STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS
DIVISION OF PUBLIC UTILITIES AND CARRIERS
89 JEFFERSON BOULEVARD
WARWICK, RHODE ISLAND 02888
| In Re: | STATE TOWING SERVICE, INC. 380 Valley Street Providence, RI 02909 | |
Docket: 19 MC 169
Hearing Date: November 18, 2019
WHEREAS, on October 18, 2019, the Division of Public Utilities and Carriers (“Division”) issued a notice to State Towing Service, Inc. (“Respondent” or “State Towing”) that it would conduct a hearing on November 6, 2019 at 10:00 a.m. at the Division which is located at 89 Jefferson Blvd., Warwick RI 02888;
WHEREAS, in the Notice the Division alleged violations under R.I. Gen. Laws § 39-4-10 (Unreasonable Business Practices) and R.I. Gen. Laws § 39-12-27 (Security for Public Protection);
WHEREAS, on November 6, 2019, the hearing that was scheduled for that day was rescheduled for November 18, 2019 at 10:00 a.m. at the Division’s offices;
WHEREAS, the hearing occurred on November 18, 2019, and the following individuals entered their appearances on the record;
Appearances:
For the Advocacy Section: Tiffany Parenteau, Esq.
Special Assistant Attorney General
For State Towing: Peter Petrarca, Esq.
WHEREAS, at the hearing, the Advocacy Section and the Respondent represented that they had entered into a settlement of the alleged violations contained in the Notice;
WHEREAS, on February 7, 2020, the Advocacy Section submitted a duly executed Stipulation of Facts and Settlement Agreement with the Division, an unsigned copy of which is annexed hereto as Attachment A (“Settlement Agreement”); and
WHEREAS, the Division has reviewed the Settlement Agreement and finds that it is a reasonable resolution of this matter, in the public interest, and in accordance with law and regulatory policy.
Accordingly, it is
(23768) ORDERED:
1. The terms and conditions of the Settlement Agreement are incorporated into this Report and Order by reference and are deemed terms and conditions of this Report and Order; and
2. The Settlement Agreement is hereby adopted and approved.
DATED AND EFFECTIVE AT WARWICK, RHODE ISLAND, FEBRUARY 18, 2020.
| _____________________________ Leo J. Wold Deputy Chief of Legal Services Hearing Officer | APPROVED: | ___________________________ Linda George, Esq. Interim Administrator |
(PROVIDED PURSUANT TO R.I.G.L. § 42-35-12)
Please be advised that if you are aggrieved by this final decision (report and order) of the Rhode Island Division of Public Utilities and Carriers (“Division”) you may seek judicial review of the Division’s final decision by filing an appeal with the Rhode Island Superior Court. You have thirty (30) days from the mailing date (or hand delivery date) of the Division’s final decision to file your appeal. The procedures for filing the appeal are set forth in Rhode Island General Laws, Section 42-35-15.
Proceedings for review may be instituted by filing a complaint in the Superior Court of Providence or Kent Counties. Copies of the complaint must be served upon the Division and all other parties of record in your case. You must serve copies of the complaint within ten (10) days after your complaint is filed with the Superior Court.
Please be advised that the filing of a complaint (appeal) with the Superior Court does not itself stay enforcement of the Division’s final decision. You may however, seek a stay from the Division and/or from the Court.
The judicial review shall be conducted by the Superior Court without a jury and shall be confined to the record. The Court, upon request, shall hear oral argument and receive written briefs.
STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS
DIVISION OF PUBLIC UTILITIES AND CARRIERS
89 JEFFERSON BOULEVARD
WARWICK, RHODE ISLAND 02888
IN RE: STATE TOWING SERVICE INC. :
DOCKET NO. 19 MC 169
STIPULATION OF FACTS AND SETTLEMENT AGREEMENT
This STIPULATION OF FACTS AND SETTLEMENT AGREEMENT (“Agreement”), dated as of this ____ day of February 2020, by and among the Advocacy Section of the Division of Public Utilities and Carriers (“Advocacy Section”) and State Towing Service Inc. (referred to herein as “State Towing”). The Advocacy Section and State Towing are collectively referred to herein as the “Parties.” The Parties have reached this Agreement in connection with the request for a formal fitness hearing made by the Advocacy Section.
