Realty Purchasing Co. v. Public Service Commission

345 P.2d 606, 9 Utah 2d 375, 31 P.U.R.3d 305, 1959 Utah LEXIS 131
Utah Supreme Court·Decided October 23, 1959·No. 8919·Published·Cited by 1 cases

Opinions

CROCKETT, Chief Justice.

This is an original proceeding in this court challenging an order of the Public Service Commission which grants defendant Salt Lake Transportation Company a contract carrier permit to haul passengers [377] between the Salt Lake Airport and downtown Salt Lake City for four principal airlines: United, Western, Frontier and Bonanza.

Plaintiffs are taxicab companies, and hotel and motel operators in Salt Lake City. They voice three objections to the order: (a) that the defendant’s operation is a taxicab service and exempt from regulation by the Commission; and in the alternative, if it is not (b) the Commission erred in issuing a contract carrier permit because defendant’s service is that of a common carrier; and (c) that the order is arbitrary and discriminatory because it designates only three hotels as pickup and delivery points.

Defendant for many years has operated limousine service between the Salt Lake Airport and three leading hotels in downtown Salt Lake: the Utah, the Temple Square and the Newhouse. It presently has contracts with the four major airlines named above in which it agrees to maintain adequate limousine service for the convenience of their approximately 1500 passengers on about 50 daily flights. Its equipment and its schedules of over 80 limousine trips per day are sufficient to provide that service. It further agrees to transport the airline crews and airport employees on a “space available” basis. Its compensation comes from charging each passenger $1 per trip. The only control granted the ail lines is the right to require minimum standards of service and insurance coverage.

As to the charge that the defendant’s operation is a taxicab service and exempt from the regulation by the Commission, we first observe that it seems somewhat paradoxical for the plaintiffs to be so solicitous of the defendant’s rights in that regard, while the latter is quite willing to submit to such regulation. The reason for this paradox is not altogether clear except that it provides plaintiffs with another argument that the permit shoula not have been granted. Whatever their purpose, they here urge that the defendant’s operation is not subject to regulation by the Commission under Section 54-6-12 U.C.A. 1953, which provides that no portion of the Motor Vehicle Transportation Act shall apply to:

“(f) * * * [wreckers] * * * [armored cars] * * * hearses, ambulances, or licensed taxicabs, operating within a fifteen-mile radius of the limits of any city or town. * * * ” (Emphasis added.)

It is true that in addition to the limousine service involved here, the defendant operates taxicabs in Salt Lake City, but it insists that the two operations are separate enterprises. The Public Service Commission adopted that view of the matter based on these several factors which differentiate the airport service from the [378] taxicab operation: that the defendant uses equipment of a special character adapted to this service consisting of seven-passenger limousines with a substantial luggage capacity; that it carries on such operation solely upon its own schedules and routes, including the points of pickup and delivery; and that with respect to such matters it is not subject to the call, direction or control of individual passengers as are taxicabs. These facts provide a basis upon which the Commission could properly determine that the defendant did not fall within the taxicab exemption stated in the statute quoted above, and that the defendant was subject to its regulation.

A more basic question is presented by the contention that defendant’s operation is that of a common carrier and not a contract carrier. The distinguishing characteristic of the former is that it transports all persons who request such service;1 whereas the latter renders a transportation service only to specific parties with whom it has contracts to do so.2

In support of their position, the plaintiffs argue that the air passengers, in traveling to and from the airport are but part of the general public; and that the airlines have no authority to contract for such further transportation. We know of no reason why they cannot contract with another to render any lawful service to-third persons they desigate as beneficiaries of the contract.3 The passengers and employees they have contracted this service-for are an identifiable group for whom the airlines have a legitimate interest to provide safe, convenient and efficient transportation to and from the airport.

It is to be kept in mind that the contracts, do not purport to endow the defendant with the necessary authority to perform the service. If they did, the attempt to do so-would be futile. They simply require the defendant to furnish the transportation. That reposes upon it the responsibility of' procuring any permit or authority necessary to fulfill its obligation.

A further aspect of the plaintiff’s argument is that even if it be assumed that [379] defendant could so contract to carry these passengers and operate under such a permit, its actual operation is not of that character hut is in fact a common carrier service to the general public. Important on this point is the fact that both common and contract carriers so affect the public interest that the legislature has deemed it proper to subject them to regulation by the Public Service Commission. In addition to the well-known authority of the Commission to supervise the operations of common carriers for the benefit of the public, a generally similar authority is conferred upon the Commission with respect to contract carriers.

The requirements for the granting of a contract carrier permit are set forth in Section 54-6-8, U.C.A.1953:

“If * * * the commission shall determine that the highways over which the applicant desires to operate are not unduly burdened; that the granting of the application will not unduly interfere with the traveling public; and * * * will not be detrimental to the best interest of the people * * * or to the localities to be served, and if the existing transportation facilities do not provide adequate or reasonable service, the commission shall grant such permit.”

Free access — add to your briefcase to read the full text and ask questions with AI

Realty Purchasing Co. v. Public Service Commission, 345 P.2d 606, 9 Utah 2d 375, 31 P.U.R.3d 305, 1959 Utah LEXIS 131 (Utah 1959).

345 P.2d 606 (Realty Purchasing Co. v. Public Service Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Realty Purchasing Co. v. Public Service Commission
345 P.2d 606 (Utah Supreme Court, 1959)