Opinion

Millennium Taxi Service, L.L.C. v. Chattanooga Metropolitan Airport Authority

Court
Court of Appeals of Tennessee
Filed
Jun 30, 2009
Status
Published
On the bench
Judge Charles D. Susano, Jr.
Cited by
0 cases
Authority
More cited than 29.3%

The opinion

IN THE COURT OF APPEALS OF TENNESSEE

AT KNOXVILLE

February 10, 2009 Session

MILLENNIUM TAXI SERVICE, L.L.C. v. CHATTANOOGA

METROPOLITAN AIRPORT AUTHORITY

Appeal from the Circuit Court for Hamilton County

No. 05C1445 W. Neil Thomas, III, Judge

No. E2008-00838-COA-R3-CV - FILED JUNE 30, 2009

Millennium Taxi Service, L.L.C., filed suit against the Chattanooga Metropolitan Airport Authority

(“CMAA”) seeking a declaration that CMAA regulations prohibiting unregistered taxicabs from

picking up passengers curbside at the Chattanooga Metropolitan Airport were unconstitutional.

Millennium further sought injunctive relief prohibiting enforcement of the challenged regulations.

In its counterclaim, CMAA asserted that Millennium had repeatedly and flagrantly violated its

regulations and requested that Millennium be permanently enjoined from engaging in any further

violations. The court granted in part and denied in part summary judgment to CMAA upon finding

that the challenged regulations had a rational basis and did not discriminate unreasonably against

unregistered taxis. Millennium appeals. We affirm.

Tenn. R. App. P. 3 Appeal as of Right; Judgment of the Circuit Court

Affirmed; Case Remanded

CHARLES D. SUSANO , JR., J., delivered the opinion of the court, in which HERSCHEL P. FRANKS, P.J.,

and J. STEVEN STAFFORD , J., joined.

William C. Killian, Jasper, Tennessee, for the appellant, Millennium Taxi Service, L.L.C.

Hugh J. Moore, Jr., William R. Hannah, and Thomas Greenholtz, Chattanooga, Tennessee, for the

appellee, Chattanooga Metropolitan Airport Authority.

OPINION

I.

The underlying facts are undisputed. CMAA is a statutorily established metropolitan airport

authority created by the City of Chattanooga to operate the Chattanooga Metropolitan Airport. See

Tenn. Code Ann. §§ 42-4-101, et seq. As a governmental entity, CMAA is further authorized

pursuant to the Tennessee Passenger Transportation Services Act to control and regulate private,

passenger-for-hire vehicles providing transportation within its jurisdiction – in this case, at the

airport. See Tenn. Code Ann. §§ 7-51-1001 and 1003(b)(1). Millennium is a limited liability

corporation that provides taxi service throughout Chattanooga, including to and from the airport.

Millennium is licensed to do business by the City of Chattanooga, but has not registered its taxicabs

with the CMAA or received permits for them. This is not the first time that these parties have

litigated issues related to taxi service at the airport.

Shortly after its inception in 1985, CMAA enacted the first set of rules and regulations

governing ground transportation service at the airport. In 2005, Millennium filed its first suit against

CMAA, challenging regulations that required all taxicabs operating at the airport to register with

CMAA and use only the designated taxicab zone for picking up passengers. Moreover, registered

taxicabs were subject to a requirement that they be no more than ten years old. In June 2006, the

trial court granted summary judgment to CMAA upon finding, in part, that “taxicabs operating

within the taxicab zone are properly subject to regulation by CMAA under its minimum safety

standards.” In clarifying its ruling, the court further held, “however, that taxicabs choosing not to

apply for, and to receive, a CMAA permit allowing use of the zone designated by CMAA for taxicab

use are not subject to regulation under the CMAA’s generally applicable current rules and

regulations, which are subject to appeal, modification, and amendment . . . .” One month later,

CMAA amended its regulations – entitled “Commercial Ground Transportation Rules and

Regulations” (“the Regulations”) – to address access to the entire terminal curbside area, both inside

and outside the designated zones for taxicabs and other commercial vehicles. At the center of the

present dispute are the following Regulations:

