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Freightways, Inc. v. Arizona Corp. Commission
630 P.2d 541
Ariz.
1981
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*1 P.2d FREIGHTWAYS, INC., dba Arizona Arizona

Petitioner,

The ARIZONA CORPORATION COM

MISSION, Tims, Jim Wеeks and Bud earn, Ah as Members of Said Com

John Corp. and Purolator Courier corporation, and Dial-A-Mes

New York

senger, corporation, Inc. an ‍‌‌​​‌​​‌‌​‌‌‌​​‌​​‌‌​​‌​‌‌​‌​‌​‌‌‌​‌‌‌​‌​‌‌​‌​‌​‍Arizona Interest, Respondents.

Real Parties Court Arizona.

Feb.

Rehearing Denied March

Yankee, Lutich, Bernstein & P. C. Thomas W. McLellan and A. Michael Bern- stein, Phoenix, pеtitioner. Corbin, Atty.

Robert K. Gen. Charles Pierson, Gen., Phoenix, Atty. S. Asst. Corp. Arizona Commission.

Evans, Hammond & Milliken Phil B. Tellier, Phoenix, Hammond and ‍‌‌​​‌​​‌‌​‌‌‌​​‌​​‌‌​​‌​‌‌​‌​‌​‌‌‌​‌‌‌​‌​‌‌​‌​‌​‍John R. Corp. CAMERON, Justice. petition

We ac- 7(a), pursuant tion to Rule Rules of Proce- Actions, A.R.S., Special dure for 17A Article 5 óf Constitution of state-wide im- because this is a matter portance equal, plain, speedy there is no adequate remedy by appeal. following question: We answer the must corporation Is the Arizona Commission es- topped of a necessity because in the certificate’s renewal or of a defect fifty years earlier? issuance in some The facts to a resolution of this issue as follows. On 4 June Corporation Commission issued a Arizona publiс conve- motor carrier certificate of (then necessity “permis- nience and called a sion”) peri- to Louis for a one Upon od. *2 permission setting transfer

mission renewed an the certificate to United expiration May date of Respondents Corpo- Inc. Inc., Dial-a-Messenger, ration and were promulgated In an Commission granted protestants as leave to intervene part: order relevant which read in “ * * * law, and filed a of memorandum which was permits and all certificates now by treated as a to the Commission motion outstanding issued and and which are not revocation, subject application. Respon- for to dismiss the any reason shall transfer automatically еxpire extended to on expired certificate contended that the December, day 1926 if the 31st on December 1928 because Schade’s permit in expiration date of named comply to the 30 failure with November рrior to that *. certificate is filing date Order 102-A. The of General permits renewal of “Applications for and motion to dismiss. Commission denied the be filed on certificates must or before the application rehearing, for Purolator filed an day November of the 30th calendar prior and the rescinded its deci- Commission authority operate in which the to granted motion sion and Purolator’s to dis- expires. grounds application on the miss the transfer Nо. General Order 102-A. expired that the certificate on December certificate were Renewals Schade’s was no consequently there certifi- extending by the Commission cate to The Commission also or- transfer. oрerate authority Schade’s to as a motor Attorney dered the General Arizona to December 1928. carrier until 31 Schade bring an enjoin action to application filed for renewal cer- an operations а certificated as motor year 1929 on tificate for the 26 December carrier. days of 30 after deadline Corpo- From the the Arizona decisions of by the imposed Commission Commission, petitioner Freightways, ration 102-A, days through but 5 General Order brought accept- action. We Inc. prior expiration certificate. jurisdiction stayed the ed Commission application Schade also filed an on 19 Feb- ruary appli- pending the 26 December decision determination 1930. Unlike and order cation on face that it which indicated by this court. renewal, Feb- application was the 19 an If the the certificate on 6 issuance of it ruary application did not indicate that Mаrch 1930 result of the Febru- was the application. On March was a renewal ary Commission renewed certificate was Schade’s jurisdiction have without to is- would been Commission, al- hearing without was no sue the certificate as there

