Demeter v. Annenson

180 P.2d 998, 80 Cal. App. 2d 48, 1947 Cal. App. LEXIS 918
CourtCalifornia Court of Appeal
DecidedMay 28, 1947
DocketCiv. 13322
StatusPublished
Cited by8 cases

This text of 180 P.2d 998 (Demeter v. Annenson) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Demeter v. Annenson, 180 P.2d 998, 80 Cal. App. 2d 48, 1947 Cal. App. LEXIS 918 (Cal. Ct. App. 1947).

Opinion

PETERS, P. J.

Plaintiffs, John Demeter and Evelyn Knapp, doing business as the Yellow Cab Company, brought this action against defendants Harry Annenson and Theodore Brown, doing business as the Indian Cab Company, Larry Borba, doing business as the Royal Cab Company, and Elvis Dixon, doing business as the Black and White Cab Company, to enjoin these defendants from soliciting taxicab patronage, or from parking their taxicabs for the purpose of soliciting patronage, on the station grounds of the Southern Pacific Company in Palo Alto, it being alleged that plaintiffs have a contract with the Southern Pacific Company granting them the exclusive privilege of soliciting such patronage on the station grounds.

The complaint alleged and the trial court found that in June of 1939, the assignors of plaintiffs and the Southern Pacific Company executed a contract granting the Yellow Cab Company the exclusive right, in return for a fixed rental, to solicit the patronage of prospective passengers on the railroad’s station grounds at Palo Alto; that that agreement was subsequently renewed and extended on substantially the same terms and conditions as set forth in the original agreement, and was in force and effect when the complaint was filed; that defendants, knowing of these exclusive rights granted to plaintiffs, nevertheless have parked their taxicabs on the railroad’s station grounds for the purpose of soliciting passengers and have solicited such patronage on such grounds. Based on these findings the trial court entered its judgment enjoining the defendants from directly or indirectly soliciting taxicab patrons within the station grounds and from parking their taxicabs thereon for the purpose of soliciting such patronage. From this judgment Elvis Dixon, doing business as the Black and White Cab Company alone appeals.

Appellant’s main contention is that the exclusive privilege contract between the Southern Pacific Company and respondents is invalid because, so it is asserted, it violates *50 public policy and is expressly forbidden by the California Constitution and statutory law. It is asserted that there is no California appellate court decision directly in point, so that the question raised is one of first impression in this state. Appellant concedes, as he must, that the majority of cases in other jurisdictions are overwhelmingly against'him, but urges that the “better reasoned” common law authorities are to be found in those cases adopting the minority view, and urges this court to follow the minority view.

The cases on both sides of this issue are collected and commented on in an annotation appearing in 15 Annotated Law Reports 356 entitled “Right to give exclusive privilege of soliciting patronage at railroad stations or on trains.” It there appears that in 1921, when the annotation was prepared, the United States Supreme Court, Colorado, Connecticut, Georgia, Kansas, Massachusetts, Minnesota, New Hampshire, New Jersey, New York, Ohio, Oregon, Rhode Island, Texas, Utah, Virginia, West Virginia, England and Canada had adopted the view that such contracts are valid, while but Indiana, Illinois, Kentucky, Mississippi and Montana had adopted the view that such contracts were invalid. It is the views expressed in the cases from these five states that appellant urges are the “better reasoned,” and contends should be here adopted. It further appears that Michigan, Missouri and Pennsylvania have eases both ways on the subject, usually the later eases being in favor of the majority view. Since the annotation was written, three more states have been added to the majority column — Alabama, in Wright v. City of Anniston, 26 Ala.App. 109 [154 So. 597] ; Florida, in State v. Wells, 96 Fla. 591 [118 So. 731, 60 A.L.R. 1072] and Iowa, in Red Top Cab Co. v. McGlashing, 204 Iowa 791 [213 N.W. 791]. Louisiana, at least by dicta, has joined the majority group. (Kansas City, S. & G. Term. Co. v. Interurban Motor T. Co., 152 La. 1093 [95 So. 258].) In addition, the United States Supreme Court in Black & White Taxi. Co. v. Brown & T. Taxi. Co., 276 U.S. 518 [48 S.Ct. 404, 72 L.Ed. 681], Missouri, in Canary Taxicab Co. v. Terminal Ry. Assn., 316 Mo. 709 [294 S.W. 88], and Red Top Taxicab Co. v. Terminal R. Assn., 322 Mo., 463 [15 S.W.2d 758], and New York, in Long Island R. R. Co. v. Summers, 263 App.Div. 889 [32 N.Y.S.2d 430], have, since the annotation was prepared, reaffirmed their allegiance to the majority view. No cases, other than those cited in the annotation, have been found adopting the minority view.

*51 The first two paragraphs of the annotation read as follows (15 A.L.R. 356) :

“While there is no question that a common carrier may not lawfully exclude from its station grounds a passenger’s own carriage, or a carriage hired by him, and it is well settled that all hackmen and baggage expressmen may be prohibited from soliciting patronage on station grounds, there is a decided conflict of opinion upon the question of the right of a railroad company to grant such a right to a favored solicitor of patronage to the exclusion of all others of like vocation.

“However, the more modern and seemingly the better-reasoned doctrine, including that of the Supreme Court of the United States, is to the effect that, in the absence of controlling statute to the contrary, such an exclusive privilege lawfully may be granted.”

A reading of the opinions in the five states that have adopted the minority view discloses that the courts there involved were of the opinion that such contracts are discriminatory, stifle competition and subject the railroad’s passengers to the inconvenience of having to use cabs of the railroad’s éhoosing rather than of their own choosing. One of the leading cases adopting this view is Montana Union Ry. Co. v. Langlois, 9 Mont. 419 [24 P. 209, 18 Am.St.Rep. 745, 8 L.R.A. 753]. At page 431 the court stated: “It is a rule of universal application that the public is entitled to whatever competition may grow out of the public demands, on the one hand, and the contest of others to supply such demands and receive the compensation therefor. Are not the conditions here sought to be so controlled by the plaintiff such as to stifle the natural development of such competition?” And again at page 433 the following appears: “But has the railroad company in dealing with its passengers, and exercising a control over their movements and the conditions which surround them for the time being, a right to place one haekman in their midst with exclusive control over the common conveniences and facilities of the place at which the passenger may land, or from which he may depart, so that if the passenger obtains the use of these conveniences and facilities he must purchase the privilege from such hackmen or suffer discrimination ? ’ ’

A reading of this case indicates that the Montana court was passing on a different point than the one involved in the instant case.

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Bluebook (online)
180 P.2d 998, 80 Cal. App. 2d 48, 1947 Cal. App. LEXIS 918, Counsel Stack Legal Research, https://law.counselstack.com/opinion/demeter-v-annenson-calctapp-1947.