Interstate Commerce Commission v. AAA Con Drivers Exchange, Inc.

234 F. Supp. 66, 1964 U.S. Dist. LEXIS 9923
CourtDistrict Court, S.D. New York
DecidedOctober 5, 1964
StatusPublished

This text of 234 F. Supp. 66 (Interstate Commerce Commission v. AAA Con Drivers Exchange, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Interstate Commerce Commission v. AAA Con Drivers Exchange, Inc., 234 F. Supp. 66, 1964 U.S. Dist. LEXIS 9923 (S.D.N.Y. 1964).

Opinion

FREDERICK van PELT BRYAN, District Judge.

This action is brought under § 222(b) of the Interstate Commerce Act, as amended 49 U.S.C. § 322(b), and 49 U.S.C. § 42, to enjoin the two corporate defendants and their officers and agents from engaging in interstate operations on public highways as common carriers by motor vehicle without a certificate of public convenience and necessity issued by the Interstate Commerce Commission, which is required under § 206(a) (1) of the Act, as amended 49 U.S.C. § 306(a) (D-

Defendant AAA Con Drivers Exchange, Inc. has its office and place of business in New York City, and defendant AAA Con Drivers Exchange-L.A.Inc. carries on the same business in Beverly Hills, California. Defendant Irving Zola is the president and defendant Helen Zola the secretary-treasurer of both corporations, and the two of them are the sole stockholders.

After issue had been joined the Commission moved before me for a preliminary injunction. At the hearing on that motion both sides stipulated that all the evidence either had to offer was before the court, and that the court might render final judgment on the merits on the .record then before it.1

This case is the latest in a series inwolving business operations through which owners of automobiles may have their cars driven to distant points in the United States. Thus far those engaged 'in this business who have come before the court have been held to have “as.sume[d] in significant measure the characteristic burdens of the transportation business”, United States v. Drum, 368 U.S. 370, 375, 82 S.Ct. 408, 411, 7 L.Ed. 2d 360 (1962), and thus to require a certificate of convenience and necessity under § 206(a) (1) of the Interstate Commerce Act.

The defendants here, referred to as AAA Con, maintain that the operations which they conduct are quite different from those in the prior cases and do not fall within the ambit of § 206(a) (1). In order to assess the validity of their contentions it is necessary that the facts as to their operations be analyzed in detail. There were few conflicts in the evidence adduced at the hearing. The facts as I find them to be are as follows:

The business of AAA Con consists of supplying drivers who wish to travel to distant destinations in the United States by driving someone else’s car to automobile owners who wish to have their cars driven to such destinations. In the regular course of this business AAA Con receives inquiry from such automobile owners, usually by telephone. Such inquiries are mostly the result of advertising by AAA Con in the classified telephone directory and in the New York Times, which I will discuss in detail a little later.

When such an inquiry is made, the owner indicates the destination of his car and AAA Con informs him that it will attempt to obtain a driver willing to drive the ear to that destination and gives an estimate of what he will have to pay the driver for his services in so doing. If the owner demurs at the amount suggested, there is a discussion of what he is willing to pay and whether a driver is likely to be obtainable at that figure. The amount to be paid to a driver who may be available is fixed at this time.

AAA Con then sends the owner a form letter explaining the details of the service which it offers and encloses two copies of an “Automobile Ownership Authorization,” a sample copy of an “In Transit Permit” and a return envelope.

In the form letter AAA Con offers to provide the owner “with a BONDED, LI[68]*68CENSED, and REGISTERED DRIVER who will follow your instructions and deliver your car to any point in the United States.” The destination is stated and the amount to be paid directly to the driver by the owner is quoted, part to be paid him at the beginning of the trip and the balance at destination. The amount to be paid to the driver is inclusive of gas, oil and other driver’s expenses en route. The owner is specifically told not to pay any money to AAA Con. It is stated that AAA Con’s sole function is to find competent drivers, and it specifically disclaims any responsibility for the transportation or delivery of the automobile.

The “Automobile Ownership Authorization Order” has blank spaces for the name, address and telephone number of the owner, the destination of the automobile, its description, the date on which the driver is to be available, and the amount to be paid the driver at the starting point and at destination. The owner authorizes AAA Con to process a driver to drive his car “as per * * * [his] instructions” and gives a guaranty that his vehicle is fully insured. The owner acknowledges his understanding that the driver is not an agent of AAA Con, and that its sole function and responsibility is the screening of drivers and not the transportation or delivery of the automobile. There is a space for the signature of the car owner and a final clause accepting the authorization on behalf of AAA Con with its president Zola’s printed signature underneath. If the automobile owner wishes to make such arrangements he fills in this form, signs it and mails one of the two copies back to AAA Con in the return envelope provided.

The “In Transit Permit” sent with the letter is merely a sample form. As will appear the actual “In Transit Permit” used is delivered by the driver when he picks up the car from the owner. The sample “In Transit Permit” is not used.

The “In Transit Permit” is an agreement between the owner and the driver to which AAA Con is not a party. The permit has spaces for the amount of cash received by the driver when he picks up the car, the name, address and telephone number of the car owner and of the person to whom the car is to be delivered, a description of the car, the latest date for delivery, the total amount to be paid to the driver by the owner and the portions to be paid at the beginning and end of the trip. It also has a space for the photograph and thumb prints of the driver and for the signatures of both the owner and the driver. The permit is not signed by AAA Con.

Under the terms of the permit the owner authorizes the driver to deliver the car to the specified destination on his behalf and to make any necessary repairs en route up to $10. Any repairs over that amount are to be made only after notification to the owner and pursuant to his instructions. It provides that in case of any accident or damage to the automobile the owner may retain the unpaid portion of the driver’s fee as liquidated damages. The driver agrees to comply with all traffic regulations, to follow the owner’s specific instructions, to notify the owner in case of accident or delay, to pay for all gas and oil on the run, not to carry any passengers for hire or to use the ear for towing or trucking, and not to carry liquor, narcotics or anything in violation of law. The agreement provides specifically that the driver is not an agent of AAA Con but an independent contractor and a bona fide traveller seeking casual and reciprocal transportation. The driver personally assumes all responsibility for injury to himself or any other person riding in the automobile and for any traffic fines en route.

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Related

Alton Railroad v. United States
315 U.S. 15 (Supreme Court, 1942)
United States v. Drum
368 U.S. 370 (Supreme Court, 1962)
Studna v. United States
225 F. Supp. 973 (W.D. Missouri, 1964)
Interstate Commerce Commission v. Dudgeon
213 F. Supp. 710 (S.D. California, 1961)
United States v. Aides, Inc.
211 F. Supp. 122 (E.D. Pennsylvania, 1962)
Orleman v. United States
219 F. Supp. 945 (E.D. Michigan, 1963)
Interstate Commerce Commission v. Teeter
228 F. Supp. 479 (N.D. Georgia, 1964)
Alton R. v. United States
36 F. Supp. 898 (E.D. Michigan, 1941)

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Bluebook (online)
234 F. Supp. 66, 1964 U.S. Dist. LEXIS 9923, Counsel Stack Legal Research, https://law.counselstack.com/opinion/interstate-commerce-commission-v-aaa-con-drivers-exchange-inc-nysd-1964.