Associated Truck Lines, Inc. v. Public Service Commission

492 N.E.2d 704, 1986 Ind. App. LEXIS 2576
CourtIndiana Court of Appeals
DecidedMay 15, 1986
Docket2-485-A115
StatusPublished
Cited by8 cases

This text of 492 N.E.2d 704 (Associated Truck Lines, Inc. v. Public Service Commission) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Associated Truck Lines, Inc. v. Public Service Commission, 492 N.E.2d 704, 1986 Ind. App. LEXIS 2576 (Ind. Ct. App. 1986).

Opinion

MILLER, Judge.

The Public Service Commission of Indiana (PSC) granted an application to Central Transport, Inc. (Central) for intrastate motor common carrier service. This appeal was brought by a number of competing motor carriers who opposed the application. They assert the decision to grant the application was arbitrary and capricious due to (1) procedural irregularities during the application proceedings; (2) the use of non-statutory criteria to determine whether public convenience and necessity required granting the application; and (8) the use of different standards from that of a similar application which was denied.

We affirm.

FACTS

Central operates as an interstate motor carrier pursuant to Interstate Commerce Commission's authority and is authorized to transport general commodities among all points in the forty-eight continental United States. In addition, Central possesses varying degrees of intrastate authority issued by state agencies which allow it to serve the states of Arkansas, Tilinois, Kentucky, Michigan, New York, and Ohio. Moreover, Central is able to provide service in the province of Ontario, Canada through a sister corporation.

Since 1969, Central has been serving parts of northern Indiana under various types of intrastate authority granted by the PSC. Its existing Indiana authority permits the transportation of general commodities over a network of regular routes between the Calumet area in northwestern Indiana, through the South Bend and Plymouth areas in north central Indiana, to the Fort Wayne area in northeastern Indiana. Central also has authority to transport, over irregular routes, general commodities between points within a fifty mile radius of Kokomo, Indiana. In (1982, Central had intrastate revenues in Indiana of approximately $115,000, and it transported as many as ten intrastate shipments in a one-day time frame. Furthermore, Central has provided extensive interstate service for Indiana shippers and receivers as far south as Little Rock, Arkansas; as far east as Syracuse, New York; as far north as St. Paul, Minnesota and Toronto, Ontario; and as far west as St. Louis, Missouri.

On February 21, 1988, Central filed an application with the PSC for a certificate of public convenience and necessity. The application sought authority to operate motor vehicles as an intrastate common carrier of general commodities (except commodities in bulk, tank vehicles) among all points in Indiana. A hearing on the application was held before an administrative law judge on July 27, October 11-13, and November 9, 1983. A number of competing motor carriers-Associated Truck Lines, Holland Motor Express, North Express, Overland Express, Renner's Express, and Turner Trucking Company (the Objectors and appellants herein}-protested and presented evidence in opposition to the application.

Central's application was supported by the testimony of representatives of several companies, including General Electric, Ford Electronics, Ford Motor Company-Bed-ford Division (Ford-Bedford), Ford Motor Company-Indianapolis Division (Ford-Indianapolis), Reeves Brothers, Cooper Industrial, Sheller Globe, Hamilton Glass, Hoover Universal, Ball Plastics, J.J. Case, Brunner Engineering, and Circle-Prosco (collectively, the Supporting Shippers). In addition to providing testimony, the representatives submitted written, prepared statements which, during the course of their testimony, were admitted into evidence. This evidence reveals the following facts.

All of the Supporting Shippers have employed Central for interstate shipments, and each seeks to consolidate that interstate service with its intrastate service requirements. *707 2 The reasons for seeking consolidation of Central's interstate and intrastate services include more efficiency by reducing time spent on loading and unloading and on transportation paperwork. Consolidation also makes tracing shipments easier and relieves dock congestion by reducing the number of carriers coming in and out of the shipper's business. Finally, consolidation allows a shipper to reduce the number of carriers utilized, permitting it to tender more freight to one carrier and thus to increase its bargaining position with respect to rate negotiations and service expectations.

Some of the Supporting Shippers, such as Hoover, J.I. Case, and Circle-Prosco, have employed Central for some of their intrastate shipments. Many of them, however, are not currently using Central's intrastate services, mostly because Central cannot serve intrastate needs or has been unable to offer a competitive intrastate rate under its limited intrastate authority. Nevertheless, the Supporting Shippers chose Central as the carrier to provide them with coordinated interstate and intrastate service because its past services have surpassed the services of other carriers. For example, Central is familiar with the automotive industry which, due to reduced inventories and daily schedule changes, requires flexible overnight and last minute service and necessitates using Central's early morning deliveries, next day service, and excellent transit times. Moreover, Central's tracing system for locating shipments is superior and innovative. In contrast to the service of Central, the Supporting Shippers have not been satisfied with the service of the other common carriers on both an intrastate and interstate basis. 3

*708 Central's application was also supported by the testimony of its representative, James D. Payne. His testimony revealed Central proposes to coordinate its Indiana intrastate and interstate service throughout its area of operations in the event the application is granted. It proposes to offer a 20% across-the-board discount and to supplement this competitive rate with point-to-point discount programs similar to those presently provided for interstate shipments and a 5% discount guarantee for next day service. Central substantiated these proposed rate discounts through similar interstate and intrastate average transit times, its unique terminal set up, and its efficient reference number system for tracing shipments and billing.

After the hearing, the administrative law judge submitted his recommended order on January 25, 1984 that Central's application be denied. Central filed its exceptions to the recommended order with the PSC, and the PSC granted the authority sought by Central.

The Objectors appeal the PSC's decision, alleging the following errors in the application procedure and the PSC decision:

(1) The decision by the PSC was arbitrary and capricious due to procedural irregularities in handling the application, including:

(a) the administrative law judge who presided over the hearing concluded the application should be denied, and a different administrative law judge wrote the PSC's final order granting the application;
(b) the PSC's decision adopted part of an order proposed by Central in its brief in support of exceptions;
(c) the PSC's original order did not address all of the issues raised by Objectors in their briefs;
(d) the administrative law judge made a docket entry denying the petition for rehearing without addressing any of the issues;

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Bluebook (online)
492 N.E.2d 704, 1986 Ind. App. LEXIS 2576, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associated-truck-lines-inc-v-public-service-commission-indctapp-1986.