SECTION 1. STIPULATION OF FACTS:
The Parties hereto, stipulate that the following facts may be entered into record in this matter as undisputed and agreed upon by them:
The parties to this proceeding further agree that the following General Laws relating to the Division of Public Utilities and Carriers (“Division”) and the Division’s Rules and Regulations governing Motor Carriers of Property are specifically applicable to this matter:
Rhode Island General Law:
1) R.I.G.L. §39-4-10, governing “[o]rders as to unreasonable practices or inadequate services” prohibits “unjust, unreasonable, insufficient, preferential, unjustly discriminatory…” practices by a regulated entity and authorizes the Division of Public Utilities and Carriers to order refunds as a remedial measure consistent with R.I.G.L. § 39-3-13.1.
2) R.I.G.L. §39-12-27, governing “[s]ecurity for protection of the public,” requires that a regulated carrier carry and furnish the Division with evidence of insured financial responsibility as a condition of commencing and continuing operation.
3) R.I.G.L. §39-12-30, governing the “[a]ccounts, records and reports” that may be required by the administrator Division and the requirement that responses to such queries or requests should be “specific and full, true, and correct answers to all questions.”
4) R.I.G.L. §39-12-36, governing “[u]nlawful operations – [p]enalty,” that any knowing and willful violation of the chapter or the rules and regulations can, in lieu of criminal sanctions and/or revocation or suspension of the individual’s or entity’s operating authority, in the administrator’s discretion be subject to a civil fine of up to one thousand dollars ($1,000) per violation.
SECTION 2. VIOLATIONS
Based upon the above-stipulated facts and the applicable laws, the Parties further stipulate that there is sufficient evidence to establish the following:
1. That State Towing failed to maintain the proper insurance coverage and provide accurate proof of financial responsibility to the Division in violation of R.I.G.L. §39-12-27 and R.I.G.L. §39-4-10 and that each day without coverage is a separate violation and implicates the penalty provisions of R.I.G.L. §39-12-36.
2. That by failing to maintain the proper insurance coverage and proof of financial responsibility, State Towing failed to fulfill its duty to provide the security of said coverage in the case of an accident to the public or the owner of a vehicle being towed. The security of property and people is an important public interest.
3. That the failure to maintain the proper insurance coverage is a serious violation of State Towing’s obligations as a certificate holder.
4. That each day without insurance coverage was a distinct and separate violation punishable by criminal sanctions and/or suspension or revocation of the operating certificate and/or a civil fine of up to one thousand dollars ($1,000).
5. That the civil fine agreed upon is consistent with the fines levied by the Division for similar violations.
6. That such a civil fine is fair, reasonable, and in the public interest as it deters other certificate holders and State Towing from future lapses in coverage.
SECTION 3. TERMS OF SETTLEMENT
Based upon the foregoing, the Parties hereto make the following joint recommendation for resolving these proceedings with respect to State Towing:
1. That the Advocacy Section and State Towing agree that State Towing will pay a civil fine in the amount of twelve thousand dollars ($12,000).[1]
2. That the Advocacy Section and State Towing agree that the fine shall be payable in twelve monthly installments of one thousand dollars ($1,000) each due by the last business day of the month. State Towing may prepay the fines but any prepayment will not shorten the period of probation.
3. That the Advocacy Section and State Towing agree that State Towing will be subject to a probation period of eighteen (18) months (“Probation Period”) and that any new violations during the period could result in further fines or the suspension or revocation of State Towing’s certificate.
