Renegade limousine operator again seeks to bust alleged Las Vegas monopoly

Friday, Jan. 21, 2000 | 11:16 a.m.

A man backed by national free-enterprise advocates is once again pleading his case before Nevada regulators, asking that he be allowed to start a limousine service in what critics call the monopoly-controlled Las Vegas limo industry.

John West, whose application for AAA Limousine was rejected by the TSA nearly 2 1/2 years ago, began fielding questions Thursday about his ability to run a company in a new hearing.

West, who won a high-profile District Court appeal of the TSA's rejection of his application, says he still wants to drive in Las Vegas and would pursue his career if the agency approves his certification.

But putting West behind the wheel is just one of the things the Washington D.C.-based Institute for Justice hopes to accomplish with its financial backing of the driver's case.

The Institute for Justice, a law firm that takes cases of business people it says have been wronged by government agencies, handled West's District Court appeal and contracted with a Las Vegas attorney to advise West on the TSA hearing.

The case has drawn the attention of the national media and columnist George Will wrote about West and criticized the TSA's licensing procedure.

West showed TSA investigators a copy of checking and savings statements from his personal banking account as part of his testimony before the TSA. According to the statement, West had balances of $805 in his checking account and $6,421 in a savings account in January 1998 -- enough to get his limousine business off the ground, he said.

But the fact West even had to present the bank statements is what's wrong with the TSA's certification process, said Dana Berliner, the lead attorney in an Institute for Justice suit expected to be heard in District Court in June.

"Remember, we're talking about a person who's being asked to drive a car -- one car," Berliner said from Washington today.

The Institute for Justice legal team isn't handling West's TSA appeal personally, but has contracted Las Vegas attorney James Kent to handle the details.

Berliner said the Institute's suit, which challenges the TSA's certification process, is what her firm is concentrating on.

"The object of that case is to change the law," Berliner said. "We're very excited that the TSA is hearing John West's case and we very much hope that they do the right thing and grant him his license. But just giving one person a license is not a solution. The real solution is to change the law which gives the government the role to protect insiders from competition."

The TSA hearing continued today after West was questioned by TSA Commissioner Bruce Breslow and attorneys representing rival limousine companies.

Under TSA regulations, prospective limousine company owners must submit detailed financial information to prove that their businesses can succeed and show that their companies would not have an adverse impact on the industry. They also must show they are insured and submit to TSA inspections of vehicles and safety records.

West, who received a federal license allowing him to operate across state lines, ran into trouble with Nevada authorities when he was contracted to drive a client around the Las Vegas area on a sightseeing trip. West's route took him to Hoover Dam, where he crossed into Arizona to comply with the requirement to conduct interstate commerce.

TSA authorities say the route strategy was an attempt to circumvent Nevada regulations.

When they considered the application, TSA officials said West was unwilling to provide enough detail on financial statements for the agency to render a decision and rejected the application in September 1998.

They blamed West for delaying the process, which ultimately led to his company being rejected.

West also was cited in October 1998 for illegally operating in the state and paid a $1,000 settlement fine while not admitting guilt. He said he would pay a $2,500 fine on a second citation before he begins operations.

West sold his limousine and moved in March to Albuquerque, N.M., to work as an auto mechanic after he couldn't get a certificate to operate in Nevada.

West appealed the TSA decision on his application to District Court, which ruled in September that he deserved a new hearing.

On Thursday, attorneys for On-Demand Sedan and Yellow-Checker-Star Cab Co. questioned West about his ability to operate a limousine company and scrutinized the financial records he presented at the hearing.

Institute for Justice attorneys say the TSA applications seek too much financial information and that it is unfair for an applicant to disclose business plans and other proprietary information to competitors.

"You don't need a day of accounting procedures to see if a driver's car is safe or if he has insurance," Berliner said. "You can do that in about three minutes."

The TSA counters that it must have detailed information and proof that a company that deals with tourists is capable of delivering the services it promises. The agency also works to protect established companies from having to compete against companies that aren't insured or who cut corners on maintenance of vehicles.

Breslow said he will draft an order for consideration by the full TSA after the hearing is completed. The TSA is expected to consider the order next month or in March.