June 8,2010. John White, Claims Representative State Farm Insurance Company 1 18 Tygart Mall Loop White Hall, WV 26554

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1 1 Brooks Street, Ps Charleston, West Virginia Phone: (304) FXX: (304) June 8,2010 John White, Claims Representative 1 18 Tygart Mall Loop White Hall, WV Jeffery L. Burdine Express Towing HC 67 Box 124 Hundred, WV RE: Case No MC-FC V. Jeffery L. Burdine, dba Express Towing Gent 1 em en : Pursuant to Rule 2 of the Commission s Rules of Practice and Procedure, we are enclosing a copy of the Staff memorandum in this matter. If you wish to respond to the enclosed Staff memorandum, you may do so in writing, within ten days, unless directed otherwise, of this date. Your failure to respond in writing to the utility s answer, Staffs recommendations, or other documents may result in a decision in your case based on your original filing and the other documents in the case file, without further hearing or notice. If you have provided an address you will automatically receive notifications as documents are filed in this proceeding. The notifications allow recipients to view a document within an hour from the time the filing is processed. If you have not provided your address, please send an to caseinfo@,psc.state.wv.us and state the case number in the subject field. Sincerely. i I SSljan Enclosure Memo./ Executive Secretary Division

2 BEFORE THE PUBLIC SERVICE COMMISSION OF WEST VIRGINIA FINAL JOINT STAFF MEMORANDUM TO: FROM: DATE: SUBJECT: Sandra Squire Executive Secretary Richard M. Allen, Staff Attorney Transportation Administration June 8, 2010 Case No MC-FC V. Jeffery L. Burdine, doing business as Express Towing Attached hereto please find a Final Memorandum, dated June 4, 2010, prepared by Michael E. Dailey, a Utilities Analyst II for the Utilities Division, in connection with this case. This complaint, filed on March 19, 201 0, relates to allegations of overcharges for non-consent third-party towing and incidental storage. No answer has been filed in this matter. Staff notes the Defendant has received a copy of the complaint on or about March 29, Staff has also contacted the Defendant by telephone encouraging him to file a response. To date, no such action has taken place. The tow was apparently initiated by the West Virginia State Police on or about February 26, Staff observes that there is an invoice, parts of which are illegible, under review in this case, It is also observed that the invoice form does not conform with Commission Motor Carrier Rules 5.2.e.l. through 5.2.e.13. Additionally, Staff sought further information to complete its investigation from the Complainant, as described in the attached. The responses from Complainant were inconclusive. As Staff now understands the situation, State Farm s complaint is directed toward the storage charges in this matter. Express Towing charged $25.00 per day for the vehicle in question, Express does not have a tariff on file with the Commission. However, under the Commission s provisions for statewide maximum rates inside

3 Sandra Squire June 8,2010 Page 2 storage is $25.00 per day and outside storage for vehicles under 7,500 pounds or less is to be charged at the rate of $15.00 per day. At this point, because of the lack of a response from the Defendant, an unclear invoice and the lack of specificity as to certain facts by the Complainant, Staff recommends this matter be set for an evidentiary hearing. Please file in the customary manner. If you require anything further, please advise. RMNjw Attach men t

4 PUBLIC SERVICE COMMISSION OF WEST VIRGINIA UTILITIES DIVISION FINAL MEMORANDUM FROM: Michael E. Dailey, Utilities Analyst I1 Utilities Division DATE: June 4,20 10 SUBJECT: Case No MC-FC V. Jeffrey L. Burdine, dba Express Towing On March 19,2010, State Farm Insurance (State Farm) filed a formal complaint against Jeffrey L. Burdine, dba Express Towing (Express) seeking redress for $ in total charges concerning the recovery, tow, and storage of a State Farm insured s motor vehicle. According to State Farm, the accident, which occurred on State Route 20 in Reader, WV, was investigated by the West Virginia State Police on February 26, The vehicle towed was listed as a 1997 Mercury Marquis. State Farm claims that the total bill for the recovery, tow, and storage of the vehicle was $840.00, which is exclusive of a second tow that totaled $ State Farm felt that the charges are excessive and asked for the Commission s assistance, however, exactly which charges were deemed excessive was not indicated. Rule 5.2.e of the Comrnission s Motor Carrier Rules lists 13 items that must be included on every invoice with respect to third-party tows. Upon review of the attached invoice, Staff notes that the invoice does comply with some, but not all of the Commission s Rules and Regulations 5.2.e.l through 5.2.e.13. Also on March 19,2010, a Commission Order was issued in this filing that required Express to satisfy the formal complaint, or file an answer with regard to the complaint in writing, within ten (1 0) days of service upon it by certified mail. Records in the Commission s Executive Secretary s office indicate that a J. Burdine signed the certified mail receipt on March 29, 2010, and that the signed receipt was returned to the Commission on March 30,2010. As of the date of Staffs initial memorandum in this filing (April 15,2010), Express answer to the complaint had no been filed.

