IN THE SUPREME COURT OF THE STATE OF MONTANA In the Matter of the Application of O.J. Galt, Stanford, Montana, for Authority to Sell Certificate of Public Convenience No. 1390, Sub. A, To Marvin E.Mintyala d/b/a City Garage and Mr. "M" Disposal, Lewistown, Montana. Appeal from: District Court of the First Judicial District,

In and for the County of Lewis and Clark

Hon. Gordon Bennett, Judge presiding. Counsel of Record: For Appellant:

William E. O'Leary argued, Helena, Montana For Respondent :

Alexander and Baucus, Great Falls, Montana

Neil Ugrin argued, Great Falls, Montana

Rob Smith, PSC, Helena, Montana

Submitted: December 3, 1981

~ecided: January 21, 1982 Mr. J u s t i c e Frank B. Morrison, J r . , d e l i v e r e d t h e Opinion o f t h e Court.

A p p e l l a n t s , 0. J . G a l t and Marvin E. M i n t y a l a a p p e a l from an o r d e r of t h e F i r s t J u d i c i a l D i s t r i c t , e n t e r e d October 1 5 , 1980. T h i s o r d e r a f f i r m e d a p r e v i o u s o r d e r of August 1, 1980, which d e c l a r e d t h a t C l a s s "D" C e r t i f i c a t e No. 1390(A) i s s u e d by t h e P u b l i c S e r v i c e Commission (PSC) t o 0 . J . G a l t on November 1 8 , 1977, was n u l l and v o i d f o r a l l p u r p o s e s .

On May 1 5 , 1936, t h e PSC g r a n t e d G a l t a C l a s s "C" C e r t i f i c a t e , No. 1390, a u t h o r i z i n g motor t r a n s p o r t of " p r o p e r t y " i n t h e town o f S t a n f o r d , Montana, and w i t h i n a 70-mile r a d i u s . T h i s c e r t i f i c a t e was i s s u e d p u r s u a n t t o s e c t i o n 3847.2, R.C.M., 1935 ( r e c o d i f i e d a s s e c t i o n 8-102, R.C.M., 1 9 4 7 ) , of t h e Montana Motor C a r r i e r s Act.

I n 1977, s e c t i o n 8-102, R.C.M., 1947 ( s e c t i o n 69-12- 301, M C A ) , w a s amended t o i n c l u d e a n a d d i t i o n a l c l a s s i f i c a - t i o n of motor c a r r i e r , C l a s s " D , " f o r t h e t r a n s p o r t a t i o n and d i s p o s a l of g a r b a g e , w a s t e and r e f u s e . The l e g i s l a t u r e a l s o e n a c t e d a new p r o v i s i o n , s e c t i o n 8-102.1, R.C.M., 1947 ( n e v e r c o d i f i e d i n MCA). T h i s was an i m p l e m e n t a t i o n s e c t i o n providing t h a t :

