State ex rel. Utilities Commission v. M. L. Hatcher Pickup & Delivery Services, Inc.

259 S.E.2d 791, 43 N.C. App. 662, 1979 N.C. App. LEXIS 3148
CourtCourt of Appeals of North Carolina
DecidedNovember 20, 1979
DocketNo. 7910UC171
StatusPublished

This text of 259 S.E.2d 791 (State ex rel. Utilities Commission v. M. L. Hatcher Pickup & Delivery Services, Inc.) 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 v. M. L. Hatcher Pickup & Delivery Services, Inc., 259 S.E.2d 791, 43 N.C. App. 662, 1979 N.C. App. LEXIS 3148 (N.C. Ct. App. 1979).

Opinion

HEDRICK, Judge.

Relevant evidence presented at the hearing is summarized as follows:

AJS presently is authorized by the Commission to pick up beer and beer products from the Schlitz Brewery in Winston-Salem, North Carolina, and to deliver the same to five North Carolina points: Northwestern Distributors in North Wilkesboro, Proctor Wholesalers in Hickory, Lillard Enterprises in Reidsville, Piedmont Distributors in Salisbury, and Rudisill Enterprises in Gastonia. Its trucks always “end up” in Salisbury since deliveries are made to the most distant points first. Under this operation applicant transports a full load from Winston-Salem to Reidsville, but then must “deadhead”, or come back empty, to Salisbury. Thus, its proposal to transport under contract from Miller Brewery in Eden to Rowan Distributors in Salisbury would “enhance” AJS operations in that, after delivering to Reidsville, the AJS trucks could make the ten-mile run over to Eden, pick up a full load at Miller Brewery, and then head to Salisbury.

In addition to benefitting its own operation, Scoggins testified that AJS provides certain specialized services for beer shippers. For instance, “load locks” are used on every trailer, that is, locks are placed across the back of each load to secure it and keep it from shifting. Moreover, AJS has agreed with Rowan Distributing to provide a “double lock key system” so that AJS will be able to make deliveries at times when the plant is unmanned with little risk of loss to Rowan. Under such a system, AJS would maintain a master padlock on its trailers while Rowan [665]*665would keep a lock on the fence surrounding its plant. Scoggins described the operation of this system thusly:

Each party has keys so that we can get in and drop the trailers, and they can unload the trailers at their convenience. We are able to come in and spot trailers at night and be on our way without leaving someone there. We will pick up an empty trailer at the time we drop the loaded trailer. There will be one trailer at the distributor at all times.

A unique service offered by AJS, according to Scoggins, consists of the use of “fillers to separate double-row loads so that they are, in effect, in single rows.” The fillers were developed by Scoggins as a means of preventing damage because, in his opinion, “[i]t is a special service when you haul malt beverages, [and] most common carriers don’t have knowledge of the way to secure loads to prevent damage.”

Finally, Scoggins can offer personalized service to Rowan. He testified that he bases his business in Salisbury and has known the personnel at Rowan Distributing since 1960. He and his employees know a number of the Rowan employees by name and address so that, if an emergency situation arises, it can be readily resolved.

Additional support for the AJS application came from the testimony of William A. Roberts, General Manager of Rowan Distributing and Freída Weisler, Rowan’s president. Roberts testified that his company is not involved, and does not wish to be involved, in the business of transporting its malt beverages. None of its present transportation is handled by common carriers, and there have been no common carrier shipments to it from the Miller Brewery in Eden. According to Roberts, Rowan’s greatest concern in this matter is finding a carrier “that will give us as much protrection and as good service as we would get if we did it outselves.” He stated that their concern regarding security precautions made it desirable for them to know personally “whoever will be driving the rig . . . [and] who will haul our product.” AJS meets their needs in that respect since Rowan has been doing business with Scoggins for more than 15 years. Moreover, Roberts asserted that AJS could more adequately meet Rowan’s security needs because of its specialized handling of malt liquor products. To the contrary, “[w]e would not be comfortable con[666]*666tracting with somebody who carries primarily some other commodity.” The “double lock key system” is especially attractive to Rowan, Roberts testified, because furnishing keys to its padlocked fence to an AJS driver would be reasonable, while handing out “150 keys to satisfy the needs of a common carrier” would put Rowan in an “uncomfortable” security position.

Rowan president, Mrs. Weisler, offered further support for the AJS application, asserting that the specialized security and damage-preventive services available from AJS, as well as the personal contact she had with Scoggins, better fulfilled the shipping needs of her company. She testified that her experience in shipping beer by common carrier had been unpleasant “due to excess damage” to shipments, and that one incident had resulted in a lawsuit which had been pending for 16 months. In her opinion, a common carrier could not meet the needs of Rowan.

In protest to the AJS application, Hatcher offered the testimony of its vice president, Austin Hatcher, Jr., who testified that his company was on the list of approved carriers for Miller Brewing Company; that it had been granted temporary authority from the Commission to transport beer products from Miller Brewery in Eden; and that Hatcher is presently providing service to other Miller distributors in North Carolina in accordance with its grant of temporary authority. With reference to Hatcher’s security system, Hatcher admitted that his company did not secure the shipments “with anything.” Rather, Miller personnel load the trucks and “seal” the shipments. Furthermore, Hatcher does not provide locks for shipments, “though we can and would, if requested.” Hatcher drivers have experience with handling malt beverages, but that experience is limited for the majority of them, since approximately 50 percent of Hatcher’s business consists of hauling mail. The remainder is devoted to general commodities.

Hatcher admitted that neither he nor his drivers personally knew any of the Rowan personnel and that, in an emergency situation, they might not be able to get in touch with the appropriate employees. However, it is Hatcher’s practice to obtain such information once he starts serving a particular customer. In his opinion,

[667]*667I do not know of any services that can be provided by Mr. Scoggins that we, as a common carrier, can’t provide to Rowan Distributing .... Mr. Scoggins’ proposed operations would duplicate operations our company is authorized to perform .... We can offer the exact service that has been specified by Mr. Scoggins ....

The final order of the Commission contains the following findings of fact and conclusions:

Findings Of Fact

1. The Applicant, located in Salisbury, North Carolina, proposes to engage in the transportation of beer and malt beverages from the facilities of Miller Brewing Company, Eden, North Carolina, under a written bilatoral [sic] contract with Rowan Distributing Company, also located in Salisbury, North Carolina.
2. Since 1975 the Applicant has held a contract carrier permit issued by this Commission for the transportation of beer and malt beverages from the Schlitz Brewery in Winston-Salem, North Carolina, to distributors located in North Wilkesboro, Hickory, Gastonia, Salisbury and Reidsville, North Carolina.
3. The Applicant has acquired a special expertise in the transportation of beer and malt beverages and has developed techniques for safe and efficient service.
4.

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259 S.E.2d 791, 43 N.C. App. 662, 1979 N.C. App. LEXIS 3148, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-utilities-commission-v-m-l-hatcher-pickup-delivery-ncctapp-1979.