Carolina Freight Carriers Corp. v. United States

323 F. Supp. 1290, 1971 U.S. Dist. LEXIS 14352
CourtDistrict Court, W.D. North Carolina
DecidedMarch 4, 1971
DocketCiv. A. No. 2674
StatusPublished
Cited by7 cases

This text of 323 F. Supp. 1290 (Carolina Freight Carriers Corp. v. United States) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carolina Freight Carriers Corp. v. United States, 323 F. Supp. 1290, 1971 U.S. Dist. LEXIS 14352 (W.D.N.C. 1971).

Opinion

MEMORANDUM OF DECISION AND ORDER

PER CURIAM.

The plaintiffs seek in this action to set aside, vacate, annul, or otherwise suspend a report and order of the Inter[1292]*1292state Commerce Commission granting a certificate of public convenience and necessity to the intervening defendant, Pilot Freight Carriers, Inc., to operate as a motor common carrier over described regular routes from much of the Northeast into Florida. The Commission proceeding is entitled Pilot Freight Carriers, Inc., Extension- — Florida, Docket No. MC-61264 (Sub-No. 16). The plaintiffs, Carolina Freight Carriers Corporation and Mercury Motor Express, Inc., are motor carriers and have existing authority to operate in Florida and other areas involved in this controversy.

We affirm the Commission and dismiss the action.

The intervening defendant, Pilot Freight Carriers, Inc., filed an application on May 10, 1965 for a certificate of public convenience and necessity which would allow it to operate single-line freight service between many points in the Northeast and most of Florida. Protests were filed by several motor carriers, including the plaintiffs in this action. The application was referred to a hearing examiner and hearings were conducted intermittently from November 1966 to January 1968 resulting in nearly 11,000 pages of testimony and 700 exhibits. The examiner found there was a substantial need for service between Pilot’s present operating area and the Florida Peninsula and that the protestants could not fully meet these needs either jointly or through single-line service. He further found that Pilot was willing and able to meet the needs of the area and recommended that the requested authority be granted in full.

The protestants, including the plaintiffs in this action, filed exceptions to the examiner’s report on March 17, 1969, and Division 1 of the Commission affirmed the report with certain modifications, the most pertinent one being that the authority granted could not be joined with the existing authority in the Akron-Cleveland area.

The plaintiffs and Pilot petitioned for re-consideration and Division 1 of the Commission acting as an Appellate Division, on February 11, 1970 modified the authority to provide service between the Ohio area and Florida but otherwise affirmed the findings and report. The plaintiffs and another protestant filed petitions for re-consideration and additional hearings which petitions were denied by order of the Appellate Division dated May 4,1970.

This action was instituted on May 27, 1970, and a motion for a temporary restraining order was heard and denied. The certificate was issued to Pilot by the Commission on July 17, 1970. The case was set for hearing before a three-judge court pursuant to 28 U.S.C.A. § 2284, and was heard in Charlotte on November 5, 1970, before Circuit Judge J. Braxton Craven, Jr., and District Judges Woodrow W. Jones and James B. McMillan.

The basic assignment of error advanced by the plaintiffs was that the orders of the Commission were arbitrary, capricious and unreasonable; constituted an abuse of administrative discretion; were based upon an unwarranted, general and conclusionary interpretation of facts of record; failed to properly evaluate evidence of record, and were predicated on misinterpretations both of law and evidence. Some twenty-five reasons are listed as a basis for such assignment of error which may be summarized as follows:

1. The Commission erred in failing adequately to consider the competitive impact and effect of new services recently authorized by the Commission in the same territory, and failed and refused to grant a further hearing requested by the plaintiffs to develop these facts.

2. The Commission erred in reaching a decision based upon a stale and incomplete record, and failed adequately to explain the basis for, or the reasoning relied upon in the decisions of its Division 1 acting as an Appellate Division.

3. The Commission’s decision constitutes a departure from the long established doctrine that existing carriers are [1293]*1293to be afforded an opportunity to transport all traffic they can handle in an adequate and efficient manner without the added competition of a new operation.

4. The Commission failed to accord the plaintiffs due process of law in that it failed to comply with The Administrative Procedures Act and The National Transportation Policy as determined by Congress.

5. The Commission’s decision is not supported by substantial evidence of record, nor is it predicated upon uncontroverted and credible evidence.

Section 207(a) of the Interstate Commerce Act, 49 U.S.C.A. § 307(a), provides in part that:

“Subject to section 210, a certificate shall be issued to any qualified applicant therefor, authorizing the whole or any part of the operations covered by the application, if it is found that the applicant is fit, willing, and able properly to perform the service proposed and to conform to the provisions of this part and the requirements, rules, and regulations of the Commission thereunder, and that the proposed service, to the extent to be authorized by the certificate, is or will be required by the present or future public convenience and necessity; otherwise such application shall be denied * * ix\” (Emphasis supplied.)

As indicated by the foregoing statute, the Commission is empowered and directed by Congress to issue a certificate to any qualified applicant if it finds (1) that the applicant is fit, willing, and able properly to perform the service proposed, and (2) that the proposed service is or will be required by the present or future public convenience and necessity. The Commission has made such finding in this case and the matter is now before this Court for review.

The function of this Court upon this judicial review is limited in scope to the determination of the primary question of whether the decision of the Commission is supported by substantial evidence on the record considered as a whole, free from errors of law and not so arbitrary, capricious or unreasonable as to constitute an abuse of discretion. Central Motor Lines, Inc. v. United States, 309 F.Supp. 336 (338) (W.D.N.C.1969); Youngblood Truck Lines, Inc. v. United States, 221 F.Supp. 809 (W.D.N.C.1963). The test on this judicial review is whether the action of the Commission is supported by substantial evidence on the record as a whole, and whether the Commission’s procedures have denied the plaintiffs any substantive right. Carolina Freight Carriers Corp. v. United States, 307 F.Supp. 723, 726 (W.D.N.C.1969); Illinois Central Ry. Co. v. Norfolk & W. Ry. Co., 385 U.S. 57, 87 S.Ct. 255, 17 L.Ed.2d 162.

Substantial evidence was defined by the Supreme Court in the case of National Labor Relations Board v. Columbian Enameling & Stamping Co., 306 U.S. 292, 59 S.Ct. 501, 505, 83 L.Ed. 660 as follows:

“Substantial evidence is more than a scintilla, and must do more than create a suspicion of the existence of the fact to be established. ‘It means such relevant evidence as a reasonable mind might accept as adequate to support a conclusion,’ Consolidated Edison Co. of New York v.

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Bluebook (online)
323 F. Supp. 1290, 1971 U.S. Dist. LEXIS 14352, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carolina-freight-carriers-corp-v-united-states-ncwd-1971.