" A l l C l a s s D motor c a r r i e r s , w h e t h e r p r o p e r t y

c a r r i e r s o r o t h e r w i s e , who have conducted a

motor c a r r i e r t r a n s p o r t a t i o n s e r v i c e f o r h i r e

u t i l i z i n g motor v e h i c l e equipment and appro-

p r i a t e disposal sites c o n s i s t e n t with t h e

laws of t h i s s t a t e and r u l e s of t h e commission

and t h e d e p a r t m e n t of h e a l t h and e n v i r o n m e n t a l

s c i e n c e s s h a l l , upon w r i t t e n p r o o f c o n s i s t i n g

of p r i o r b u s i n e s s r e c o r d s r e f l e c t i n g a t r a n s -

portation service f o r 1 year p r i o r t o t h e

e f f e c t i v e d a t e of t h i s a c t , which b u s i n e s s

r e c o r d s s h a l l be s u b m i t t e d t o t h e commission

i n a n i n f o r m a l manner, r e c e i v e a c e r t i f i c a t e

of p u b l i c convenience and n e c e s s i t y a s a C l a s s

D c a r r i e r a u t h o r i z i n g t r a n s p o r t a t i o n of t h e

above-described commodities w i t h i n t h e geo-

g r a p h i c a l a r e a d e s c r i b e d i n t h e w r i t t e n proof

submitted. Such proof must b e s u b m i t t e d t o

t h e commission w i t h i n 4 months f o l l o w i n g t h e

e f f e c t i v e d a t e of t h i s a c t ; and t h e commis-

s i o n s h a l l i s s u e such C l a s s D c e r t i f i c a t e s

w i t h i n a n a d d i t i o n a l 90 d a y s , and t h e r e a f t e r ,

no C l a s s A , B, o r C c a r r i e r w i l l be a u t h o r i -

zed o r p e r m i t t e d t o t r a n s p o r t a s h e s , t r a s h ,

waste, r e f u s e , rubbish, garbage, o r organic

and i n o r g a n i c m a t t e r w i t h i n t h e S t a t e of Montana."

I n r e s p o n s e t o t h i s p r o v i s i o n , t h e PSC m a i l e d a form t o c e r t i f i c a t e h o l d e r s t o d e t e r m i n e whether t h e h o l d e r d e s i r e d t o h a u l g a r b a g e and i f s o , r e q u e s t i n g b u s i n e s s r e c o r d s e s t a b l i s h i n g p a s t t r a n s p o r t a t i o n of g a r b a g e .

G a l t answered t h e PSC on t h e form p r o v i d e d , s t a t i n g t h a t h e d i d want t o h a u l g a r b a g e . Galt l i s t e d f i v e business names on t h e l e t t e r a s a r e s p o n s e t o t h e r e q u e s t e d b u s i n e s s records. No b u s i n e s s r e c o r d s w e r e s u p p l i e d .

On November 1 8 , 1977, t h e PSC i s s u e d G a l t C l a s s "D" C e r t i f i c a t e No. 1 3 9 0 ( A ) , a u t h o r i z i n g t r a n s p o r t a t i o n of g a r b a g e i n t h e same g e o g r a p h i c a l a r e a a s t h e p r i o r C l a s s "C" certificate, i.e., t h e town of S t a n f o r d and a 70-mile r a d i u s .

On May 3 , 1978, G a l t a p p l i e d t o t h e PSC f o r a u t h o r i t y t o t r a n s f e r t h e C l a s s "D" C e r t i f i c a t e t o Marvin M i n t y a l a . The a p p l i c a t i o n was n o t i c e d and a J u n e 7, 1978 d e a d l i n e s e t for protests. On J u n e 5, 1978, F. L. Green, owner of a c e r t i f i c a t e t o h a u l g a r b a g e i n G r e a t F a l l s and a 1 0 - m i l e r a d i u s t h e r e o f , j o i n e d by t h e P a l a g i s who proposed t o buy t h e Green c e r t i f i c a t e , f i l e d a p r o t e s t w i t h t h e PSC on t h e grounds t h a t t h e G a l t c e r t i f i c a t e c o n f l i c t e d w i t h t h e Green operating area. A h e a r i n g was s e t f o r September 7 , 1978.

On September 5 , 1978, Green and P a l a g i s f i l e d a motion t o quash t h e h e a r i n g and any f u r t h e r p r o c e e d i n g s on t h e G a l t t r a n s f e r , and a motion t o i n v a l i d a t e G a l t ' s C l a s s "D" certi- ficate. Both m o t i o n s were made on t h e ground t h a t G a l t had n o t complied w i t h s e c t i o n 8-102.1, R.C.M., 1947, s u p r a , w i t h r e g a r d t o t h e f i l i n g of p r i o r b u s i n e s s r e c o r d s t o s u p p o r t the application.

he h e a r i n g was h e l d on September 7 , 1978. The PSC s u b s e q u e n t l y i s s u e d o r d e r No. 2657, d e c l a r i n g t h e G a l t c e r t i f i c a t e n u l l and v o i d a s t o p o i n t s beyond t h e m u n i c i p a l l i m i t s of S t a n f o r d , Montana. G a l t was g r a n t e d t i m e t o submit proof, v i a business records, r e f l e c t i n g garbage t r a n s p o r t a t i o n f o r o n e y e a r p r i o r t o J u l y 1, 1977 ( t h e e f f e c t i v e d a t e of s e c t i o n 8-102.1, R.C.M., 1947). Galt's p r o p o s e d t r a n s f e r was h e l d i n a b e y a n c e .

