Opinion ID: 427313
Heading Depth: 3
Heading Rank: 2

Heading: Radio, Airport and Contractual Business

Text: 30 Suburban is licensed in six municipal jurisdictions: The Airport, Bloomington, Richfield, Edina, Eden Prairie and Burnsville. Lessees are free to prospect for fares independently, Brief for Respondent at 9, but the vast majority of their business is obtained by radio communication from the radio facility of parent Minneapolis Yellow in downtown Minneapolis. The radio facility communicates with both Suburban's lessees and Minneapolis Yellow's commissioned drivers. Unlike commissioned drivers, a lessee may refuse runs offered over the radio, Tr. 34, 285 (JA 95, 147), but once he accepts a run he must complete it. ALJ Decision, supra note 1, at 25 (JA 38). Lessees are encouraged to keep their radios on at all times, but they are not required to do so. Tr. 186, 215, 246 (JA 124, 130, 141). Two drivers testified that they obtained 70 to 80 percent of their business from radio calls. Tr. 184, 238 (JA 122, 140). 31 The Airport is located immediately adjacent to or close by the suburban municipalities in the area where Suburban's cabs operate, and undoubtedly it is the source of a substantial proportion of Suburban's business. The Airport has a detailed regulatory Ordinance requiring the licensing of cabs and prescribing strict procedures for the operation of taxis at the Airport terminal. 8 The Ordinance regulates parking, traffic flow, and the loading of passengers and baggage by all vehicles used for public conveyance within the Airport. Airport Ordinance, supra note 8, p 11.2 (JA 249-50). An Airport starter is designated by the Metropolitan Airports Commission to call up taxi cabs from the taxi stand to any point which is designated for the purpose of picking up passengers or baggage. 9 The starter is an employee of the Airport--not Suburban. 10 Under the Ordinance, the Airport starter exercises general supervision over the taxi stand area and over the pick-up and discharge of passengers and baggage at the Airport. Id. paragraphs 11.2-11.4 (JA 249-55). The Ordinance provides that drivers may move out of line to pick up passengers in response to specific calls or for business for which Suburban has contracted for with other companies. Id. p 11(a), (b), (d) (JA 250). 32 Suburban has contracted with between 25 and 30 local corporations to furnish transportation, usually for packages, at flat rates which are agreed upon between the parties. See, e.g., Control Data Corporation (bulletin) (JA 207) (listing agreed fees for runs for Control Data Corporation). For runs not on the agreed fare list, meter fees are charged on a most-direct-route basis, as one might expect. Cabs are not authorized to operate otherwise. A number of airlines also have contracted with Suburban for transportation of baggage (usually delayed baggage of airline customers) from the Airport. Drivers are not obligated to accept such baggage runs when proffered and may refuse them. 11 If a driver accepts a business run, however, he is bound by the agreed fee (or the meter rate) and, upon pain of losing the opportunity to make such runs, he may not do business individually with such contract customers. Overcharges by drivers on such runs are determined by Suburban, which then exacts restitution from the driver and reimburses the customer. If a driver refuses to make restitution Suburban may refuse renewal of his lease. The same procedure is followed when lessees fail to deliver packages, lose them, or deliver them to an incorrect address. See ALJ Decision, supra note 1, at 23 (JA 36). Runs made pursuant to flat-rate and airline baggage contracts constitute only about five percent of the drivers' total business. Tr. 430-31 (JA 170).