Crete Carrier Corp. v. United States

577 F.2d 49
CourtCourt of Appeals for the Eighth Circuit
DecidedJune 1, 1978
DocketNo. 77-1765
StatusPublished
Cited by13 cases

This text of 577 F.2d 49 (Crete Carrier Corp. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crete Carrier Corp. v. United States, 577 F.2d 49 (8th Cir. 1978).

Opinion

ROSS, Circuit Judge.

Crete Carrier Corporation (Crete Carrier) has petitioned this court to set aside an order of the Interstate Commerce Commission. The order in question affirmed an order of the Commission’s Review Board Number 3 granting common carrier operating authority to Smithway Motor Xpress, Inc. (Smithway). We deny Crete Carrier’s petition.

I.

On February 16, 1976, Smith way filed an application for a motor carrier certificate or permit, to operate as a common carrier by motor vehicle, over irregular routes, in the transportation of iron and steel articles, between plantsites and warehouse facilities of Douglas & Lomason Co. (D & L), at Marian-na, Arkansas, Red Oak, Iowa, and Columbus, Nebraska.

Three motor carriers, including Crete Carrier, filed timely protests.1 Crete Carrier contended that the authority sought conflicted with authority already issued to it, and that any diversion of traffic to a new carrier would be detrimental to its operations. It requested an oral hearing.

On June 2, 1976, the Commission ordered that the proceeding be handled under its modified procedure without a hearing. It ordered that all evidence be submitted in the form of verified or sworn statements.

Smithway and D & L filed verified statements in support of Smithway’s application; Crete Carrier filed verified statements in opposition; and Smith way and D & L filed rebuttal statements and a motion to strike portions of one of Crete Carrier’s statements. Crete Carrier then filed a request for an oral hearing and cross-examination, alleging that there were certain material facts in dispute. Smithway opposed this motion.

On January 19, 1977, Review Board Number 3 issued its order denying Smithway’s motion to strike portions of Crete Carrier’s statement; finding no disputed issue of fact material to its disposition in the proceeding which could not be properly resolved on the basis of the evidence in the verified statements, and therefore denying Crete Carrier’s request for a hearing; and granting Smithway’s application.

Crete Carrier petitioned the Commission to reconsider the Review Board’s decision. On August 1, 1977, Division 1 of the Commission affirmed the decision of the Review Board. Crete Carrier then filed its petition in this court.

In this proceeding Crete Carrier contends that the Commission erred in refusing to grant its request for oral hearing and cross-examination, and in failing to resolve material factual issues.

II.

We note at the outset that the formulation of administrative procedures is “basically to be left within the discretion of the agencies * * *Vermont Yankee Nuclear Power Corp. v. Natural Resources Defense Council, Inc.,-U.S.-, 98 S.Ct, 1197, 55 L.Ed.2d 460 (1978). In 1966 the Commission instituted the modified procedure for licensing motor carriers. Once the Commission has ordered that a proceeding be put on the modified docket and verified statements have been submitted, an oral hearing will not be held unless material facts are in dispute and the statements do not provide an adequate basis for their resolution. The courts have “upheld the Commission’s authority to handle applications involving more than three states through ‘modified Procedure.’ ” Ruan Transport Corp. v. United States, 361 F.Supp. 371, 374 (S.D.Iowa 1973), citing Boat Transit, Inc. v. United States, 1970 Federal Carrier Cases, Section 82,215 (E.D.Mich.1970), aff’d, 401 U.S. 928, 91 S.Ct. 934, 28 L.Ed.2d 210 (1971).

It is with this in mind that we review Crete Carrier’s allegations of error.

[51]*51III.

Crete Carrier contends that there were four areas of dispute requiring an oral hearing and cross-examination for their resolution: 1) past illegal operations by Smith-way; 2) Crete Carrier’s dedication of flatbed trailers to the exclusive use of D & L in the past; 3) Crete Carrier’s present ability to meet D & L’s needs; and 4) Crete Carrier’s transportation of the involved traffic in the past.

In his verified statement in opposition to Smithway’s application, Duane Acklie, president of Crete Carrier, stated that he had personally been informed by representatives of D & L and by his own employees that Smithway was performing the for-hire transportation which was the subject of its application, without the appropriate authority. He gave no specific circumstances or dates of these alleged incidents.

Robert Brewer, traffic manager for D & L, had stated that D & L had been using the services of Ligón Specialized Haulers to handle the traffic in question. Crete Carrier submitted the verified statement of Steve Ligón indicating that his company had not been performing those services. Crete Carrier suggested that the services were being performed by Smithway.

In his rebuttal statement Brewer denied that Smithway was performing illegal services for D & L. He stated that Smithway moved iron and steel articles for D & L between the St. Louis, Missouri area and D & L’s various plants, and suggested that Acklie had misconstrued or misunderstood statements about the services Smithway was performing. Brewer did admit that he had inadvertently indicated that D & L was using Ligón to handle the involved traffic and that Ligón was not handling the inter-plant movements involved in this application. He did not state who was currently handling that traffic.

Crete Carrier contends that this clearly evidences a dispute over facts and that the issue involved was material to the Commission’s decision on Smithway’s application. It argues that to sustain a grant of its application, Smithway had to establish that it is fit to conduct the proposed operations and is willing and able to abide by the terms of the Interstate Commerce Act and the Commission’s rules and regulations; and that if Smithway had been operating illegally in the past a denial of this application would be warranted on the grounds of unfitness.

The Review Board found Crete Carrier’s allegations to be “vague and general in nature * * *We agree. Crete Carrier failed to “specify with particularity the facts, matters, and things relied upon * * *.” 49 C.F.R. 1100.247(d)(3). Its protests, phrased in general terms, could have been rejected. Id.

Furthermore, even if the allegations were true, prior unauthorized operations by an applicant are not, as a matter of law, a bar to a grant of the requested authority. Armored Carrier Corp. v. United States, 260 F.Supp. 612 (E.D.N.Y.1966), aff’d per cu-riam, 386 U.S. 778, 87 S.Ct. 1476, 18 L.Ed.2d 524 (1967). See also National Trailer Convoy, Inc. v. United States, 381 F.Supp. 878, 883 (N.D.Okl.1973), aff’d sub nom., Morgan Drive Away, Inc. v. United States, 416 U.S. 976, 94 S.Ct. 2377, 40 L.Ed.2d 755 (1974); Slay Transportation Co. v. United States, 353 F.Supp. 555, 559 (E.D.Mo.1973); and AAACON Auto Transport Inc. v. United States, 317 F.Supp. 1314, 1316 (S.D.N.Y. 1970). Past violations of Commission rules and regulations are only one element to be considered in determining the applicant’s present and future fitness for the requested certificate.

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