Barnes Freight Line, Inc. v. The Interstate Commerce Commission and the United States of America, Ross Neely Express, Inc., Intervenor-Respondent. Bowman Transportation, Inc. v. United States of America and Interstate Commerce Commission, Ross Neely Express, Inc., Intervenor-Respondent. Georgia Highway Express, Inc. v. United States of America and Interstate Commerce Commission, Ross Neely Express, Inc., Intervenor-Respondent

569 F.2d 912, 1978 U.S. App. LEXIS 12120
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 17, 1978
Docket76-2438
StatusPublished

This text of 569 F.2d 912 (Barnes Freight Line, Inc. v. The Interstate Commerce Commission and the United States of America, Ross Neely Express, Inc., Intervenor-Respondent. Bowman Transportation, Inc. v. United States of America and Interstate Commerce Commission, Ross Neely Express, Inc., Intervenor-Respondent. Georgia Highway Express, Inc. v. United States of America and Interstate Commerce Commission, Ross Neely Express, Inc., Intervenor-Respondent) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barnes Freight Line, Inc. v. The Interstate Commerce Commission and the United States of America, Ross Neely Express, Inc., Intervenor-Respondent. Bowman Transportation, Inc. v. United States of America and Interstate Commerce Commission, Ross Neely Express, Inc., Intervenor-Respondent. Georgia Highway Express, Inc. v. United States of America and Interstate Commerce Commission, Ross Neely Express, Inc., Intervenor-Respondent, 569 F.2d 912, 1978 U.S. App. LEXIS 12120 (5th Cir. 1978).

Opinion

569 F.2d 912

BARNES FREIGHT LINE, INC., Petitioner,
v.
The INTERSTATE COMMERCE COMMISSION and the United States of
America, Respondents,
Ross Neely Express, Inc., Intervenor-Respondent.
BOWMAN TRANSPORTATION, INC., et al., Petitioners,
v.
UNITED STATES of America and Interstate Commerce Commission,
Respondents,
Ross Neely Express, Inc., Intervenor-Respondent.
GEORGIA HIGHWAY EXPRESS, INC., Petitioner,
v.
UNITED STATES of America and Interstate Commerce Commission,
Respondents,
Ross Neely Express, Inc., Intervenor-Respondent.

Nos. 76-2437, 76-2438, 76-2545, 76-2439, 76-2440, 76-2441, 76-2442.

United States Court of Appeals,
Fifth Circuit.

March 17, 1978.

Frank D. Hall, Atlanta, Ga., for petitioner, Barnes Freight Line, Inc.

Arthur J. Cerra, Gen. Counsel, I.C.C., Carl E. Howe, Jr., Griffin B. Bell, U. S. Atty. Gen., Lloyd John Osborn, Atty., U. S. Dept. of Justice, Washington, D. C., for I.C.C.

Robert S. Richard, William K. Martin, Montgomery, Ala., for Ross Neely Express, Inc.

Edward G. Villalon, Washington, D. C., Maurice F. Bishop, Birmingham, Ala., for Bowman Transp. et al.

Phineas Stevens, Jackson, Miss., for Campbell Sixty-Six Express.

Bates Block, Atlanta, Ga., for Georgia Highway Express.

William Somerville, Mel P. Booker, Jr., Alexandria, Va., for Baggett.

Richard R. Sigmon, Drew L. Carraway, Washington, D. C., for Mercury Freight.

Petitions for Review of Orders of the Interstate Commerce Commission.

Before WISDOM and GEE, Circuit Judges, and VAN PELT*, District Judge.

WISDOM, Circuit Judge:

These cases concern orders of the Interstate Commerce Commission involving motor carriers' applications for permanent and temporary operating authority. The implications of the cases extend beyond the arcane realm of motor carrier law. They bring into question the integrity of the administrative process in I.C.C. proceedings. We hold that the Commission abused its authority by reinstating the temporary authority of Ross Neely Express. We set aside that order.

I.

