American Farm Lines, Inc. v. United States of America and Interstate Commerce Commission

684 F.2d 697, 1982 U.S. App. LEXIS 16896
CourtCourt of Appeals for the Tenth Circuit
DecidedAugust 3, 1982
Docket80-2195
StatusPublished
Cited by1 cases

This text of 684 F.2d 697 (American Farm Lines, Inc. v. United States of America and Interstate Commerce Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Tenth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Farm Lines, Inc. v. United States of America and Interstate Commerce Commission, 684 F.2d 697, 1982 U.S. App. LEXIS 16896 (10th Cir. 1982).

Opinion

BREITENSTEIN, Circuit Judge.

The petition seeks review of an Interstate Commerce Commission order denying the removal of a restriction on a certificated authority to operate as a motor common carrier. The issues relate to statutory construction and agency procedures. Jurisdiction is conferred by 28 U.S.C. § 2344. We deny the petition for review.

Petitioner American Farm Lines, AFL, is a motor common carrier certified by the Commission. With exceptions of no present concern, petitioner’s authority is limited to the transportation of freight for the United States government. Such freight accounts for over 90% of AFL’s traffic.

In November, 1979, the Commission issued Ex Parte No. MC-107, Transportation of Government Traffic, 131 M.C.C. 845. That order contained a general finding of need for additional carriers of the traffic and concluded that the need would be served best by certifying applicants who satisfied minimal fitness standards. American Trucking Association, Inc. v. United States, 5 Cir., 642 F.2d 916, discusses the background for the Commission action and upholds the validity of MC-107.

To meet the potentially increased competition, AFL on March 4,1980, petitioned the Commission for the removal of the government-only restriction in its certificate. The petition asked the Commission “to provide equitable relief for AFL and other carriers similarly situated * * *.” [Emphasis supplied.]

MC-107 made a general finding of need. 624 F.2d at 919. On July 1,1980, while the AFL petition was pending, the Motor Carrier Act of 1980, Pub.L. No. 96-296, 94 Stat. 793, became effective. It provides, 49 U.S.C. § 10922(b)(1), § 5 of the 1980 Act, that the Commission shall issue a certificate if the Commission finds that the applicant is fit and willing and that the proposed service will “serve a useful public service, responsive to a public demand or need.” Subsection (b)(3) of § 5 provides:

“The Commission may not make a finding relating to public convenience and necessity under paragraph (1) of this subsection which is based upon general findings developed in rulemaking proceedings.” [Emphasis supplied.]

On August 26, 1980, the Commission denied the AFL petition saying:

“AFL has in effect requested the Commission to make a prospective finding *699 that the public convenience and necessity requires the elimination of all government traffic restrictions in outstanding certificates. Such a finding is proscribed by Section 5 of the Motor Carrier Act of 1980, Pub.L. 96-296, 94 Stat. 793.
* $¡ * * * H<
AFL, or any other carrier holding a certificate with a government traffic restriction can seek to have the restriction removed by filing an application under the liberalized entry provisions in new section 49 U.S.C. § 10922(b)(1).”

AFL then filed a Petition to Reopen Ex Parte No. MC-107 (Sub-No. 1). It contended: (1) the Commission had misapplied the limiting provision of § 5 which applies only to new authority proceedings; (2) AFL sought restriction removal for itself as well as other carriers similarly situated; (3) Restriction removal is governed by § 6 of the Act, 49 U.S.C. § 10922(h); (4) The request for individual relief eliminated the need for any general finding; and (5) The Commission has pre-existing authority to remove restrictions.

Section 6, 49 U.S.C. § 10922(h), applies to restriction removal and provides in pertinent part that:

“(h)(1). Not later than 180 days after the enactment of this subsection, the Commission shall—
$$$$$$
(B) implement, by regulation, procedures to process expeditiously applications of individual motor carriers of property seeking removal of operating restrictions in order to—
(i) reasonably broaden the categories of property authorized by the carrier’s certificate or permit;
* * * * * *
(v) eliminate any other unreasonable restriction that the Commission deems to be wasteful of fuel, inefficient, or contrary to the public interest.” [Emphasis supplied.]

The Commission, on November 12, 1980, denied the Petition to Reopen. In so doing, it addressed AFL’s arguments point by point. It said that the request for relief of other carriers similarly situated requires a general finding prohibited by the 1980 Act. The request for individual relief was deemed “premature as a restriction removal proceeding under the new provisions of the Motor Carrier Act of 1980.” In passing, it should be noted that on December 31, 1980, the Commission promulgated regulations for restriction removal. See Ex Parte No. MC-142 (Sub-No. 1), 45 Fed.Reg. 86747-86761.

In denying the Petition to Reopen the Commission concluded:

“In any event, what the act provides for is the removal of unreasonable restrictions or the reasonable broadening of categories of property authorized to be transported. The new act itself authorizes issuance of certificates covering only government traffic with certain restrictions even on that traffic. Congress apparently does not consider such authorities to be too narrow or too restrictive. There is no merit in any contention that the Commission should grant American Farm’s proposal under some other theory. A request that tries to go beyond the ‘reasonable broadening’ provisions of the new act must be denied. As noted in the prior decision, the way for American Farm to obtain broader authority is to file applications under the liberalized entry provisions in amended 49 U.S.C. 10922(b)(1). Individual relief is not warranted on other grounds.”

During the pendency of the Petition to Reopen, AFL petitioned the Commission for restriction removal. The Commission rejected and returned the petition on the ground that the interim rules to implement the 1980 Act “did not provide for the filing of Petitions for Modification after July 3, 1980,” and the AFL petition was filed after that date. The Commission noted that:

“New proposed procedures for the restrictions removal provisions of the Motor Carrier Act of 1980 will be announced in the near future.”

*700 AFL on November 20, 1980, petitioned the Commission for instructions.

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Bluebook (online)
684 F.2d 697, 1982 U.S. App. LEXIS 16896, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-farm-lines-inc-v-united-states-of-america-and-interstate-ca10-1982.