Matter of Galt

Montana Supreme Court·Decided January 21, 1982·No. 80-472·Published

Opinion

IN THE SUPREME COURT OF THE STATE OF MONTANA

In the Matter of the Application of O.J. Galt, Stanford, Montana, for Authority to Sell Certificate of Public Convenience No. 1390, Sub. A, To Marvin E.Mintyala d/b/a City Garage and Mr. "M" Disposal, Lewistown, Montana.

Appeal from: District Court of the First Judicial District, In and for the County of Lewis and Clark Hon. Gordon Bennett, Judge presiding. Counsel of Record: For Appellant: William E. O'Leary argued, Helena, Montana For Respondent : Alexander and Baucus, Great Falls, Montana Neil Ugrin argued, Great Falls, Montana Rob Smith, PSC, Helena, Montana

Submitted: December 3, 1981 ~ecided: January 21, 1982 Mr. J u s t i c e Frank B. Morrison, J r . , d e l i v e r e d t h e Opinion o f t h e Court.

A p p e l l a n t s , 0. J . G a l t and Marvin E. M i n t y a l a a p p e a l from

an o r d e r of t h e F i r s t J u d i c i a l D i s t r i c t , e n t e r e d October 1 5 ,

1980. T h i s o r d e r a f f i r m e d a p r e v i o u s o r d e r of August 1,

1980, which d e c l a r e d t h a t C l a s s "D" C e r t i f i c a t e No. 1390(A)

i s s u e d by t h e P u b l i c S e r v i c e Commission (PSC) t o 0 . J . G a l t

on November 1 8 , 1977, was n u l l and v o i d f o r a l l p u r p o s e s .

On May 1 5 , 1936, t h e PSC g r a n t e d G a l t a C l a s s "C"

C e r t i f i c a t e , No. 1390, a u t h o r i z i n g motor t r a n s p o r t of

" p r o p e r t y " i n t h e town o f S t a n f o r d , Montana, and w i t h i n a

70-mile r a d i u s . T h i s c e r t i f i c a t e was i s s u e d p u r s u a n t t o

s e c t i o n 3847.2, R.C.M., 1935 ( r e c o d i f i e d a s s e c t i o n 8-102,

R.C.M., 1 9 4 7 ) , of t h e Montana Motor C a r r i e r s Act.

I n 1977, s e c t i o n 8-102, R.C.M., 1947 ( s e c t i o n 69-12-

301, M C A ) , w a s amended t o i n c l u d e a n a d d i t i o n a l c l a s s i f i c a -

t i o n of motor c a r r i e r , C l a s s " D , " f o r t h e t r a n s p o r t a t i o n and

d i s p o s a l of g a r b a g e , w a s t e and r e f u s e . The l e g i s l a t u r e a l s o

e n a c t e d a new p r o v i s i o n , s e c t i o n 8-102.1, R.C.M., 1947

( n e v e r c o d i f i e d i n MCA). T h i s was an i m p l e m e n t a t i o n s e c t i o n

providing t h a t :

" A l l C l a s s D motor c a r r i e r s , w h e t h e r p r o p e r t y c a r r i e r s o r o t h e r w i s e , who have conducted a motor c a r r i e r t r a n s p o r t a t i o n s e r v i c e f o r h i r e u t i l i z i n g motor v e h i c l e equipment and appro- p r i a t e disposal sites c o n s i s t e n t with t h e laws of t h i s s t a t e and r u l e s of t h e commission and t h e d e p a r t m e n t of h e a l t h and e n v i r o n m e n t a l s c i e n c e s s h a l l , upon w r i t t e n p r o o f c o n s i s t i n g of p r i o r b u s i n e s s r e c o r d s r e f l e c t i n g a t r a n s - portation service f o r 1 year p r i o r t o t h e e f f e c t i v e d a t e of t h i s a c t , which b u s i n e s s r e c o r d s s h a l l be s u b m i t t e d t o t h e commission i n a n i n f o r m a l manner, r e c e i v e a c e r t i f i c a t e of p u b l i c convenience and n e c e s s i t y a s a C l a s s D c a r r i e r a u t h o r i z i n g t r a n s p o r t a t i o n of t h e above-described commodities w i t h i n t h e geo- g r a p h i c a l a r e a d e s c r i b e d i n t h e w r i t t e n proof submitted. Such proof must b e s u b m i t t e d t o t h e commission w i t h i n 4 months f o l l o w i n g t h e e f f e c t i v e d a t e of t h i s a c t ; and t h e commis- s i o n s h a l l i s s u e such C l a s s D c e r t i f i c a t e s w i t h i n a n a d d i t i o n a l 90 d a y s , and t h e r e a f t e r , no C l a s s A , B, o r C c a r r i e r w i l l be a u t h o r i - zed o r p e r m i t t e d t o t r a n s p o r t a s h e s , t r a s h , waste, r e f u s e , rubbish, garbage, o r organic and i n o r g a n i c m a t t e r w i t h i n t h e S t a t e of Montana."

