Fleet Transport Co. v. Tennessee Public Service Commission

545 S.W.2d 4, 1976 Tenn. LEXIS 615
CourtTennessee Supreme Court
DecidedDecember 28, 1976
StatusPublished

This text of 545 S.W.2d 4 (Fleet Transport Co. v. Tennessee Public Service Commission) is published on Counsel Stack Legal Research, covering Tennessee Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fleet Transport Co. v. Tennessee Public Service Commission, 545 S.W.2d 4, 1976 Tenn. LEXIS 615 (Tenn. 1976).

Opinion

OPINION

HARBISON, Justice.

This action was brought to challenge the constitutionality of Chapter 349 of the Public Acts of 1975. This statute amended that portion of T.C.A. § 65-1503(e) which placed under the Public Service Commission certain commercial haulers of petroleum products and other hazardous materials. The amendment purported to benefit carriers which had been engaged in bona fide operations as of May 17, 1971. As construed by the Chancellor, the amendment was a belated “grandfather clause” to a 1971 statute which had for the first time placed such carriers under the jurisdiction of the Commission.

The Chancellor sustained the validity of the 1975 statute, after eliding therefrom one clause dealing with disposition of revenue, which was deemed to be broader than the caption and violative of Article II, Section 17 of the state constitution. No issue concerning that clause is presented on this appeal.

By Chapter 119 of the Public Acts of 1933, now codified as T.C.A. §§ 65-1501 et seq., the Public Service Commission was given broad authority to supervise and regulate motor carriers within the state. There were a number of exemptions contained in the original statute, however, and in the intervening years other exemptions have been added, and the original exemptions have been modified or amended.

Originally exempted were vehicles used exclusively for transporting property solely within a single city, town or suburb thereof, not over or along definite, fixed, or advertised routes.

By Chapter 86 of the Public Acts of 1961 an additional exemption was provided to any motor vehicle used in the transportation of petroleum products “when the owner, lessee or bailee of the vehicle is legally and regularly engaged in the business of selling or distributing such petroleum products transported on such vehicle.”

The constitutionality of that exemption was sustained in the case of Gasoline Transport, Inc. v. Crozier, 210 Tenn. 96, 355 S.W.2d 98 (1962), against a contention that it constituted unreasonable and invidious class legislation, in violation of Article XI, Section 8, of the Tennessee Constitution. The 1961 act was codified as T.C.A. § 65-1503(i) and by subsequent amendments has been modified and narrowed in scope.

By Chapter 219 of the Public Acts of 1971, the original exemption dealing with haulers dn commercial zones of municipalities, T.C.A. § 65-1503(e), was also modified. Deleted from the exemption were motor vehicles engaged in transporting petroleum products or other hazardous materials, in bulk, in tank trucks or trailers, for hire, unless such vehicles were otherwise exempt under the 1961 statute above referred to, T.C.A. § 65-1503(i).

The 1971 amendment became effective on May 18, 1971. It required carriers transporting petroleum and other hazardous materials within cities to obtain a certificate of convenience and necessity or a contract hauler’s permit from the Public Service Commission, and otherwise to comply with the requirements of statutes and regulations governing motor carriers.

Appellants in the present case are three motor carriers who applied for and received certificates of convenience and necessity from the Public Service Commission, prior to adoption of the 1971 statute. The action was instituted against two other carriers which had unsuccessfully applied for such certificates under the 1971 statute,1 but which were claiming “grandfather” rights under the 1975 statute here involved. Also made parties defendant were the Public Service Commission and the State Attorney General.

[6]*6Insofar as here pertinent, the 1975 statute purported to grant an exemption from the requirements of the 1971 act to all vehicles owned or operated by carriers engaged in providing municipal transport services of petroleum and other hazardous products as of May 17,1971, the day before the effective date of the 1971 act.2 The 1975 statute went further, however, and directed the Commission to issue “grandfather certificates” of convenience and necessity or contract haulers’ permits to all carriers furnishing such transport services provided they were “in bona fide operations on May 17, 1971 . . . .” Applications for such grandfather certificates were required to be made within a specified time, and there is no question but that appellees in the present case properly applied for such certificates.

Appellants insisted in the trial court and urge on appeal that the 1975 statute is internally inconsistent and is void as being vague and indefinite; they further insist that it is invidious class legislation in violation of Article XI, Section 8, of the State Constitution. With regard to the latter contention, it is insisted that the legislative history reveals that the 1975 act was passed for the specific benefit of appellee Beryl J. Lindsey, d/b/a Lindsey Transports and Lindsey Transport Service, and that the act affects only his operations and that of one other motor carrier, appellee Arkansas Transport Company, Inc., both of the appel-lees conducting their operations in the City of Memphis, Tennessee.

No witnesses testified in the trial court, and the case was disposed of upon the basis of legal arguments and exhibits filed with the Chancellor. These exhibits deal with the legislative history of T.C.A. § 65-1503 and various amendments thereto, and contain an opinion of the state attorney general as to the constitutionality of the 1975 act in question. They also contain certified copies of various orders of the Public Service Commission dealing with applications for certificates of convenience and necessity under the 1971 statute. There is no showing, by testimony or otherwise, how many carriers were actually affected by the 1971 statute or the 1975 amendment.3

Appellants are correct in their assertion that the 1975 statute is unclear. It first purported to grant an outright exemption to all vehicles owned by carriers engaged as of May 17, 1971 in providing the transport services here involved. The amendment then went further and undertook to direct the issuance of grandfather certificates of convenience and necessity or contract haulers’ permits to all carriers engaged in bona fide operations on May 17, 1971, provided application was made within a specified time.

Faced with this ambiguity in the statute, the Chancellor concluded, correctly in our opinion, that the entire statutory scheme must be examined and the intent of the legislature determined.

In the case of Southern Railway Company v. Fowler, 497 S.W.2d 891, 896 (Tenn. 1973), this Court stated:

“In construing an Act, it is the duty of a court to save rather than destroy it, and to reconcile different provisions, giving them a consistent meaning rather than otherwise.”

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Related

Alton Railroad v. United States
315 U.S. 15 (Supreme Court, 1942)
Crescent Express Lines, Inc. v. United States
320 U.S. 401 (Supreme Court, 1943)
Crescent Express Lines, Inc. v. United States
49 F. Supp. 92 (S.D. New York, 1943)
Southern Railway Company v. Fowler
497 S.W.2d 891 (Tennessee Supreme Court, 1973)
Malone v. Peay
17 S.W.2d 901 (Tennessee Supreme Court, 1929)
Lindsey v. Fowler
516 S.W.2d 88 (Tennessee Supreme Court, 1974)
Gasoline Transport, Inc. v. Crozier
355 S.W.2d 98 (Tennessee Supreme Court, 1962)

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Bluebook (online)
545 S.W.2d 4, 1976 Tenn. LEXIS 615, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fleet-transport-co-v-tennessee-public-service-commission-tenn-1976.