Furstenberg v. Omaha & Council Bluffs Street Railway Co.

272 N.W. 756, 132 Neb. 562, 1937 Neb. LEXIS 224
CourtNebraska Supreme Court
DecidedApril 8, 1937
DocketNo. 29841
StatusPublished
Cited by40 cases

This text of 272 N.W. 756 (Furstenberg v. Omaha & Council Bluffs Street Railway Co.) is published on Counsel Stack Legal Research, covering Nebraska Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Furstenberg v. Omaha & Council Bluffs Street Railway Co., 272 N.W. 756, 132 Neb. 562, 1937 Neb. LEXIS 224 (Neb. 1937).

Opinion

Chappell, District Judge.

Appellants Roy J. Furstenberg, as applicant, and the city of Omaha, proponent, by precedent approval, applied to the Nebraska state railway commission for a certificate of public convenience and necessity thereby seeking authority for appellant Furstenberg to engage in the common carrier business of transporting passengers for hire by motor busses in Omaha over one definite route upon a definite schedule at a certain price. The application was denied. Motion for new trial was overruled, and both applicant and proponent, hereinafter called appellants, come to this court on appeal.

All parties concede, and the record shows, that the railway commission had jurisdiction to hear the application. Appellants contend that the railway commission erred in [564]*564its refusal to hold, over objections of both appellants, that the objector, Omaha & Council Bluffs Street Railway Company, hereinafter called appellee, was barred and estopped from appearing and objecting to the granting of the certificate, and that the denial of the certificate to appellant Furstenberg was erroneous, arbitrary and unreasonable.

With reference to estoppel, earnest contention is made that on November 6, 1928, appellee, having received and unconditionally accepted a nonexclusive franchise from the city of Omaha by vote of its electorate, is estopped to appear and make objection in this proceeding. We have made studious effort to find the proposition contended for by appellants in the cases cited by them and apply it to this proceeding, but have failed. The doctrine of estoppel has application in adversary judicative controversies at law or in equity where one party is prevented from making a claim by reason of his previous conduct to the damage of his opponent. Estoppel must be reciprocal and mutual and is founded upon the idea that the acts of the party estopped must result in injury to the other party and, generally, that it would be a fraud if the right asserted be maintained. See 21 C. J. 1107 and 1139. Estoppel does not itself give a cause of action, its purpose being to preserve rights already acquired and not to create new ones. State v. Missouri Utilities Co., 331 Mo. 337, 53 S. W. (2d) 394. We do not discover its application ordinarily in unilateral legislative or administrative proceedings.

We said in Publix Cars, Inc., v. Yellow Cab & Baggage Co., 130 Neb. 401, 265 N. W. 234: “The grant or denial of a certificate of convenience and necessity by the railway commission requires the exercise of administrative and legislative functions and not of judicial powers.” In Gallaher v. City of Lincoln, 63 Neb. 339, 88 N. W. 505, it was held that the city, acting in a ministerial and not in a judicial capacity, could not avail itself of the defense of estoppel in an action to enforce a contract contrary to an express statute. The rule generally is that admissions, in order to constitute estoppel, must relate to matters of fact [565]*565and not of law. 21 C. J. 1147. The doctrine of estoppel will not ordinarily apply to a private individual when the public interest is concerned, and one private individual cannot be given an advantage over another by claiming an estoppel against the public. 21 C. J. 1189.

We must not permit a confusion between the jurisdiction of the city and the railway commission. There is a clear distinction between powers of a city to grant or withhold franchises, licenses or permits to use its streets, police power, and the exclusive constitutional power of the railway commission to impose regulation and control over the city’s common carriers. In re Yellow Cab & Baggage Co., 126 Neb. 138, 253 N. W. 80. Appellants recognize these two different forces of jurisdiction by admitting and contending that such permit already obtained is insufficient to authorize common carrier service in that a certificate of convenience and necessity from the railway commission is also required. These two precedent authorizations arise from two different jurisdictional authorities, and that both are necessary is not questioned.

Appellee’s franchise recognizes these separate powers. Section 2, subsec. 32 thereof, with reference to regulation, provides that such authority should be exercised by the city if the railway commission should relinquish it, or should it be held by the supreme court not to possess it. We have said that the railway commission has jurisdiction over Omaha common carriers even though contrary provisions are contained in its city charter. Omaha & C. B. Street R. Co. v. Nebraska State Railway Commission, 103 Neb. 695, 173 N. W. 690. We reaffirmed this position in 1934 after the grant of appellee’s franchise. Omaha & C. B. Street R. Co. v. City of Omaha, 125 Neb. 825, 252 N. W. 407. The authority of the railway commission to require common carriers in Omaha to obtain from it certificates of convenience and necessity was later established. In re Yellow Cab & Baggage Co., supra; Publix Cars, Inc., v. Yellow Cab & Baggage Co., supra.

This court has expressly held that the jurisdiction of the [566]*566railway commission cannot be avoided by the affirmative contractual provisions of a franchise. Such contracts are made subject to the right of the railway commission’s jurisdictional regulation. Marquis v. Polk County Telephone Co., 100 Neb. 140, 158 N. W. 927; McCook Irrigation & Water Power Co. v. Burtless, 98 Neb. 141, 152 N. W. 334. Public service corporations in each instance sought and obtained relief before the railway commission from low rates specifically imposed by their own franchises or contractual obligations without estoppel. In other cases they appear as objectors and have been granted or denied relief despite their own contractual obligations. The analogy is that not any understanding, implication, or express agreement by franchise between a municipality and a public service company, seeking to disrobe the paramount power of the railway commission, can have any legal force in this state. To assume that such a municipality, as a condition of favorably exercising its veto power with reference to the entry into its jurisdiction of a common carrier, could, by franchise, divest a constitutionally created regulatory body, such as the railway commission, of its jurisdiction is without logic. Appellee is not estopped by its franchise from invoking affirmative or negative action in this proceeding because to that extent the jurisdiction of the railway commission would be divested and its power to serve the people destroyed. See Milwaukee Electric Ry. & Light Co. v. Railroad Commission, 238 U. S. 174; Railroad Commission v. Los Angeles Ry. Corporation, 280 U. S. 145; City of Englewood v. Denver & South Platte Ry. Co., 248 U. S. 294; Southwest Mo. R. Co. v. Public Service Commission, 281 Mo. 52, 219 S. W. 380; State v. Missouri Utilities Co., supra; City of Cape Girardeau v. St. Louis-San Francisco Ry. Co., 305 Mo. 590, 267 S. W. 601; City of St. Louis v. Public Service Commission, 276 Mo. 509, 207 S. W. 799; City of Milwaukee v. Railroad Commission, 206 Wis. 339, 240 N. W. 165; 3 Ponds, Public Utilities (4th ed.) sec. 826.

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Bluebook (online)
272 N.W. 756, 132 Neb. 562, 1937 Neb. LEXIS 224, Counsel Stack Legal Research, https://law.counselstack.com/opinion/furstenberg-v-omaha-council-bluffs-street-railway-co-neb-1937.