TRB-87-100-BC

                                                       2-3001-1642-2

                                                       IRCC  57498/C-87-82

 

 

                                STATE OF MINNESOTA

                        OFFICE OF ADMINISTRATIVE HEARINGS

 

                     FOR THE TRANSPORTATION REGULATION BOARD

 

In the Matter of the Minnesota

Department of Transportation,

 

                       Complainant,                        FINDINGS OF  FACT,

                                                           CONCLUSIONS AND

vs.                                                        RECOMMENDED  ORDER

 

Erik Anders Waag and Roal

Earl Waag, a/k/a Rollie

Waag, individually and as

partners d/b/a Mighty

Moving and Mighty Movers,

 

                      Respondents

 

 

    The above-entitled matter came on for hearing before Bruce D. Campbell,

Administrative Law Judge from the State Office of Administrative Hearings on

July 15, 1987, at 9:50 a.m, in the hearing room  of  the  Trarsportation

Regulation Board, Administrative Truck Center,  254  Livestock  Exchange

Building, 100 Stockyards Road, South St, Paul, Minnesota.

 

    Appearances:  John B. Galus, Special Assistant Attorney General,

515 Transportation Building, St. Paul, Minnesota 55155, appeared  on  behalf  of

Complainant, Minnesota Department  of  Transportation  (Department).  Neither

Erik Anders Waag, nor Roal Earl Waag, a/k/a Rollie Waag (Messrs.  Waag or

Respondents), appeared at the hearing, either personally  or  by  counsel,

 

    The record closed on July 15, 1987, at the conclusion of the hearing.

 

    Notice is hereby given that, pursuant to Minn.  Stat.  14.61, and the

Rules of Practice of the Public Utilities Commission, as  applicable  to  the

Transportation Regulation Board, and the Rules of the Office of Administrative

Hearings, exceptions to this Report, if any, by any party adversely affected

must be filed within 20 days of the mailing date hereof with the

Transportation Regulation Board, Minnesota  Administrative  Truck  Certer,

254 Livestock Exchange Building, 100 Stockyards Road,  South  St.  Paul,

Minnesota 55075.  Exceptions must be specific  and  stated  and  numbered

separately.  Proposed Findings of Fact, Conclusions  and  Order  should  be

included, and copies thereof shall be served upon all  parties.  If  desired,  a

reply to exceptions may be filed and served within ten days  after  the  service

of the exceptions to which reply is made.  Oral argumert  before  a  majority  of

the Board may be permitted to all parties adversely affected by the

 


Administrative Law Judge's recommendation who request such  argument.  Such

request must accompany the filed exceptions or reply, and an original and  five

copies of each document must be filed with the Board.

 

    The Minnesota Transportation Regulation Board will make the final

determination of the matter after the expiration of the period for filing

exceptions as set forth above, or after oral argument, if such is requested

and had in the matter.

 

    Further notice is hereby given that the Board may, at its own  discretion,

accept or reject the Administrative Law Judge's recommendation and that said

recommendation has no legal effect unless expressly adopted by the Board as

its final order.

 

                              STATEMENT OF ISSUES

 

    The hearing was ordered to consider the Complaint filed against Erik  Waag

and Roal Waag, d/b/a Mighty Moving and Mighty Movers, by the Minnesota

Department of Transportation, pursuant to Minn.  Stat.  221.293 (1986)

 

    Based upon all of the proceedings herein, the Administrative Law  Judge

makes the following:

 

                                FINDINGS OF FACT

 

    1.  On March 5, 1987, the Department of Transportation filed  with  the

transportation Regulation Board a verified Complaint against Erik Waag  and

Roal Waag pursuant to Minn.  Stat.  221.293 (1986), alleging violations  of

Minnesota Statutes ch. 221 (1986).  A copy of the Complaint is  attached  hereto

as Exhibit A and made-a part hereof.

 

    2.  By letter dated March 16, 1987, the Transportation  Regulation  Board,

through Lorraine E, Mayasich, Vice-Chairman, directed that the  Respondents

reply to the Complaint within 20 days of the date of the letter.  A copy of

the Complaint was also served on the Respondents.  The Respondents  did  not

file an Answer to the Complaint.

 

    3.  On June 10, 1987, the Transportation Regulation Board issued  a  Notice

of Hearing, Statement of Complaint and Show Cause Order, The  Notice  restated

the allegations of the Complaint and required the Respondents to appear at a

hearing to be held commencing at 9:30 a.m. on Wednesday, July 15, 1987, in  the

Board's hearing room at the Administrative Truck Center, 254 Livestock

Exchange Building, 100 Stockyards Road, South St. Paul, Minnesota, Page  3  of

the Notice of Hearing contained the following statement:

 

        If Respondent fails to attend or otherwise appear at the

        hearing in this matter after having been served with a copy

        of this Order, Respondent shall be deemed in default, and

        the allegations or issues set forth in the Complaint shall

        be deemed proved, and the Board shall issue an Order

        directing that Respondent cease and desist from the

        allegations contained in the Complaint.

 

    4.  On June 10, 1987, Carol Halverson, an employee of  the  Transportation

Regulation Board, served a copy of the Notice of Hearing, Statement of

 

                                     - 2 -

 


Complaint and Show Cause Order on Respondents at the address  they  had  provided

to-the Board, 5129 Abbott Avenue South, Minneapolis, Minnesota 55410.

 

    5.   Neither Erik Waag, nor Roal Waag appeared at  the  hearing  personally

or through counsel,  They did not otherwise communicate with the

Administrative Law Judge regarding the hearing.

