Alabama Public Service Commission v. Interstate Commerce Commission

765 F.2d 1516
CourtCourt of Appeals for the Eleventh Circuit
DecidedJuly 23, 1985
DocketNos. 84-7349, 84-7358
StatusPublished
Cited by1 cases

This text of 765 F.2d 1516 (Alabama Public Service Commission v. Interstate Commerce Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alabama Public Service Commission v. Interstate Commerce Commission, 765 F.2d 1516 (11th Cir. 1985).

Opinion

HATCHETT, Circuit Judge:

In this appeal, we review the' Interstate Commerce Commission’s decision that approval of a finance application, involving several railroads, which included acquisitions and abandonments, would not cause a substantial lessening of competition, a monopoly, or a restraint of trade. We affirm.

FACTS

In July, 1982, five railroads reached agreement on a series of acquisitions and abandonments.1 The negotiations which culminated in the filing of the three applications for approval by the Interstate Commerce Commission (ICC) were conducted under the statutory protection of section 5 of the Department of Transportation Act.2 [1519]*1519Prior to the filing of the three applications, the ICC determined that Finance Docket 30202 was a “minor” transaction under 49 C.F.R. § 1180.23 which provides for limitation of the amount of information that an applicant need provide and allows the ICC to waive other informational requirements of 49 C.F.R. § 1152 (1984). See 49 C.F.R. §§ 1180.0, 1180.6, and 1180.8. The ICC approved Finance Docket 30202 as a minor transaction based on 49 U.S. C.A. § 11344(d).4 That section obligates [1520]*1520the ICC to approve the application unless there is a finding that the transaction is likely to substantially lessen competition, create a monopoly, or otherwise restrain trade and freight service transportation. If anticompetitive effects are both likely and substantial, the ICC must balance those effects against the public interest in satisfying significant transportation needs.

Dockets AB-28 and AB-43 were approved based on a finding that the aban-donments are required by public convenience and necessity. 49 U.S.C.A. §§ 10903(a), 10904(d).5 The additional requirement under the public convenience and necessity test of 49 U.S.C.A. § 10904(d)(2) (detriment not to exceed the benefit of the abandonment), was not applied by the ICC because the Secretary of Transportation neither approved nor disapproved the agreements.6

Petitioners appeal the ICC’s (1) granting of authority to finalize purchase, trackage rights, and Montgomery terminal agreements (Finance Docket 30202) pursuant to 49 U.S.C.A. §§ 11343-11345 (1984), 49 C.F.R. §§ 1180.0-1180.26 (1984); (2) granting of certificate of public convenience for the Union Springs-Montgomery, Alabama, abandonment (Docket AB-28,' sub-5) pursuant to 49 U.S.C.A. § 10903 (Supp.1984)7; and (3) granting of certificate of public convenience for the Tuscaloosa-Maplesville, Alabama, abandonment (Docket AB-43, sub-101) pursuant to 49 U.S.C.A. § 10903.

[1521]*1521STATUTORY CRITERIA AND STANDARD OF REVIEW

This circuit has previously discussed the requirements of the public convenience and necessity test. In Georgia Public Service Commission v. United States, 704 F.2d 538, 541 (11th Cir.1983), we held that:

[A] finding of public convenience or [sic] necessity involves balancing competing interests: ‘[t]he benefits to particular communities and commerce of continued operation must be weighed against the burden thereby imposed upon other commerce.’ Colorado v. United States, 271 U.S. 153, 168, 46 S.Ct. 452, 456, 70 L.Ed. 878, 885 (1926). E.g., State of Texas v. United States, 642 F.2d 87, 90 (5th Cir.1981); State of Nebraska v. United States, 255 F.Supp. 718, 721 (D.Neb. 1966). As we stated in State of Texas v. United States, 642 F.2d at 90:
The Commission’s role in abandonment proceedings is to balance the immediate and local interests of the community and the shippers against the broader public interest in freeing interstate commerce from undue burdens. The ICC must consider whether the branch line is profitable or whether it imposes a drain on other income, as well as the likely expense of continued operation,
(citation omitted). Balancing requires the ICC to take into account a number of relevant factors, including the profitability of the line and the expense of continued operation, Purcell v. United States, 315 U.S. 381, 384, 62 S.Ct. 709, 710, 86 L.Ed. 910, 914 (1942), the likelihood of the line’s future profitability, People of the State of Illinois v. United States, 666 F.2d 1066, 1079 (7th Cir.1981); State of Texas, 642 F.2d at 89, the availability of alternative transportation, People of the State of Illinois, 666 F.2d at 1080; State of Texas, 642 F.2d at 89, and the congressionally mandated examination of the harm to rural communities. 49 U.S.C. § 10903(a). [Footnote omitted.]

The standard of appellate review of an ICC decision is very narrow. Bloomer Shippers Association v. ICC, 679 F.2d 668 (7th Cir.1982). The scope of our review is directed only at the conclusion of the ICC. State of Texas v. United States, 642 F.2d 87, 89 (5th Cir.1981). “We may only overturn the decision if it is unsupported by substantial evidence, 5 U.S.C. § 706(2)(E), or if it is ‘arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.’ ” Georgia Public Service Commission, 704 F.2d at 542. “Substantial evidence” is relevant evidence acceptable by a reasonable mind as supporting a conclusion. Refrigerated Transport Company, Inc. v. ICC, 616 F.2d 748, 751 (5th Cir.1980). “It is something more than a scintilla of evidence, but something less than the weight of the evidence.” McHenry v. Bond, 668 F.2d 1185, 1190 (11th Cir.1982). If there is substantial evidence in the record, it is beyond the appellate court’s function to “substitute its own conclusions for those which the Commission had fairly drawn from such findings.” Bowman Transportation, Inc. v. Arkansas-Best Freight System, Inc.,

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765 F.2d 1516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alabama-public-service-commission-v-interstate-commerce-commission-ca11-1985.