III. General Operating Requirements

B. Operating Fees

The following fee schedule will be applied to all commercial ground

transportation vehicles conducing pick-ups from the curb at the

[airport]:

Taxi Cabs $100.00 per vehicle per quarter

Limousines $100.00 per vehicle per quarter

Courtesy Cars/Vans $100.00 per company per quarter

Busses $200 per vehicle per year

Non-registered Vehicles $50.00 per vehicle per visit

Baggage Delivery $100.00 per vehicle per quarter

Overnight Terminal Parking $6 per vehicle per night

Delivery vehicles are specifically excluded

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G. Queuing Area

Any permitted vehicle . . . picking up passengers shall use only the

hold area or loading area assigned to them as designated in

Appendix 6.1 These areas are for the exclusive use of commercial

ground transportation vehicles2 registered with CMAA. Non-

registered taxicabs may pick up incoming passengers, but they may

not use any portion of the curb area, but instead must park in one of

the CMAA parking lots. Drivers of non-registered taxicabs may, after

parking their vehicles in one of the CMAA parking lots, . . . enter the

terminal area in order to locate their passenger . . . . Non-registered

taxicabs may drop off passengers at any appropriate and not

otherwise designated area of the curb.

(Underlining in original; emphasis and footnotes added.)

The restriction against curbside pickups by non-registered taxis is again referenced in the

Regulations as follows:

V. Taxi Cabs

L. Non-Registered Taxi Pick-Ups

If a taxicab company that is not registered with CMAA is requested

to provide transportation, the taxicab driver must park in one of the

on-site parking lots. The cab driver may meet his/her passenger at the

bottom of the escalators. . . .

CMAA will not reimburse . . . for parking fees. No loitering on the

curb will be permitted. Any non-registered vehicle and operator not

complying with this policy will be removed from the airport

premises, and will be charged the $50 non-registered vehicle fee . . .

.”

(Underlining in original.)

In January 2007, Millennium filed suit against CMAA in the instant case. Millennium

alleged that the Regulations, as amended, were an unconstitutional exercise of CMAA’s police

powers; created discriminatory classifications between non-permitted taxicabs and other commercial

1

Appendix 6 is not included in the record on appeal.

2

“Commercial vehicles” are defined to include taxicabs, shuttles, buses, vans, limousines, courtesy vehicles,

baggage delivery service vehicles, and rental vehicles.

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vehicles; were unlawfully enforced against Millennium taxicabs; were unconstitutionally vague;

constituted an inducement for Millennium to breach its contracts with its customers; and were

enacted in contempt of the trial court’s ruling in the first lawsuit. Initially, the trial court dismissed

the breach of contract claim, finding that it was barred.3 Then, an agreed order of dismissal was

entered with respect to Millennium’s claims that the Regulations created discriminatory

classifications by imposing age limits for taxicabs and that these age limit provisions were

selectively enforced against Millennium taxis.

In December 2007, CMAA moved for summary judgment on Millennium’s remaining

claims. In support of its motion, CMAA submitted affidavits of past and present CMAA executives,

including its former Airport Security Coordinator, Ruth Dudley. Dudley was primarily responsible

for the implementation and enforcement of the “new” Regulations. Dudley said that the Regulations

were amended to comprehensively regulate the use of the entire curb area in front of the terminal

building in order to address a variety of CMAA’s concerns and objectives. These included

effectively managing its limited curb frontage; optimizing traffic flow (vehicular and pedestrian);

ensuring quality control and customer satisfaction with ground transportation services originating

from the airport; and optimizing the image portrayed by the airport and the city to the traveling

public. In her affidavit, Dudley stated, in relevant part:

The Regulations treat different types of commercial ground

transportation vehicles differently because of the different

characteristics and functions of those various types of . . . vehicles.

For example, large buses are directed to park in areas that are

accessible to and usable by vehicles of that size rather than in

locations where they physically cannot be parked or which would

block other vehicles. Similarly, vehicles carrying passenger are

generally more regulated and held to higher standards than those

carrying only luggage or freight. Finally, vehicles charging

passengers a fee for transport are generally more extensively

regulated that vehicles providing transportation as a courtesy (such as

a shuttled provided by a hotel) to persons who have already selected

that provider and who are not paying a separate fee for service.

