Sherdon v. American Communication Co.
Sherdon v. American Communication Co.
Opinion of the Court
This was an action before the Nebraska State Railway Commission instituted by a complaint filed by the director of communications of the commission, to- establish a telephone service area boundary between the two defendants under the authority of Section 1.6, Article 3, Chapter V, of the rules and regulations of the commission. The commission entered an order sustaining the formal complaint, revising the service areas of the defendants, and ordering them to- file revised telephone service area maps. The defendant, Deshler Telephone Company did not file an answer or otherwise respond and the defendant American Communication Company has appealed.
On June 9, 1956, the Nebraska State Railway Commission entered its order granting an application to trans
In 1959, the Legislature enacted section 86-214, R. S. Supp., 1959, now section 75-605, R. S. Supp., 1963, and the commission promulgated Chapter V, Article 3, section 1, of its rules and regulations, all relating to the requirement of commission approval of boundary changes and the filing of maps showing such changes. The American Communication Company and Deshler Telephone Company on March 27, 1961, and August 9, 1960, respectively, filed their territorial maps. The American Communication Company map was identical, as to the area now disputed, to that which had been approved by the commission upon transfer of the Byron Telephone Company properties some 4 years before. The commission had never changed the boundary, nor had American Communication Company ever requested any change. The Deshler Telephone Company filed a map showing a boundary which extended into the American Communication Company territory, and included the seven former Byron Telephone Company subscribers. The Deshler Telephone Company had never before
The disputed area was a rural area approximately three miles long by three-quarters of a mile wide plus the north half of Section 14, Township 1 North, Range 4 West of the 6th P.M. Of the seven persons living in the disputed area, two were receiving telephone service from the Deshler Telephone Company on lines which they installed themselves. The Deshler Telephone Company had no agreement with American Communication Company and had served one of the subscribers since 1960, but this service encroachment was not explained. Two of the subscribers were receiving telephone service from the American Communication Company and three did not have any telephone service at all, although
The order of the commission revised the service areas of the two defendants in accordance with the prayer of the complaint and ordered the defendants to file revised service area maps. The necessary result of this order is to revoke in part American Communication Company’s certificate of convenience and necessity granted to it by the commission in 1956 and also to enlarge the service area of the Deshler Telephone Company into the area formerly served by the Byron Telephone Company, now American Communication Company. This court has held that where the Legislature enacts specific legislation implementing Article IV, section 20, of the Constitution, the Nebraska State Railway Commission is subject to and governed by the provisions of such enactment. Neuswanger v. Houk, 170 Neb. 670, 104 N. W. 2d 235. Although that case involved a certificate of public convenience and necessity of a motor carrier, this court held that the applicable statute was specific legislation with regard to a particular subject and that the commission, in order to revoke, change, or suspend the certificate, must proceed in accordance with the statute.
Section 75-604, R. S. Supp., 1963, originally section 86-213, R. S. Supp., 1961, was enacted in 1951, except for subdivision (3) which was enacted in 1961. This is also
The cases in which the statute has been considered
Buhr v. Glenwood Tel. Membership Corp., 177 Neb. 164, 128 N. W. 2d 607, involved a similar situation. The commission granted the request in that case and, as- it did here, ordered both companies to file revised service area maps. In reversing the order of the commission, this court said: “We point out that under the quoted statute the grant of a certificate of convenience and necessity to permit one telephone company to. invade the certificated area of another may be granted only upon the application, of the invading company for a certificate of convenience and necessity.” The court also held: “We hold that the commission was without authority in law to entertain an application by Buhr for the grant of a certificate of convenience and necessity to Lincoln Telephone. Any such authority to grant a certificate of convenience and necessity to invade the certificated area of another telephone company must be on the application of the invading company for a certificate of convenience and necessity in accordance with section 86-213, R. S. Supp., 1961.”
In the two cases cited action was instituted by telephone subscribers and not by the application of either company involved. In this case it is clear that the complaint was initiated when one of the former subscribers visited the commission concerning his desire to receive telephone service from Deshler and the commission obtained the letter from the other subscribers. The filing of a complaint by the commission or by its' director of
The Nebraska State Railway Commission has no power to order a telephone company to extend its service into the certificated service area of another company unless such telephone company has first applied for and received a certificate of convenience and necessity.
In this case, the Deshler Telephone Company filed no application or petition, did not answer nor file a pleading, and made no formal request that it be permitted to serve the area in question. It is clear the subscribers in the area initiated the request. In the Kopf case, supra, the court said: “These statutory provisions permit the extension of service by one company into- the service area of another but they do not permit the commission to require such extension.” The court also said: “No statute has been referred to which imposes any such requirement. Any effort of a telephone company to enter the territory of another is subject to action of the commission but the matter of compulsory entrance into occupied or unoccupied territory does not appear to have received legislative attention.”
In the Buhr case, supra, this court stated: “Under section 86-213, R. S. Supp., 1961, the only way that a telephone company may properly invade the certificated area of another is by its filing of an application for a certificate of convenience and necessity, and establishing a right thereto in conformity with the provisions of the act. Such an invasion by a telephone company of the certificated area of another may not be granted on request of a user who prefers the service of the invading company. This is made abundantly clear by our holding in the Kopf case.”
The commission in the case now before the court had no more authority to direct the Deshler Telephone Company to enter the disputed area than it did to order
Since the action of the commission was in violation of section 75-604, R. S. Supp., 1963, its order is void and of no effect. The order of the commission is reversed.
Reversed.
Reference
- Full Case Name
- In re Herbert J. Sherdon, Director of Communications of the Nebraska State Railway Commission. Herbert J. Sherdon v. American Communication Company, Belleville, Kansas, Impleaded with Deshler Telephone Company, Deshler, Nebraska
- Cited By
- 7 cases
- Status
- Published