Nebraskaland Leasing & Associates v. Borley Moving & Storage, Inc.

578 N.W.2d 28, 254 Neb. 583, 1998 Neb. LEXIS 129
CourtNebraska Supreme Court
DecidedMay 8, 1998
DocketS-96-1318
StatusPublished
Cited by4 cases

This text of 578 N.W.2d 28 (Nebraskaland Leasing & Associates v. Borley Moving & Storage, Inc.) 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
Nebraskaland Leasing & Associates v. Borley Moving & Storage, Inc., 578 N.W.2d 28, 254 Neb. 583, 1998 Neb. LEXIS 129 (Neb. 1998).

Opinion

Caporale, J.

I. STATEMENT OF CASE

The Nebraska Public Service Commission denied the applicant-appellant, Nebraskaland Leasing & Associates, a certificate of public convenience and necessity to operate as a com *585 mon carrier of household goods in Nebraska intrastate commerce. In challenging the denial to the Nebraska Court of Appeals, Nebraskaland (1) questioned the constitutional validity of the regulatory scheme imposed by Neb. Rev. Stat. §§ 75-301 through 75-322 (Reissue 1990 & Supp. 1995) and (2) asserted that the commission’s factual findings are erroneous. Certain of the protestants-appellees, i.e., Borley Moving and Storage, Inc.; A-l Metro Movers; Chieftain Van Lines, Inc.; and Andrews Van Lines, Inc., have cross-appealed, claiming the commission erred in finding that Nebraskaland is fit, willing, and able to perform the services proposed. Under our authority to regulate the caseloads of this court and the Court of Appeals, we, on our own motion, removed the matter to our docket. We affirm.

II. SCOPE OF REVIEW

In an appeal from the Public Service Commission, an appellate court examines the record to determine whether the commission acted within the scope of its authority and whether the evidence establishes that the order in question is not unreasonable or arbitrary. In re Application of Jantzen, 245 Neb. 81, 511 N.W.2d 504 (1994). However, as to questions of law, an appellate court reaches its own conclusions. State v. Hill, ante p. 460, 577 N.W.2d 259 (1998).

III. FACTS

Nebraskaland, in business since 1985, operates mostly as an interstate carrier of household goods, but also performs local and intrastate moves within Nebraska. It has been conducting its intrastate business since 1989 pursuant to a lease with Husker Express, Inc. While the lease agreement is entitled “EQUIPMENT LEASE AGREEMENT,” Nebraskaland operates as if it is leasing Husker Express’ authority, notwithstanding that the agreement provides: “THIS EQUIPMENT LEASE SHALL NOT CONSTITUTE A LEASE OF AUTHORITY AND SHALL NOT BE CONSIDERED AS SUCH BETWEEN THE PARTIES.”

Husker Express does not conduct any household goods moving, and since 1989 has referred all of its household goods business to Nebraskaland. Nebraskaland attracts its intrastate mov *586 ing business by yellow pages advertising and receives referrals for intrastate moves from Paul Arpin Van Lines, Nebraskaland’s national carrier. Intrastate moves conducted pursuant to its lease with Husker Express make up approximately 15 percent of Nebraskaland’s business.

Nebraskaland owns three tractor-trailers and three straight trucks, but uses only two of the tractor-trailers when conducting business under its lease with Husker Express. Nebraskaland conducts intrastate moves on weekends without charging extra, conducts intrastate moves on holidays, and has a 500-pound minimum weight requirement. It performed approximately 40 intrastate moves from 1989 through 1996.

Nebraskaland performs intrastate moves for Concordia College. It also conducts furniture repossessions for Nebraska Furniture Mart. However, because it does not hold a certificate of public convenience and necessity for intrastate moves, Nebraskaland only picks up the furniture in Lincoln and stores it in its warehouse until Nebraska Furniture Mart sends one of its trucks from Omaha to pick it up. Mel Mullennax, a Nebraska Furniture Mart employee in charge of recovering merchandise, testified that he supports the granting of a certificate to Nebraskaland and would retain its services for intrastate moves. He also testified that Nebraska Furniture Mart has declined to hire other carriers because their rates are too high. However, Mullennax admitted that if Nebraskaland published a tariff that required it to charge the same rate as other carriers, Nebraska Furniture Mart would not hire Nebraskaland.

Terrie Hartshorn, a Nebraskaland employee, telephoned Andrews Van Lines in Norfolk on June 27, 1996, and asked if it would be able to perform a move from Norfolk to Chadron on July 5. She was told that Andrews Van Lines was totally booked until August. Todd Hartshorn, another Nebraskaland employee, telephoned protestant-appellee Pioneer Moving & Storage, Inc., on June 25, asked if it could move 4,000 pounds from Lincoln to Imperial on July 4 and 5, and was told that it could not do so until July 8. He also called protestant-appellee Ford Van Lines, Inc., on June 25 to ask the same question and was told that it could possibly pick up the goods on July 5 and deliver them on July 6, but that it would cost extra because July 6 was on a *587 weekend. Todd Hartshorn called A-l Metro Movers on June 25 with the same question and was told that it was booked until July 8. He also posed the same question to protestant-appellee Benson Transfer & Storage Company, which responded that there was no way it could do so and that it would need 1 month’s notice. Borley Moving and Storage, when asked if it could perform a move on July 4 and 5 from Grand Island to Chadron, responded that it could not. Todd Hartshorn also asked protestant-appellee Gordon Moving & Storage Co., Inc., on June 25 if it could move 4,000 pounds from Omaha to Chadron on July 4 and 5 and was told that it could do so on July 8 at an 8,000-pound minimum rate.

Todd Hartshorn spoke with Andrews Van Lines on June 26, 1996, asked if it could move 4,000 pounds from Lincoln to Imperial on July 4 and 5, and was told that it could possibly do so on July 5. He called Chieftain Van Lines on June 27, asking if it could move 2,000 pounds intrastate on July 6 and 7, and was told that it could not. He called protestant-appellee Buck’s Moving & Storage on June 27, asked if it could move 2,000 pounds intrastate on July 6 and 7, and was told that it had an 8,000-pound minimum and could not do so.

Borley Moving and Storage is engaged in the moving and storage of household goods and has authority to conduct intrastate moves in Nebraska and interstate moves in 11 mid-western states. It transported 128 intrastate shipments in 1995, making up 24.1 percent of its total revenue for 1995, and 24 in the first quarter of 1996. Borley Moving and Storage hires additional employees during the summer months to handle the increased seasonal demand. It does not generally conduct moves on weekends or on holidays.

According to its president and owner, Clayton Andrews, Andrews Van Lines runs just under 100 trucks, is in the business of household goods moving, operates in 50 states and 21 foreign countries, and performs intrastate moves of household goods in Nebraska. It conducts moves on the weekends and holidays and has 10 trucks licensed in Nebraska dedicated to intrastate hauls. Moreover, it has 70 more trucks available to be licensed in Nebraska if the demand increases. However, Andrews testified that he does not have enough business for the *588 10 trucks already licensed.

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Cite This Page — Counsel Stack

Bluebook (online)
578 N.W.2d 28, 254 Neb. 583, 1998 Neb. LEXIS 129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nebraskaland-leasing-associates-v-borley-moving-storage-inc-neb-1998.