Arizona Tank Lines, Inc. v. Arizona Corp. Commission

502 P.2d 539, 18 Ariz. App. 390, 1972 Ariz. App. LEXIS 874
CourtCourt of Appeals of Arizona
DecidedNovember 9, 1972
DocketNo. 1 CA-CIV 1722
StatusPublished
Cited by1 cases

This text of 502 P.2d 539 (Arizona Tank Lines, Inc. v. Arizona Corp. Commission) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arizona Tank Lines, Inc. v. Arizona Corp. Commission, 502 P.2d 539, 18 Ariz. App. 390, 1972 Ariz. App. LEXIS 874 (Ark. Ct. App. 1972).

Opinion

DONOFRIO, Judge.

This is an appeal by Arizona Tank Lines, Inc. from a judgment entered in Maricopa County Superior Court in favor of B.F. Walker, Inc. and Trans Western Tankers, Inc. involving the affirmance of Decision No. 39717 of the Arizona Corporation Commission.

On September 25, 1968 appellant filed a complaint with the Corporation Commission seeking a determination as to whether Trans Western Tankers, Inc. was operating beyond the scope and legal authority of a certificate of convenience and necessity granted on March 20, 1956 (within Corporation Commission Decision No. 29517, Docket No. MC 13778) to Ferguson Trucking, Inc., the predecessor in interest of the appellees. In essence, the appellant contends that the following certificate, in particular the word “materials”, does not permit the appellees to transport liquid commodities in bulk to the locales specified within the certificate:

“Machinery, materials and equipment used in the discovery, development, production, refining, processing or storage of natural gas and/or petroleum, and heavy and cumbersome commodities only, limited to direct operations in the oil and gas industry in Navajo and Apache Counties, Arizona, and north of U.S. Flighway 66 in said counties, over irregular routes with non-scheduled service.”

As required, the Superior Court action was a trial de novo (Corporation Comm. v. Southern Pac. Co., 55 Ariz. 173, 99 P.2d 702 (1940); Corporation Comm. v. People’s Freight Line, Inc., 41 Ariz. 158, 16 P.2d 420 (1932)) in which the court made findings of fact and conclusions of law pursuant to Rule 52, Rules of Civil Procedure, 16 A.R.S. These findings in effect determined that Trans Western Tankers had the authority to transport liquid in connection with the drilling for oil and gas. We are taking the liberty of setting out below the entire set of findings of fact and conclusions of law with emphasis added to that part to which appellant takes exception :

“FINDINGS OF FACT
“1. In 1956 the Corporation Commission issued a certificate of public convenience and necessity to Ferguson Trucking Co., which authorized the following :
‘Machinery, materials and equipment used in the discovery, development, production, refining, processing or storage of natural gas and/or petroleum, and heavy and cumbersome commodities only, limited to direct operations in the oil and gas industry in Navajo and Apache Counties, Arizona, and North of U.S. Highway 66 in said Counties, over irregular routes with non-scheduled service, excluding cement in sack or bulk.’
“2. Said certificate was subsequently transferred to G.L. Gibbons, then transferred to M & H Trucking, Inc., then to Trans Western Tankers, Inc., and lastly to B.F. Walker, Inc.
“3. While the application to transfer said certificate to B.F. Walker was pending, the plaintiff, Arizona Tank Lines, Inc., filed a complaint with the Commission alleging that the above certificate did not include the right to transport liquid commodities in bulk.
“4. On November 4, 1968, the Commission entered its Decision No. 39717 dismissing the complaint of Arizona Tank Lines, Inc., which alleged that the certificate did not include the right to transport liquid commodities in bulk.
“5. The Commission found that the certificate in question did authorise the transportation of liquid commodities in [392]*392bulk so long as the same is 'used in’ the discovery, development, production, refining, processing, or storage of natural gas and/or petroleum.” (emphasis added)
“CONCLUSIONS OF LAW
“1. The Corporation Commission has exclusive power to regulate common carriers.
“2. The decisions of the Corporation Commission are entitled to great weight by virtue of the expertness, special competence, specialized knowledge and experience of the Commission.
“3. There must be a showing by clear and convincing evidence that a decision of the Corporation Commission is unreasonable or unlawful before the court may change a decision of the Corporation Commission.
“4. That Decision No. 39717 is not unreasonable and unlawful.
“Counsel shall prepare formal judgment within ten days from date.
“DONE IN OPEN COURT this 11th day of January, 1971.
/s/ Jerry H. Glenn JUDGE”

We recognize that the findings of fact by the trial court are binding on this Court if they are reasonably supported by the evidence, and that we are not bound by such findings when we, as a reviewing court, are left with a firm conviction that a mistake has been made by the trial court and that the findings of fact are clearly erroneous. 16 A.R.S., Rules of Civil Procedure, Rule 52(a). Merryweather v. Pendleton, 91 Ariz. 334, 372 P.2d 335 (1962). See also Park Central Develop. Co. v. Roberts Dry Goods, Inc., 11 Ariz.App. 58, 461 P.2d 702 (1969). It is appellant’s contention that the findings of fact are clearly erroneous and are therefore entitled to no weight in this Court.

We believe the crux of this appeal is whether the Corporation Commission ruled on the merits of appellant’s complaint before it at the hearing on October 3, 1968. If the Corporation Commission did in fact rule on the merits and considered its files and records in doing so, we could review the record to determine, as the trial court would have been obligated to do, if the Commission’s findings and conclusions were reasonably supported by the evidence. Then, if we determined that the findings were reasonably supported by the record, we would not disturb the judgment of the Commission or the trial court. On the other hand, if the Commission did not rule on the merits of the complaint, then the findings of fact in the Superior Court are clearly erroneous as there never was a ruling by the Commission in the first place to be reviewed by the trial court.

On the basis of the record before us we are unable to see where the Commission ruled on the merits of the complaint, nor are we able to see how the trial court could have reviewed the records of the Commission which do not appear to have been introduced into evidence. Therefore it is our opinion that the court clearly erred in making the findings of fact and conclusions of law on this point.

The Superior Court action was, as stated previously, a trial de novo but the transcript of the Corporation Commission hearing of October 3, 1968 was entered into evidence and apparently given substantial weight by the Superior Court in its determination of the matter. See Sulger v. Arizona Corporation Commission, 5 Ariz.App. 69, 423 P.2d 145 (1967). This transcript is the key as to what took place. It is to be noted that Trans Western Tankers, Inc.

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Bluebook (online)
502 P.2d 539, 18 Ariz. App. 390, 1972 Ariz. App. LEXIS 874, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arizona-tank-lines-inc-v-arizona-corp-commission-arizctapp-1972.