State ex rel. Utilities Commission, Old Dominion Freight Line, Inc. v. Estes Express Lines

234 S.E.2d 628, 33 N.C. App. 99, 1977 N.C. App. LEXIS 2110
CourtCourt of Appeals of North Carolina
DecidedMay 4, 1977
DocketNo. 7610UC820
StatusPublished
Cited by3 cases

This text of 234 S.E.2d 628 (State ex rel. Utilities Commission, Old Dominion Freight Line, Inc. v. Estes Express Lines) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State ex rel. Utilities Commission, Old Dominion Freight Line, Inc. v. Estes Express Lines, 234 S.E.2d 628, 33 N.C. App. 99, 1977 N.C. App. LEXIS 2110 (N.C. Ct. App. 1977).

Opinion

BRITT, Judge.

Is the order of the commission approving the transfer of common carrier franchise authority under G.S. 62-111 erroneous as a matter of law and unsupported by competent, material and substantial evidence? We answer in the negative.

The transfer of carrier operating authority is governed by G.S. 62-111 which includes the following applicable provisions:

“(a) No franchise now existing or hereafter issued under the provisions of this Chapter other than a franchise for motor carriers of passengers shall be sold, assigned, pledged or transferred, nor shall control thereof be changed through stock transfer or otherwise, or any rights thereunder leased, nor shall any merger or combination affecting any public utility be made through acquisition or control by stock purchase or otherwise, except after application to and written approval by the Commission, which approval shall be given if justified by the public convenience and necessity. Provided, that the above provisions shall not apply to regular trading in listed securities on recognized markets. (Emphasis added.)
* * *
“(e) The Commission shall approve applications for transfer of motor carrier franchises made under this section upon finding that said sale, assignment, pledge, transfer, change of control, lease, merger, or combination is in the public interest, will not adversely affect the service to the public under said franchise, will not unlawfully affect the service to the public by other public utilities, that the person acquiring said franchise or control thereof is fit, willing and able to perform such service to the public under said franchise, and that service under said franchise has [103]*103been continuously offered to the public up to time of filing said application or in lieu thereof that any suspension of service exceeding 30 days has been approved by the Commission as provided in G.S. 62-112(b) (5).”

Protestants contend that the transfer of the irregular route authority from Old Dominion to Harper is not “justified by the public convenience and necessity” and that the transfer will “unlawfully affect the service to the public by other public utilities.”

In Utilities Comm. v. Petroleum Carriers, 7 N.C. App. 408, 413-14, 173 S.E. 2d 25, 28 (1970), relying on Utilities Commission v. Coach Co., 269 N.C. 717, 153 S.E. 2d 461 (1967), we find: “ ‘ . the policy of the State, as declared in the Public Utilities Act of 1963, * * * clearly favors transfers of actively operated motor freight carriers certificates without unreasonable restraint. A policy following protestant’s position would diminish the value of existing motor freight franchises and deprive the holders thereof of valuable rights. . . . ’ ”

Protestants argue that upon the acquisition of the operating rights of Barnes by Old Dominion, the irregular route authority of Barnes merged and unified with the previously held irregular authority of Old Dominion to the extent that the operating authorities duplicated each other; thereupon, Old Dominion holds only one active certificate containing irregular route operating authority; and that any transfer by Old Dominion to Harper of its irregular route authority would necessarily leave Old Dominion without any irregular route authority.

The applicants contend that any merger of duplicate operating authority upon Old Dominion’s merger with Barnes was properly avoided by the commission’s order of 3 May 1976 authorizing suspension of its operations under the irregular route authority pending final approval of the application for transfer to Harper. They cite G.S. 62-112 (b) which provides in part that “Any franchise may be suspended or revoked, in whole or in part, in the discretion of the Commission, upon application of the holder thereof . . . . ” (Emphasis ours.) Applicants argue that under the commission’s general powers set forth in G.S. 62-30, and in the quoted provision, the commission was fully authorized to suspend the irregular route authority of Old Dominion upon its acquisition of Barnes thereby [104]*104preventing any unification or merger of operating authority. We think these contentions are correct.

The statute expressly provides that any franchise may be suspended in whole or in part. Here, that part of the franchise certificate providing irregular route authority was suspended by the commission after a full disclosure of all circumstances. We think the commission exercised its lawful discretion in granting the temporary suspension.

Protestants contend that the commission’s conclusion that the temporary suspension of the irregular route operating authority prevented any duplication or merger of operating authority was erroneous as a matter of law. They argue that under G.S. 62-112 (b) (5) any “suspension of authorized operations” is merely a suspension of services by a carrier under its franchise authority. Apparently, protestants reason that in this case there was only a suspension of services under the franchise authority rather than a suspension of the franchise operating authority itself. Protestants further argue that since only service was suspended the two irregular route authorities were duplicative and therefore merged. We find these arguments unpersuasive.

When the irregular route operating authority portion of Old Dominion’s franchise certificate was suspended, any service provided under this part of the certificate naturally was suspended. We hold that the commission did not err in concluding that the portion of the franchise certificate providing for irregular route authority was suspended.

Old Dominion’s irregular route authority which it seeks to transfer contains the following restriction:

“Exception : Irregular route operations are not authorized which would duplicate regular route operations.”

The commission’s Rule R2-30 also provides that:

“Duplication of Regular and Irregular Authority. No carrier authorized to operate both as a regular route common carrier of property and as an irregular route common carrier of property shall transport any shipment under its irregular route authority which it is authorized to transport under its regular route authority.”

[105]*105Under these restrictions, protestants contend that Old Dominion has no irregular route authority for general commodities over all routes and between all points which can be served by its regular route authority. They argue that Old Dominion’s regular and irregular route authority overlap to such an extent that any transportation services under its irregular route authority are negligible. Therefore, protestants contend that by the transfer of its irregular route authority, Old Dominion will be creating two route authorities out of one; that Old Dominion will continue to provide the same services under its continued regular route authority while Harper will be a new competitor under an irregular route authority that has not hereinbefore existed. We find no merit in these contentions.

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Bluebook (online)
234 S.E.2d 628, 33 N.C. App. 99, 1977 N.C. App. LEXIS 2110, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-utilities-commission-old-dominion-freight-line-inc-v-ncctapp-1977.