Opinion
No. 24744
Decided November 21, 1934.
Public Utilities Commission — Motor transportation companies — Granting or extending certificates of convenience and necessity — Notice of hearing to utilities operating in territory — Section 614-91, General Code — Failure to give notice pertains only to jurisdiction of person, not subject-matter — Waiver of right to vacate order by delay in protesting.
1. The Public Utilities Commission has complete jurisdiction over the subject-matter of granting and extending of certificates of public convenience and necessity over the highways of the state. Failure to give written notice pursuant to Section 614-91, General Code, pertains not to jurisdiction of the subject-matter but to jurisdiction over the person, which may be waived.
2. On April 20, 1931, a motor transportation company secured an order from the commission, amending its certificate so as to extend its route over a portion of that for which the complaining companies also held certificates of public convenience and necessity. With full knowledge of the operations under the amended certificate of extension, the complaining companies, two years and seven months after such order was made, applied to the commission for the vacation thereof for the reason that the commission had not given complainants the written notice required by Section 614-91, General Code. Held: By failing to make timely protest after such knowledge and by waiting so long a period before filing their complaints, the complainants waived their right to seek an order vacating the order of extension granted on April 20, 1931. ( Erie Rd. Co. v. Public Utilities Commission, 128 Ohio St. 472, distinguished.)
ERROR to the Public Utilities Commission.
When this proceeding was instituted before the Public Utilities Commission the plaintiffs in error held separate certificates of public convenience and necessity authorizing the transportation of property between Toledo and Cleveland, and Lorain and Cleveland via Elyria, Ohio.
Prior thereto one Watson had held a similar certificate of authorization for the carrying of property between Cleveland and Berea, Ohio. In March, 1931, Watson filed his application for an extension of his certificate from Berea to Elyria, a point on the route of the plaintiffs in error.
No written notice was given by the commission to the plaintiffs in error of Watson's said application for an extension of his certificated route from Berea to Elyria.
A hearing was had upon the application for extension, no representatives of plaintiffs in error being present, and on April 20, 1931, the commission entered an order authorizing Watson to extend his route from Berea to Elyria. In the following July, the commission authorized its transfer of Watson's amended certificate to The Watson Transfer Company, the respondent in the present proceeding.
On December 4, 1933, the plaintiffs in error filed their complaint before the commission, setting forth substantially the foregoing facts, and asked that the commission's order of April 20, 1931, be vacated because of want of jurisdiction, and that The Watson Transfer Company should be directed to cease its operation under the order of extension theretofore made. On March 1, 1934, the commission denied and dismissed the complaints of plaintiffs in error, finding that they had actual notice of Watson's application for an extension and that they had failed to enter protests thereto. Rehearing being denied, this proceeding in error from the commission's order was filed in this court.
Mr. Elber J. Shover, for plaintiffs in error.
Mr. C.C. Crabbe, Mr. Justin L. Stillman and Mr. Gilbert Morgan, for The Watson Transfer Company.
Mr. John W. Bricker, attorney general, and Mr. Donald C. Power, for defendant in error.
Section 614-91, General Code, requires that when applications for certificates to operate between fixed termini are filed, the Public Utilities Commission shall give written notice of such filing to like transportation companies operating in the territory through which the applicant proposes to operate. When a hearing date is fixed by the commission, it is required to give the applicant and the other transportation companies operating in the same territory at least ten days notice of the time of hearing. The notices required to be given pursuant to the foregoing code section were not here given, and for that reason the plaintiffs in error challenge the jurisdiction of the commission to hear Watson's application resulting in the order of extension made April 20, 1931, and contend that it is void. The commission found that the plaintiffs in error had actual notice of the filing and pendency of Watson's application for an extension. The application was granted on April 20, 1931. No complaints against such order of extension were made until December 4, 1933, more than two years and seven months after the order of extension was made.
The record discloses that during this intervening time the respondent was engaged in actual operation under its certificate of extension, that the applicant for extension had caused public notices of the application to be published in newspapers of general circulation in the counties through which the applicant proposed to operate, and that officials of two of the plaintiffs in error, at or shortly after the extension order had been granted by the commission, were advised of intended operations of respondent between Cleveland and Elyria under the extension order.
The plaintiffs in error offered no testimony substantially controverting these facts, but rest on their legal contention that, because of its failure to give the notice required by Section 614-91, General Code, the commission acted without jurisdiction and its order of April 20, 1931, was null and void.
That brings us to the crucial question, whether the plaintiffs in error, under the situation presented, are now estopped from attacking an order made two years and seven months prior to the filing of their several complaints for vacation; and whether by their knowledge and conduct they have waived their right to challenge the order of extension made on April 20, 1931.
Motor transportation companies in this state acquire no vested right for unlimited continuous operations over the state highways. Their certificates may be amended, revoked for cause, or otherwise impinged upon by the grant of other certificates over the same route, when public convenience and necessity is thereby subserved. The commission had undoubted jurisdiction of the subject-matter. Whatever failure of jurisdiction may have been lacking in the proceeding instituted in March, 1931, it consisted in the failure to obtain personal jurisdiction over the parties entitled to notice. The latter may be, and in this case was, waived by the complainants in permitting the respondent to operate under its amended certificate, with full knowledge of the operation thereunder, and by waiting for so long a period of time before entering their complaint before the commission. They failed to make timely protest.
The plaintiffs in error rely on the case of Erie Rd. Co. v. Public Utilities Commission, 128 Ohio St. 472, 191 N.E. 782, where this court held that the failure of the commission to give the required statutory notice was not waived by the railroad company by reason of the latter's mere knowledge of the filing and pendency of an application for a certificate prior to the decision of the commission. That case is authority supporting the principle that in proper cases the principle of estoppel or waiver may be invoked; but the features distinguishing that case from this are, first, that while the railroad company knew of the application and its filed request it was not presumed to know that the terms of the application would be later enlarged in the final order, to its prejudice; and second, that when it did learn of the order it filed a timely protest by seeking its vacation shortly after the order was made.
The order of the Public Utilities Commission is affirmed.
Order affirmed.
WEYGANDT, C.J., STEPHENSON, MATTHIAS, BEVIS, ZIMMERMAN and WILKIN, JJ., concur.