5 Case No MC-FC June 4,20 10 Page 2 In its initial memorandum, Staff requested that the Commission issue an order which compelled Express to answer the complaint, and to provide an invoice for the tow that is in compliance with the requirements of the Commission s Wrecker Rule 5.2.e., if available. On April 28,2010, a Commission Referral Order and Directive to Answer Complaint was issued by the Commission. In this order, Express was directed to answer the complaint, in writing, within ten (1 0) days of the order date. No formal answer has been filed by Express. Staff contacted Jeffrey Burdine, via telephone, on June 2,2010, to inquire about the lack of a formal answer. Mr. Burdine informed Staff that an answer had been sent, but for some unknown reason did not reach the Commission. Staff asked Mr. Burdine to fax a copy of the answer to the Commission. Mr. Burdine stated that a copy was available, but that it might be later in the afternoon (June 2,2010) before it was sent. Staff informed Mr. Burdine that as long as the answer was provided by Wednesday, June 3,2010, Staff would have time to review it before preparing its final recommendation. As of this date (June 4,2010), Express has still not provided an answer to this complaint., nor has the requested invoice for this tow that is in compliance with the requirements of the Commission s Wrecker Rule 5.2.e., been provided. Also in its initial memorandum, Staff required additional information from State Farm with regard to this complaint. Staff requested that State Farm answer the following questions, in writing, in order for this complaint to be further processed. On April 22, 2010, State Farm submitted written answers for the below questions. Staffs questions, as well as State Farm s answers are as follows: 1. Which charges listed on the invoice are believed to be excessive? Answer: State Farm contends the storage charges are excessive. >> 2. Who requested the second tow, which transported the vehicle in question from Express storage lot in Hundred, WV, to Clarksburg, WV. Answer: It is not known who requested the second tow. 3. Did State Farm contact Express with regard to these charges before filing this formal complaint? Answer: State Farm did not contact Express Towingprior topling the PSC complaint.

6 Case No MC-FC June 4,2010 Page 3 4. Please provide a copy of the West Virginia State Police accident report regarding this incident. Answer: State Farm has requested a copy of the W SP accident report and will forward the report to the PSC upon receiving the report. Staffnotes that no accident report was everfiled with the Commission. According to State Farm, only the storage charges are being contested in this filing, thus Staff has reviewed the storage charges billed to State Farm in this incident. State Farm was billed a total of $ for storage of the vehicle. Express calculated storage charges based on six days of storage at a daily rate of $ Express does not have a Commission approved tariff. Therefore, Express charges wrecker and storage rates as provided for in the Maximum Statewide Wrecker Rates. The Maximum Statewide Wrecker Rates do provide a $25.00 per day storage rate for inside storage, however, the outside storage rate for passenger cars and trucks with a gross vehicle weight of 7,500 Ibs. or less is only $15.OO per day. In conclusion: 1. State Farm has provided no specifics as to why any of the invoice charges are excessive, nor any evidence that the subject vehicle was stored inside for six (6) days. 2. Express s invoice supplied by State Farm is both deficient in information required by M.C. Rule 5.2.e., and partly illegible. 3. Express has failed to provide a response to the complaint as required by Commission Order and as informally promised to Staff. 4. Staff notes that the Commission Referral Order and Directive to Answer Complaint warned Express of the possible consequences of failing to file a response to this complaint. 5. Therefore, Staff has been unable to complete its investigation of this complaint, and sees no alternative to an evidentiary hearing. MED