Acme Fast Freight, Inc. v. United States

281 F. Supp. 314, 1967 U.S. Dist. LEXIS 9187
CourtDistrict Court, D. Delaware
DecidedDecember 19, 1967
DocketCiv. A. No. 3273
StatusPublished
Cited by6 cases

This text of 281 F. Supp. 314 (Acme Fast Freight, Inc. v. United States) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Acme Fast Freight, Inc. v. United States, 281 F. Supp. 314, 1967 U.S. Dist. LEXIS 9187 (D. Del. 1967).

Opinion

OPINION

Before SEITZ, Circuit Judge, WRIGHT, District Judge, and LAY-TON, District Judge.

LAYTON, District Judge.

This is an action brought by four freight forwarders1 subject to Part IV of the Interstate Commerce Act, 49 U.S.C., to set aside, annul and vacate, restrain and suspend certain portions of an order of the Interstate Commerce Commission. The order of which plaintiffs complain granted Norman Charles Brinke (d/b/a N. C. Brinke) a permit to operate as a freight forwarder.2 The action is before a three-judge court convened pursuant to §§ 1336, 1398, 2284 and 2321 through 2325 (inclusive) of the Judicial Code, 28 U.S.C.

Brinke’s application filed on December 6, 1963, sought the issuance of a permit3 to institute operation as a freight forwarder, in interstate commerce, in the transportation of general commodities between points in Dade County, Florida, on the one hand, and points in 14 states 4 on the other hand. In general, the application described the proposed service as limited to the acceptance of trailers containing single shipments moving from one consignor to one consignee on one bill of lading and to the use of Plan III trailer-on-flatcar (TOFC) service for the line haul movements. TOFC service is available under various plans.5 Plan III provides for the shipment of two loaded trailers at a fixed charge, irrespective of the commodities loaded and irrespective of the weight of the load. The trailers must both be loaded onto the flatcar at the same origin ramp and unloaded at the same destination ramp. The applicant’s primary function will be to pair single trailerload lots for travel under Plan III; i. e., upon receiving one trailer from a shipper, Brinke will find another shipper desiring to ship a trailer from the same origin and to the same destination as the first shipper. In addition to pairing Dade County shippers, the applicant will base his rates upon the actual cost (flatcar, trailer lease and drayage) of the transportation and profit instead of on the weight-density formula used by freight forwarders as these plaintiffs. By using this flat charge rate system, Brinke will pass the benefits of TOFC low cost to the shippers.

The application was referred to an Examiner for hearing in Miami, Florida, on March 9, 1964. The plaintiffs herein appeared at the hearing as protestants, offering testimony and other evidence in opposition to the application. On May 14, 1964, the Examiner filed his Recommended Report in which he proposed that the permit issue as requested. The report concludes:
“The question presented is whether the proposed service will be consistent with the public interest. There are many traffic problems facing manu[317]*317facturers and distributors in the greater Miami area. * * * [T]he majority are faced with a weight problem since much of their production involves items of extremely light weight in respect of which they cannot meet truckload mínimums. As a result of their difficulties, most have resorted, for truckload shipments at least, to so-called private carriage. * * * Applicant proposed to take care of many of their difficulties. * * * Most important, is the prospect that his plan of operation will induce a number of substantial shippers to fore-go the questionable private operations into which they have been forced by economic circumstances, and utilize regulated transportation facilities. This, of itself, is in the public interest.
* * * Moreover, * * * there is no indication that the proposed service will adversely affect the operations of protestants to any material extent. They are not now handling the traffic involved, and are not likely to get such traffic in the future, regardless of the outcome of this proceeding.”

Timely exceptions were taken by the plaintiffs. On October 15, 1964, the Operating Rights Review Board No. 1 filed its report, 323 ICC 376, finding:

“ * * * that although protestants possess authority to provide freight forwarder service in the considered areas 6 and utilize rail TOFC service, they do not provide the low-cost service required by the shippers, and no showing has been made that they will provide such service.” P. 379.
“Under the provisions of section 410 we must determine whether a qualified applicant is ready, able, and willing to perform the service proposed, and whether such service would be consistent with the public interest and the national transportation policy. We think that applicant has met affirmatively these statutory requirements, and that an appropriate permit should issue.” P. 380.

Again, timely exceptions were taken by the plaintiffs. The Commission entered its order affirming the Examiner and Board No. 1, 326 I.C.C. 322, noting:

“ " * * we agree with the Board that the proposed forwarding operation will be responsive to a public need which has not been satisfied by existing services. Protestants admittedly are not providing a comparable service, and the limitation to the use of trailer-on-flatcar service contained in the Board’s findings should preclude any serious diversion from protestants’ services.” P. 324

This action was commenced on October 20, 1966. The complaint, following the pattern of the protests made to the Examiner, the Board, and the Commission, challenged the entire application. Several months later, on March 3, 1967, the plaintiffs amended the complaint by paring it back so that the Commission’s report and. order are now contested only insofar as they authorize Brinke to engage in operation as a freight forwarder of general commodities from points in the states of New York, New Jersey, Pennsylvania, Maryland, Ohio, Illinois, Indiana, and Kentucky to points in Dade County, Florida.

The standard by which this Court reviews orders of the Interstate Commerce Commission is set out in the Administrative Procedure Act, 5 U.S.C. § 706:

“ * * * The reviewing court shall— * * *
(2) hold unlawful and set aside agency action, findings, and conclusions found to be — * * *
(E) unsupported by substantial evidence * * *.
In making the foregoing determinations, the court shall review the whole record or those parts of it cited by a party, and due account shall be taken of the rule of prejudicial error.”

[318]*318As this Court observed in Acme Fast Freight, Inc. v. United States, 146 F.Supp. 369 (Del., 1956), 372 (per Leahy, C. J.):

“In approaching the problem as to whether the Commission’s findings are supported by substantial evidence, certain guides are available. ‘Judicial review of the findings of fact and the expert judgments of the Interstate Commerce Commission where the Commission acts within its statutory authority is extremely limited.’ ‘Unless in some specific respect there has been prejudicial departure from the requirements of the law or abuse of the Commission’s discretion, the reviewing court is without authority to intervene.

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Related

Florida-Texas Freight, Inc. v. United States
373 F. Supp. 479 (S.D. Florida, 1974)
Norfolk & Western Railway Co. v. United States
316 F. Supp. 1396 (E.D. Missouri, 1970)
Drum Transport, Inc. v. United States
298 F. Supp. 667 (S.D. Illinois, 1969)
Carolina Freight Carriers Corp. v. United States
297 F. Supp. 848 (W.D. North Carolina, 1969)

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Bluebook (online)
281 F. Supp. 314, 1967 U.S. Dist. LEXIS 9187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/acme-fast-freight-inc-v-united-states-ded-1967.