Palo Alto-Menlo Park Yellow Cab Co. v. Santa Clara County Transit District

Appellants Palo Alto-Menlo Park Yellow Cab Co., Inc. and Cabs Unlimited, Inc. (doing business as Yellow Cab of Mt. View, Los Altos and Cupertino) and other owners and operators of taxicab companies operating in Santa Clara County, on November 18, 1974, filed a complaint in the superior court for injunctive and declaratory relief.

The complaint alleged violation of the Santa Clara County Transit District Act (Pub. Util. Code, § 100000 et seq.) and sought to enjoin the operation of the Dial-A-Ride service proposed by Santa Clara County Transit District, et al. (hereinafter respondents), unless and until respondents purchased plaintiffs’ businesses in accordance with Public Utilities Code section 100055.1. The complaint further sought declaration that plaintiffs are “existing systems” within the meaning of Public Utilities Code section 100021, and that respondents are therefore required to purchase plaintiffs’ businesses before beginning operation of the Dial-A-Ride system, which was scheduled to and did begin operation on November 24, 1974.

At a hearing on an order to show cause why a preliminary injunction should not be granted the parties, on January 9, 1975, stipulated…