Arkansas-Best Freight System v. United States

399 F. Supp. 157, 1975 U.S. Dist. LEXIS 16361
CourtDistrict Court, W.D. Arkansas
DecidedSeptember 2, 1975
DocketNo. FS-72-C-65
StatusPublished
Cited by4 cases

This text of 399 F. Supp. 157 (Arkansas-Best Freight System v. United States) is published on Counsel Stack Legal Research, covering District Court, W.D. Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arkansas-Best Freight System v. United States, 399 F. Supp. 157, 1975 U.S. Dist. LEXIS 16361 (W.D. Ark. 1975).

Opinion

JOHN E. MILLER, Senior District Judge.

OPINION ON REMAND

Involved in the prior decision of September 11, 1973, of this court, 364 F.Supp. 1239, was the review of orders of the Interstate Commerce Commission (“the Commission”) granting certificates of public convenience and necessity [159]*159to Red Ball Motor Freight, Inc., Johnson Motor Lines, Inc., and Bowman Transportation, Inc. (Bowman). The Commission authorized the named carriers to extend their operations as common carriers of property over specified routes in the southeastern and southwestern portions of the United States.

On November 7, 1972, this court entered an order temporarily restraining the Commission from issuing certificates of public convenience and necessity pending final hearing and determination of the action. Arkansas-Best Freight System v. United States, (W.D.Ark. 1972) 350 F.Supp. 539. The court at page 546 said:

“The plaintiffs have shown that without a stay they will suffer irreparable injury. If the Certificates of Public Convenience and Necessity are issued to Red Ball, Bowman and Johnson under the authority granted in the orders questioned in this proceeding, those carriers will immediately proceed to provide service to the public in accordance with the provisions of the orders. This will necessarily cause a diversion from plaintiffs of substantial volume of traffic which they are now handling and revenue derived therefrom and inflict an irreparable injury on the business of the plaintiffs which can never be recouped even if they should prevail on the merits of the action.”

In due time the ease was fully briefed and orally argued. On September 11, 1973, the court filed its opinion holding that the orders of the Commission extending the operations of Red Ball, Johnson and Bowman were invalid and enjoined the enforcement thereof. 364 F.Supp. 1239.

On appeal, Bowman Transportation, Inc., v. Arkansas-Best Freight System, Inc., 419 U.S. 281, 95 S.Ct. 438, 42 L.Ed.2d 447, the Supreme Court on December 23, 1974, reversed and remanded. Rehearing denied February 24, 1975.

The Court upheld the Commission’s grant of certificates to Red Ball and Johnson. It also upheld the grant of a certificate to Bowman insofar as it involved authority embraced within its application, but remanded for our further consideration the issue involving the Commission’s grant of authority to Bowman that “exceeded that set forth in Bowman’s application.”

Relative thereto, the Supreme Court in Section V of its opinion stated:

“Our opinion disposes of appellees’ objections to the Commission’s order insofar as it granted the applications of Johnson and Red Ball. As to appellant Bowman, however, an issue remains. In granting Bowman a certificate the Commission noted that the authority sought by Bowman exceeded that set forth in Bowman’s application. The ‘excess’ was granted, subject to a condition precedent of publication in the Federal Register of Bowman’s request for the excess authority. Various appellees filed objections to the augmented authority sought by Bowman, which the Commission overruled. Appellees challenged the Commission’s procedure in the District Court on a variety of grounds, and though the District Court indicated disapproval of the Commission’s action, the court did not have to rule on the merits of appellees’ objections since it set aside the Commission’s approval of all the applications.
“While we have on occasion decided residual issues in the interest of an expeditious conclusion of protracted litigation, see Consolo v. FMC, 383 U. S. 607, 621 [86 S.Ct. 1018, 16 L.Ed.2d 131], we believe that the issue of conformity of the Bowman certificate to its application is one for the District Court. The issue was not briefed or argued here, owing to the limitations set forth in our order noting probable jurisdiction. And while .the District Court spoke of the Commission’s action in this regard, we do not construe its expressions as a final ruling, since they were unnecessary to the District Court’s disposition of the case. Ac[160]*160cordingly, the issue remains open on remand.
“We hasten to add, however, that our remand provides no basis for depriving Bowman of authority conferred by the Commission that was within its original application.”

On March 5, 1975, this court in accordance with the mandate of the Supreme Court entered an order dissolving the injunction previously entered enjoining the issuance of the certificates of public convenience and necessity to Johnson and Red Ball.

On March 25, 1975, the court considered paragraph V of the opinion of the Supreme Court, and entered the following order:

“IT IS ORDERED, THAT, pursuant to the decision and mandate of the Supreme Court of the United States in 73-1055, Bowman Transportation, Inc. vs. Arkansas~Best Freight System, Inc., et al., the permanent injunction previously rendered by this Court enjoining the issuance of a certificate of public convenience and necessity to Bowman Transportation, Inc. be and is hereby modified and partially dissolved to permit the issuance of a certificate of public convenience and necessity conforming to the Order of the Interstate Commerce Commission in Herrin Transportation Co., Extension —Atlanta, Georgia, 114 M.C.C. 571, except that said authority shall pending judicial determination of the issues specifically preclude the tacking, joining or combining of said authority granted in 114 M.C.C. 571 to that authority granted in Bowman Transportation, Inc. — Purchase (Part)- — -Alabama Highway Express, Inc., decided July 8, 1968 in No. MC-F-9921, and shall further be restricted so as to preclude any authorization in said authority for service by Bowman Transportation, Inc. of the junction of U. S. Highways 11 and 80 and Interstate Highway 59 at or near Toomsuba, Mississippi for any purpose or the including of Montgomery, Alabama in the restrictive language.
“IT IS FURTHER ORDERED, THAT, this Court shall retain jurisdiction of this matter for the purpose of determining the issues of whether or not the authority granted in 114 M.C.C. 571 shall be permanently retricted to preclude the tacking, joining or combining of said authority granted in Bowman Transportation, Inc. — Purchase (Part) — Alabama Highway Express, Inc., decided July 8, 1968 in No. MC-F-9921, and shall further be restricted so as to preclude any authorization in said authority for service by Bowman Transportation, Inc. of the junction of U. S. Highways 11 and 80 and Interstate Highway 59 at or near Toomsuba, Mississippi for any purpose or the including of Montgomery, Alabama in the restrictive language.
“This Court also retains jurisdiction on issues relating to the costs taxed by the Supreme Court.”

All adjudicated costs have been paid by plaintiffs.

The Bowman application is thus before the court for review on the limited issue set forth in the order of remand.

All parties have filed extensive briefs and orally argued their contentions, all of which together with applicable portions of the pleadings have been carefully considered by the court.

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399 F. Supp. 157, 1975 U.S. Dist. LEXIS 16361, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arkansas-best-freight-system-v-united-states-arwd-1975.