Olson Transportation Co. v. Public Service Commission
Olson Transportation Co. v. Public Service Commission
Opinion of the Court
This is an appeal by the Michigan public service commission, et al., from an order of the Ingham county circuit court reversing an order of the commission and restraining the enforcement of that order against plaintiff Olson Transportation Company, the appellee herein. The issues in this case deal solely with interpretation of the motor carrier act (CL 1948, § 475.1 et seq., as amended [Stat Ann §22.531 et seq.)), and the powers granted to the commission under that act.
Olson is the holder of a certificate of public convenience originally held by L & L Trucking Service, which in general authorizes a trucker to engage in the hauling of cargo for hire in a limited area within the State. On December 5, 1957, the commission acted on an application by L & L and Olson to trans
On September 30,1960, Mercury Transit Company filed a complaint
The commission found that Olson’s immediate transferor had abandoned its authority in accordance with the statute
The trial court, in a well-reasoned opinion, found that the commission proceeded solely on the basis that Olson’s authority should be amended because of abandonment by Olson’s predecessor. The commission therefore acted under article 5, § 18, of the motor carrier act.
We agree with the trial court’s conclusion in that the notice required by the statute is “notice of the action proposed to be taken by the commission.” Furniture Capital Truck Lines, Inc., v. Public Service Commission (1954), 340 Mich 173, 184.
An order to “cease and desist” may issue only by virtue of article 5, § 14 of the act. That section specifies the conditions and reasons for causing sueh an order to issue. No doubt violation of any other
We think that article 5, § 18 at least requires notice to the responding party that the commission intends to take action to modify the certificate of public convenience.
The power of the commission to act is derived solely from the statutes and the power to modify a certificate must depend on compliance with the terms of article 5, § 18. In re Application of Joe Brown & Sons (1935), 273 Mich 652; G & A Truck Line, Inc., v. Public Service Commission (1953), 337 Mich 300. In the absence of the prescribed notice, the commission could not legally act to effect the modification, and its order based thereon is a nullity. See Greyhound Corporation v. Public Service Commission (1960), 360 Mich 578, 609; Furniture Capital Truck Lines, Inc., v. Public Service Commission, supra.
The commission does not rely on any violation by Olson which would support a cease and desist order aside from the amendment of its authority, and in the trial court the commission addressed its arguments to the sufficiency of the notice.
We do not pass upon the merits of the commission’s order amending Olson’s certificate in light of our decision as to the inadequacy of the notice.
We hold that the respondent is entitled to know on what basis and under which section the commission intends to proceed. In this regard it is important to recognize that under the act the commission may initiate proceedings on its own motion and
Affirmed. No costs, a public question being involved.
Hearings were Reid on the complaint on March 21, 22 and 23, 1961. At these hearings, Stang Tank Lines, Ine., Refiners Transport & Terminal Corp., and E. Brooke Matlaek, Ine. intervened on behalf of Mereury. At the same time, Miehigan Intra-State Motor Tariff Bureau, Inc., Clairmount Transfer Co., and U. S. Truck Company, Ine., intervened as interested parties.
CL 1948, § 476.13 (Stat Ann § 22.546): “No common motor carrier authorized by this act to operate shall abandon or discontinue any service established under the provisions of this aet without an order of the commission. Any certificate under whieh service is discontinued for more than 10 days without the previous order of this commission authorizing the same shall be deemed to be revoked. without any action upon the part of the commission.”
CL 1948, § 479.18 (Stat Ann § 22.583).
CL 1948, § 479.14 (Stat Ann § 22.579). The pertinent portion of the order of the commission stated: “We therefore find that Olson’s present intrastate authority should be amended so as to specifically exclude the transportation of petroleum products in bulk in tank vehicles intrastate, and that that carrier should be ordered to cease aiid desist from such transportation.”
CL 1948, §479.18 (Stat Ann § 22.583), provides in pertinent part:
“The commission may upon application of any person or any motor carrier or upon its own motion, and upon at least 10 days’ notiee to the parties affected thereby for good cause, and after an opportunity to be heard, revoke, suspend, alter, amend or modify any and all of its findings or orders; hut no certificate or permit shall he 'amended, altered, modified, revoked, suspended, or impaired, except only after like notice and opportunity to he heard and upon clear proof of good, just, and sufficient cause. It shall have full power and authority to grant rehearings in all proceedings before it upon petition filed within the time allowed by law to bring proceedings for review.” (Emphasis supplied.)
The request for relief in the complaint before the commission was that the commission “enter an order that respondent Olson cease and desist from further engaging in the bulk load transportation of gasoline.”
CL 1948, § 479.14 (Stat Ann § 22.579), provides in part: “Before proceeding to make the investigation, the commission shall give the said motor carrier and the complainants at least 10 days’ notice of the time and place when and where sueh matters will be considered and determined, and said parties shall be entitled to be heard and shall have process to enforce the attendance of witnesses. If upon sueh investigation any matters complained of shall be found to be in violation of this act, the commission shall have power to and it shall determine and by order fix and order substituted therefor such regulation, practice, service or charges as shall conform to the provisions of this act and the rules and regulations of the commission applicable to such motor carrier; and such order shall further provide that the parties complained of cease and desist from the violation and conform to the terms of the order, and the commission shall cause a certified copy of each sueh order to be delivered to the parties affected thereby, which order shall of its own force take effect and become operative 20 days after the service thereof.”
Case-law data current through December 31, 2025. Source: CourtListener bulk data.