 

    6.   The allegations of the Complaint were recently  litigated  before  the

Board in a motor carrier proceeding in which Erik Waag and  Roal  Waag  sought

authority from the Transportation Regulation Board  to  provide  transportation

services as irregular route household goods movers.  In the Matter of the

Petition of Erik and Rollie Waag for irregular Route Common Carrier Permit

Authority to Transport Household Goods Restricted to  the  Transportation  of

Personal Effects-and Propertv Used or to Be Used Bv Its Owner in His  or  Her

Dwelling Between Points Located in the Counties of  Hennepin,  Anoka,  Ramsey,

Dakota, Washington, Carver and Scott, TRB-87-045-AK, 6-3001-1153-2, IRCC

57498/A-86-464.

 

    7.   In a document entitled Findings of Fact,  Conclusions  and  Recommended

Order and Memorandum issued by the Administrative Law Judge  in  that  proceeding

on April 2, 1987, it was determined that Erik and Rollie Waag  had  engaged  in

the illegal activities described in the Complaint     See Findings of Fact  9-17

and Conclusion 3 thereof.

 

    8.   By Order dated June 10, 1987, the  Transportation  Regulation  Board

adopted verbatim the Findings of Fact, Conclusions and  Recommended  Order  of

the Administrative Law Judge as its final Order in  the  authority  proceeding.

The time for an appeal from the final Order of the Board has expired     No

appeal has been filed and the Board's Order is not now subject to

reconsideration or judicial review,

 

    9.   As a consequence of Findings I - 8, supra, the  allegations  of  the

Complaint attached hereto regarding violations of Minn.  Stat  ch.  221  (1986)

are established both on grounds of default and  res  judicata.  Such  allegations

are hereby adopted as if fully set forth herein.

 

    10. The Respondents currently have no motor  carrier  authority  to  provide

service in Minnesota.

 

    Based on the foregoing Findings of Fact, the Administrative Law Judge

makes the following:

 

                                   CONCLUSIONS

 

    1.   The Administrative Law Judge and the  Transportation  Regulation  Board

have jurisdiction over the subject matter of the hearing  pursuant  to  Minnesota

Statutes  221.293 (1986).

 

    2.   Proper notice of the hearing was timely given, and all relevant

substantive and procedural requirements of law or rule  have  been  fulfilled

and, therefore, the matter is properly before the Administrative  Law  Judge  and

the Transportation Regulation Board,

 

    3.   As a consequence of Finding 9, supra, the  violations  of  Minnesota

Statutes ch, 221 enumerated in the Complaint have been established.

 

                                      - 3 -

 


    4.   As a consequence of Conclusion 3, supra, and Finding 10, supra,  a

cease and desist order against the Respondents should be issued by the

Transportation Regulation Board, pursuant to Minn.  Stat.   221.293  (1986).

 

THIS REPORT IS NOT AN ORDER.  THE TRANSPORTATION REGULATION BOARD HILL ISSUE

THE FINAL ORDER IN THIS PROCEEDING WHICH MAY ADOPT OR DIFFER FROM THE

FOLLOWING RECOMMENDATION.

 

    Based on the foregoing Conclusions, it is the Recommendation of the

Administrative Law Judge to the Board that it issue the following:

 

                                      ORDER

 

    Erik Anders Haag and/or Roal Earl Haag, a/k/a Rollie Haag, individually

and as partners, d/b/a Mighty Moving and Mighty Movers, and as  partners  or

principals in any other business enterprise not possessing the requisite motor

carrier authority shall immediately cease and desist from operating or

advertising or otherwise holding themselves out to Le a motor carrier.

Further, they shall, within 30 days of the date of this Order, remove  any  and

all public advertisements or notices presently posted on appearing  which  hold

them out to be a motor carrier or to be authorized to provide the  services  of

a motor carrier under Minnesota Statutes ch, 221 (1986),

 

Dated this 17th day of July, 1987.

 

 

 

 

                                          BRUCE D.  CAMPBELL

                                          Administrative Law Judge

 

 

                                      NOTICE

 

    Pursuant to Minn.  Stat.  14.62, subd. 1, the agency is required  to  serve

its final decision upon each party and the Administrative Law Judge by first

c I ass mai I .

 

Reported:  Tape Recorded, Default.

 

 

                                   MEMORANDUM

 

    Despite repeated attempts by both the Board and the  Administrative  Law

Judge to secure the presence of Erik Anders Waag and Roal Earl  Waag,  a/k/a

Rollie Waag, at the hearing scheduled herein to respond to the Complaint

brought by the Minnesota Department of Transportation, a  default  occurred.

Under the Notice and Order for Hearing and the Administrative Procedure Act,

that default, alone, is sufficient to support the Order herein recommended.

 

    It is important to note, however, that this proceeding transcends the

normal incidence of default.  As noted in the Findings, the allegations of the

Complaint were fully litigated before the Board in a previous authority

proceeding at which Erik Haag and Roal Haag did appear and were represented by

 

                                      - 4 -

 


counsel.  In fact, the record of that proceeding includes their admissions of

the illegal acts complained of.  The Administrative Law Judge found that the

acts included in the Complaint had occurred.  That determination was

specifically adopted by the Transportation Regulation Board and the

Respondents did not appeal from that Order of the Board.  Under such

circumstances, relitigation of the veracity of the claims is prohibited by

principles of res judicata and collateral estoppel.  Travelers Insurance

Co. v.      son, 163 N.W.2d 289, (Minn. 1968); Willems v. Commissioner of

Public Safety, 333 N.W.2d 619, 621 (Minn, 1983); State Department of Public

Safety  v. House, 192 N.W.2d 93 (Minn. 1971); Matter of Estate of Conqdon,

309 N.N.2d 261 (Minn. 1981); State     of Minnesota, city of Burnsville v. Juarez,

345 N.W.2d 801 (Minn  App  1984).

 

                                     B.D.C.