Lubbock Radio Paging Service, Inc. v. Southwestern Bell Telephone Co.

607 S.W.2d 29, 1980 Tex. App. LEXIS 4066
CourtCourt of Appeals of Texas
DecidedOctober 2, 1980
Docket8474
StatusPublished
Cited by7 cases

This text of 607 S.W.2d 29 (Lubbock Radio Paging Service, Inc. v. Southwestern Bell Telephone Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lubbock Radio Paging Service, Inc. v. Southwestern Bell Telephone Co., 607 S.W.2d 29, 1980 Tex. App. LEXIS 4066 (Tex. Ct. App. 1980).

Opinion

KEITH, Justice.

This is a consolidated appeal from separate judgments of the District Court of Travis County sustaining orders of the Public Utility Commission (“PUC”) granting certificates of public convenience and necessity to Southwestern Bell Telephone Company (“Bell”) authorizing the operation of a radio-paging service in five regions of the State. We affirm.

Bell filed five separate applications to furnish different areas 1 in the State with such service. Other entities were then providing similar, but not identical, service to that proposed by Bell for each region. Each competing entity then became an in-tervenor/protestant in contesting Bell’s application before PUC, and each is now an appellant in this cause.

Bell’s applications were all filed under the provisions of Sec. 54(b) of the Public Utility Regulatory Act (“PURA”), Tex.Rev. Civ.Stat.Ann. art. 1446c (1980). Bell submitted evidence in each case relating to the technical aspects of its paging system, the projected costs thereof, the capabilities of its proposed system, etc., and appellants do not complain of any aspect of this presentation.

The basic complaint on appeal is directed at the evidence of Bell relating to the need for additional service in the several areas covered by its applications. Mary Jane Peters, the founder of Peters Marketing Research, Inc., a professional researcher with twelve years’ experience, testified on behalf of Bell’s applications. She had been commissioned by Bell to conduct studies designed to support the applications by demonstrating the need of such service in the several areas.

Peters testified in detail concerning her qualifications to express her opinions and also filed a document entitled “Prepared Direct Testimony and Supporting Exhibit”.

The contestants exercised their right to cross-examine the witness as to her prepared testimony as well as that given in person, making many objections as to its hearsay nature, its remoteness in time, and the methodology used by the witness. All such objections were overruled and the testimony was accepted.

The thrust of the argument under the first point is that the trial court “erred in ruling that the Peters Survey ... was ad-missable [sic] evidence.” One of the complaints is that Peters relied to some extent upon an opinion of Dr. Frances J. Connelly as to the size of the sample of individuals to be contacted in each survey. Peters testified at the hearing that her employer desired a ninety-five percent reliability factor in each survey and she sought the advice of Connelly to buttress her own determination of size.

The Peters survey was also attacked as being too remote, it having been conducted in 1975 in four of the five cases while the hearings were held in 1977.

Appellants’ reliance upon Perkins v. Springstun, 557 S.W.2d 343, 345 (Tex.Civ.App.-Austin 1977, writ ref’d n.r.e.), is misplaced. In Perkins, the oral testimony of one accountant was based solely upon a statement of assets prepared by another accountant who was not available to testify *32 and whose source of information was not apparent. Thus the opponent had no opportunity to cross-examine concerning the reliability of the facts upon which the witness’ testimony was predicated. By contrast in the present case, the basic data relied upon by Ms. Peters in her testimony was the information obtained in the survey conducted under her direction. Dr. Connelly’s testimony would have had no bearing upon that evidence. His testimony would have been material only insofar as it went to the size of the sample, not the results of the survey.

Further, the facts of the cases at bar are more closely parallel to those of Cornell v. American Indemnity Co., 275 S.W.2d 702 (Tex.Civ.App.-Galveston 1955, writ ref’d n.r.e.), in which the evidence was held admissible, than to those of Muro v. Houston Fire and Casualty Insurance Co., 329 S.W.2d 326 (Tex.Civ.App.-San Antonio 1959, writ ref’d n.r.e.), relied upon by the Perkins court.

The hearsay rule is applied in the same manner in proceedings before an administrative agency as in trials before a court. Lewis v. Southmore Savings Association, 480 S.W.2d 180 (Tex.1972); Wilson v. Board of Education of Fort Worth Independent School District, 511 S.W.2d 551, 553 (Tex.Civ.App.-Fort Worth 1974, writ ref’d n.r.e.). 2

The leading Texas case on the admissibility under the hearsay rule of survey results is Texas Aeronautics Comm’n v. Braniff Airways, Inc., 454 S.W.2d 199 (Tex.1970). The survey in Braniff consisted of a poll directed by a Mr. Bowles, in which five hundred air travelers at airports in three cities were asked to state their opinion as to whether existing airline service was “excellent”, “good” or “not so good” (454 S.W.2d at 203-204). The Court held that the survey was admissible, declining to rule whether the evidence constituted hearsay within the state of mind exception of the hearsay rule, or nonhearsay. See, generally, Zeisel, “The Uniqueness of Survey Evidence”, 45 Cornell L.Q. 322 (1960); Note, 66 Harvard L. Rev. 498 (1953); Annot., Admissibility and weight of surveys or polls of public or consumers’ opinion, recognition, preference, or the like, 76 A.L.R.2d 619 (1961). However, the court predicted its holding upon a showing that Bowles had testified before the Commission, giving the opposing carriers “full opportunity to investigate and develop any particular objections they might have as to the methodology and execution of the poll.” (454 S.W.2d at 203)

In the cases at bar, appellants were given at each hearing a full and complete opportunity to cross-examine Peters. Thus the requirements of Braniff were met and the survey as a whole may not be excluded on hearsay grounds. Contrary to the allegations of appellants’ brief, the survey was not based entirely upon the sample size determined by Dr. Connelly, nor did the information obtained from each respondent in the survey depend upon the total number of persons interviewed. Objections to the determination of the sample size go to the weight and not the admissibility of the survey.

In challenging the competency of the survey evidence, appellants are confronted with the rule enunciated in Slaughter v. Abilene State School, 561 S.W.2d 789, 791 (Tex.1977):

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607 S.W.2d 29, 1980 Tex. App. LEXIS 4066, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lubbock-radio-paging-service-inc-v-southwestern-bell-telephone-co-texapp-1980.