Fenton Ambulance Service, Inc. v. Ritchie

729 S.W.2d 493, 1987 Mo. App. LEXIS 3786
CourtMissouri Court of Appeals
DecidedMarch 17, 1987
DocketNo. WD 38459
StatusPublished

This text of 729 S.W.2d 493 (Fenton Ambulance Service, Inc. v. Ritchie) is published on Counsel Stack Legal Research, covering Missouri Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fenton Ambulance Service, Inc. v. Ritchie, 729 S.W.2d 493, 1987 Mo. App. LEXIS 3786 (Mo. Ct. App. 1987).

Opinion

TURNAGE, Presiding Judge.

This declaratory judgment action was brought by Fenton Ambulance Service, Inc. and four other corporations constituting a chain of parent and subsidiary corporations reaching from Fenton to the ultimate parent, American Medical International, Inc. Fenton sued the Trustees of Boone Hospital Center and The Curators of the University of Missouri, who are responsible for operation of the two ambulance services competing with Fenton in the Columbia, Missouri market. Fenton also named various governmental officials and agencies, alleging that they are empowered to enforce the Missouri Ambulance Licensing Law, § 190.100 et seq., RSMo 1986. Fen-ton seeks a determination that it was not required under § 190.100 et seq. to obtain a new ambulance license upon transfer of ownership of Fenton’s corporate stock or upon opening a new base of operations for Fenton’s ambulance service in Columbia.

The trial court entered judgment for Fen-ton, and the Trustees of Boone Hospital Center and The Curators of the University of Missouri have appealed.

Reversed and remanded.

Fenton Ambulance Service, Inc. is the present owner of an ambulance business previously owned and operated by P.O. Fenton and his family. At the time the Missouri Ambulance Licensing Law became effective in 1974 the Fentons had only one ambulance vehicle, which they operated from their funeral chapel in Centra-ba, Missouri. In 1980 or thereafter the Fentons transferred ownership of their ambulance to their corporation, Fenton Ambulance Service, Inc. In 1983, the Fentons sold their Fenton Ambulance Service stock to a subsidiary of American Medical International, Inc., (though which of the subsidiaries was involved originally is not clear from the record).

After the sale of the stock, Fenton Ambulance Service expanded its operations, hiring additional personnel, upgrading the type of service offered, adding a new base of operations in Columbia, Missouri, and (most important) adding new vehicles to its fleet of ambulances. Because Fenton had been in business with one ambulance when the licensing law became effective in 1974, the Bureau of Emergency Medical Services has taken the position that Fenton is enti-[495]*495tied to operate any number of ambulances under "grandfather rights,” without any public convenience and necessity hearing under § 190.125.

Boone Hospital filed a complaint with the Administrative Hearing Commission to initiate a public convenience and necessity hearing, due to the change in ownership of Fenton Ambulance Service, Inc. stock and Fenton’s addition of the Columbia base of operations. Fenton filed the instant suit for a declaratory judgment that no such hearing was required.

After the trial in this case, the parties stipulated that Fenton Ambulance Service was not incorporated until 1980, and that the ambulance service had been operated by the Fenton family previously; accordingly, the pleadings will be considered amended to include the issue of whether the transfer of the Fenton family’s ambulance to Fenton Ambulance Service, Inc. made a public convenience and necessity hearing necessary because it constituted a change of ownership of the ambulance under § 190.115.2. See Rule 55.33(b).

Upon review of the record, this court finds that a public convenience and necessity hearing is indeed required, although not for the reasons urged by the Boone Hospital Trustees or the Board of Curators. The evidence at trial was that Fenton Ambulance had increased its number of ambulances from one in 1974 to some greater number at the time of trial,1 but that no public convenience and necessity hearing was held before licensing these additional vehicles. This court holds that under § 190.100 et seq., a public convenience and necessity hearing is required whenever there is an increase in the number of ambulances to be licensed, whether the existing ambulance licenses were grandfathered or obtained subsequent to the passage of the licensing law.

The relevant sections of the ambulance licensing law envisage a scheme of ambulance regulation based on licensing of particular ambulance vehicles, rather than an umbrella licensing of an entire ambulance business.

Section 190.100(1) defines “ambulance” as a vehicle, rather than as a business.2

Section 190.105.13 prohibits any person from operating an ambulance service business without “a currently valid license for an ambulance.” Though, read literally, the statute suggests that an operator may operate a multi-ambulance business so long as at least one of his ambulances is licensed, the clear intent of the licensing law in its entirety is to provide comprehensive regulation for all ambulances operating under non-catastrophic conditions from a Missouri base of operations. Therefore, this court will effectuate the apparent legislative intent by interpreting the statute to require one license for each ambulance.

Section 190.125.2 4 provides that the ambulance license shall be issued for “a speci[496]*496fied ambulance,” rather than for an entire business.

Once it is established that the licensing law contemplates the licensing of particular ambulances, rather than ambulance businesses, it becomes clear that the “grandfather rights” conferred by State ex rel. Safety Ambulance Service, Inc. v. Kinder, 557 S.W.2d 242 (Mo. banc 1977), apply to ambulances in service in 1974, not ambulance businesses in operation at that time.

The Kinder holding thus governs interpretation of the licensing law in two key respects. First, when an ambulance is relicensed annually or when a substitute ambulance is obtained to replace an ambulance already in service, no public convenience and necessity hearing is required, because (as the court reasoned in Kinder) if an operator is legally deploying an ambulance in a given area, “the fact of need is self-evident” and the purpose of the convenience and necessity hearing has already been satisfied. 557 S.W.2d at 245-46. Thus, though the statute requires “conformance with all the requirements of sections § 190.100 to .1955 as upon original licensing” each time a license is renewed, § 190.160, or transferred, § 190.115.3, or when ownership of an ambulance changes, § 190.115.2, this statutory language does not mandate compliance with the hearing requirement of § 190.125.2, if the need for the services of the ambulance has already been established. This need may be established either through operation of an ambulance prior to the licensing law’s effective date or through a public convenience and necessity hearing. (The other four requirements of § 190.125.2 apparently must be satisfied in every case.)

Second, and conversely, when an operator seeks an additional, non-grandfathered license, he must comply with the statutory method of establishing that a need exists for the additional service — i.e., there must be a public convenience and necessity hearing.

This reading of the statute efficiently serves the statutory goal of regulating the competition among ambulance services, as this case illustrates.

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Related

Murphy v. Carron
536 S.W.2d 30 (Supreme Court of Missouri, 1976)
State ex rel. Safety Ambulance Service, Inc. v. Kinder
557 S.W.2d 242 (Supreme Court of Missouri, 1977)

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Bluebook (online)
729 S.W.2d 493, 1987 Mo. App. LEXIS 3786, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fenton-ambulance-service-inc-v-ritchie-moctapp-1987.