[T]he Regulations allow those taxicabs bearing CMAA permits to

park in a designated area, which is referred to as the “taxicab zone”

or collectively as the “taxicab hold spaces.” Taxicabs without

CMAA permits are not allowed to utilize the taxicab zone. The

Regulations do not allow a taxicab without a CMAA permit to

conduct a curbside pickup unless the operator of that taxicab pays

CMAA a $50.00 per vehicle per visit fee. Taxicabs, regardless of

whether they bear CMAA permits, are allowed to drop off passengers

curbside, but are not allowed to park curbside. Taxicabs without

3

At the hearing, Millennium conceded that this claim was properly dismissed.

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CMAA permits may park in CMAA’s public parking lots or in other

authorized locations in order to wait for a customer or to make a

pickup, and may park for up to fifteen (15) minutes without charge in

CMAA’s short-term parking lot.

The Regulations prohibit non-permitted taxicabs from parking

curbside because CMAA wishes to manage access to and traffic flow

along the terminal curb, and to provided departing patrons at the

[airport] with immediate, close proximity access to ground

transportation options from providers whose identities are know to

CMAA and who meet minimum safety, quality, cleanliness, and

reliability standards imposed by CMAA.

In his affidavit, Scott Broyles, former CMAA Vice President of Operations, stated that he

was responsible for enforcement of the Regulations. He said that airport police officers were

knowledgeable about the Regulations and that they properly and uniformly applied them and

documented their monitoring and enforcement activities. Broyles said that from the time of their

enactment in July 2006 until September 2007, CMAA had documented enforcement of the

Regulation prohibiting improper curbside parking on at least 23 separate occasions against taxi or

limousine operators other than Millennium and against at least four taxi or limousine companies

other than Millennium.

In opposing the motion, Millennium summarized its position as follows:

The crux of the new regulations apply to [Millennium ] in that they

prohibit it from picking up new customers at [the] curbside of the

[airport]. The Complaint alleges that this is a discriminatory

classification, discriminatorily enforced and, for those reasons,

exceeds the constitutional and statutory authority granted to the

CMAA . . . .

In its March 19, 2008, “Memorandum and Partial Judgment,” the trial court promptly

disposed of the first two issues – whether the Regulations in general and pertaining to taxicabs

operating outside the taxi zone in particular – were within CMAA’s authority to enact. In short, the

trial court found that the CMAA had full regulatory power over the property within its jurisdiction,

including taxi cab regulation. The trial court continued:

[T]he remainder of the pleadings . . . are as follows:

Whether [the Regulations] discriminate against non-permitted taxis

because they are not allowed to pick up curbside passengers like

buses and vans which pay a quarterly fee rather than a $50.00 visit fee

by non-permitted taxis.

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Whether [CMAA] has discriminated in its enforcement of [the

Regulations] against Millennium.

* * *

Practically speaking, this Court must determine whether or not the

regulations as applied to Millennium were within [CMAA’s]

authority to manage and utilize the curb frontage at the Terminal

Building and traffic flow, as well as the monitoring of customer

satisfaction with ground transportation. In assessing that application,

the Court is faced with not whether the drop-off of passengers by

non-permitted taxi cabs is permissible, because under the regulations

that is permitted, but rather the issue becomes whether the pick-up of

passengers by non-permitted taxi cabs at curbside is impermissible,

given their ability to use the short-term parking spaces [without

charge] for a period of fifteen minutes. Concurrent with this inquiry

is whether there is an impermissible classification between curbside

pick-up between non-permitted taxi cabs and other carriers. Under

the record in this case, there can be no doubt but that the regulations

have a rational basis. The question becomes whether they further

legitimate government interests. Although Millennium complains

that a $50.00 per visit fee amounts to a prohibition, the Court is not

entirely persuaded that such a prohibition would be impermissible.

This conclusion is buttressed by the permission offered by [CMAA]

for non-permitted taxi cabs to park in the short-term lot for up to

fifteen minutes without charge. Additionally, the distinction made in

[the Regulations] between non-permitted taxi cabs and other

commercial users, whether they be buses or vans, does not appear to

be invidious or discriminate unreasonably against Millennium. That

distinction is based upon the service provided and the access needed

to curbside. For these reasons, the [Regulations] will be upheld.

