Railroad Commission of Texas v. Waste Management of Texas, Inc.

880 S.W.2d 835, 1994 WL 289313
CourtCourt of Appeals of Texas
DecidedAugust 31, 1994
Docket3-93-374-CV
StatusPublished
Cited by26 cases

This text of 880 S.W.2d 835 (Railroad Commission of Texas v. Waste Management of Texas, Inc.) 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
Railroad Commission of Texas v. Waste Management of Texas, Inc., 880 S.W.2d 835, 1994 WL 289313 (Tex. Ct. App. 1994).

Opinion

JONES, Justice.

This case requires us to determine whether the Texas Railroad Commission has jurisdiction to regulate the transportation of certain solid waste for compensation or hire when the waste in question has no commercial value and its owner seeks only to dispose *837 of it. Waste Management of Texas, Inc. sued the Railroad Commission in the District Court of Travis County seeking a declaratory judgment that the Railroad Commission did not have jurisdiction over Waste Management’s transportation of asbestos-containing solid waste. The trial court ruled that the Railroad Commission did not have authority to regulate the transportation of such waste because it is not “property” as that term is used in article 911b of the Texas Revised Civil Statutes, commonly known as the Motor Carrier Act. See Tex.Rev.Civ.Stat.Ann. art. 911b (West 1964 & Supp.1994) (hereinafter “MCA”). The Railroad Commission and several defendant-intervenors appeal. 1 We will reverse and render judgment.

FACTUAL AND PROCEDURAL BACKGROUND

Waste Management is engaged in the business of transporting asbestos-containing solid waste to various disposal sites. Asbestos-containing solid waste consists of asbestos-containing materials removed from facilities or buildings that have been subject to asbestos abatement and any clothing or material used in carrying out the abatement process. Waste Management is normally employed to transport and properly dispose of the waste by owners of such facilities or buildings or by companies hired to remove the asbestos. Such parties are typically called “generators.”

The Railroad Commission is authorized under the MCA to regulate motor vehicles that transport “property for compensation or hire.” MCA § 4(a)(1) (West Supp.1994). The Railroad Commission’s authority includes the power to regulate rates and to require that companies or persons operating vehicles transporting property for compensation obtain permits or certificates of convenience and necessity from the Railroad Commission. Waste Management has never been issued a certificate or permit by the Railroad Commission authorizing it to transport asbestos-containing solid waste. From March 1989 to November 1991, various generators paid Waste Management to transport and dispose of approximately seventy-one shipments of asbestos-containing solid waste. Waste Management transported the waste in company-owned trucks across Texas’s public highways, routinely travelling between two or more noncontiguous incorporated cities, towns, or villages.

On November 15,1991, after conducting an audit of Waste Management, an auditor for the Motor Transportation Division of the Railroad Commission issued violation reports to Waste Management concerning its transportation of the waste. In April 1992, the manager of the Transportation Audit Division of the Railroad Commission notified several of Waste Management’s waste-generating customers that Waste Management did not possess a permit or certificate authorizing it to transport asbestos-containing waste and that further use of Waste Management’s services could subject the generators to prosecution by the Railroad Commission.

Waste Management filed suit against the Railroad Commission seeking a declaratory judgment that the Railroad Commission did not have jurisdiction over the transportation of asbestos-containing solid waste for compensation or hire. See Tex.Civ.Prac. & Rem. Code Ann. § 37.004(a) (West 1986); Tex. Gov’t Code Ann. § 2001.038 (West 1994). Several waste transporters intervened as defendants. Waste Management argued in the trial court that the Railroad Commission did not possess jurisdiction to regulate transporters of asbestos-containing solid waste because such transporters were not transporting “property” as contemplated by sections 1(g) and 4(a)(1) of the MCA. In the alternative, Waste Management argued that the Texas Legislature’s delegation of authority to the Texas Department of Health and the *838 Texas Water Commission 2 to control all aspects of the management of solid and hazardous waste in the Solid Waste Disposal Act (“SWDA”), Tex. Health & Safety Code Ann. §§ 361.001-.540 (West 1992 & Supp.1994), indicated the legislature’s approval and ratification of Moore Industrial Disposal, Inc. v. City of Garland, 587 S.W.2d 430 (Tex.Civ.App.—Dallas 1979, writ ref'd n.r.e.) (holding that sludge was not property because it had been abandoned and had no value). At the conclusion of the trial, the trial court determined that asbestos-containing solid waste was not “property” as contemplated by the MCA, that the Railroad Commission did not have jurisdiction to regulate the transportation of asbestos-containing solid waste for compensation or hire, and that the Texas Water Commission (now the TNRCC) had exclusive jurisdiction to regulate the transportation of industrial solid waste, including asbestos-containing solid waste pursuant to the SWDA. The trial court also declared that Railroad Commission Tariff 14-D (formerly 14-C), Rule 5.22, 16 Tex.Admin.Code § 5.22 (1994), and Rule 5.132, 16 Tex.Admin.Code § 5.132 (1994), did not apply to the transportation of asbestos-containing solid waste. 3

The Railroad Commission and defendant-intervenors appeal. In several points of error, they argue that (1) the trial court erred in holding that the Railroad Commission was without authority to regulate the transportation of asbestos-containing solid waste; (2) the trial court erred in concluding that asbestos-containing solid waste was not property under the MCA; (3) the trial court erred in holding that Tariff 14-D and rules 5.22 and 5.132 did not apply to the transportation of such waste; and (4) the trial court erred in finding that the asbestos-containing solid waste was abandoned by the generators, because (a) as a matter of law such waste cannot be abandoned and (b) there is no evidence or insufficient evidence to support the finding.

DISCUSSION

A. THE JURISDICTION OF THE RAILROAD COMMISSION

Waste Management presents two arguments in support of its position that the Railroad Commission does not possess jurisdiction to regulate the transportation of asbestos-containing waste. First, it argues that we should follow the Dallas court’s decision in Moore. The Moore court held that sludge was not property under the MCA because it had been abandoned and had no value. Second, Waste Management argues that, in the event we disagree with the holding in Moore, we should nevertheless follow the holding because the legislature has ratified it through subsequent action.

1. Defining Property Under the MCA

Section 4(a)(1) of the MCA empowers the Railroad Commission to regulate the “transportation of property for compensation or hire by motor vehicle.” MCA § 4(a)(1).

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880 S.W.2d 835, 1994 WL 289313, Counsel Stack Legal Research, https://law.counselstack.com/opinion/railroad-commission-of-texas-v-waste-management-of-texas-inc-texapp-1994.