White Top Cab Co. v. City of Houston

440 S.W.2d 732, 1969 Tex. App. LEXIS 2789
CourtCourt of Appeals of Texas
DecidedApril 9, 1969
Docket235
StatusPublished
Cited by9 cases

This text of 440 S.W.2d 732 (White Top Cab Co. v. City of Houston) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
White Top Cab Co. v. City of Houston, 440 S.W.2d 732, 1969 Tex. App. LEXIS 2789 (Tex. Ct. App. 1969).

Opinion

TUNKS, Chief Justice.

In July, 1968, Thomas D. Tyson, Director of Public Service of the City of Houston, conducted a hearing on the application of Greater Houston Transportation Company for the issuance to it of 200 permits for the operation of 200 additional taxicabs in the City of Houston. White Top Cab Co., Inc., and other corporate and individual holders of permits to operate cabs in the City of Houston participated in the hearing, contesting the granting of the application. The application was granted. The contestants undertook to appeal to the City Council of the City of Houston. That appeal was denied because the ordinance pertaining to such hearings did not provide for any such appeal by contestants, although it did provide for appeal by an applicant. White Top Cab Co., Inc. and the other contestants then filed suit in the dis *734 trict court of Harris County, Texas, naming the City of Houston, the members of the City Council, the Director of Public Service and Greater Houston Transportation Company as defendants. By their suit the plaintiffs sought temporary and permanent injunctions against the issuance and use of the 200 taxicab permits and also sought a mandatory order directing the City to call an election to determine whether the permits should be granted. The defendants filed motion for summary judgment which was granted by the trial court. The plaintiff cab companies have appealed. We affirm the judgment of the trial court.

The ordinance of the City of Houston relating to taxicab permits is Chapter 39, Art. II. • That article makes it unlawful to operate a taxicab on the streets of the city without a permit and provides a fine for such unlawful operation. It specifies the procedure to be followed in applying for permits and in conducting the hearing thereon. At paragraph (e) it provides that “After the Director has made his findings and in the event the application has been denied, the applicant shall have the right to appeal to the City Council.” There is no provision for any appeal either to the City Council or to a court by one contesting the' application if it is granted.

The ruling of a governmental administrative body or officer is appealable to the court, where there is no statutory provision for such appeal, only where the ruling affects some vested property right of the appellant or otherwise violates some constitutional provision. City of Amarillo v. Hancock, 150 Tex. 231, 239 S.W.2d 788.

The appellants here recognize that they have no statutory right of appeal to a court, but take the position that they have property rights in their existing permits which rights were affected by a grant of the new permits to their competitor so that they have an inherent right to judicial review of the Public Service Director’s ruling. In support of their position the appellants cite Frost v. Corporation Commission, 278 U.S. 515, 49 S.Ct. 235, 73 L.Ed. 483; Chemical Bank & Trust Co. v. Falkner (Tex.Sup.Ct.), 369 S.W.2d 427; Brazosport Savings & Loan Ass’n v. American Savings & Loan Ass’n, 161 Tex. 543, 342 S.W.2d 747, and Board of Ins. Commissioners v. Title Ins. Ass’n of Texas, 153 Tex. 574, 272 S.W.2d 95.

In each of those cases cited by appellants, the party seeking judicial review of an administrative order was the holder of a franchise authorizing it to operate a business affected with a public interest and subject to being regulated for the public good. They sought review of administrative orders that would result in the allegedly unlawful issuance of competing franchises. It was the ownership of the franchise in each case that was held to constitute the property right affected by the alleged unlawful order so as to give rise to the inherent right of judicial review. It is the contention of the appellees here, with which contention we agree, that the permits held by these appellants are not franchises the granting of which created property rights, but are mere licenses or privileges to operate taxicabs upon the streets of the City of Houston.

The provisions of the ordinance in question clearly indicate that the issuance of permits pursuant to its terms is merely an incident to the City’s lawful regulation of the use of its streets by taxicabs. The ordinance requires that the Director of Public Service, in determining whether to grant an application for permit, take into consideration, among other things, the financial responsibility and moral character of the applicant, the effect additional permits will have on vehicular and pedestrian traffic, and the resulting effect on the business of existing permit holders and existing agencies of mass transportation in the city. The ordinance provides that permits issued may not be transferred except upon a finding that public convenience and necessity require such transfer. Permits iss'ued pursuant to the ordinance may be revoked or suspended by the Director for *735 violation of the ordinance itself or upon conviction of the permittee of any violation of any law involving moral turpitude. Those provisions suggest an exercise by the City of its regulatory power rather than the grant of franchises.

In 37 C.J.S. Franchises § 7, p. 149, it is said:

“Not every permission granted by the state rises to the dignity of a franchise. So, while the exact line of demarcation between franchises and licenses is not clearly drawn, and the words ‘franchise’ and ‘license’ have been used synonymously, the two are distinguishable, one from the other, as are a permit and franchise. A mere license is distinguishable from a franchise in so far as a license is granted for the purpose of regulation, and also in that usually a license is a mere personal privilege, is, in its nature, a temporary or revocable permission, and may be derived from a source other than the legislature or sovereign power.”

In City of Dallas v. Gill, Tex.Civ.App., 199 S.W. 1144, writ ref., the plaintiffs sought to enjoin the enforcement of a city ordinance relating to the operation of jitneys on the streets of the City of Dallas because it allegedly constituted the grant of a franchise and was not passed in accordance with the provision of the city charter relating to the passage of ordinances granting franchises. The Court said, at p. 1145:

“The term ‘franchise,’ as here used, was never contemplated by the lawmakers as applying to the regulation of jitneys operated over the streets of a city, for they in no wise are permitted to appropriate any part of the streets to their exclusive use. * * *”

A license to drive an automobile is a mere privilege and does not constitute property or a property right. Gillaspie v. Dept. of Public Safety, 152 Tex. 459, 259 S.W.2d 177; Lowe v. Texas Dept. of Public Safety, Tex.Civ.App., 423 S.W.2d 952, writ ref., n. r. e.; Schwantz v.

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440 S.W.2d 732, 1969 Tex. App. LEXIS 2789, Counsel Stack Legal Research, https://law.counselstack.com/opinion/white-top-cab-co-v-city-of-houston-texapp-1969.