G a l t f i l e d a m o t i o n f o r r e c o n s i d e r a t i o n of t h i s o r d e r w i t h t h e PSC o n J a n u a r y 1 5 , 1979. Reconsideration w a s granted. A f t e r r e c o n s i d e r a t i o n , t h e PSC i s s u e d O r d e r No. 2657a g r a n t i n g a u t h o r i t y t o t r a n s f e r t h e G a l t c e r t i f i c a t e t o Mintyala. T h i s o r d e r was i s s u e d o n November 27, 1979.

On December 1 0 , 1979, t h e P a l a g i s ( t o whom F. L . Green had s o l d h i s b u s i n e s s and t r a n s f e r r e d h i s C l a s s "D" c e r t i f i - c a t e w i t h PSC a p p r o v a l o n F e b r u a r y 2, 1 9 7 9 ) f i l e d a p e t i t i o n f o r j u d i c i a l review and a motion t o t e m p o r a r i l y s t a y t h e t r a n s f e r of t h e G a l t c e r t i f i c a t e . The s t a y was g r a n t e d .

The F i r s t J u d i c i a l D i s t r i c t C o u r t d e c l a r e d t h e G a l t C l a s s "D" C e r t i f i c a t e No. 1 3 9 0 ( A ) t o b e n u l l and v o i d f o r a l l purposes.

I s s u e s p r e s e n t e d on appeal a r e :

(1) Whether t h e D i s t r i c t C o u r t l a c k e d j u r i s d i c t i o n t o r e v i e w t h e i s s u a n c e of t h e G a l t C l a s s "D" C e r t i f i c a t e ?

(2) Whether t h e G a l t C l a s s "D" C e r t i f i c a t e i s s u e d by t h e PSC o n November 1 8 , 1 9 7 7 , i s v o i d ?

(3) Whether t h e o r d e r o f t h e D i s t r i c t C o u r t d e p r i v e s G a l t and M i n t y a l a o f d u e p r o c e s s of law?

(4) Whether t h e D i s t r i c t C o u r t u s u r p e d t h e a u t h o r i t y o f t h e PSC t o c a n c e l motor c a r r i e r c e r t i f i c a t e s ?

(5) Whether t h e D i s t r i c t C o u r t e r r e d i n g r a n t i n g a permanent s t a y a g a i n s t t h e proposed t r a n s f e r of t h e G a l t C l a s s "D" C e r t i f i c a t e ?

W f i n d i s s u e s one and two t o b e d i s p o s i t i v e of t h i s

e appeal.

A p p e l l a n t s , G a l t and M i n t y a l a , c o n t e n d t h a t t h e D i s t r i c t C o u r t l a c k e d j u r i s d i c t i o n t o d e c i d e t h e v a l i d i t y of t h e G a l t C l a s s "D" C e r t i f i c a t e f o r two r e a s o n s . F i r s t , t h e implementa- t i o n p r o v i s i o n , s e c t i o n 8-102.1, R.C.M., 1947, c o n t a i n s a s e v e n month t i m e t a b l e b e g i n n i n g J u l y 1, 1977, and e n d i n g on J a n u a r y 31, 1978. G a l t and M i n t y a l a a r g u e t h a t s e c t i o n 2-4- 702, MCA, a p r o v i s i o n of t h e Montana A d m i n i s t r a t i v e P r o c e d u r e Act, required appeals r e l a t i n g t o c e r t i f i c a t e s issued pursuant t o s e c t i o n 8-102.1, R.C.M., 1947, t o be p e r f e c t e d w i t h i n 30 d a y s of t h e t e r m i n a t i o n of t h e s e v e n month t i m e l i m i t a t i o n . G a l t and M i n t y a l a c o n t e n d t h a t s i n c e no such a c t i o n was t a k e n w i t h i n t h e 30 day p e r i o d b e g i n n i n g J a n u a r y 31, 1978, t h e v a l i d i t y of t h e c e r t i f i c a t e c o u l d n o t l a t e r be r a i s e d b e f o r e and d e c i d e d by t h e D i s t r i c t C o u r t .