The Issue of Selective Enforcement or Discrimination in

Application

[I]t would appear that Millennium’s claims under this theory are

threefold: (1) permitting permitted cabs to park outside the zone; (2)

imposing different regulations for other commercial vehicles; and (3)

prohibiting non-permitted taxis to do all things that private vehicle

traffic can do. The Court has already discussed the second issue.

With respect to the third issue, [CMAA] had explained the reason for

difference in classification between non-permitted taxis and private

vehicle traffic. This explanation constitutes a rational basis.

Although [CMAA] has submitted evidence to support its contention

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that it has not discriminated between permitted and non-permitted

taxis parking curbside, there is sufficient evidence in the record to

create a genuine issue of material fact with respect to that issue in this

case. Accordingly, summary judgment will be granted on the

“targeting” issue, except for the allegation of unequal treatment

between permitted and non-permitted taxi cabs parking curbside.

(Capitalization and bold print in original).

With the noted exception, the trial court granted summary judgment in favor of CMAA on

all claims. Thereafter, Millennium dismissed voluntarily this remaining claim and timely appealed

the grant of summary judgment to CMAA.

II.

We review the propriety of the trial court's grant of summary judgment under the standard

set forth in Rule 56.04, Tenn.R.Civ.P., which provides that summary judgment is appropriate where

the pleadings, depositions, answers to interrogatories, and admissions on file, together with the

affidavits, if any, show that there is no genuine issue as to any material fact and that the moving

party is entitled to a judgment as a matter of law. Town of Huntsville v. Duncan, 15 S.W.3d 468,

471 (Tenn. Ct. App. 1999). In the present case, the material facts necessary to our determination are

undisputed. As a result, our review involves only a question of law and no presumption of

correctness attaches to the trial court's findings. Id. (citing Gonzales v. Alman Constr. Co., 857

S.W.2d 42, 44 (Tenn. Ct. App. 1993)).

III.

Taken verbatim from its brief, Millenium raises the following issue on appeal:

Does the [CMAA] regulation prohibiting curbside pickup by taxicabs,

not registered with CMAA, constitute an unconstitutional

discriminatory exercise of its police power?

IV.

On appeal, Millennium does not dispute the authority of CMAA to regulate transportation

services at the airport. Rather, Millennium contends that the Regulations violate equal protection

principles by prohibiting only non-registered taxis from conducting curbside passenger pickups. See

U.S. Const. amend. XIV, § 1; Tenn. Const. art. I, § 8 and art. XI, § 8. Millennium concludes that

“[the Regulations], as applied to unregistered taxicabs, create a discriminatory classification without

a rational basis for its legitimate government purpose . . . .”

The Tennessee Supreme Court has stated that Article 1, § 8 and Article XI, § 8 of the

Tennessee Constitution confer “essentially the same protection” as the equal protection clause of the

United States Constitution. Tennessee Small School Systems v. McWherter, 851 S.W.2d 139, 152

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(Tenn. 1993). The United States Supreme Court has described the burden undertaken by one

challenging the constitutionality of economic legislation as a violation of due process:

It is by now well established that legislative Acts adjusting the

burdens and benefits of economic life come to the Court with a

presumption of constitutionality, and that the burden is on one

complaining of a due process violation to establish that the legislature

has acted in an arbitrary and irrational way.

Pension Benefit Guar. Corp. v. R.A. Gray & Co., 467 U.S. 717, 729, 104 S. Ct. 2709 (1984). The

same, relaxed “rational basis” test is applied to equal protection challenges to economic legislation.

Harrison v. Schrader, 569 S.W.2d 825 (Tenn. 1978). The “rational basis test” has been described

by the Tennessee Supreme Court as follows:

The concept of equal protection espoused by the federal and our state

constitutions guarantees that “all persons similarly circumstanced

shall be treated alike.” Conversely, things which are different in fact

or opinion are not required by either constitution to be treated the

same. “The initial discretion to determine what is ‘different’ and what

is ‘the same’ resides in the legislatures of the States,” and legislatures

are given considerable latitude in determining what groups are

different and what groups are the same. In most instances the judicial

inquiry into the legislative choice is limited to whether the

classifications have a reasonable relationship to a legitimate state

interest.