though whether the certificate it is unclear application. George v. Arizona Cor- on application for response was in to the issued Commission, poration renewal, or the filed on 26 application the late As to February application on filed renewal 26 December filed order, contends: transfers, approved all After a series of view, language of General “In our Commission, Freight- petitioner as to the deadlinе Order No. 102-A ways possession the certificate. came into jurisdiction- application is renewal been, as Thus above, As authori- al. we noted holder of far as the Commission concerned, continually ty of certificаtes renewal effect, since force if not ap- 102-A. would General Order 1924, ‍‌‌​​‌​​‌‌​‌‌‌​​‌​​‌‌​​‌​‌‌​‌​‌​‌‌‌​‌‌‌​‌​‌‌​‌​‌​‍at on 9 June originally issued then, compliance with its pear, strict least 6 March since prerequisite ex- provisions would be a renewing under privilege ercise of Freightways filed On 21 December General 102-A.” the Commission Order Indeed, application. parties agree at the Commission file power to waive a memo to the Commission which time had the strict contains compliance certificate “was not with its but there is no states year” renewed last because of a failure indication that this was done in the instant pay because, reports file taxes as a result of a surprising case. This is not Transfеrman’s Asso- time, lawsuit passage such action question, contains the ciation. The memo present- *3 reflected in the contents of the file for the you “Do wish to issue certificate however, ly Assuming, that the hearing? a Please ad- 1930 or hold jurisdictional vise.” One commissioner initialed after (permission) and that writing “approved,” and the in the word after 31 we void believe other noted “issue without as the estopped that the Commission is the agreed parties thе validity fifty of the certificate after over only suit.” We believe that not did the years of use various holders. facts, expected the Commission know or, Equitable estoppel as it is sometimes the certificate to be used Sсhade and his called, estoppel pais, may generally not recognized by successors in interest the against sovereign. be invoked This as? public. pub- The certificate holders and the sumes, course, that the elements of es- exactly fifty years. lic did that for over toppel exist: hand, Freightways, on the other lacked “Equitable estoppel is a rule of knowledge any defect in the certificate which, field, prevails in its over all certificаte, upon relied and if the (citation omitted) equita- other An canceling Commission succeeds in their cer- estoppel ble will be found where all tificate, Freightways certainly prej- will be necessary the elements for its invocation position. udiced the Commission’s It is are shown to the court. United Freightways, accepted true that when it Georgia-Pacific Company, States transfer of the could have dis- (9th 1970). Cir. respon- covered the same informаtion the Ninth Circuit Court of however, agree, herein found. We Appeals has stated: with the United States Ninth Circuit Court present “Four elements must be to estab that reliance should be con- estoppel: (1) lish the defense for person sincerely if sidered reasonable “a estopped must know the obeying desirous of the law would have facts; (2) he must intend that his conduct true, accepted the information as and would shall be acted on or must so act thаt the put not have been fur- on notice to make party asserting has a inquiries.” Lansing, ther United States v. intended; (3) believe it is so the latter 424 F.2d facts; ignorant must be of the true immaterial (4) rely he must on the former’s conduct Schade, facts, knоwing holder not injury, (citation omitted)” Hamp to his have been able to avail himself of the doc- ton v. Paramount Pictures trine of in 1930. We are concerned 279 F.2d 84 A.L.R.2d availability here with the of the doctrine to (9th Cir.),1 cert. denied 364 U.S. holder, prеsent Freightways. S.Ct. 5 L.Ed.2d 103 We believe that under the facts of this case We feel elements elements have been shown have been demonstrated to exist. The then is whether the facts in the instant case. The Commission doctrine should be to the Commis- knew of the defect in the entity sion because it is an of the state Court, citing ty: State, Estoppel Applied Against 1. The New Mexico Am.Jur., Estoppel listed six elements of N.M.L.Rev. 501 We believe the facts estoppel. Carlsbаd, satisfy requirements See Westerman v. this case all six of Wester Otten, Equi 55 N.M. 237 P.2d 356 man. sovereign. Thompson, Equitable damaged by up- will not be See toppel of the 79 Colum. holding validity L.Rev. of the certificate of necessity, and there is no sovеreignty threat to the of the Commission Realizing estoppel” that this “no rule has upholding validity have, injustice, resulted in the courts issued, the Commission has renewed and situations, Excep- certain relaxed the rule. fifty year period. transfеrred for over a made, example, tions have been ‍‌‌​​‌​​‌‌​‌‌‌​​‌​​‌‌​​‌​‌‌​‌​‌​‌‌‌​‌‌‌​‌​‌‌​‌​‌​‍autho- damage will be On the other rizing estoppel by allowing defensive use of upon which relied done a defendant citizen to use the doctrine operation freight certificate in the plaintiff government for the rea- great. business will be government son that “when seeks court, rights equity at the hands re- Balancing equities, we believe the well, quires rights of others as ques- Commission should be protectеd.” should tioning the of the certificate based *4 Stinson, 1903), F. aff’d upon conduct which occurred in 1929 and 426, 49 197 U.S. 25 S.Ct. L.Ed. declaring Freightways’ (1905). void: made Distinction has also been between recognize “We in its usual governmental proprietary functions: generally applicable against sense is not defenses, governmental general, sovereign in the exercise of equitable

“In such as laches, functions, justice lie where will not state, it, agencies applied will or subdivisions in dеmand the doctrine be affecting governmental matters or sover- Silver Consolidated School functions, omitted) eign (citations Regents, On District No. 1 Board state, agency 106, 111, the other when the or 401 P.2d N.M. proprietary municipality aсts within Admittedly, much we base of our decision equitable capacity, these defenses long period elapsed on the of time ” * * * (citations omitted) in the issuance of the between the defect Mohave-Kingman County v. Mohave attempt by the Commis- certificate and the tates, Inc., 417, 421, time neces- to cancel it. How much sion ripen can into sary before a void certificate excep Whatever the basis for these consider at this valid сertificate we do not rule, appear general tions to the it would on a will have to be determined time. That will that where the basis, hesitancy but we have no case case state of its not affect the exercise century is sufficient. saying that a half governmental powers sovereignty, its decision the Commission based Since bind it unauthorized acts of its officers alone and on the will, employees, when objection raised did not consider the оther dictates, Anno be to the state. See protestants, the two that is whether tation, Note, 1 A.L.R.2d 338 Never fit and transferee was a Estoppel Against Trust A Bureaucrat: will have to issued a the matter S.Cal.L.Rev. hearings consist- be remanded for Ninth Circuit Court of opinion. ent “sovereign” can has held Reversed and remanded. government’s wrongful if the injus- threatens to work ‍‌‌​​‌​​‌‌​‌‌‌​​‌​​‌‌​​‌​‌‌​‌​‌​‌‌‌​‌‌‌​‌​‌‌​‌​‌​‍a serious conduct STRUCKMEYER, J.,C. and HAYS and tice and if the interest would GORDON, JJ., concur. damaged estop- unduly imposition Justice, HOLOHAN, Vice Chief concur- Ranch, pel. Lazy FC ring. (9th Cir. 27 A.L.R.Fed. 694 case, I concur in the result. In the instant interest of

Case Details

Case Name: Freightways, Inc. v. Arizona Corp. Commission
Court Name: Arizona Supreme Court
Date Published: Feb 2, 1981
Citation: 630 P.2d 541
Docket Number: 15087
Court Abbreviation: Ariz.
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