New Britain Transportation Co. v. Commissioner of Transportation
151 A.3d 823
Conn.2016Background
- Four private bus companies (Dattco, Collins Bus, Nason Partners, New Britain Transportation) hold pre-1979 certificates of public convenience and necessity authorizing operation over specified routes.
- In 1979–80 regulatory authority over bus certificates transferred to the Department of Transportation (DOT)/Commissioner; preexisting certificates were preserved unless suspended or revoked.
- Connecticut constructed a new busway incorporating some routes; the Commissioner sought new operators for those routes while the plaintiffs asserted exclusive rights under their certificates.
- While separate litigation over exclusivity was pending and a preliminary injunction issued, the Commissioner condemned the plaintiffs’ certificates under eminent domain, prompting these consolidated suits.
- The trial court granted the Commissioner summary judgment, holding General Statutes § 13b-36(a) (authorizing the Commissioner to take “land, buildings, equipment or facilities”) permitted condemnation of the certificates; plaintiffs appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 13b-36(a)’s authorization to take "facilities" includes government-issued operating certificates (intangible rights) | "Facilities" is limited to tangible assets; certificates are intangible operating rights that cannot be taken under § 13b-36(a) | "Facilities" has a broad meaning (anything that promotes or facilitates an action) and includes intangible operating rights like the certificates | The term "facilities" does not encompass government-issued operating certificates; Commissioner lacks statutory authority under § 13b-36(a) to condemn the certificates |
| Whether contextual cues in title 13b support a broad or narrow meaning of "facilities" | Context (grouping with land, buildings, equipment; usage elsewhere in title) shows "facilities" refers to tangible assets | A broad dictionary meaning and functional/ancillary powers imply a broader reach | Context and statutory scheme indicate "facilities" refers to tangible items; a broad construction would render other terms superfluous and conflicts with strict construction of eminent domain delegations |
| Whether the Commissioner’s incidental powers or power to take tangible assets imply power to take operating rights | Taking tangible assets does not imply authority to take intangible operating rights; legislature granted explicit authority to take franchises to transit districts, but not to Commissioner | Condemning tangible assets of a bus company implicitly permits taking operating rights necessary to operate routes | Incidental or implied powers do not supply the required clear delegation to condemn operating rights; omission of explicit authority is significant |
| Remedy on appeal after finding no statutory authority to condemn certificates | Plaintiffs sought injunctions preventing condemnation and use of routes; trial court did not decide injunctive scope | Commissioner opposed preventing his actions pending remand | Reversed judgment for Commissioner; remanded to enter judgment for plaintiffs on the condemnation issue and to allow trial court to determine need and scope of injunctive relief on remand |
Key Cases Cited
- Gray Line Bus Co. v. Greater Bridgeport Transit District, 188 Conn. 417 (Conn. 1982) (recognizes property interest in certificates of public convenience and necessity)
- Pequonnock Yacht Club, Inc. v. Bridgeport, 259 Conn. 592 (Conn. 2002) (delegations of eminent domain power are strictly construed and interpreted in favor of property owners)
- Northeastern Gas Transmission Co. v. Collins, 138 Conn. 582 (Conn. 1952) (statutory delegation of takings power limited by express terms or clear implication)
- Mississippi Power & Light Co. v. Clarksdale, 288 So. 2d 9 (Miss. 1973) (interpreted "facilities" to include operating rights where contrary construction would raise constitutional issues)