State ex rel. Don Williams Export, Inc. v. Timm

477 P.2d 15, 78 Wash. 2d 520, 1970 Wash. LEXIS 325
CourtWashington Supreme Court
DecidedNovember 19, 1970
DocketNo. 40944
StatusPublished
Cited by3 cases

This text of 477 P.2d 15 (State ex rel. Don Williams Export, Inc. v. Timm) is published on Counsel Stack Legal Research, covering Washington Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Don Williams Export, Inc. v. Timm, 477 P.2d 15, 78 Wash. 2d 520, 1970 Wash. LEXIS 325 (Wash. 1970).

Opinion

Sharp, J.

This is a mandamus action against the Washington Utilities and Transportation Commission and its commissioners (hereinafter called the “commission”) to compel transfer of a common carrier permit previously held by Big Bend Transport, Inc., to the appellant corporation, Don Williams Export, Inc. The appellant, itself a lawful holder of a common carrier permit issued by the commission, entered into a plan of merger with Big Bend Transport, Inc., holder of permit No. 1991, whereby appellant became the surviving corporation. Upon filing of the plan of merger and the issuance of a certificate of merger by the Secretary of State on April 8, 1968, appellant notified the commission, requesting that its records be conformed to show appellant as the holder of permit No. 1991. This the commission declined to do, and this action followed. The trial court, hearing the matter upon stipulated facts, denied the writ.

The issue before the court is simply stated: Did the provisions of the Washington Business Corporation Act, enacted in 1965 and effective July 1, 1967, relating to merger or consolidation of corporations (RCW 23A.20.060 (4)) require, to the exclusion of the provisions of the Motor Carrier Act relating to assignment and transfer of permits, RCW 81.80.270, the reissuance of permit 1991 to appellant?

The provision of the Business Corporation Act relied on by appellant reads as follows:

RCW 23A.20.060. Effect of merger or consolidation. Upon the issuance of the certificate of merger or the certificate of consolidation by the secretary of state, the merger or consolidation shall be effected.
When such merger or consolidation has been effected:
(4) Such surviving or new corporation shall thereupon [522]*522and thereafter possess all the rights, privileges, immunities, and franchises, as well of a public as of a private nature, of each of the merging or consolidating corporations; and all property, real, personal and mixed, and all debts due on whatever account, including subscriptions to shares, and all other choses in action, and all and every other interest of or belonging to or due to each of the corporations so merged or consolidated, shall be taken and deemed to be transferred to and vested in such single corporation without further act or deed; and the title to any real estate, or any interest therein, vested in any of such corporations shall not revert or be in any way impaired by reason of such merger or consolidation.

The Motor Freight Carrier Act provision, then in effect, and relied upon by the commission reads as follows:

RCW 81.80.270. Transfer, assignment of permits — Acquisition of carrier holding permit. No permit issued under the authority of this chapter shall be construed to be irrevocable. Nor shall such permit be subject to transfer or assignment except upon a proper showing that property rights might be affected thereby, and then in the discretion of the commission, and upon the payment of a fee of twenty-five dollars.
No person, partnership or corporation, singly or in combination with any other person, partnership or corporation, whether a carrier holding a permit or otherwise, or any combination of such, shall acquire control or enter into any agreement or arrangement to acquire control of a common or contract carrier holding a permit through ownership of its stock or through purchase, lease or contract to manage the business, or otherwise except after and with the approval and authorization of the commission: Provided, That upon the dissolution of a partnership, which holds a permit, because of the death, bankruptcy, or withdrawal of a partner where such partner’s interest is transferred to his spouse or to one or more remaining partners, or in the case of a corporation which holds a permit, in the case of the death of a shareholder where a shareholder’s interest upon death is transferred to his spouse or to one or more of the remaining shareholders, the commission shall transfer the permit to the newly organized partnership which is substantially composed of the remaining partners, or continue the corporation’s permit without making the proceeding subject to hearing and protest. In all other cases any such transac[523]*523tion either directly or indirectly entered into without approval of the commission shall be void and of no eff ect.
Every carrier who shall cease operation and abandon his rights under the permits issued him shall notify the commission within thirty days of such cessation or abandonment, and return to the commission the identification plates issued to him. [Laws of 1965, Ex. Ses., ch. 134, § 1, p. 2197.]

Many of the arguments presented by appellant to the trial court and in its opening brief to this court were affirmatively withdrawn in its reply brief and in oral argument before this court. Thus, the parties now agree that RCW 81.80.270 is not ambiguous, that the two statutes do not conflict, and that the time sequence of their passage by the legislature is irrelevant. Instead, appellant’s position is that the Motor Carrier Act is inapplicable and that upon issuance of the certificate of merger by the Secretary of State, admittedly a ministerial act on his part, the absorbed corporation’s permit transferred to the surviving corporation by operation of law by virtue of the above-quoted merger provision of the Business Corporation Act.

The Washington Business Corporation Act, enacted in 1965, is a broad, general act patterned after the American Bar Association’s Model Business Corporation Act, enabling and prescribing the conduct of business activity within the framework of the corporate entity form. While it does contain substantive changes from the prior corporate law, many of its provisions are reenactments of existing statutes. Thus RCW 23A.20.060, first enacted by our legislature in 1933 (Laws of 1933, ch. 185, §§ 45 and 46, pp. 805 and 806), was reenacted without substantial change as part of the 1965 act.

Motor carrier regulation was first undertaken by our legislature in 1921, and today the Motor Carrier Act appears as a comprehensive legislative program for the regulation of all motor carriers operating in intrastate commerce. Its declaration of policy indicates the legislative concern for a business affected with a public interest.

RCW 81.80.020. Declaration of policy. The business of operating as a motor carrier of freight for compensation [524]*524along the highways of this state, is declared to be a business affected with a public interest.

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Cite This Page — Counsel Stack

Bluebook (online)
477 P.2d 15, 78 Wash. 2d 520, 1970 Wash. LEXIS 325, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-don-williams-export-inc-v-timm-wash-1970.