co., Inc., to operate the same service was denied. On appeal by Continental to the circuit court of Cook County the order was affirmed, and Continental appeals further directly to this court contending that the Commission’s order granting Waukegan’s application is against the manifest weight of the evidence.

By “Motion to Dismiss” filed in this court, the appellees, the Commission and Waukegan Transit, urge that the circuit court erred in refusing to dismiss Continental’s appeal to that court on the ground that it failed to first file an application for rehearing before the Commission. Section 67 of the Public Utilities Act provides, insofar as it is relevant, that no appeal shall be allowed from any order or decision of the Commission unless an application for a rehearing thereof shall first have been filed with and finally disposed of by the Commission. It is further provided that “No person or corporation in any appeal shall urge or rely upon any grounds not set forth in such application for a rehearing before the Commission” and that “Only one rehearing shall be granted by the Commission; * * Ill. Rev. Stat. 1965, chap, m^, par. 71.

The record shows that the order granting a certificate to Waukegan was made on December 15, 1965, and that on January 10, 1966, Continental filed a petition for rehearing. It further appears that the petition was granted on January 26 and that on May 25 the Commission entered its order on rehearing whereby it stated, inter alia, that the authority granted to Waukegan Transit was to furnish transportation services to the airport gates but not into the airport itself, and that an intervening petition filed March 28 was dismissed by which Continental sought to include the cities of Waukegan and North Chicago in its application for a certificate. Waukegan Transit insists that since no rehearing was sought of the order entered on rehearing no appeal could lie therefrom.

Section 68 of the Act is concerned with actions to set aside orders of the Commission. It says in relevant part that within 30 days after the service of any final order or decision of the Commission, upon and after a rehearing any person affected may appeal to the circuit court. (Ill. Rev. Stat. 1965, chap, 111^3, par. 72.) In Scherer Freight Lines, Inc. v. Commerce Com., 24 Ill.2d 359, this court discussed and construed all the statutory provisions involved here. We pointed out that where an order entered after rehearing substantially modifies the first order it has the effect of an original order, to which an application for rehearing must be made as a condition precedent to an appeal. We decided that since the second order in that case was based at least in part upon new evidence submitted since the entry of the first one it was in effect a new and different order on which an application for rehearing was required before an appeal would lie.

The plain implication of our language, however, is that if an order entered after rehearing does not substantially modify the first one and is not based upon any additional evidence, an appeal therefrom may be taken without a second petition for rehearing. We think such is the case here. The Commission’s first and second orders are substantially the same, the second one making only a few minor revisions, and the circuit court properly denied the motion to dismiss.

Continental’s contention that the Commission’s order is against the manifest weight of the evidence is concerned principally with the claim that Continental was the existing carrier in the field. It appears from the record that public convenience and necessity required the institution of direct airline ground transportation services between the Waukegan — Great Lakes area and O’Hare. Continental had been rendering these specialized services in conjunction with the Chicago and North Western Railway by means of a transfer at the railway’s Davis Street station in Evanston, but the Commission considered this unsatisfactory because of the long waiting time involved in making the transfers. At the first hearing on the Waukegan Transit application Continental appeared and expressed its willingness to render the proposed direct service.

Waukegan Transit is a local transit operator in Waukegan and North Chicago, and between those cities and the Great Lakes Naval Training Center, all of which are within the area involved here, and it has engaged in charter service between Great Lakes and O’Hare Airport with transit type buses. It proposes to use one air-conditioned, separate-baggage-compartment bus for the operation in question. The Commission found that in the event it becomes necessary to supplement the scheduled service Waukegan Transit intends to employ three of the 38 transit-type coaches which make up the remainder of its fleet. These buses do not have have separate baggage compartments and in case they are employed the baggage would be placed on the seats and in the area in the rearmost part of the bus. The Commission concluded that Waukegan Transit is the carrier in the field and is able to provide the necessary service, and that the belated application by Continental was filed merelv to block its competitor.

Continental insists that the Commission’s findings are unsupported by the evidence. It points to the “specialized” service it has rendered transporting airline passengers and personnel to and from Chicago airports since 1937, and to the Commission’s own finding that the combination rail and limousine operation referred to, in which the limousine portion is operated by Continental, is the only public transportation presently available between O’Hare and the area involved here. The city of Chicago, which constructed O’Hare and operates it, has been granting to Continental the exclusive right to solicit and transport passengers to and from the airport and Chicago, Skokie, Evanston, and Oak Park. Under the terms of the existing franchise contract ordinance, executed December 30, 1959, for a ten-year period, Continental is required to pay to the city for the use of the airport facilities and driveways compensation equal to 10% of its gross revenues. In the present case the commission authorized Waukegan Transit to conduct its operations only “to” O’Hare Airport and not into it.

Further evidence shows Continental’s equipment to be specially designed for airporter service, largely air-conditioned with reclining seats and separate baggage compartments. It operates a fleet of 65 buses and 10 limousines, with additional equipment on order, and at O’Hare it maintains a complete dispatching and staging area in which equipment is parked and held in reserve. It operates an extensive radio dispatch system and has garage and maintenance facilities. In addition to the services at O’Hare, Continental provides ground transportation to Midway and interconnects Midway and O’Hare.

After a careful consideration of all the facts in this case, we think the Commission’s order cannot stand.

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Bluebook (online)
232 N.E.2d 728, 38 Ill. 2d 563, 1967 Ill. LEXIS 345, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-air-transport-co-v-illinois-commerce-commission-ill-1967.