Billings Yellow Cab, LLC v. State
2014 MT 275
| Mont. | 2014Background
- SB 140 ( §69-12-328, MCA ) directed PSC to grant PCN certificates to grandfathered charter carriers; those not grandfathered must prove statewide need for public convenience and necessity.
- Yellow Cab operated charter service statewide since 2009 and owned 10–26 passenger vehicles, generating about 25% of revenue.
- Yellow Cab sought a grandfathered PCN certificate but lacked a DOT number in the year before Jan. 1, 2011, leading to PSC denial.
- Yellow Cab then applied for a Class B PCN certificate under §§ 69-12-321 to 69-12-323; PSC held a public hearing May 2, 2012 and denied on June 27, 2012 by a 3–2 vote.
- Yellow Cab petitioned for judicial review after the second denial; district court affirmed PSC andYellow Cab appealed the constitutional and evidentiary challenges.
- The Montana Supreme Court reviews agency decisions for substantial evidence and law, applying Montana Administrative Procedure Act standards.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Constitutional taking/equal protection by grandfather provision | Yellow Cab alleges retroactive burden and DOT-number distinction violates due process/equal protection | PSC applied SB 140 as a legitimate regulatory scheme; no cognizable taking given absence of compensable property interest | No taking or equal protection violation; claims improper because SB 140 and grandfather provision operate within regulatory scheme |
| Whether denial of PCN certificate was proper | Yellow Cab showed statewide need and PSC erred | PSC acted within discretion; substantial evidence supported denial | PSC denial sustained; substantial evidence showed no statewide need for Yellow Cab’s charter service |
| Exclusion of Exhibit 2 at hearing | Exhibit 2 contains admissible public-records and supports need for charter service | Exhibit 2 was not sufficiently foundationed and lacked applicable hearsay basis | Affirmed exclusion; PSC did not abuse discretion |
Key Cases Cited
- City of Billings v. Albert, 349 Mont. 400, 203 P.3d 828 (2009 MT) (constitutional review standard; burden on challengers; presumption of constitutionality)
- Citizens Awareness Network v. Mont. Bd. of Envtl. Rev., 355 Mont. 60, 227 P.3d 583 (2010 MT) (scope of review under the Montana Administrative Procedure Act; arbitrariness)
- Ostergren v. Dep’t of Revenue, 319 Mont. 405, 85 P.3d 738 (2004 MT) (same-standard review of agency decisions)
- Ray v. Mont. Tech of the Univ. of Mont., 335 Mont. 367, 152 P.3d 122 (2007 MT) (clear-error standard for findings of fact; abuse of discretion)
- Cenex Pipeline LLC v. Fly Creek Angus, Inc., 292 Mont. 300, 971 P.2d 781 (1998 MT) (reviewing agency decisions for errors of law and fact)
- N. Fork Pres. Ass’n v. Dep’t. of State Lands, 238 Mont. 451, 778 P.2d 862 (1989 MT) (evidentiary review and agency discretion)
- Glacier Tennis Club at the Summit, LLC v. Treweek Constr. Co., 320 Mont. 351, 87 P.3d 431 (2004 MT) (abuse of discretion standard in evidentiary rulings)
- State v. Riggs, 327 Mont. 196, 113 P.3d 281 (2005 MT) (abuse of discretion; substantial rights)
- Montanans v. State, 334 Mont. 237, 146 P.3d 759 (2006 MT) (constitutional or statutory error standard for findings)