Curtis, Inc. v. United States

327 F. Supp. 291
CourtDistrict Court, D. Colorado
DecidedMay 20, 1971
DocketCiv. A. No. C-2480
StatusPublished

This text of 327 F. Supp. 291 (Curtis, Inc. v. United States) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Curtis, Inc. v. United States, 327 F. Supp. 291 (D. Colo. 1971).

Opinion

MEMORANDUM OPINION AND ORDER

WILLIAM E. DOYLE, District Judge.

Plaintiff, Curtis, Inc., seeks to set aside, vacate and annul orders of the defendant Interstate Commerce Commission granting certificates of public convenience and necessity to intervening defendants Refrigerated Food Express, [293]*293Inc., Subler Transfer, Inc., and Colonial Refrigerated Transportation, Inc. An injunction against issuance of the certificates is also sought. Plaintiff appeared as a protestant in the proceedings before the Commission which culminated in the issuance of the authority in question.

Jurisdiction is vested in this Court by 28 U.S.C. § 1336, and a three-judge court has been convened and has heard the matter pursuant to 28 U.S.C. §§ 2325 and 2284.1

Plaintiff asserts three major arguments :

(1) That the orders erroneously affirmed and adopted incorrect, misleading and prejudicial statements of fact contained in the report of the hearing examiner ;

(2) that the orders deny plaintiff due process of law by subjecting it to the competition of three additional carriers before giving plaintiff the opportunity to meet the “performance report” requirements which the Commission previously imposed as a condition to the granting of plaintiff’s conflicting authority ;

(3) that the orders are not supported by substantial evidence and are, therefore, unreasonable, arbitrary and capricious.

Regarding the first assertion of plaintiff, our scope of review in this matter is such that if the Commission’s actions are supported by substantial evidence on the record as a whole, incorrect, misleading and prejudicial statements of fact by the hearing examiner, which are imubstantial or which do not negate the substantiality of the Commission’s actions, will not afford grounds for the relief requested.2 Be that as it may, an examination of the record in this case reveals that many of the statements alleged to be incorrect are, when read in full context, not inaccurate and are supported by substantial evidence.3

As to plaintiff’s second assertion, plaintiff has not demonstrated that it has a right to be absolutely free from competition in order to be afforded the opportunity to meet any so-called “performance report” requirements imposed by the Commission.4 As stated by the [294]*294Supreme Court of the United States, it is error to hold

that it is the “unvariable rule” of the Commission to grant existing carriers an opportunity to remedy deficiencies in service, and in holding that carriers have a property right to such opportunity before a new certificate may be issued upon a lawful finding of public convenience and necessity pursuant to the statute. The Commission’s power is not so circumscribed. No such limitation has been established by the Commission’s own decisions or by judicial determinations. It is, of course, true that the Commission should consider the public interest in maintaining the health and stability of existing carriers, see United States v. Drum, 368 U.S. 370, 374, 82 S.Ct. 408, 410, 7 L.Ed.2d 360 (1962); but it is also true that, upon the basis of appropriate findings, “the Commission may authorize the certificate even though the existing carriers might arrange to furnish successfully the projected service.” * * *

United States v. Dixie Highway Express, Inc., 389 U.S. 409, 411, 88 S.Ct. 539, 540, 19 L.Ed.2d 639 (1967) (citation omitted).

In view of the absence of legal merit in plaintiff’s first and second arguments, the only remaining issue which is properly before this Court is whether the Commission’s actions are supported by substantial evidence in the record as a whole.

The test of substantial evidence sufficient to support a Commission finding has been defined as “enough to justify, if the trial were to a jury, a refusal to direct a verdict when the conclusions sought to be drawn from it is one of fact for the jury.” Illinois Central R. Co. v. Norfolk & W. R. Co., 385 U.S. 57, 66, 87 S.Ct. 255, 260, 17 L.Ed.2d 162 (1966). Moreover, “the possibility of drawing two inconsistent conclusions from evidence does not prevent an administrative agency’s finding from being supported by substantial evidence.” Denver & Rio Grande Western Railroad Co. v. United States, 312 F.Supp. 329, 332 (D.Colo.1970) (citing Consolo v. Federal Maritime Comm., 383 U.S. 607, 620, 86 S.Ct. 1018, 16 L.Ed.2d 131 (1966); Illinois Central R. R. Co. v. Norfolk & W. R. Co., supra).

A review of the extensive record in this case does indeed reveal that the Commission had before it substantial evidence upon which to predicate its actions. Plaintiff attempts to refute the findings of the Hearing Examiner (subsequently adopted by the Commission) witness by witness (and there were over 60 witnesses). However, in almost every instance these attempts amount to efforts to equate controverted or disputed evidence on behalf of the applicants before the Commission with insubstantial evidence. This cannot be done.

For instance, plaintiff argues with respect to the testimony of the representative of Cameco, Inc.:

Cameco has never utilized Curtis’ service in spite of the fact that rates were furnished by Curtis upon request (Tr. 393; 465) and in spite of the fact that Curtis has solicited this traffic (Tr. 3099). The examiner’s summary of the evidence in this regard is incorrect and manifests his obvious predilection to accept at face value the representations of the applicants to the exclusion of all evidence to the contrary. At sheet 28 of his report the examiner states, as a matter of fact, that “Various motor carriers have not solicited shipper’s traffic’’ (Emphasis supplied.) As to Curtis, this statement is in error since the undisputed evidence of Curtis’ operating witness shows that Cameco’s traffic has been solicited without success (Tr. 3099).

[295]*295Plaintiff’s Opening Brief, at 39-40. However, examination of the transcript reveals that requesting and obtaining Curtis’ rates were done as part of the company’s new transportation manager’s job “to get rates from all carriers that go to all markets, which also include the area that we are talking about here and now.” (Tr. 466-67). Also, the witness representing Cameco testified as follows:

Q (By Mr. Peterson) Do you know whether or not representatives of Curtis, Incorporated have contacted Mr. Addeo in solicitation efforts, other than the furnishing of the tariff he requested ?
A To the best of my knowledge they have not. Mr. Addeo has been in our employ only for approximately seven to eight weeks, and prior to that they have not contacted us.

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Related

United States v. Drum
368 U.S. 370 (Supreme Court, 1962)
Consolo v. Federal Maritime Commission
383 U.S. 607 (Supreme Court, 1966)
United States v. Dixie Highway Express, Inc.
389 U.S. 409 (Supreme Court, 1967)
Denver & Rio Grande Western Railroad v. United States
312 F. Supp. 329 (D. Colorado, 1970)

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Bluebook (online)
327 F. Supp. 291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/curtis-inc-v-united-states-cod-1971.