COM/GFB/avs Mailed 4/25/2002
Decision 02-04-046 April 22, 2002
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Investigation on the Commission's own motion into the operations, practices, and conduct of Starving Students, Inc. (Cal T-116,476), and |
Investigation 02-02-005 (Filed February 7, 2002) |
OPINION DISMISSING RESPONDENTS
ABIGAIL MARGALITH, ELIZABETH MARGALITH
AND SANFORD MARGALITH
This decision grants the motion (filed March 4, 2002) by three of the respondents, namely, Abigail Margalith, Elizabeth Margalith and Sanford Margalith, to dismiss this investigation as to them. These respondents have shown they do not have a current ownership interest in Starving Students, Inc. (Starving Students), and our Consumer Services Division (CSD) has ensured by stipulation (which we adopt) that any future interest will be strictly limited to exercising existing stock options.
I. Background
Respondents filed a motion to dismiss and requested an expedited emergency hearing. Declarations were attached to the motion that stated respondents had not been stockholders or shareholders in or employees, officers, or directors of Starving Students for the past 14 years. The declarations also stated that respondents had not had any connection or involvement in the management or operations of Starving Students for the past 19 years. Respondents each have an option to purchase 166 shares of Starving Students stock for $1 per share in the event of an initial public offering or sale of the corporation. The option provided that respondents were not to be deemed shareholders unless and until the option was exercised and paid for. Respondent Abigail Margalith operated under license a separate and independent moving company called Starving Students of San Diego from 1983 to 2000. In a previous investigation of Starving Students, the Commission's Transportation Division Director concluded that Starving Students of San Diego was locally owned and operated and had not generated any complaints with the Commission. Since 2000, Abigail Margalith has owned and operated PeopleMovers.
CSD filed a response in support of respondents' motion to dismiss. CSD and respondents entered into stipulations in which respondents have agreed not to enter into any business arrangements with Starving Students, not to take any financial interest in Starving Students, not to hold any position with Starving Students, and not to employ respondent Ethan Margalith in any position related to the provision of household goods carrier services. Respondent Abigail Margalith also has agreed not to purchase any of Starving Students' household goods carrier equipment or assets in the future.
CSD states the stipulations resolve the issues in this investigation with respect to respondents. CSD named respondents in this investigation, because Starving Students reported in a data request response that respondents each owned a 16 2/3% interest in Starving Students. With the stipulations, the public interest is served because respondents reaffirm their declarations that they have had no involvement with Starving Students during the past 14 years and have agreed not to be involved with, or operate, control, direct or have any interest in Starving Students in the future. CSD also notes that dismissing respondents will simplify this case, conserve judicial resources, relieve respondents from the burden of going forward, and ensure the public is safeguarded.
Respondents seek an order of dismissal that will remove respondents from the caption and pages 2 through 16 of the order instituting investigation (OII). Respondents further request that the Commission issue a press release indicating that it has determined that respondents have no ownership interest or involvement in the operations or management of Starving Students. CSD takes no position on these requests.
