McCarty v. Nebraska Public Service Commission

358 N.W.2d 203, 218 Neb. 637, 1984 Neb. LEXIS 1278
CourtNebraska Supreme Court
DecidedNovember 9, 1984
DocketNo. 83-833
StatusPublished
Cited by1 cases

This text of 358 N.W.2d 203 (McCarty v. Nebraska Public Service Commission) 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
McCarty v. Nebraska Public Service Commission, 358 N.W.2d 203, 218 Neb. 637, 1984 Neb. LEXIS 1278 (Neb. 1984).

Opinion

Krivosha, C.J.

This is an appeal from orders entered by the Nebraska Public Service Commission (Commission) in two cases which were consolidated for hearing before the Commission and which are consolidated for disposition before this court. The first case involves an application by James M. McCarty, filed pursuant to the provisions of Neb. Rev. Stat. § 75-311 (Reissue 1981), [638]*638seeking approval to transfer stock in Kruse Transportation Co., Inc. (Kruse), from the present owner, Carl Cooper, to McCarty. The second action involves a complaint filed by Bee Line Motor Freight, Inc. (Bee Line), and Brown Transfer Co. (Brown) against Kruse, alleging that the authority held by Kruse was dormant and therefore should not be transferred absent a showing that the transfer is or will be required by the present and future public convenience and necessity, as required by Neb. Rev. Stat. § 75-318 (Reissue 1981). Canning Truck Service, Lyon Transfer Company, and M & S Transfer were granted leave to intervene and join with Bee Line and Brown in their complaint. Following a public hearing, the Commission denied the application filed by McCarty. McCarty has appealed to this court, maintaining that the Commission erred in numerous ways. We need, however, only determine the issue regarding dormancy, for if we find that the action of the Commission in finding the Kruse authority dormant is supported by the evidence, we are required by law to affirm the action of the Commission. Our review of the record convinces us that there is sufficient evidence to support the order entered by the Commission on the dormancy issue, and, accordingly, we affirm.

Each side vigorously argues that the other has the burden of proof in this case. The issue is somewhat blurred because we have two different types of action consolidated for trial. We may, however, dispose of this issue by simply noting that regardless of who may have the burden of proof in each particular case, the evidence upon which the Commission relied was produced prior to Commission action. Therefore, the question of who should have produced the evidence or who had the burden of proof need not be considered.

The evidence discloses that McCarty produced three witnesses in support of his application for authority to purchase the stock. The witnesses were Paul Schmalenbach, Donald O. Hall, and the appellant James M. McCarty. Both Hall’s prepared statement, introduced in evidence, and his oral testimony given at the hearing established that his involvement with the Kruse operation began on or about August 1, 1982, when McCarty took over the Kruse operation without [639]*639authority from the Commission. Except for an unsupported conclusion contained in Hall’s prepared statement, to the effect that he was familiar with the Kruse operation prior to August 1, 1982, and knew it held itself out to the shipping public as a motor common carrier, Hall’s testimony provided no evidence upon which the Commission was required to find that the Kruse certificate was active prior to the time that McCarty took over the Kruse operation. Likewise, McCarty’s prepared statement contained no evidence which required the Commission to find that the Kruse certificate was active prior to August of 1982. Consequently, only the testimony of Paul Schmalenbach remained to be considered. Schmalenbach’s prepared statement recited the fact that prior to August 1, 1982, he “managed” Kruse for the owner, Carl Cooper, and did everything expected of a “general manager.” While his prepared statement indicated that he was the general manager of Kruse, Schmalenbach’s oral testimony contradicted that fact. Schmalenbach testified at the hearing that he did not manage Kruse, but was merely an “agent” for Kruse. Schmalenbach did not even know what authority Kruse held. In response to a question on cross-examination, he testified: “A I don’t know what their authority read. Q How did you know when you were given a load whether or not Kruse Transportation actually had that authority or not? A Well, I’m just an agent. I’m not the manager. I did what the manager says.” The record further reflects that Kruse had no manager at any time in Omaha and that Schmalenbach, as “agent,” was the only person stationed in Omaha who was connected with Kruse.

While Schmalenbach attempted to establish that Kruse had transported barrels intrastate from time to time prior to August 1982, the evidence was so vague and unsupported by any other corroborative evidence that the Commission apparently chose to disregard it, as it was entitled to do.

McCarty argues that there was ample evidence to support a finding that Kruse was not dormant prior to his purchase. The record would seem to dispute this contention. As an example, on cross-examination McCarty was asked about freight bills brought to the hearing but which were never offered in evidence.

[640]*640Q Now, your counsel was kind enough to bring along a numer [sic] of freight bills, some of which covered Exhibit Number 5, and I have looked through those with your able assistance. Would I be correct in making the statement that of the freight bills that you brought with you, except for some shipments that date back to 1976, you have no actual freight bills showing transportation by Kruse during the years 1977, 1978, 1979, 1980, 1981, or the first part of 1982?
A Well, there should be records here for 1974 and ’75 and ’76 and 1977 and 1978. And Mr. Cooper assured me that there was other records to cover the years of 1979 and 1980 and 1981, and since Mr. Cooper had left Chillicothe, Missouri down to Tulsa, I have had a very difficult time to get Mr. Cooper to cooperate with me to furnish me the rest of the papers and everything.
Q Yes, I understand that and I read your statement. I just wanted to make it clear on the record that the records you brought with you, which may have been all you’re able to find, we have no freight bills showing actual transportation intrastate commerce for those periods that I need.
A I have not seen the records for 1980.
Q Now you do have, and your counsel made reference to, annual report that was filed by Kruse for 1980 and for the year 1981. Do you recall that?
A Yes.
Q But, as far as any underlying documents are concerned, you have not brought with you nor have you ever seen any freight bills covering that transportation.
A No, I have not seen no freight bills.

The reference to Cooper in McCarty’s testimony pertained to the former owner of Kruse, Carl Cooper, who, according to the statement submitted by McCarty, was a certified public accountant, formerly of Chillicothe, Missouri, who had been transferred to Tulsa, Oklahoma. The record failed to disclose any evidence of anyone, other than Schmalenbach as agent, operating an intrastate transportation operation on behalf of Kruse in the State of Nebraska at any time before McCarty sought to purchase the stock.

[641]*641sought to purchase the stock.

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Related

APPLICATION OF McCARTY
358 N.W.2d 203 (Nebraska Supreme Court, 1984)

Cite This Page — Counsel Stack

Bluebook (online)
358 N.W.2d 203, 218 Neb. 637, 1984 Neb. LEXIS 1278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccarty-v-nebraska-public-service-commission-neb-1984.