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June 25, 2008
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Judge's ruling on taxi license transfer could set precedent

PHOTO ROB BENCHLEY/THE INDEP ENDENT
Twenty-five years ago John "Mousey" Grangrade started his A-1 Taxi business. In 2005, he decided he wanted to retire and asked the selectmen to allow his licenses for his four cabs to be transferred to his manager, Lisa Fisher, so that she could buy the business. During a three-hour hearing on the request in 2006, a number of taxi owners and drivers voiced objection to the transfer citing the long tradition of a waiting list providing for licenses to be offered to the next people on the list if a cab business closed.

The selectmen denied Grangrade's request based on the established tradition. Ssince he did not want to shut down A- 1, the matter went to a hearing before a Superior Court judge. In his June 11 decision, Judge Charles T. Spurlock overturned the selectmen's denial and sent the transfer request back to the board to decide using strictly regulatory criteria. At the time of Grangrade's request, the taxi bylaw provided for license transfers if approved by the board. At that time, the waiting list was not referenced in the bylaw.

Judge Spurlock wrote, "The selectmen reasoned that there was a well-established, though un-codified, customary waiting list and any transfer to Fisher would unfairly circumvent that practice. ...The selectmen may not deny any request arbitrarily. The selectmen cannot point to any provision under the Taxi Code of Nantucket or any other precedent in the Commonwealth that supports the denial of A-1's request. The selectmen's decision is arbitrary and capricious because their decision was based on a waiting list that is 'extraneous to the prescription of the regulatory scheme.' Accordingly, the selectmen's decision is reversed."

"The evidence has been presented, and there has been no evidence presented to suggest that A-1 is not viable for a transfer," said David Lawler, Grangrade's attorney. "We would assume the Board of Selectmen would approve the transfer based on the standard of review. [The reversal] means the selectmen should not have considered the list as criteria for a transfer. They should have looked at the bylaw. The wait list is a tool for new licenses, but the bylaw provides wording for transfers. They are confusing the waiting list with new licenses. It's apples and oranges. We intend to go to the Board of Selectmen and request, based on the proper criteria, that they grant the transfer of the four licenses."

In a document filed by the town, it is argued that at the time of Grangrade's request, evidence suggested that he was no longer running A-1 Taxi and violated the taxi code by allowing Fisher to control the business. The town cited the fact that Grangrade had transferred ownership of two of his vehicles to Fisher and continued to permit their use under his license.

"I'm very pleased that it went my way," Grangrade said last week. "It went to the higher court and they have to abide by what the higher court says."

Understanding that the selectmen have 30 days to appeal the judge's ruling from the date of its filing, Fi sher is taking a wait-and-see attitude.

"I'm pleased with the court's decision, but there is still a process we have to go through so it's business as usual trying to accommodate the customers' requests," she said. "We greatly appreciate all the loyalty from our customers through the whole process." Steve Cohen, the attorney who represents the Nantucket Taxi Owners Association, said that while the waiting list was not an official part of the taxi regulations when Grangrade originally sought his transfer, and he was denied on that ground, last year the list was formalized within the bylaw.

"I don't know how [the selectmen] will handle an application filed be fore the list was put in the bylaw," said Cohen. "I think the regulations definitely suggest that the license is not intended to be a transferable commodity and is for the selectmen to assign. It will be up to the selectmen to determine what is appropriate."

Jon St. Laurent, current president of the NTOA, stated what he believes represents the present stance of most of the island's cab owners and drivers since the judge's ruling became known. It is not quite as rigid as it was when Grangrade had his 2006 hearing.

"The position of the Nantucket Taxi Owners Association in the past was against the transfer of licenses. Now, because of the court ruling, it is in the hands of the Board of Selectmen. The license transfer between John Grangrade and Lisa Fisher will set a precedent," said St. Laurent.

"The NTOA feels that if the transfer is approved that this should not be just a one time thing. The regulations should be changed so that all current taxi owners are allowed to transfer their licenses in the future rather than turning them into the town to issue to the next qualified person on the waiting list.

"They can't do it with just this one because of the court decision," St. Laurent added. "It's the same thing as the transfer of a liquor license. They go through an application process and the board approves or disapproves it."

Fisher's attorney Tom Vawter reiterated that nothing in the bylaw prohibits a transfer if approved by the board.

"Lisa and Mousey made the case that it was a business decision and the transfer would promote what the regulations seek in terms of serving the public," said Vawter.

Selectman Rick Atherton said on Monday that the board has not yet discussed the judge's reversal or what action they will take on the matter.


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