The Court consolidated these seven cases for a single hearing. Six involved petitions by carriers for review of Interstate Commerce Commission orders reinstating a voluntarily dismissed application for permanent authority by Ross Neely Express (RNX), and its attendant temporary authority.1 The seventh was the petition of Barnes Freight Lines, Inc. (Barnes), for review of the Commission's denial to it of similar operating authority. The petitions for review were brought to this Court under 28 U.S.C. § 2321.2 Both the Commission and the United States were named respondents. 28 U.S.C. § 2322. RNX has intervened in support of the respondents.

The events which generated this controversy began in 1973. Cherokee Truck Line, Inc., and Dowda Motor Freight, Inc., were providing interline service between Atlanta and various locations in Alabama. Cherokee had operating authority for the Alabama locations; Dowda had the authority necessary for the Georgia sections of the route. Each company had authority to transport general commodities. In late 1973 Cherokee ceased operations. RNX at that time was authorized to serve many points in Alabama. At the request of a district director of the I.C.C., RNX took over Cherokee's portion of the joint line operations.

In 1974 this solution was upset. Dowda went through a change in ownership and emerged as Sun Motor Lines, Inc. Baggett Transportation Co., originally a petitioner here, filed a complaint against both Sun and Cherokee with the I.C.C. As a result of that complaint, Sun and Cherokee agreed to cancel their operating authority. By October 1974, the joint operations between Atlanta and Alabama could no longer continue. RNX had participated in that service for about one year.

RNX responded by filing an application for emergency temporary operating authority. This was to allow RNX to maintain by itself what had previously been interline service to Atlanta. The Commission granted the application. In December, RNX applied for temporary operating authority, authorized by Section 210a of the Interstate Commerce Act, 49 U.S.C. § 310a.3 The Commission granted temporary authority in March 1975 which supplanted the emergency temporary authority. In April RNX applied for the corresponding permanent authority, under 49 U.S.C. §§ 306, 307.4 Many carriers protested the RNX applications. The Commission scheduled hearings on the application for permanent authority for October 14, 1975, before Joint Board 157.5

The order scheduling the hearing required RNX to prepare all its direct testimony in written form. This testimony was served on the Commission and the protesting carriers ten days before the hearing. On October 14, 1975, the hearing began with Ross Neely, Jr., president of RNX, testifying. He identified the operating exhibit prepared by RNX for the hearing. After that, the hearing recessed for the day to enable opposing counsel to familiarize themselves with the data underlying the exhibit.

When Neely returned to the stand on Wednesday morning, October 15, he faced cross-examination about the RNX exhibits. One exhibit in particular drew a number of questions. This exhibit, Appendix O, purported to be a complete listing of the shipments from Atlanta to Alabama points for the five Tuesdays of April 1975. The point of the appendix was to demonstrate the fast shipping times for RNX service. RNX argued that its service was superior to that of its competitors because it offered substantially one day service. Counsel for the opposing carriers questioned Neely on Wednesday morning concerning the absence of any order in the listing of shipments, as well as the possibility that some records of shipments were missing. App. at 4-10. During the lunch recess Neely, Villalon, the chief counsel for RNX, and John Foster, executive vice president of RNX in charge of shipping, conferred. Foster had compiled Appendix O. RNX contends that Foster admitted at this meeting that he had falsified Appendix O. He had not included records of certain shipments with particularly long transit times.

After the lunch-break the cross-examination of Neely resumed. Throughout that afternoon he was questioned about the various RNX exhibits. Neither Neely nor his counsel made any reference to Foster's falsification of Appendix O. When the cross-examination resumed the next morning, Thursday, October 16, Neely continued to testify. Some of the questions again pertained to Appendix O, although RNX contends that none of the questions specifically went to the validity of the appendix. At about 11:30 Thursday morning, questioning returned to the lack of numerical sequence in the records of the shipments in Appendix O. At that time Villalon requested a conference with the Joint Board.

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569 F.2d 912, 1978 U.S. App. LEXIS 12120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barnes-freight-line-inc-v-the-interstate-commerce-commission-and-the-ca5-1978.