4. That the Advocacy Section and State Towing agree that if State Towing is determined to have violated any Applicable Rules & Statutes during its Probation Period, after State Towing has had an opportunity for an evidentiary hearing and has been afforded due process, it may at the discretion of the Division, be required to pay new fines or penalties imposed upon it for the new violation(s).
5. That the Advocacy Section and State Towing agree that State Towing will not knowingly or willfully violate any applicable Division Rules or Regulations or Rhode Island Statutes implicated herein in this Settlement Agreement.
6. That the Advocacy Section and State Towing agree that if State Towing is found to have willfully engaged in the same or similar violations alleged herein that State Towing’s new infractions will be reviewed with attentive scrutiny; penalty recommendations shall be commensurate with State Towing’s history.
SECTION 4. SEVERABILITY CLAUSE.
Any part, provision, representation or warranty of this Agreement that is prohibited or which is held to be void or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof.
SECTION 5. GOVERNING LAW.
This Agreement shall be construed and the obligations, rights and remedies of the Parties shall be determined in accordance with the laws of the State of Rhode Island and the Division Rules and Regulations. Each Party acknowledges that it is entering into this Agreement freely and voluntarily, that it has sought and obtained legal counsel with respect to the matters contained herein, that it has been duly appraised of its respective legal rights hereunder, and that it clearly understands and assents to all the providing hereof.
SECTION 6. WAIVER:
The failure of a Party to insist on strict compliance of a covenant hereunder or of any obligation hereunder, irrespective of the length of time for which such failure continues, shall not be waiver of such Party’s right to demand strict compliance in the future. No consent or waiver, express or implied, to or any breach or default in performance of any obligation hereunder, shall constitute a consent or waiver of any other breach or default in the performance of the same or any other obligation hereunder. No term or provision of this Agreement may be waived unless such waiver is in writing and signed by the Party against whom such waiver is sought to be enforced.
SECTION 7. OTHER AGREEMENTS.
This Agreement constitutes the entire understanding between the Parties with respect to the settlement contemplated herein and this Agreement shall not be modified except in writing executed by all the Parties.
SECTION 8. CAPTIONS:
Titles or captions of Sections contained in this Agreement are inserted only as a matter of convenience and for reference, and in no way define limit, extend or describe the scope of this Agreement or the intent of any provision hereof.
SECTION 9. NO ADMISSIONS:
The Parties acknowledge that this Agreement is executed in settlement of a disputed claim.
SECTION 10. EFFECT OF STIPULATION OF FACTS AND SETTLEMENT AGREEMENT:
A. The Advocacy Section and State Towing jointly propose that this Agreement, upon adoption by the Division, shall constitute a Final Order of the Division. State Towing waives any and all rights of appeal or judicial review that might otherwise attach to a Final Order of the Division.
B. The Parties agree that this Agreement is a reasonable compromise and in the public interest and in accordance with law and regulatory policy and have caused this Agreement to be executed by their respective representatives, each being authorized to do so.
Signature line on following page
Submitted this ___ day of February 2020.
| STATE TOWING SERVICES INC. 380 Valley Street Providence, RI 02909 By its Attorney /s/Peter Petrarca Peter Petrarca, Esq. 330 Silver Spring Street Providence, RI 02904 Tel. (401) 273-1111 | ADVOCACY SECTION OF THE DIVISION OF PUBLIC UTILITES AND CARRIERS By its Attorney /s/Tiffany A. Parenteau Tiffany Parenteau, Esq. Special Assistant Attorney General 150 South Main Street Providence, RI 02903 Tel. (401) 274-4400 |
[1] The cost of the premium for insurance coverage to State Towing over the 82-day lapse period would have been eight thousand, four hundred and thirty-nine dollars and forty-four cents ($8,439.44). Approximately one and a half times the premium would be twelve thousand dollars ($12,000). This is consistent with past Division civil fines for similar violations and takes into consideration State Towing’s cooperation in investigating the matter.