Williams v. Corporation Commission

396 P.2d 23, 96 Ariz. 404, 1964 Ariz. LEXIS 311
CourtArizona Supreme Court
DecidedOctober 23, 1964
DocketNo. 8390
StatusPublished

This text of 396 P.2d 23 (Williams v. Corporation Commission) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. Corporation Commission, 396 P.2d 23, 96 Ariz. 404, 1964 Ariz. LEXIS 311 (Ark. 1964).

Opinion

UDALL, Chief Justice.

This is an original proceeding in certiorari initiated by Humboldt Truckers, hereinafter referred to as petitioners, against the Arizona Corporation Commission, hereinafter referred to as the Commission. The purpose of this proceeding is to challenge that portion of the order entered by the Commission on March 30, 1964, in granting petitioners a contract motor carrier permit, that the rates of petitioners as contract motor carriers “be at a level of common carrier rates.”

The record reveals that petitioners since 1946 entered into successive contracts with Shattuck Denn Mining Company, hereinafter referred to as Shattuck Denn, to haul the ores, supplies, equipment and concentrates for the company’s operations at the Iron King Mine and Mill at Humboldt, [405]*405Arizona. Successive contract motor carrier permits have been issued by the Commission to petitioners for permission to operate their motor vehicles on the public highways of the State under these contracts.

Prior to the Commission’s order which is complained of, the last motor carrier permit was issued to petitioners on February 13, 1963. This permit and the contract between petitioners and Shattuck Denn had an expiration date of November 6, 1964. On March 2, 1964, petitioners and Shattuck Denn entered into an extension and renewal of their subsisting agreement to extend the contract for three years. The March 2, 1964 agreement was identical to the prior agreement in its terms, except for the addition of a new service: to haul “Lead, Zinc and Iron products from Shipper’s Mill to Shipper at any point in Arizona, specific rates to be established by mutual agreement.” Petitioners filed an application pursuant to A.R.S. § 40-608 (1956) for an amended contract carrier permit under the new agreement. The application was noticed for hearing and heard on March 18, 1964. Two common carriers intervened in the proceedings before the Commission. On March 30, 1964, the Commission entered its formal order issuing petitioners a contract motor carrier permit pursuant to A.R.S. § 40-608 (1956), but placed a limitation in the permit limiting the haulage contract to “rates to be at a level of common carrier rates.”

Petitioners made timely application to the Commission for a rehearing, which was denied. Petitioners subsequently sought review in this Court by certiorari on the grounds that the Commission exceeded its jurisdiction in attempting, in effect, to regulate the rates of a contract motor carrier.

The Commission in justifying their action contend that they had jurisdiction to impose the rate limitation because there is an unsubstantial difference between petitioners’ operation as a contract motor carrier and that of a common motor carrier. This contention is totally without merit. This Court has .on several occasions made it quite clear that there is a substantial difference between a contract motor carrier and a common motor carrier. In Arizona Corporation Commission v. Reliable Transportation Company, 86 Ariz. 363, 346 P.2d 1091 (1959), this Court explained the distinction between a contract carrier and a common carrier in the following language:

“The distinction between the two classes of motor carriers becomes meaningful in relation to the extent of regulation and control by the Commission. Thus, under A.R.S. § 40-605, applicable only to common motor carriers, the Commission is authorized to fix and determine ‘just, reasonable and sufficient rates, fares, charges and classifications’; to ‘regulate the facilities, service and safety of operations’; to regulate ‘operating and time schedules [406]*406to meet the needs of the public and to insure adequate transportation service through the territory traversed or served by the carriers and thereby prevent unnecessary duplication of service’ ; to prescribe a uniform system of accounts; to require annual reports, schedules, tariffs, and other data; and to ‘[sjupervise and regulate such carriers in all matters affecting relations between the carriers and the public and between the carriers and other common motor carriers, * *
“A.R.S. § 40-606 requires each common motor carrier to furnish full information, including its financial condition, equipment, physical property, routing, rates and schedules. A.R.S. § 40-612 requires a common motor carrier to obtain permission from the Commission before abandoning or discontinuing any service which it was authorized to operate.
“Significantly, none of the above sections applies to contract motor carriers, with the exception that such a carrier must notify the Commission after it has ceased or abandoned any of its operations. (A.R.S. § 40-612)
“The distinction between a common and contract motor carrier applies also to the certification required before either may operate within the State. Under A.R.S. § 40-607 a common motor carrier is required to satisfy the Commission that ‘the public convenience and necessity requires the proposed service * * *.’ A.R.S. § 40-608 requires the Commission to find that the granting of a permit to a contract motor carrier — ‘ * * * will not endanger the safety of the public or interfere with the public use of the public highways, or impair the condition or maintenance of the highways, directly or indirectly * * *.’ ” pp. 374, 375, 346 P.2d pp. 1098, 1099.

The Court went on to say:

“The very material differences in the extent of regulation of common and contract motor carriers suggest the legislative rational to be given effect in defining the two classes of carriers. Under the doctrine of ‘regulated monopoly,’ which is ‘the basic law of the state’ (see Old Pueblo Transit Co. v. Arizona Corp. Commission, 1958, 84 Ariz. 389, 390, 329 P.2d 1108, 1109), it is obvious that certain motor carriers are deemed to be so affected with the public interest and welfare that they should be regulated in the interest of the public; other carriers which are not so affected need not be subject to such stringent regulation.” p. 375, 346 P.2d p. 1099.

Also see Visco v. State, 95 Ariz. 154, 388 P.2d 155 (1963).

[407]*407No rate-fixing power is contained in A.R.S. § 40-608 (1956).

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Related

Cantlay & Tanzola, Inc. v. Senner
373 P.2d 370 (Arizona Supreme Court, 1962)
Visco v. State Ex Rel. Pickrell
388 P.2d 155 (Arizona Supreme Court, 1963)
Meyer v. Senner
361 P.2d 542 (Arizona Supreme Court, 1961)
Arizona Corp. Commission v. Reliable Transportation Co.
346 P.2d 1091 (Arizona Supreme Court, 1959)
Old Pueblo Transit Co. v. Arizona Corp. Commission
329 P.2d 1108 (Arizona Supreme Court, 1958)

Cite This Page — Counsel Stack

Bluebook (online)
396 P.2d 23, 96 Ariz. 404, 1964 Ariz. LEXIS 311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-corporation-commission-ariz-1964.