Sterry Street Towing v. Puc, 03-5810 (r.I.super. 2005)

CourtSuperior Court of Rhode Island
DecidedMay 3, 2005
DocketNo. 03-5810
StatusUnpublished

This text of Sterry Street Towing v. Puc, 03-5810 (r.I.super. 2005) (Sterry Street Towing v. Puc, 03-5810 (r.I.super. 2005)) is published on Counsel Stack Legal Research, covering Superior Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sterry Street Towing v. Puc, 03-5810 (r.I.super. 2005), (R.I. Ct. App. 2005).

Opinion

[EDITOR'S NOTE: This case is unpublished as indicated by the issuing court.]

DECISION
Appellant, Sterry Street Towing, Inc. ("Sterry Street") appeals a decision of the Division of Public Utilities and Carriers (the "PUC"), disallowing certain unsubstantiated and impermissible overcharges made to Complainant, Devon Cover Trucking ("Devon Cover") for a tow and fining it $2,000 for what the PUC considered a willful violation of the PUC's rules and regulations. Appellant also appeals the decision of the PUC to deny its second motion for reconsideration of that decision. This Court has jurisdiction pursuant to G.L. 1956 § 42-35-15. After reviewing the entire record and considering the arguments of all parties, this Court affirms the decision of the PUC.

Facts and Travel
On May 2, 2002, a tractor trailer semi-trailer unit owned by Devon Cover Trucking ("Devon Cover"), operated by Mr. David Hudson, was traveling on Route 95 on the S-curve in Pawtucket, Rhode Island at approximately 9:30 p.m. Approximately 150 feet north of the Broadway Street overpass, the tractor trailer lost control and rolled over onto its passenger side. The Rhode Island State Police contacted Sterry Street to tow and recover the tractor trailer.

Sterry Street billed Devon Cover for services rendered that evening. The towing bill submitted to Devon Cover was itemized as follows:

3 HD Tow Trucks — 6 hours at $300.00 per hour = $5,400.00

1 Med Duty Truck — 6 hours at $75.00 per hour = $450.00

1 Air bag Recovery Truck — 1st hour at $3000.00

and additional 3 hours at $950.00 per hour = $2850.00

Total = $5850.00

1 Recovery Van with all related recovery equipment, straps, hooks, chains, shackles, generator, and light equipment — 6 hours at $125.00 per hour = $750.00

1 Recovery coordinator — 6 hours at $125.00 = $750.00

5 Extra men — 6 hours at $55.00 × 5 men = $1650.00

Restore Equipment to Order

3 HD Tow Truck × $150.00 = $450.00

1 Air bag truck — 1.5 hours at $475.00 = $712.50

1 Recovery van — 2 hours at $62.50 = $125.00

Restore Med Duty Truck — $37.50 = $37.50

Separated truck and trailer = $300.00

1 hour 1 HD Tow truck

Move Trailer to lot to transfer load = $125.00

5 Bags speedy dry = $60.00

4 Extra men to transfer load — 3 hours at $65.00 × 4 = $780.00

Storage fee tractor trailer — $80.00 per day

Administrative fee = $60.00

Devon Cover paid $10,000 for the release of the truck on May 24, 2002.

Subsequently, Devon Cover filed a complaint with the PUC, alleging that Sterry Street submitted to Devon Cover a bill that had charges "in excess of that of the applicable tariff allowed by the Public Utilities Commission." Specifically, Devon Cover alleged that Sterry Street charged for "restoration of equipment to order after the same had been returned to the premises," and that "there was a charge assessed for an additional tow truck that was not on the premises.

On November 1, 2002, Devon Cover and Sterry Street appeared for a hearing before the PUC's Hearing Officer, Patricia F. Adams. The purpose of the hearing was to determine whether Sterry Street's charges to Devon Cover were in violation of enforcing just, reasonable, and reasonably compensatory rates or charges pursuant to G.L. 1956 § 39-12-12. On January 23, 2003, Hearing Officer Adams issued an order finding that Sterry Street was in violation of § 39-12-12, for charges of rental equipment from a separate corporate entity, and for unsubstantiated overcharges for extra laborers.

Specifically, the Hearing Officer found that there was no evidence to show that there were five additional men participating in the recovery of the tractor trailer for 6 hours and held that this charge was impermissible. (Decision at 6.) In addition, the Hearing Officer found that there was no evidence on the record indicating how many days the tractor trailer was in storage and the size of the tractor trailer. (Decision at 8.) The Hearing Officer further found that the storage charge of $80 per day for the storage of the tractor trailer would be in violation of Sterry Street's tariff, and hence impermissible. Id. In regards to the Administration fee, the Hearing Officer found no basis for the charge in Sterry Street's tariff; as such, this charge was not permitted. Id. For the charges relating to the air bag recovery truck and the recovery van with related recovery equipment, the Hearing Officer found that the "purported rental of equipment was a sham," and further found that there was no separate provision for the use of air bag recovery in Sterry Street's tariff. (Decision at 9.) Additionally, the Hearing Officer found that the "restore to order" air bag truck charge was impermissible due to the rental sham. Id. Lastly, the Hearing Officer also found that the recovery van charge was not permitted because the Hearing Officer found that the vehicle was not in use at the recovery.Id.

Although the Hearing Officer disallowed $9,147 from the bill, she found that $8,748 was properly charged. (Decision at 11.) However, in a post-hearing memorandum, Devon Cover agreed to 22 days of storage at $80 per day. Id. Thus, the Hearing Officer found allowable charges in the total of $10,238. Id. Due to the fact that Devon Cover had remitted $10,000 to Sterry Street, the balance owing to Sterry Street, was therefore in the amount of $238. Id. Pursuant to G.L. 1956 § 39-12-36, the PUC fined Sterry Street a total of $2,000. Id.

On February 5, 2003, pursuant to PUC Rule 31 (d), Sterry Street filed a motion for reconsideration asking PUC for an opportunity to explain the rental agreement between Sterry Street's two corporations. The PUC's Hearing Officer granted Sterry Street's motion and ordered another hearing to allow Sterry Street and Devon Cover to address the "reasonableness and propriety of billed charges."

An evidentiary hearing was held on May 7, 2003. Again, the Hearing Officer found that there was no evidence regarding the common charges assessed for the rental of the equipment between Sterry Street's two corporations. In addition, the Hearing Officer found that Sterry Street did not offer testimony regarding the "length of time of the extra laborers versus the hours worked on the restoration of equipment, transfer load, etc. . . ." On June 6, 2003, the PUC held that Sterry Street failed to prove the reasonableness of the charges and affirmed the January 23, 2003 order.

Subsequent to the June 6, 2003 order, Sterry Street filed another motion for reconsideration to the PUC on June 16, 2003 to address the issue of the reasonableness of the charges. However, on October 16, 2003, PUC denied Sterry Street's motion, stating that Sterry Street "had sufficient opportunities to justify the `reasonableness' of the air bag rental fees in issue." (October 16, 2003 Order at 2.) Again, the January 23, 2003 order was affirmed. On November 4, 2003, Sterry Street filed this timely appeal to the Rhode Island Superior Court for relief from the aforementioned order.

STANDARD OF REVIEW
General Laws § 42-35-15(g), which directs this Court in its review of a decision of the PUC on appeal, provides that:

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Sterry Street Towing v. Puc, 03-5810 (r.I.super. 2005), Counsel Stack Legal Research, https://law.counselstack.com/opinion/sterry-street-towing-v-puc-03-5810-risuper-2005-risuperct-2005.