State v. Tester, 879 S.W.2d 823, 828 (Tenn. 1994)(quoting Tennessee Small School Systems v.

McWherter, 851 S.W.2d at 153)(internal citations omitted)).

It follows that the “keystone in determining the constitutionality of a statute under . . . the

[Tennessee] Constitution is reasonableness of classification.” City of Chattanooga v. Harris, 223

Tenn. 51, 56-57, 442 S.W.2d 602, 604 (1969). “Under this standard, if some reasonable basis can

be found for the classification, or if any state of facts may reasonably be conceived to justify it, the

classification will be upheld.” Harrison, 569 S.W.2d at 825. It has been long held that

“[r]easonableness depends upon the facts of the case and no general rule can be formulated for its

determination.” Id. at 825-26 (citing Estrin v. Moss, 221 Tenn. 657, 430 S.W.2d 345 (1968);

Motlow v. State, 125 Tenn. 547, 145 S.W. 177 (1912)).

Applying this standard to the Regulations, we must decide whether any reasonable basis

supports CMAA’s decision to prohibit non-registered taxis from picking up passengers at any

portion of the curbside in front of the terminal building. In determining whether a challenge to

classification is rationally related to achievement of a legitimate state purpose two questions must

be answered: One, does the challenged legislation have a legitimate purpose and two, was it

reasonable for the law makers to believe that use of the challenged classification would promote that

purpose. Western & Southern Life Insurance Company v. State Board of Equalization of

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California, 451 U.S 648, 668, 101 S. Ct. 2070 (1981). With respect to the first question, it cannot

be convincingly argued that CMAA’s cited objectives – controlling access to the limited curbside,

effectively managing the flow of vehicles and pedestrians in the area, ensuring quality control and

customer satisfaction with ground transportation services originating from the airport, and presenting

a favorable image of the airport – are not legitimate legislative purposes. Millennium’s focus, and

ours, is on whether CMAA reasonably applied the Regulations to non-registered taxis to further

these purposes.

As noted, Millennium’s contention is that the Regulations are constitutionally infirm because

they prohibit only non-permitted taxis from making curbside pickups, thereby creating an arbitrary,

discriminatory classification that is not reasonably related to the purposes of the Regulations.

Millennium repeatedly asserts, for example, that “passengers could be picked up curbside by private

vehicles, buses, and other commercial vehicles, registered taxicabs, etc.,” and that the “[Regulations]

allow other commercial vehicles to operate curbside, with impunity, and without regulation. . . .”

This is simply not true.

Taking registered taxis versus unregistered taxis first, the Regulations authorize registered

taxis to park, wait, and pick up their next fare in a designated taxi zone at the curbside outside the

baggage claim area. Under the Regulations, permitted taxis are subject to age and inspection

requirements, among others, to ensure that they are reliable and in good condition. Drivers of

permitted taxis are subject to a code of conduct governing their appearance and behavior while

providing services at the airport. Companies operating permitted vehicles are subject to fines and

other disciplinary action for violating any applicable Regulations. Taxis not registered with CMAA,

on the other hand, are not subject to such regulations and requirements and, as a consequence, are

effectively removed from access to incoming passengers unless the passengers has made advance

reservations to be picked up by such a vehicle. With regard to other commercial vehicles, they too

are directed to pick up passengers in designated areas curbside or in parking lots depending on the

type of vehicle or service provided and whether they are CMAA-permitted. For example, the

Regulations expressly governing passenger pick-ups by non-registered limousines and sedans

contain the identical provision applied to Millennium’s non-registered taxis.4 The Regulations

provide, in relevant part:

VI. Limousine and Sedan Service

H. Non-Registered Limousine and Sedan Pick-Ups

If a limousine or sedan company that is not registered with CMAA is

requested to provide transportation, the driver of the non-registered

vehicle must park in one of the on-site parking lots. The driver may

meet his passenger at the bottom of the escalators . . . .