I n r e s p o n s e t o t h i s p r o v i s i o n , t h e PSC m a i l e d a form t o

c e r t i f i c a t e h o l d e r s t o d e t e r m i n e whether t h e h o l d e r d e s i r e d

t o h a u l g a r b a g e and i f s o , r e q u e s t i n g b u s i n e s s r e c o r d s

e s t a b l i s h i n g p a s t t r a n s p o r t a t i o n of g a r b a g e .

G a l t answered t h e PSC on t h e form p r o v i d e d , s t a t i n g

t h a t h e d i d want t o h a u l g a r b a g e . Galt l i s t e d f i v e business

names on t h e l e t t e r a s a r e s p o n s e t o t h e r e q u e s t e d b u s i n e s s

records. No b u s i n e s s r e c o r d s w e r e s u p p l i e d .

On November 1 8 , 1977, t h e PSC i s s u e d G a l t C l a s s "D"

C e r t i f i c a t e No. 1 3 9 0 ( A ) , a u t h o r i z i n g t r a n s p o r t a t i o n of

g a r b a g e i n t h e same g e o g r a p h i c a l a r e a a s t h e p r i o r C l a s s "C"

certificate, i.e., t h e town of S t a n f o r d and a 70-mile r a d i u s .

On May 3 , 1978, G a l t a p p l i e d t o t h e PSC f o r a u t h o r i t y

t o t r a n s f e r t h e C l a s s "D" C e r t i f i c a t e t o Marvin M i n t y a l a .

The a p p l i c a t i o n was n o t i c e d and a J u n e 7, 1978 d e a d l i n e s e t

for protests. On J u n e 5, 1978, F. L. Green, owner of a

c e r t i f i c a t e t o h a u l g a r b a g e i n G r e a t F a l l s and a 1 0 - m i l e

r a d i u s t h e r e o f , j o i n e d by t h e P a l a g i s who proposed t o buy

t h e Green c e r t i f i c a t e , f i l e d a p r o t e s t w i t h t h e PSC on t h e

grounds t h a t t h e G a l t c e r t i f i c a t e c o n f l i c t e d w i t h t h e Green

operating area. A h e a r i n g was s e t f o r September 7 , 1978.

On September 5 , 1978, Green and P a l a g i s f i l e d a motion

t o quash t h e h e a r i n g and any f u r t h e r p r o c e e d i n g s on t h e G a l t

t r a n s f e r , and a motion t o i n v a l i d a t e G a l t ' s C l a s s "D" certi-

ficate. Both m o t i o n s were made on t h e ground t h a t G a l t had

n o t complied w i t h s e c t i o n 8-102.1, R.C.M., 1947, s u p r a , w i t h

r e g a r d t o t h e f i l i n g of p r i o r b u s i n e s s r e c o r d s t o s u p p o r t the application.

he h e a r i n g was h e l d on September 7 , 1978. The PSC

s u b s e q u e n t l y i s s u e d o r d e r No. 2657, d e c l a r i n g t h e G a l t

c e r t i f i c a t e n u l l and v o i d a s t o p o i n t s beyond t h e m u n i c i p a l

l i m i t s of S t a n f o r d , Montana. G a l t was g r a n t e d t i m e t o

submit proof, v i a business records, r e f l e c t i n g garbage

t r a n s p o r t a t i o n f o r o n e y e a r p r i o r t o J u l y 1, 1977 ( t h e

e f f e c t i v e d a t e of s e c t i o n 8-102.1, R.C.M., 1947). Galt's

p r o p o s e d t r a n s f e r was h e l d i n a b e y a n c e .

G a l t f i l e d a m o t i o n f o r r e c o n s i d e r a t i o n of t h i s o r d e r

w i t h t h e PSC o n J a n u a r y 1 5 , 1979. Reconsideration w a s

granted. A f t e r r e c o n s i d e r a t i o n , t h e PSC i s s u e d O r d e r No.

2657a g r a n t i n g a u t h o r i t y t o t r a n s f e r t h e G a l t c e r t i f i c a t e t o

Mintyala. T h i s o r d e r was i s s u e d o n November 27, 1979.

On December 1 0 , 1979, t h e P a l a g i s ( t o whom F. L . Green

had s o l d h i s b u s i n e s s and t r a n s f e r r e d h i s C l a s s "D" c e r t i f i -

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