C-Line, Inc. v. United States

376 F. Supp. 1043, 1974 U.S. Dist. LEXIS 8425, 1974 WL 333553
CourtDistrict Court, D. Rhode Island
DecidedMay 22, 1974
DocketCiv. A. 4965
StatusPublished
Cited by13 cases

This text of 376 F. Supp. 1043 (C-Line, Inc. v. United States) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
C-Line, Inc. v. United States, 376 F. Supp. 1043, 1974 U.S. Dist. LEXIS 8425, 1974 WL 333553 (D.R.I. 1974).

Opinion

OPINION

Before McENTEE, Circuit Judge, PETTINE, Chief Judge and 'DAY, District Judge.

DAY, District Judge.

In this action the plaintiffs seek to enjoin, annul and set aside orders of the Interstate Commerce Commission (hereinafter “Commission”) holding that the proposed activities of the plaintiff C-Line, Inc. did not qualify as that of a “contract carrier by motor vehicle” *1046 within the provisions of 49 U.S.C. § 303(a)(15) and, further, that its proposed operations did not merit the issuance of a certificate of public necessity and convenience which is a prerequisite to performance as a common carrier by motor vehicle under 49 U.S.C. § 306.

The jurisdiction of this Court is invoked by the plaintiffs under the provisions of 28 U.S.C. §§ 1336, 1398, 2322, 2323 and 2325. After the filing of the plaintiffs’ complaint, a three-judge Court was duly designated, pursuant to 28 U.S.C. § 2284, to hear and determine the merits of this action as required by 28 U.S.C. § 2325. By orders of this Court, the Contract Carrier Conference of American Trucking Associations, Inc. was allowed to intervene as a plaintiff, and Regular Common Carrier Conference of American Trucking Associations, Inc.; Carolina Freight Carriers Corp.; Johnson Motor Lines, Inc.; Holmes Transportation Corp., Inc.; Pilot Freight Carriers, Inc.; St. Johnsbury Trucking Co., Inc.; Navajo Freight Lines, Inc.; and T.I.M.E. — D.C. Inc. were permitted to intervene as defendants and to file briefs.

A detailed statement of the facts of this case can be found in the Report and Recommended Order of the Hearing Examiner, which statement was adopted in substantial part by the Commission. By its application, filed with said Commission on January 26, 1970, under the provisions of 49 U.S.C. § 309(a) and (b) and the Commission Rules thereunder, C-Line, Inc. sought authority to operate as a contract carrier by motor vehicle over irregular routes in the transportation of commodities of unusual value in mixed loads with other general commodities from Providence, Rhode Island to points in California, Connecticut, Georgia, Illinois, New Jersey, New York, Ohio, Michigan and Texas, and from points in New York, New Jersey and Connecticut to Providence. Its application is supported by Jewelers Shipping Association (“J.S.A.”), a non-stock corporation, which is a non-profit association of shippers, based in Providence, Rhode Island. J.S.A. assembles and distributes the freight of its members, but is exempt from regulation as a freight forwarder under Part IV of the Interstate Commerce Act by virtue of the provisions of 49 U.S.C. § 1002(c) which provides:

“The provisions of this chapter shall not be construed to apply (1) to the operations of a shipper or a group or association of shippers, in consolidating or distributing freight for themselves or for the members thereof, on a nonprofit basis, for the purpose of securing the benefits of carload, truck load, or other volume rates, tt

The ostensible raison d’etre of J.S.A. is the expeditious and economical transportation of jewelry and related products. It presently advances that objective through the consolidated shipment of such products with general commodities by railroad with common motor carrier pick-ups and deliveries. J.S.A. seeks improved service by the utilization of a contract motor carrier for the transportation of said mixed loads.

Membership in said J.S.A. is attained by approval of its board of directors which is empowered to grant membership, upon the payment of nominal dues, to any shipper whose general commodity traffic is determined to be beneficial to the goal of commercial transportation of jewelry products. At the time of the hearing before said Examiner, the membership of J.S.A. consisted of six hundred and thirty-two (632) shippers, sixty (60) of whom had joined said association in the preceding year. Twenty-six (26) of its members were engaged in activities unrelated to the jewelry industry.

During the year prior to the hearing on said application, said J.S.A. made shipments of twenty-three (23) commodities classified as jewelry and of forty-four (44) non jewelry items. During March, 1970, 60.7 per cent of the shipments by weight consisted of traffic from members of J.S.A. who were not related to the jewelry industry.

*1047 Following hearings in August and September 1970, said Examiner concluded that C-Line, Inc. qualified as a contract carrier by motor vehicle as that term is defined in 49 U.S.C. § 303(a) (15) which provides:

“The term 'contract carrier by motor vehicle’ means any person which engages in transportation by motor vehicle of passengers or' property in interstate or foreign commerce, for compensation . . . under continuing contracts with one person or a limited number of persons either (a) for the furnishing of transportation services through the assignment of motor vehicles for a continuing period of time to the exclusive use of each person served or (b) for the furnishing of transportation services designed to meet the distinct need of each individual customer.”

More specifically said Examiner concluded that said proposed contract would be with “one person” since — •

“(J.S.A.) alone will pay the transportation charges incurred in its members’ behalf under the proposal, even as it does now, and as their agent it will route the traffic of its members, whether by applicant, or by a rail or motor carrier, just as it does now.” Examiner’s Report at page 12.

The protection of high value shipments proposed by C-Line, Inc. consisting of locked wire cages, alarm systems and daily driver check-ins was held by him to satisfy the test of 49 U.S.C. § 303(a)(15) by meeting a distinct need of the shipper. He held this dedication of equipment fulfilled the alternative test of 49 U.S.C. § 303(a) (15), (b).

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Bluebook (online)
376 F. Supp. 1043, 1974 U.S. Dist. LEXIS 8425, 1974 WL 333553, Counsel Stack Legal Research, https://law.counselstack.com/opinion/c-line-inc-v-united-states-rid-1974.