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Regency Limo, Inc. v. Celebrity Limousine Service

Citations: 386 N.W.2d 444; 222 Neb. 684; 1986 Neb. LEXIS 957Docket: 85-882

Court: Nebraska Supreme Court; May 2, 1986; Nebraska; State Supreme Court

Narrative Opinion Summary

In this case, the Nebraska Public Service Commission granted Regency Limo, Inc. the authority to operate as a common carrier for limousine services in the Omaha Metropolitan area. Regency aimed to charge $45 per hour for its luxury stretch limousine service, targeting a specific market segment. However, existing providers, Celebrity Limousine Service and Old Market Limousine Service, Inc., contested this decision, arguing that Regency failed to prove a public need not already served by the current market. The Supreme Court of Nebraska reversed the Commission's decision, determining that Regency did not present sufficient evidence of unmet public demand as required under Neb. Rev. Stat. 75-311 for a certificate of public convenience and necessity. The court highlighted that the Omaha market was already saturated with limousine services, and Regency's justification lacked substantial market research. The court's decision emphasizes the applicant's burden to demonstrate public necessity, a point underscored by Justice White's dissent. The outcome reaffirms the Commission's discretion while mandating adherence to statutory requirements for proving public need.

Legal Issues Addressed

Burden of Proof in Administrative Proceedings

Application: The burden was on Regency Limo to demonstrate that their service was required by public convenience and necessity, which they failed to substantiate with adequate market research.

Reasoning: Justice White dissented, reiterating that the burden lies on the applicant to demonstrate that their service is required by public convenience and necessity, as defined by previous rulings.

Certificate of Public Convenience and Necessity

Application: The Nebraska Public Service Commission's authority to grant a certificate of public convenience and necessity was challenged when it approved Regency Limo's operations without sufficient evidence of unmet public demand.

Reasoning: Under Neb. Rev. Stat. 75-311, a certificate for limousine service should be issued if it meets public convenience and necessity; otherwise, it will be denied. The commission has discretion in determining these factors.

Judicial Review of Administrative Decisions

Application: The Supreme Court of Nebraska reviewed the Commission's decision and found it unreasonable due to lack of substantial evidence supporting unmet public demand for Regency Limo’s services.

Reasoning: The court's review of the commission's decision is limited to assessing whether it acted within its authority and whether its decision was reasonable.