4

In addition to non-registered taxicabs, limousines and sedans, baggage delivery vehicles not registered with

CMAA are also prohibited from making curbside pick ups albeit of packages rather than passengers.

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No loitering on the curb will be permitted. Any non-registered

vehicle and operator not complying with this policy will be removed

from the airport premises, and . . . charged the $50 non-registered

vehicle fee as set forth in section III.

(Underlining in original.)

In our view, the Regulations are reasonably related to their legitimate purpose of presenting

incoming passengers with transportation options, whether they be taxis, limousines, or other

vehicles, from providers that are known to CMAA to have vehicles that are relatively new, clean,

and in good repair – conditions imposed upon all permitted commercial ground transportation

vehicles. Although Millennium counters that this objective is not accomplished because its taxis are

still allowed to pick up passengers elsewhere at the airport, we are unpersuaded that the Regulations

are therefore rendered arbitrary or otherwise unreasonable. Stated another way, we conclude that

it is entirely rational for CMAA to restrict the curbside access of incoming passengers to those

commercial vehicles that are subject to the requirements governing permitted vehicles in an effort

to meet its stated objectives. As noted by Ms. Dudley, CMAA’s goal is to present incoming

passengers as a first option with permitted vehicles with which CMAA has some level of knowledge

both as to the vehicles and their drivers. Those operators, such as Millennium, who choose not to

subject themselves to the same requirements as other transportation providers, are not prohibited

from operating at the airport, but are unlikely to be the first choice for incoming passengers.5

As we read the Regulations, CMAA has not sought to achieve its objectives by disallowing

curbside pickups by only non-registered taxis. Other non-registered vehicles including limousines

and sedans must also park in the airport parking lots to pick up a passenger or pay the $50 “non-

registered vehicle” fee to do so. In this manner, CMAA has taken steps to ensure that incoming

passengers who have not made arrangements in advance will be presented as a first option with

registered and therefore, regulated, transportation providers whether they be taxicabs, limousines,

buses, etc. “The fundamental rule is that all classifications must be based upon substantial

distinctions which make one class really different from another; and the characteristics which form

the basis of the classification must be germane to the purpose of the law. . . .” State v. Nashville,

C. & S. L. R. Co., 135 S.W. 773, 776 (Tenn. 1910)(quoting Lewis, 1 Sutherland on Statutory

Construction, 366 (2d ed.)). On this record, we conclude that Millennium has failed to demonstrate

that CMAA’s decision to prohibit curbside pickups by unregistered taxis and other commercial

vehicles who choose not to subject themselves to the requirements applicable to permitted vehicles

and their drivers, bears no rational relationship to one of its legitimate governmental objectives –

providing quality ground transportation services to incoming travelers.

Having concluded that Millennium has not established that the Regulations are unrelated to

at least one legitimate purpose, we need not consider whether they are reasonably related to all of

5

At the summary judgment hearing, counsel for CM AA observed that of all the commercial ground

transportation operators at the airport, only M illenium and another taxi company, East Ridge, were not registered with

CMAA.

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the other legislative purposes intended by CMAA. Suffice it to say, however, that CMAA’s

objectives of controlling access to the limited curbside and regulating the flow of traffic outside the

terminal are reasonably met by simply limiting the number of vehicles in the area. Again, that

CMAA chose to give preference to permitted ground transportation vehicles to effectuate its

objectives does not make the Regulations unconstitutionally discriminatory. A classification having

some reasonable basis “is not unconstitutional merely because it results in some inequality.”

Harrison, 569 S.W.2d at 825.

Our de novo review persuades us that the trial court was imminently correct that “there can

be no doubt but that the [R]egulations have a rational basis,” do not unreasonably apply, and are

properly upheld in furtherance of their legitimate government purposes. Accordingly, the trial court

correctly granted summary judgment to CMAA.

V.

The judgment of the trial court is affirmed. This case is remanded to the trial court for

enforcement of its judgment and for collection of costs assessed below, all pursuant to applicable

law. Costs on appeal are taxed against the appellant, Millennium Taxi Service, L.L.C.

_______________________________

CHARLES D. SUSANO, JR., JUDGE

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This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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