Hearin Tank Lines, Inc. v. Louisiana Public Service Commission

174 So. 2d 644, 247 La. 826, 1965 La. LEXIS 1964
CourtSupreme Court of Louisiana
DecidedMay 3, 1965
Docket47560
StatusPublished
Cited by22 cases

This text of 174 So. 2d 644 (Hearin Tank Lines, Inc. v. Louisiana Public Service Commission) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hearin Tank Lines, Inc. v. Louisiana Public Service Commission, 174 So. 2d 644, 247 La. 826, 1965 La. LEXIS 1964 (La. 1965).

Opinion

HAWTPIORNE, Justice.

Hearin-Miller Transporters, Inc., 1 Younger Brothers, Inc., Earl C. Gibbon, d/b/a Earl Gibbon Petroleum Transport, and Prudhomme Truck Tank Service, Inc., all holders of statewide common cander certificates for the transportation of liquid commodities, have appealed from a judgment of the Nineteenth Judicial District Court for the Parish of East Baton Rouge, Louisiana, which affirmed an order of the Louisiana Public Service Commission and dis *830 missed their action to annul this order. The Public Service Commission’s order amended a common carrier certificate for petroleum products on the application of the holder thereof, Guillory Tank Truck Service, Inc., as follows:

“ORDERED, that Certificate of Public Convenience and Necessity No. 5384 — A reissue to Guillory Tank Truck Service, Inc. amended to authorize fully the following described transportation as a common carrier by motor vehicle:

“Transportation of commodities of Water, Salt Water, Crude Oil, Gasoline, Diesel Fuel and other Petroleum Products of all types, transported in bulk in tank truck only; over irregular routes through the state of Louisiana with the restriction that service to and from all points North of a line running East and West and which is ten (10) miles North of Alexandria, is excluded * *

Guillory Tank Truck Service, Inc., since I960 2 has been the holder of a certificate of public convenience and necessity for the transportation as a common carrier of certain commodities over irregular routes within a radius of 75 miles of Eunice, Louisiana, with the restriction that service between East Baton Rouge and this area was excluded. In May, 1961, Guillory applied to the Public Service Commission for amendment of its certificate to increase both territory covered and kinds of commodities carried, and the commission in due course after a hearing granted the amended certificate as set out above. Appellants opposed Guillory’s application before the commission, and when the order was issued over their opposition, they sought judicial review in the district court.

R.S. 45 :164 provides in part:

* * * No new or additional certificate shall be granted over a route where there is an existing certificate, unless it be clearly shown that the public convenience and necessity would be materially promoted thereby.”

This statute imposes a duty upon the commission not to issue a certificate over a route where there is an existing certificate unless the applicant therefor clearly shows that public convenience and necessity would be materially promoted. In other words, the burden before the commission is on the applicant, who as a prerequisite to the issuance of the certificate must clearly show that public convenience and necessity would be materially promoted by its issuance.

In the instant case appellants contend that the applicant offered no substantial evidence before the commission which would justify its order. As authority for their contention that the evidence before the commission *832 must be “substantial” they rely on language in the case of Herrin Transportation Company v. Louisiana Public Service Commission, 241 La. 174, 127 So.2d 541. In that ■case the court in affirming a judgment of the lower court which annulled an order •of the commission issuing a certificate of public convenience and necessity stated that “ * * * there must be a clear showing that there is substantial evidence” to support .an order of the commission. As authority for this statement the opinion refers the reader to the cases of Texas & Pacific R. Co. v. Louisiana Public Service Commission, 201 La. 853, 10 So.2d 641, and Illinois Central Railroad Company v. Louisiana Public Service Commission, 224 La. 279, 69 So.2d 43.

In the Texas & Pacific R. Co. case this court after reviewing the record stated that the evidence was “* * * inadequate to clearly show the public convenience and necessity would be materially promoted by the issuance of the new or additional certificate * * * ” of public convenience and necessity. In the Illinois Central case the court after reviewing the record said: “ * * * we cannot say that the decision of the Commission was plainly contrary to the facts or unsupported by evidence. * * ” 3

A reading of the opinion in the Herrin case, supra, discloses that the court in making the statement relied on was only stating the burden of proof imposed by the statute —that is, that the applicant for a certificate in such a case must clearly show that public convenience and necessity would be materially promoted, and that the burden of proof “requires more than a mere showing that there is some evidence”. In short, if the applicant adduces evidence before the commission which clearly shows that the public convenience and necessity would be materially promoted by the issuance of the certificate, it is immaterial whether the evidence making this clear showing is termed “adequate” or is termed “substantial”.

When such an order of the commission is before the courts for judicial review, another principle of law comes into play, and that is that once the commission has decided to grant such an order and “ * * * has acted within its power, and not arbitrarily or grossly contrary to the evidence, and when no error of law has been committed, the court must not substitute its judgment for that of the commission, or consider the expediency or wisdom of the order, or say whether on like evidence the court would have made a similar ruling”, Rubion Transfer & Storage Co. v. Louisiana Public Service Commission, 240 *834 La. 440, 123 So.2d 880, and that the courts will not interfere with action by the commission unless it is shown to be arbitrary and capricious, Louisiana Tank Truck Carriers v. Louisiana Public Service Commission, 244 La. 909, 155 So.2d 15. In other words, upon judicial review a court will not upset orders such as the one in this case unless after looking at the evidence it concludes that the commission could not have reasonably concluded that there had been a clear showing that the public convenience and necessity would be materially promoted thereby, and that the commission’s action was therefore arbitrary and capricious and a clear abuse of its power.

The record here discloses that no new common carrier permits for carrying petroleum products in bulk have been issued by the commission since 1942, and that between 1940 and 1959 there was a great increase in the production of oil, gas, and such products. For instance, in South Louisiana, which includes the area where applicant seeks to transport petroleum products, the production of oil increased from 79,051,922 barrels in 1940 to 278,759,190 barrels in 1959, and during the same period natural gas production increased from 21,361,006 MCF to 1,799,060,498 MCF. This great increase was certainly a factor to be considered by the commission in determining whether there was a need for granting a common carrier permit such as the one applicant sought.

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174 So. 2d 644, 247 La. 826, 1965 La. LEXIS 1964, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hearin-tank-lines-inc-v-louisiana-public-service-commission-la-1965.