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In re Petition of Golden Plains Servs. Transp.
297 Neb. 105
| Neb. | 2017
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Background

  • Golden Plains Services Transportation, Inc., a Nebraska-certified "open class" carrier, was told by the Nebraska Public Service Commission (Commission) to stop "taxi" operations after the Commission received information it might be operating on a taxi (on-demand) basis.
  • Golden Plains sought a declaratory ruling on whether Rule 010.01C permits open class carriers to operate on-demand (taxi-like) services or only prearranged trips.
  • The Commission declined a declaratory ruling, opened an investigation, and issued an order interpreting Rule 010.01C to allow open class carriers to provide passenger-for-hire service only on a prearranged basis and not on-demand.
  • Golden Plains appealed the Commission’s interpretation to the Nebraska Supreme Court, arguing the Commission misread Rule 010.01C and should have applied grandfathering/color-of-right to past operations.
  • The Commission relied on its statutory authority to interpret regulations; Golden Plains argued the rule’s plain language does not restrict on-demand service and the Commission had previously stated open class carriers could operate prearranged or on-demand.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether Rule 010.01C limits open class carriers to prearranged trips Rule 010.01C’s plain language does not restrict on-demand service; prior Commission comments show both prearranged and demand allowed Commission: may interpret scope of rules and concluded open class carriers are limited to prearranged service Court: Reversed — Rule 010.01C contains no language limiting open class to prearranged only; Commission’s interpretation is unsupported and erroneous
Whether Commission may impose a blanket restriction via interpretation without rulemaking Golden Plains: Commission cannot read a restriction into the rule that is not present; that would amount to creating a new rule without APA notice-and-comment Commission: § 75-118.01 authorizes the Commission to determine scope/meaning of regulations Court: Reversed — interpreting to add a restriction absent textual support improperly creates a new rule and exceeds interpretive authority
Whether Commission’s prior statements affect interpretation Golden Plains: prior Commission commentary and parallel rule language (limousine rule) show intent not to limit open class to prearranged only Commission: relied on current investigatory interpretation regardless of past commentary Court: Agreed that prior comments and the absence of limiting language (unlike limousine rule) support that Rule 010.01C was not meant to restrict to prearranged service
Whether the court should apply grandfathering/color-of-right to Golden Plains’ past operations Golden Plains argued it should be protected by prior practice/history Commission did not apply grandfathering and argued rule interpretation controls going forward Court did not base reversal on grandfathering; decision rests on textual interpretation of the rule

Key Cases Cited

  • Shaffer v. Nebraska Dept. of Health & Human Servs., 289 Neb. 740 (Neb. 2014) (standards for appellate review of statutes and regulations)
  • Chase 3000, Inc. v. Nebraska Pub. Serv. Comm., 273 Neb. 133 (Neb. 2007) (agency rule interpretation treated like statutes)
  • In re Proposed Amend. to Title 291, 264 Neb. 298 (Neb. 2002) (Commission may interpret existing rules but cannot create new rules without APA compliance)
  • Utelcom, Inc. v. Egr, 264 Neb. 1004 (Neb. 2002) (regulatory language ordinarily given plain and ordinary meaning)
Read the full case

Case Details

Case Name: In re Petition of Golden Plains Servs. Transp.
Court Name: Nebraska Supreme Court
Date Published: Jun 30, 2017
Citation: 297 Neb. 105
Docket Number: S-16-734
Court Abbreviation: Neb.