Westside Transit Lines, Inc. v. New Orleans Public Service, Inc.

135 So. 2d 278, 1961 La. App. LEXIS 1495
CourtLouisiana Court of Appeal
DecidedDecember 4, 1961
DocketNo. 568
StatusPublished
Cited by4 cases

This text of 135 So. 2d 278 (Westside Transit Lines, Inc. v. New Orleans Public Service, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Westside Transit Lines, Inc. v. New Orleans Public Service, Inc., 135 So. 2d 278, 1961 La. App. LEXIS 1495 (La. Ct. App. 1961).

Opinion

JOHNSON, Judge.

This is a devolutive appeal taken by intervenors on the side of defendant from an interlocutory judgment granting a preliminary injunction against defendant. The defendant did not appeal, LSA-C.C.P. Articles 1091, 2086.

Petitioner is a Louisiana Public Service Corporation engaged in the business of carrying passengers for hire by motorbus in that part of the City of New Orleans known as Algiers and portions of Jefferson Parish on the west side of the Mississippi River.

In 1906 the City of New Orleans originally granted a public service franchise, to Algiers Railway & Light Company. This original franchise was assigned by mesne conveyance with the approval of the City of New Orleans to Louisiana Power & Light Co., after which the City of New Orleans, on January 20th, 1931, granted a fifty-year franchise to it to'operate motor-bus service in Algiers. In 1949, the Louis[280]*280iana Power & Light Co., transferred all its physical assets and rights under this franchise to the plaintiff herein for a consideration of $350,000.00. Since that time the plaintiff has been and is presently operating its business of carrying passengers for hire by motorbus without competition.

The New Orleans Public Service, Inc. (hereinafter referred to as NOPSI), is a public utility, one phase of which is a transit system transporting passengers for hire throughout the City of New Orleans on the east bank of the Mississippi River.

On August 3rd, 1961, the council of the City of New Orleans adopted its Ordinance No. 2245 authorizing NOPSI to establish passenger service over two routes between downtown New Orleans on the east bank of the Mississippi River and points in Algiers on the west bank during the periods from 6:30 o’clock a. m. to 9:45 a. m. and from 3:15 p. m. to> 6:15 p. m., the so-called peak hours, only on Monday through Friday of each week, but not on holidays. These two routes would not serve any passengers in those hours not being already served by plaintiff. The plaintiff operates its service from 5 o’clock a. m. continuously until 12:30 a. m. the next day on every day of the year, except in that part of Algiers known as Aurora Gardens where the plaintiff’s busses run from 6 a. m. continuously throughout the day until 7:30 p. m., but do not run on Sundays and holidays.

In this suit on the prayer of plaintiff NOPSI was ordered to show cause why a preliminary injunction should not issue enjoining NOPSI, the only defendant, from in any wise instituting or carrying on motorbus transit service in Algiers and from in any wise interfering with plaintiff in the exercise of its right to conduct its motor-bus transit service in Algiers under and pursuant to the franchise heretofore granted to plaintiff. Plaintiff further prays that there be final judgment maintaining and perpetuating the preliminary injunction accordingly.

The basic allegations of plaintiff’s petition are that it is serving completely the requisites of the two routes assigned to defendant; that if plaintiff is deprived of the revenues resulting from the peak travel on these routes plaintiff’s earnings will not be sufficient to support its operations throughout its system and plaintiff will be forced out of business; that competition under such circumstances and with that result would be illegal, unwarranted and in violation of plaintiff’s rights; that the routes of plaintiff connect the Algiers traffic with the Mississippi River Bridge; that there is no need of any additional service by NOPSI and that by the inauguration of the proposed competing service by NOPSI there will be no saving in cost to the travelling public. Plaintiff further alleges that it is a utility operating under the franchise legally granted to plaintiff; that the franchise is presently in full force and effect; that plaintiff is and always has been willing and able to render at equitable rates all transit service justifiable and required by public convenience and necessity and that it is entitled, by law, to be permitted to render such service without being subjected to unfair competition by another utility heretofore having no rights of franchise in the area plaintiff serves.

The defendant’s answer is a general denial except that it admits that defendant has never rendered service on the west bank and that some streets to be traversed by defendant under this new proposal would be the same as those served by the plaintiff. (There is testimony that since 1958 defendant does send a bus from downtown New Orleans across the Mississippi River Bridge, which bus makes a loop through part of Algiers to return across the bridge.)

Interventions joining with plaintiff in demanding the same relief were filed by Local 1400 Amalgamated Association of Street Electric Railway and Motor Coach Employees of America (AFL-CIO), City of Westwego, Jefferson Parish Council, and City of Gretna.

[281]*281Interventions uniting with defendant in resisting plaintiff’s demands were filed by West Bank Civic & Improvement Ass’n., Upper Algiers Civic & Improvement Ass’n., and West Aurora Gardens Civic Club. In-tervenors for defendant filed an exception of nonjoinder to make the City of New Orleans a necessary party defendant, and the exception of no right or cause of action. Both exceptions were overruled by the trial court.

On the trial of the rule nisi two witnesses testified for the plaintiff and none for the defendant. Mr. Henry R. Detournay, plaintiff’s operating manager since 1951, said that in 1958, when the New Orleans Council authorized defendant to operate a line from downtown New Orleans to Algiers making “ * * * a loop right in the heart of our Whitney Belt route where we •derived 80 per cent of our revenue” plaintiff lost so much revenue that they were forced to apply for and was granted the right to abandon the Whitney Belt route. With reference to the two routes proposed to be inaugurated by the defendant under this new Ordinance 2245, this witness explained that route 62 runs through an area of heavy population to serve precisely the same territory and people that plaintiff is now serving. From this area defendant would be required to traverse about four •miles where only two homes are located. The other proposed route, #61, runs through the heaviest populated area of old Algiers where plaintiff has always operated its service.

An epitome of Mr. Detournay’s testimony is that it is his opinion that serving these two proposed routes by NOPSI during the so-called peak hours would take away from plaintiff between 60 and 70% of the total number of passengers now carried by the plaintiff (with corresponding reduction in revenue), and that plaintiff cannot continue to operate its 18 hour daily schedule on that basis; that if plaintiff be given authority to abandon altogether the proposed routes to be served by the defendant there would be no service at all on these proposed routes outside of the peak hours, and that plains tiff’s earnings from service over the remaining area would not be sufficient to keep the plaintiff in business.

The other witness for plaintiff, John C. Baine, is president of St. Louis Public Service Company of St. Louis, Mo. From 1927 to 1947, Mr. Baine held various positions with this defendant and when he left New Orleans he was general superintendent of transportation. Mr. Baine was asked the hypothetical question as to what would be his estimate of the percentage of the revenue realized by a public motor transit service during the peak hours of three hours in the morning and three hours in the afternoon.

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Bluebook (online)
135 So. 2d 278, 1961 La. App. LEXIS 1495, Counsel Stack Legal Research, https://law.counselstack.com/opinion/westside-transit-lines-inc-v-new-orleans-public-service-inc-lactapp-1961.