Discussion
The evidence of record, which is entirely uncontroverted, amply demonstrates that the respondents have committed serious violations of the Household Goods Carriers Act, Pub. Util. Code § 5101 et seq. These violations are sufficiently serious to justify permanent revocation of Federation's operating authority. Discussion of our decision follows, but inasmuch as the respondents failed to appear and contest or explain the evidence offered by CSD, we need not explain the basis for our findings in great detail.
First, there is substantial and uncontrovertible evidence that Green, as CEO of Federation and its only Qualifying Employee, more than once certified in his application documents that he had not been convicted of committing any felony or crime involving moral turpitude at the time he applied for operating authority. He made these representations in writing under penalty of perjury. In fact, Green had previously been convicted of two counts of robbery under Penal Code § 211, a crime which is not only a felony, but also involves the theft of property. These convictions relate directly to his fitness to take custody of the property of others, and his failure to disclose them relate to his honesty in dealing with the Commission. Although the application form provided for him an opportunity to disclose and explain his felony history, Green chose not to do so. His application contains a serious material misrepresentation, sufficient in itself to justify revocation of Federation's operating authority.
The record is also replete with evidence that up to the time of the EH, Federation persisted in performing household goods moving services, and holding itself out to potential customers as being authorized to do so, during periods when its license was either suspended or revoked for failure to maintain or report public liability and property damage insurance as required by the Commission. Our insurance requirements are the linchpin of our program to insure that members of the public do not suffer harm at the hands of household goods movers, who assume custody of their customers' most essential personal possessions when performing moving services. We regard violations of these requirements, particularly repeated ones, as an extremely serious matter with immediate bearing upon the carrier's fitness to operate. Federation's flagrant failure to obey our notices and suspend operations on more than one occasion illustrates its total contempt for consumer protections under the Used Household Goods Carriers Act. This conduct also justifies revocation of Federation's operating authority in the absence of any explanation which might exculpate Federation.
Finally, the record reveals egregious incidents where the respondents abandoned their responsibility to process loss and damage claims. In one particularly shocking instance Green overturned a truckload of customers' belongings in transit, fled from the scene, and refused to handle the ensuing claim, forcing the customers to bring a civil action in court to recover their possessions and seek damages.3
We cannot tolerate any household goods mover who engages in such behavior, because the risk to the public is simply too great. Our order grants CSD's request to revoke Federation's authority permanently, and bars Green from obtaining new authority unless this order is modified pursuant to Rule 47.
1. In applying for Federation's current operating authority, as well as on at least one prior occasion, respondent Green represented to the Commission in writing, under penalty of perjury, that he had not been convicted of committing any felony or crime involving moral turpitude.
2. At the time he made the written representations referred to in the preceding paragraph Green had previously been convicted of two counts of robbery in violation of California Penal Code § 211, a felony.
3. On more than one occasion after Federation received its current operating authority, T-189,080, on September 10, 1998, Federation has conducted business as a used household goods mover during periods of administrative suspension or revocation of its operating authority for failure to maintain or report insurance coverage as required by statute and by Commission rules.
4. During periods of suspension or revocation Federation held out to the public that it was properly licensed and qualified to engage in the business of a used household goods carrier.
5. On more than one occasion since Federation received its current operating authority, respondents have failed to acknowledge and process loss and damage claims in a timely manner, as required by statute and by Commission rules.
6. Federation has failed, on more than one occasion documented by the record, to furnish to a prospective shipper a copy of information concerning consumer rights as specified in Item 470 of MAX 4.
7. Respondent Green failed to appear personally or by representative at the evidentiary hearing in this proceeding.
1. CSD's motion for the Commission to reconsider the ALJ's July 31, 2000, Ruling with respect to the exclusion of certain evidence should be denied.
2. The respondents have violated Pub. Util. Code § 5314.5 by holding out to the public that Federation was a household goods carrier without possessing a valid permit.
3. The respondents have violated Pub. Util. Code § 5139 and GO 100-M by failure 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.
4. Respondent Green has violated Pub. Util. Code § 5135 by failing to divulge to the Commission his convictions of two counts of robbery in violation of Penal Code § 211 prior to submitting licensing applications to the Commission.
5. Federation violated Pub. Util. Code § 5139 by failing to furnish to each prospective shipper a copy of the information specified in MAX 4, in violation of Item 88 of that tariff.
6. Federation violated Pub. Util. Code § 5139 and Item 92 of MAX 4 by failing to acknowledge and process loss and damage claims in a timely manner.
7. By failing to appear at the EH in this proceeding, Green violated Ordering Paragraph number 1 of the OII.
8. Public health and safety require that respondents' operating authority be revoked, and that this revocation and other provisions of today's order be made effective immediately.
IT IS ORDERED that:
1. The motion by the Consumer Service Division for review and reconsideration of the ALJ's July 31, 2000 ruling is denied.
2. The household goods carrier permit of respondent Federation Moving Services, Inc., File No. T-189,080, is permanently revoked for cause.
3. Respondent Elijah Green is barred from applying, on behalf of himself or any entity, for authority to engage in business as a household goods carrier, unless this order is first modified pursuant to Rule 47 of our Rules of Practice and Procedure, or any equivalent rule of this Commission which may then apply.
4. Investigation 00-05-019 is closed.
This order is effective today.
Dated , at San Francisco, California.
3 Indeed, Green frequently exhibited disturbingly erratic behavior in the conduct of his business, creating very difficult problems for Federation's customers and others. On one occasion Green literally hijacked a truckload of personal goods belonging to the customer of another mover, holding the goods hostage in an effort to resolve a business dispute he had with the other mover.
