Federal suit filed over state law, rule on licensing of new moving companies

A federal lawsuit filed today claims a Missouri law on licensing of moving companies puts roadblocks in front of entrepreneurs, protecting the establishment from competition.

Michael Munie, owner of ABC Quality Moving, filed an application with the Missouri Department of Transportation in 2008, seeking an operating license to handle moves throughout Missouri. But, Munie says, the state law and regulations governing the moving business effectively give established moving companies veto power over new businesses seeking to join the market. That, Munie says, is an unconstitutional violation of his equal protection, due process and other rights.

Munie is represented by the Pacific Legal Foundation, an organization that supports limited government and brings litigation to that end. The foundation says Oregon had a similar law which it challenged in court last year, and after a judge refused to throw the case out, that Legislature repealed the law.

Dave Roland of the St. Louis-based Show-Me Institute, a free-market think tank, is local counsel on the case.

The lawsuit focuses on a section of law that allows filing of objections to a motor carrier certificate application with the Missouri Department of Transportation. The accompanying rule says licensed moving companies get notice of the application and opportunity to object. Once filed, a hearing is conducted in which the new business can bring witnesses to speak to the necessity of the new company.

Munie says in his case it was impractical to ask potential customers to take time off work to attend a government hearing, so he instead scaled back his application to just run his business in the St. Louis area, and other companies withdrew their objections.

State transportation officials didn’t immediately return calls seeking comment.

The case is 4:10-cv-01096, Munie v. Koster.