Brink's, Inc. v. Minnesota Transportation Regulation Board

373 N.W.2d 632, 1985 Minn. App. LEXIS 4485
CourtCourt of Appeals of Minnesota
DecidedSeptember 3, 1985
DocketC1-85-673, C1-85-950
StatusPublished
Cited by4 cases

This text of 373 N.W.2d 632 (Brink's, Inc. v. Minnesota Transportation Regulation Board) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brink's, Inc. v. Minnesota Transportation Regulation Board, 373 N.W.2d 632, 1985 Minn. App. LEXIS 4485 (Mich. Ct. App. 1985).

Opinion

OPINION

WOZNIAK, Judge.

The Minnesota Transportation Regulation Board appeals from a district court order reversing a Minnesota Public Utilities Commission order granting Ram Security’s petition for irregular route common carrier permit authority to transport coin, currency and other valuables. The Board has succeeded the MPUC as the regulatory authority for intrastate motor carrier transportation matters. It contends substantial evidence supports the decision of its predecessor, the MPUC, that there is a need for Ram to provide irregular route common carrier service for the Federal Reserve Bank of Minneapolis (FED) and that it may in its discretion issue a limited irregular route common carrier permit. We affirm.

FACTS

Ram is an armored car transportation company. It holds intrastate courier service carrier (CSC) and local cartage carrier (LCC) authority.

The FED makes regular and periodic shipments of coin and currency between the Federal Reserve Bank facilities in Minneapolis and institutions throughout the state. It occasionally ships federal, state and municipal securities. Each area of the state is assigned to a specific route and is served on a specific weekday.

In August 1982, the FED sought bids from armored car carriers for transportation of coin and currency for eight of its routes. Ram was the low bidder on six routes and was awarded a contract to serve the routes beginning November 1, 1982. Two of the routes are within the local cartage zone and are served by Ram under its LCC authority. The remainder are outside of the zone and must be served by Ram under its CSC authority. Each specific route which was set out in the request for bids was incorporated into the contract between Ram and the FED.

Under its CSC authority, Ram may only use vehicles which have manufacturer’s nominal rating capacity which does not ex *634 ceed one ton. See Minn.Stat. § 221.0101, subd. 25. Because of this weight restriction, Ram must operate two or three vehicles on several of its FED routes. Under irregular route common carrier authority, it could use larger vehicles.

When Ram responded to the FED’s request for bids, it submitted a bid for service under its CSC authority and a bid for service under irregular route common carrier permit authority. The bid under the irregular route authority was approximately 20% lower than the bid under the CSC authority.

Ram petitioned for irregular route common carrier authority to transport money, coin, currency, checks, gold, silver, bullion, precious metals and stones, jewelry, stamps, negotiable and non-negotiable instruments and securities, stocks, bonds and other rare and valuable documents of unusually high value between all points in Minnesota. Loomis Armored Car Service, Inc. and Brink’s filed timely petitions to intervene and protest. Loomis holds a contract carrier (CC) permit which authorizes it to serve 14 financial institutions, including the FED. It also holds an irregular route common carrier permit. Loomis served the institutions on the FED’s structured routes under its CC authority. It uses its irregular route common carrier authority only for serving new or short-term customers. If these new customers become long-term or regular, Loomis seeks CC authority to serve them. Brink’s holds a CC permit to serve a number of financial institutions, including the FED. It also holds irregular route common carrier, LCC and CSC authority to transport coin, currency and negotiable instruments. Prior to November 1, 1982, Loomis and Brink’s served the routes now served by Ram.

A contested case hearing was held. The FED supported Ram’s petition because it prefers to be served under Ram’s lower irregular tariff rather than under its CSC tariff.

The administrative law judge concluded that Ram is fit and able to provide service and its vehicles meet safety requirements, but that it cannot legally provide the services required by the FED under an irregular route common carrier permit because the FED requires Ram to operate on specific routes on a specific time schedule. He therefore recommended that Ram’s petition be denied.

The MPUC found that the nature and frequency of the need for Ram’s services is “very limited.” Nonetheless, it concluded that the proposed service to the FED supports the grant of an irregular route common carrier permit. Specifically, the MPUC stated that Ram’s current service to the FED is inefficient because of the CSC weight limitation, and the grant of irregular route common carrier authority “recognizes the public need for enhanced competition in the area of currency transportation.” By a June 29, 1983 order, the MPUC authorized Ram to transport currency, coin, and securities for the FED under an irregular route common carrier permit.

Brink’s appealed to the district court. The court reversed the MPUC reasoning that the MPUC could not issue an irregular route common carrier permit because the service proposed by Ram is not irregular route common carrier service, but fixed route service with calls at fixed points on the same day of each week. It concluded that the commission had “no evidentiary basis for the finding of need for service in the area and made none.” It reversed the MPUC order.

ISSUE

May the MPUC grant an irregular route common carrier permit to Ram based upon the FED’s need for service?

ANALYSIS

Judicial review of an administrative agency decision in a contested case is governed by the Administrative Procedures Act, Minn.Stat. §§ 14.63-.69 (1984). This court may reverse the agency’s decision if it is unsupported by substantial evidence in view of the entire record or if it is affected *635 by other error of law. Minn.Stat. § 14.-69(d) and (e). We independently review the agency’s decision without according any special deference to the district court’s review. See Minnesota Power & Light Company v. Minnesota Public Utilities Commission, 342 N.W.2d 324 (Minn.1983).

Minn.Stat. § 221.121, subd. 1 (1982) governs the issuance of an irregular route common carrier permit. Under this statute, the board must issue a permit if, after notice and a hearing, it finds four requirements have been met. One of the requirements is a showing by petitioner “that the area to be served has the need for the transportation services requested in the petition * * *.” Id. Ram petitioned for irregular route common carrier authority to transport money, currency, coin and a number of other valuables between all points in Minnesota. “Irregular route common carrier”:

means any person who holds himself out to the public as willing to undertake to transport property from place to place over highways for hire but who does not operate between fixed termini or over a regular route or on regular time schedules.

Minn.Stat. § 221.011, subd. 11 (1982) (emphasis added). The MPUC found that the FED:

requires the services of armored vehicles to effect the described transportation of coin, currency and federal, state and municipal securities.

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Related

Brooks v. Ramsey County Community Human Services Department
405 N.W.2d 432 (Court of Appeals of Minnesota, 1987)
Brooks v. RAMSEY CTY. COMM. HUMAN SERV.
405 N.W.2d 432 (Court of Appeals of Minnesota, 1987)
In re the Burnham Service Corp.
392 N.W.2d 294 (Court of Appeals of Minnesota, 1986)

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Bluebook (online)
373 N.W.2d 632, 1985 Minn. App. LEXIS 4485, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brinks-inc-v-minnesota-transportation-regulation-board-minnctapp-1985.