Braswell Motor Freight, Inc. v. United States

336 F. Supp. 709, 1971 U.S. Dist. LEXIS 10390
CourtDistrict Court, C.D. California
DecidedDecember 14, 1971
DocketCiv. A. 70-2846-FW
StatusPublished
Cited by5 cases

This text of 336 F. Supp. 709 (Braswell Motor Freight, Inc. v. United States) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Braswell Motor Freight, Inc. v. United States, 336 F. Supp. 709, 1971 U.S. Dist. LEXIS 10390 (C.D. Cal. 1971).

Opinion

DECISION

EAST, District Judge.

THE PARTIES AND PROCEEDINGS BEFORE THE INTERSTATE COMMERCE COMMISSION

The Intervening Defendant, Hopper Truck Lines, now O. N. C. Motor Freight System (Hopper), was a motor carrier engaged with its then parent, O. N. C. Motor Freight System, in transporting general commodities under permanent authorities from the Defendant Interstate Commerce Commission (Commission) to serve routes in the states of Arizona, California, Oregon, Washington and Nevada.

Hopper sought to extend its permanent authority on a temporary basis from Phoenix eastward to Silver City, New Mexico. The Commission granted the application in Docket Sub 16 TA but restricted “tacking” and “interlining” traffic at Silver City. 1

Hopper has filed other applications to expand its existing authorities which are pending but not of concern to us now.

Thereafter Hopper filed its application with the Commission, Docket Sub 18 TA, now before us, seeking basically to expand its temporary authority granted in Sub 16 TA but without certain service restrictions, particularly against tacking and interlining at Silver City, New Mexico. The Plaintiff carriers opposed the application and the Commission initially denied the application in the order of its Motor Carrier Board on May 25, 1970.

On July 14, 1970, Hopper filed a pleading captioned “Leave to File and Removal of Temporary Restrictions— Emergency Petition of Applicant and CB Truck Lines, Inc., for Immediate Relief.” On July 20, 1970, the Commission accepted the Emergency Petition for filing and ordered:

“That the petitions be, and they are hereby, denied for the reason that no showing has been made which would warrant a conclusion different from that reflected by said order of May 25, 1970.”

Thereafter on August 12, 1970, the Commission Appellate Division 1, ordered inter alia:

“That on our own motion, the proceeding be, and it is hereby, reopened, and that applicant be, and it is hereby, granted (temporary) authority as described . . . ”
“Between Florence Junction, Arizona and Silver City, New Mexico: (service area)”
“Carrier is authorized to tack and combine the authority herein with presently authorized operations and to interline at Silver City, New Mexico, thereby negating the restrictions in the third ordering paragraph.”
“That the order of the Commission, Motor Carrier Board, dated May 25, 1970, and the order of Division 1, acting as an Appellate Division, dated July 20, 1970, be, and they are hereby, vacated and set aside.”
“And it appearing, That there is an immediate and urgent need for the motor carrier service described . . ., and that there is no carrier service available capable of meeting such need;
*712 “It is further ordered, That (Hopper) be, and is hereby, granted temporary authority . . . ”

On October 26, 1970, Commission Appellate Division 1 rejected Plaintiffs’ petitions for reconsideration of the August 12th order.

CONTENTIONS

The Plaintiffs in the posture of competitors with Hopper within the service area and for through service are aggrieved and seek to set aside and annul the Commission’s order of August 12, 1970, in Sub 18 TA contending that:

1. The part of the order setting aside the orders of denial dated May 25, 1970, and July 20, 1970, and re-opening the proceedings in Sub 18 TA for further consideration fails to find and state facts sufficient for a reviewing court to determine whether a rational basis exists for the action taken. Therefore the order was arbitrarily and unlawfully entered by the Commission.

2. The record before the Commission does not contain substantial evidence to support the finding “That there is an immediate and urgent need for the motor carrier service . . . and that there is no carrier service available capable of meeting such need; . . .” Therefore, the Commission acted arbitrarily and abused its discretion in issuing the temporary authority.

3. The Commission lacks authority to authorize Hopper: “. . . to tack and combine the authority herein with presently authorized operations and to interline at Silver City, N. Mex., thereby negating the restrictions in the third ordering paragraph . . .”

Therefore the Commission acted arbitrarily and unlawfully in the issuance of the tacking and interlining authority.

COMMISSION’S AUTHORITY

Pertinent to us Title 49 U.S.C.A. Section 310a vests the Commission with discretion to grant, “. . . without hearing or other proceedings . . .”, temporary authority for motor carrier service “. . . for which there is an immediate and urgent need to a point or points or within a territory having no carrier service capable of meeting such need . . .” The service rendered under such authority shall be subject to the rules, regulations and requirements of the Commission.

COURT’S JURISDICTION

We note the jurisdiction of this Court to deal with this cause under Title 28 U.S.C.A. Section 1336, as qualified and delineated in Roadway Express, Inc. v. United States et al., 263 F.Supp. 154 (N.D.Ohio E.D., 1966). A district court is deemed to retain the equitable power to curb an abuse of discretion by the Commission in granting temporary authority. Roadway Express, supra, p. 157. Accordingly, the order under attack is reviewable.

DISCUSSION

The Commission’s fact finding duties, whatever they may be, when dealing with the withdrawal or reconsideration of permanent authorities, control or rates and like areas as discussed in Alamo Express, Inc. v. United States, 239 F.Supp. 694 (W.D.Texas, 1965), are not under consideration in these proceedings.

When as here the Commission is working in the fields of discretion whether to grant temporary authorities, the Commission has the continuing right and probably the duty to reopen and reconsider its action in order to exercise the proper discretion in determining needs and regulating temporary authorities. Bell Lines, Inc. v. United States, 306 F.Supp. 209 (S.D.W.Va.1969) aff’d per curiam, 397 U.S. 818, 90 S.Ct. 1517, 25 L.Ed.2d 804 (1970), and Roadway Express, Inc. v. United States, 263 F. Supp. 154 (N.D.Ohio, 1966). Bear in mind these considerations by the Commission may be had in the absence of any hearings. It cannot be the mere reopening or reconsideration per se that can manifest an abuse of regulatory discretion — it must be the ultimate conclusion and action taken upon the reconsid *713 eration that can be the cutting sword of arbitrary and abusive discretionary action.

A perusal of the record before the Commission, now before us, reveals some evidence in support of the Commission’s finding of the statutory requirement of an immediate and urgent need for the service and a present lack thereof in the service area. The,eases speak of “any” and not “substantial” evidence in support of the finding as being sufficient.

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336 F. Supp. 709, 1971 U.S. Dist. LEXIS 10390, Counsel Stack Legal Research, https://law.counselstack.com/opinion/braswell-motor-freight-inc-v-united-states-cacd-1971.