S e c o n d l y , G a l t and M i n t y a l a a r g u e t h a t t h e s o l e i s s u e b e f o r e t h e PSC r e g a r d i n g t h e proposed t r a n s f e r of t h e G a l t C l a s s "D" C e r t i f i c a t e was t h e f i t n e s s of M i n t y a l a t o o p e r a t e under t h a t c e r t i f i c a t e . A l l t e s t i m o n y r e c e i v e d by t h e PSC a t t h e h e a r i n g on September 7 , 1978, r e l a t e d o n l y t o t h e f i t n e s s of M i n t y a l a . G a l t and M i n t y a l a a r g u e t h a t , a s a r e s u l t of t h e l i m i t e d n a t u r e of t h i s h e a r i n g , t h e o n l y i s s u e t h a t t h e D i s t r i c t C o u r t c o u l d p r o p e r l y r e v i e w on a p p e a l was Mintyala's f i t n e s s .

Both c o n t e n t i o n s a r e w i t h o u t m e r i t . S e c t i o n 2-4-702, MCA, r e l a t i n g t o a p p e a l s from a d m i n i s t r a t i v e d e c i s i o n s , p e r t a i n s t o t h e i n i t i a t i o n of j u d i c i a l r e v i e w i n c o n t e s t e d cases. The c e r t i f i c a t e i s s u i n g p r o c e s s conducted by t h e PSC w i t h r e g a r d t o t h i s new C l a s s "D" C e r t i f i c a t e d i d n o t c o n s t i t u t e a contested case. T h e r e f o r e , t h e 30-day a p p e a l l i m i t a t i o n c o n t a i n e d i n s e c t i o n 2-4-702 ( 2 ) ( a ) , d i d n o t a p p l y t o t h e i s s u a n c e of t h e G a l t C l a s s "D" C e r t i f i c a t e and t h e D i s t r i c t C o u r t was n o t p r e c l u d e d j u r i s d i c t i o n t o d e c i d e t h e v a l i d i t y of t h a t c e r t i f i c a t e when t h e i s s u e was r a i s e d a t a l a t e r date.

S e c t i o n 2-4-702 (1) b ) , MCA, p r o v i d e s t h a t a

( ". . . p a r t y may n o t r a i s e any o t h e r q u e s t i o n n o t r a i s e d b e f o r e t h e agency . . ." A r e v i e w of t h e r e c o r d c l e a r l y e s t a b l i s h e s t h a t t h e i s s u e of t h e v a l i d i t y of t h e G a l t C l a s s "D" C e r t i f i c a t e was r a i s e d b e f o r e t h e PSC p r i o r t o t h e h e a r i n g on September 7, 1978, w a s t a k e n under advisement by t h e PSC, was t h o r o u g h l y b r i e f e d by c o u n s e l f o r a l l p a r t i e s , and was, i n f a c t , t h e b a s i s f o r t h e o r i g i n a l PSC d e c i s i o n i n t h e m a t t e r . The v a l i d i t y q u e s t i o n p l a i n l y w a s r a i s e d b e f o r e t h e PSC and became an i s s u e which c o u l d be h e a r d and d e c i d e d by t h e D i s t r i c t C o u r t upon j u d i c i a l review. The D i s t r i c t C o u r t d i d n o t exceed i t s s c o p e of j u d i c i a l review.

The i s s u e of t h e v a l i d i t y of t h e G a l t C l a s s "D" C e r t i f i - c a t e , h i n g e s upon t h e r e q u i r e m e n t s s e t f o r t h i n t h e implementa- t i o n p r o v i s i o n , s e c t i o n 8-102.1, R.C.M., 1947. This s t a t u t e r e q u i r e d s u b m i s s i o n of ". . . w r i t t e n proof c o n s i s t i n g of p r i o r business records r e f l e c t i n g a transportation service f o r one y e a r p r i o r t o t h e e f f e c t i v e d a t e of t h i s a c t ( ~ u l y 1, 1977) . . ." These r e c o r d s were t o be s u b m i t t e d i n a n i n f o r m a l manner w i t h i n f o u r months of J u l y 1, 1977. Upon c o m p l e t i o n of t h i s r e q u i r e m e n t p a r t i e s r e c e i v e d ". . . a c e r t i f i c a t e of p u b l i c convenience and n e c e s s i t y a s a c l a s s "D" c a r r i e r a u t h o r i z i n g t r a n s p o r t a t i o n of t h e a b o v e - d e s c r i b e d commodities w i t h i n t h e g e o g r a p h i c a l a r e a d e s c r i b e d i n t h e proof s u b m i t t e d . "

