V. DISCUSSION

Respondents may have violated § 5133 by conducting operations as a household goods carrier, without a valid permit issued under Chapter 7 of the Public Utilities Code; COUNTS: 23 for All State Moving and Washington Mini-Storage, and 1 for VIP Relocation.

Respondents may have violated §§ 5139 and 5161 and GO 100-M by failing to procure, and to continue on file and in effect while conducting operations as a household goods carrier, adequate protection against liability, as imposed by law upon carriers; COUNTS: 363

Respondents may have violated §§ 5139 and 5161 and GO 136-C by failing to procure, and to continue on file and in effect while conducting operations as a household goods carrier, adequate cargo insurance coverage, as imposed by law upon carriers; COUNTS: 363

Respondents may have violated § 5135.5 by failing to procure, and to continue on file and in effect while conducting operations as a household goods carrier, adequate workers' compensation insurance coverage for its employees, as imposed by law upon carriers; COUNTS: 363

Respondents may have violated § 5245 and Item 108 of MAX 4 by issuing verbal estimates, issuing written estimates without a visual inspection of the goods to be moved, and charging customers in excess of estimates issued; COUNTS: 24 for All State Moving and Washington Mini-Storage, 1 for VIP Relocation.

Respondents All State Moving and Washington Mini-Storage may have violated § 5139 and Item 128 of MAX 4 by failing to provide a completed Agreement For Moving Services to the customer no less than 3 days before the move date; COUNTS: 23

Respondents All State Moving and Washington Mini-Storage may have violated § 5139 and Items 128 and 132 failing to include required information, including a "Not To Exceed Price" on shipping documents; COUNTS: 23

Respondents All State Moving and Washington Mini-Storage may have violated § 5314.5 by advertising and holding out to the public that it is in operation as a household goods carrier, without a valid permit issued under Chapter 7 of the Public Utilities Code; COUNT: 396 days

Respondents All State Moving and Washington Mini-Storage may have violated § 5139 and Item 92 of MAX 4 by failing to timely respond to customer claims for loss or damage; COUNTS: 7

Respondents All State Moving and Washington Mini-Storage may have violated § 5139 and Item 88 of MAX 4 by failing to include its company name, address and/or CAL-T number in advertising; COUNTS: 7

Respondents All State Moving and Washington Mini-Storage may have violated § 5139 and Item 88 of MAX 4 by failing to furnish to each prospective shipper a copy of the information specified in Item 470 of MAX 4, the Important Information For Persons Moving Household Goods booklet; COUNTS: 9

IT IS ORDERED that:

1. An investigation on the Commission's own motion is instituted into the operations and practices of the Respondents, All State Moving and Storage, Inc., a California corporation doing business as (dba) California Transportation Systems, dba Prime Movers, dba All State Moving & Storage, dba City Transportation System, and its President, Jacob (aka Yacov) Sudai, and Secretary, Israel Lerner; Washington Mini-Storage, Inc., a Maryland corporation dba Prime Movers, dba Washington Moving and Storage, and its President, Yacov Sudai; and VIP Relocation, Inc., a California corporation and its President, Israel Lerner, and Vice President, Kfir Cohen. A public hearing on this matter shall be held expeditiously before an Administrative Law Judge (ALJ) at a time and date to be set at the prehearing conference. At the hearing, the Respondents shall appear and show cause why its application for a household goods carrier permit should not be denied for cause and lack of fitness in view of the above listed allegations made by staff.

2. During the pendency of this investigation, it is ordered that Respondents shall cease and desist from any violations of the terms of the "Preliminary Injunction" in Case No. BC303987 filed with the Superior Court in Los Angeles County.

3. The Consumer Protection and Safety Division staff, if it elects to do so, may present additional evidence beyond that described in the declaration issued with this order, either by testimony or through documentation, bearing on the operations of the respondents and any new advertising of moving services to the public.

4. Scoping Information: This paragraph suffices for the "preliminary scoping memo" required by Rule 6 (c).

This enforcement proceeding is adjudicatory, and, absent settlement between staff and the respondent, will be set for evidentiary hearing. A hearing may also be held on any settlement for the purpose of enabling parties to justify that it is in the public interest or to answer questions from the ALJ about the settlement terms. A prehearing conference will be scheduled and held within 40 days and hearings will be held as soon as practicable thereafter in the Commission Los Angeles office. Objections to the OII may be filed but must be confined to jurisdictional issues, which could nullify any eventual Commission order on the merits of the issues about violations of statutes, rules, regulations or orders.

5. Respondents are hereby ordered to cease and desist performing any and all moves of any kind until the Commission has an opportunity to review and pass judgment on the instant application for reinstatement as a mover.

6. Respondents are hereby placed on notice that if staff's allegations are proven during the evidentiary hearing, the Commission may impose fines and penalties according to those authorized by law. The Executive Director shall cause a copy of this order, the staff declarations and other related documents to be served by certified mail upon Respondents:

This order is effective today.

Dated August 19, 2004, at San Francisco, California.

MICHAEL R. PEEVEY

President

CARL W. WOOD

LORETTA M. LYNCH

GEOFFREY F. BROWN

SUSAN P. KENNEDY

Commissioners

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