Doug Reed Enterprises, Inc. v. Baton Rouge

591 So. 2d 733, 1991 La. App. LEXIS 3209, 1991 WL 255240
CourtLouisiana Court of Appeal
DecidedNovember 22, 1991
Docket90 CA 1575
StatusPublished
Cited by4 cases

This text of 591 So. 2d 733 (Doug Reed Enterprises, Inc. v. Baton Rouge) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Doug Reed Enterprises, Inc. v. Baton Rouge, 591 So. 2d 733, 1991 La. App. LEXIS 3209, 1991 WL 255240 (La. Ct. App. 1991).

Opinion

591 So.2d 733 (1991)

DOUG REED ENTERPRISES, INC.
v.
The CITY OF BATON ROUGE and the Parish of East Baton Rouge, et al.

No. 90 CA 1575.

Court of Appeal of Louisiana, First Circuit.

November 22, 1991.

*734 E. Wade Shows, Ray M. Caraway, Baton Rouge, for plaintiff-appellant Doug Reed Enterprises, Inc.

Stephen Wilson, Baton Rouge, for defendant-appellee City of Baton Rouge and EBRP.

Before WATKINS, CARTER and FOIL, JJ.

WATKINS, Judge.

This is a suit for declaratory and injunctive relief. Plaintiffs seek to enjoin the enforcement of Ordinance 9001, as amended by Ordinance 9051, which was enacted by the Metropolitan Council of the City of Baton Rouge and the Parish of East Baton Rouge. Plaintiffs allege that the ordinance regulating vehicle towing and storage is in violation of the United States Constitution, the Louisiana Constitution, and LSA-R.S. 45:180.1.

Plaintiffs are the owners of wrecker businesses within the Parish of East Baton Rouge and the cities of Baton Rouge and Zachary. They attack the entire ordinance as facially invalid, as opposed to any particular *735 application or enforcement of it. The trial court denied the injunction, and the plaintiffs appeal alleging the following errors.

1. The trial court erred in finding that the ratemaking methodology utilized by the Metropolitan Council did not violate the Fifth and Fourteenth Amendments of the United States Constitution and Article 1 sections 2, 3, & 4 of the Louisiana Constitution of 1974.
2. The trial court erred in finding that the challenged ordinance does not conflict with specific prohibitions found in LSA-R.S. 45:180.1.
3. The trial court erred in finding that a rational basis does exist for Sections 7(2) and 15(A)(7) of the challenged ordinance.
4. The trial court erred in finding that the challenged ordinance is not unconstitutionally vague, either in whole or in part.
5. The trial court erred in finding that plaintiffs failed to present sufficient evidence to justify the granting of a preliminary injunction.[1]

BACKGROUND

In February of 1989, a special committee created by the Metropolitan Council began meeting to discuss revision of the ordinance which then regulated vehicle towing and storage. The ordinance was revised after the committee researched and held approximately 30 meetings over a period of a year which were attended and participated in by the members of the wrecker industry. On December 12, 1989, after the required public hearing, the Metropolitan Council adopted Ordinance 9001. Shortly thereafter the plaintiffs filed suit for injunctive relief. Pursuant to an agreement between the parties a temporary restraining order was issued by the trial court to allow time for the Council to amend the ordinance. On February 14, 1990, the Metropolitan Council adopted Ordinance 9051, which amends several portions of Ordinance 9001. The ordinance, as amended, and reenacted, became effective on March 1, 1990. The trial court denied a preliminary injunction on the ordinance as amended.

The challenged ordinance regulates in great detail almost every aspect of vehicle towing and storage, including maximum rates which may be charged for "emergency tows", storage requirements, hours of operation, vehicle requirements, and insurance. The ordinance also establishes "unspecified" wrecker lists which are maintained by the Baton Rouge police department. The Baton Rouge police force is directed to call wrecker companies from those lists for towing and storage services when the driver of a vehicle which is disabled in an accident within the city limits does not specify a particular tow company.[2] Only permitted and licensed businesses are eligible for the wrecker lists, and the police department is directed to make calls for such services on a strictly rotational basis.

In order to obtain injunctive relief under LSA-C.C.P. art. 3601 the moving party must show that the injury, loss or damage he will suffer may be irreparable if the injunction does not issue. He must further show that he is entitled to the relief sought and must make a prima facie showing that he will prevail on the merits of the case. General Motors Acceptance Corp. v. Daniels, 377 So.2d 346, 348 (La.1979).

"A showing of irreparable injury, however, is not necessary when the deprivation of a constitutional right is involved.... When a violation of federal due process or of state property protection guarantees is shown, a court may enjoin the constitutional violation." South Central Bell Telephone Co. v. Louisiana Public Service *736 Commission, 555 So.2d 1370, 1373 (La. 1990).

Because the plaintiffs attack several portions of the ordinance under different theories we will address the appropriateness of injunctive relief as to each portion of the ordinance below.

ASSIGNMENT OF ERROR NUMBER 1

Plaintiffs contend that the trial court erred in finding that the rate making methodology utilized by the Council did not violate the Fifth and Fourteenth Amendments of the United States Constitution and Article 1 sections 2, 3, & 4 of the Louisiana Constitution.

The challenged ordinance provides that the maximum charge for "emergency tows" is $50.00 during the hours of 7 a.m. to 7 p.m. on weekdays and non-holidays and $65.00 during the hours of 7 p.m. to 7 a.m.; on Saturdays, Sundays and all holidays. These maximum rates apply only in situations where wreckers are summoned by the police to the scene of an accident, an owner's vehicle is towed without their desire or permission at the request of a private property owner on whose property the vehicle is improperly parked, and in situations where vehicles are impounded at the request of the police. The wrecker companies are free to charge any amount which the market will bear to a customer who simply calls them for towing services, including those instances where a automobile owner is in an accident and calls the wrecker himself without going through the police.

Prior to the 1989 revision of the ordinance the maximum rate which could be charged for an "emergency tow" was $80.00[3], however, the wrecker companies were required to pay the city a $30.00 fee for vehicles which were impounded. The present ordinance has eliminated the requirement to pay the city any fee for towing and storing impounded vehicles.

The plaintiff argues that the methodology used by the counsel to set the rates was unconstitutional because the counsel based its rate decrease on rates charged in other metropolitan areas without comparing those metropolitan areas to East Baton Rouge parish.

Although the Committee members testified that the rate decrease was primarily based upon towing rates from other metropolitan areas in other parts of the state and country they also considered information from individuals in the wrecker business concerning the increase in the cost of doing business. Additionally, the committee received information concerning various towing contracts which had been negotiated in the private sector[4] and with the city[5].

The plaintiff contends that because the Council did not consider evidence of local economic conditions and financial information on operating a local wrecker company, the rate-making methodology was unconstitutional.

According to LSA-R.S. 45:180.1 C.

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Bluebook (online)
591 So. 2d 733, 1991 La. App. LEXIS 3209, 1991 WL 255240, Counsel Stack Legal Research, https://law.counselstack.com/opinion/doug-reed-enterprises-inc-v-baton-rouge-lactapp-1991.