To implement t h i s s t a t u t e , t h e PSC m a i l e d a form t o motor c a r r i e r s . G a l t r e t u r n e d h i s form completed a s f o l l o w s : II

NAME :

ADDRESS :

TELEPHONE NUMBER:

AUTHORITY NO: "IV. A r e you p r e s e n t l y o p e r a t i n g under t h e c e r t i f i c a t e i s s u e d

t o you by t h e Montana P u b l i c S e r v i c e Commission ( t h i s

means e a c h and e v e r y c e r t i f i c a t e ) ?

YES " 1 I I . I f you do NOT i n t e n d t o a c t i v e l y p a r t i c i p a t e i n g a r b a g e

h a u l i n g we w i l l r e s t r i c t your c u r r e n t C l a s s C and/or B

a u t h o r i t y a g a i n s t t r a n s p o r t i n g garbage.

-

I d o NOT want t o t r a n s p o r t g a r b a g e . D not

o

i s s u e m e Class D authority. You may r e s t r i c t

m current certificate(s) against transportation

y

of garbage.

I DO want t o t r a n s p o r t g a r b a g e . L i s t e d below

a r e b u s i n e s s r e c o r d s p r o v i n g t h a t I have

hauled o r attempted t o haul garbage.

Pump Bar

L y l e ' s Bar

P r e s b y t e r i a n Church

G a l t ' s Hardware

G a l t ' s Garage

"We h a u l f o r anyone who wants u s t o b u t most p e o p l e h e r e

h a u l t h e i r own now. I n p a s t years we hauled f o r a l l t h e

businesses & a l o t of t h e l o c a l people.

" I N ANY EVENT (REGARDLESS O F WHAT YOU CHECK A B O V E ) , SUBMIT

THE APPROPRIATE CERTIFICATE(S) OR AN AFFIDAVIT STATING THAT

I T H S BEEN LOST, BY NOVEMBER 1, 1977.

A "Oliver J. Galt C e r t i f i c a t e Holder" On t h e b a s i s of t h i s answer, t h e PSC i s s u e d G a l t C l a s s "DM C e r t i f i c a t e No. 1 3 9 0 ( A ) , a u t h o r i z i n g t r a n s p o r t a t i o n of g a r b a g e i n S t a n f o r d and a 70-mile r a d i u s t h e r e o f .

W e h o l d t h a t t h i s answer s u b m i t t e d by G a l t d i d n o t s u f f i c i e n t l y comply w i t h t h e r e q u i r e m e n t s of s e c t i o n 8- 102.1, R.C.M., 1947. The l i s t i n g of f i v e b u s i n e s s names w i t h o u t d e s i g n a t i o n of l o c a t i o n , s e r v i c e p r o v i d e d , o r d a t e s of s e r v i c e c l e a r l y i s n o t t h e s u b m i s s i o n of b u s i n e s s r e c o r d s r e q u i r e d by t h e s t a t u t e . Admittedly, t h e s t a t u t e c a l l e d f o r i n f o r m a l s u b m i s s i o n , b u t G a l t ' s answer f a i l s t o a c h i e v e t h e s t a t u s of even i n f o r m a l r e s p o n s e . The f a i l u r e t o comply w i t h s e c t i o n 8-102.1, R.C.M., 1947, n e c e s s i t a t e s a f i n d i n g t h a t C l a s s "D" C e r t i f i c a t e No. 1 3 9 0 ( A ) , i s s u e d by t h e PSC on November 1 8 , 1977, i s v o i d .

I n a c c o r d a n c e w i t h t h e f o r e g o i n g o p i n i o n , t h e judgment of t h e D i s t r i c t C o u r t i s a f f i r m e d . W e Concur: ~ ~ 4 ,9 ,

W@ Chief J u s t i c e