Home Transportation Co. v. United States

365 F. Supp. 1216, 1973 U.S. Dist. LEXIS 11284
CourtDistrict Court, N.D. Georgia
DecidedOctober 31, 1973
DocketCiv. A. No. 17966
StatusPublished

This text of 365 F. Supp. 1216 (Home Transportation Co. v. United States) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Home Transportation Co. v. United States, 365 F. Supp. 1216, 1973 U.S. Dist. LEXIS 11284 (N.D. Ga. 1973).

Opinion

EDENFIELD, District Judge:

Plaintiff Home Transportation Company, Inc. [hereinafter “Home”] brings this action to enjoin and set aside the decision and order of the Interstate Commerce Commission which denied in substantial part Home’s application for a certificate of public convenience and necessity under 49 U.S.C. § 307.1 A three-judge district court was convened as provided in 28 U.S.C. § 2325 and the case came on for hearing on August 1, 1973. Plaintiff is actively opposed in this action by the Commission and by three intervenor-defendants: National Trailer Convoy, Inc., Morgan Drive Away, Inc., and Transit Homes, Inc., all of whom were protestants to Home’s application in the proceedings before the Commission.

1. BACKGROUND AND PROCEEDINGS BELOW

Home Transportation Company is a Georgia corporation which has been involved in interstate “heavy hauling” since 1946. In 1948 Home received a permit, later converted to an ICC certificate, authorizing it to carry “buildings, complete, knocked down or in sections,” under which it transported prefabricated buildings on flatbed trailers, destined for use as low-cost housing to satisfy the post-war housing shortage. Whereas transportation of pre-fab houses under this certificate accounted for 90% of' Home’s business prior to 1950, by 1955 such carriage had dwindled to 10% of the company’s operations.2

In 1967 Home began transporting “mobile homes” on the strength of a [1218]*12181967 Illinois three-judge district court opinion, later reversed in 1971, which it interpreted as allowing it to transport mobile homes under its existing certificate authorizing the carriage of “buildings.” While continuing to operate under a “color of right”, claimed to be emanating from the existing certificate, Home filed an application with the ICC on July 27, 1970 formally seeking a certificate of public convenience and necessity “authorizing operation in interstate or foreign commerce as a motor carrier, over irregular routes, of trailers designed to be drawn by passenger automobiles,3

(1) between points in Alabama, Florida, Georgia, Louisiana, Mississippi, and South Carolina, and
(2) between points in the said States, on the one hand, and on the other, points in Arkansas, Delaware, Kentucky, Missouri, North Carolina, Pennsylvania, Tennessee, Texas, Virginia, West Virginia, and the District of Columbia.” 4

In proceedings before the Commission, commencing April 5, 1971, Home presented a “three-fold factual and legal proof” in support of its application. First, it argued that under the 1967 decision of the three-judge panel in PreFab Transit Co. v. United States, 262 F.Supp. 1009 (S.D.Ill.1967), Home had reasonably believed that it was authorized to transport mobile homes, and that its very extensive operations over the three-year period from that date, conducted under a color of right, should be admitted as “proof of public convenience and necessity for continuation of such operations under a properly conformed certificate.”

Second, Home relies on the so-called “field of service” doctrine, arguing that the present “mobile home” is an evolutionary descendant of the earlier prefabricated building, and that its existing certificate authority ought to be expanded to allow it to keep pace with the technological change which has occurred in the industry which it was originally authorized to serve.

Third, Home presented approximately 45 public witnesses to testify as to their current needs and interest in the continued availability of Home’s service for the transportation of “mobile homes.” These witnesses included shippers who had used Home’s services in the past and had found them superior to other licensed carriers, as well as shippers and dealers who were dissatisfied with the existing service.

The Hearing Examiner rejected the “field of service” theory proposed by plaintiff as being contrary to the actual development of the mobile home industry from the earlier and continuing manufacture of smaller recreational trailers capable of being towed by passenger vehicles. He also was unpersuaded by Home’s claim that its carriage of mobile homes since 1967 had been performed under a “color of right” and that its past operations were therefore entitled to be considered as evidence favorable to its application.

Rejecting one theory and ignoring plaintiff’s service in the field from 1967 to date of application, the examiner devoted the bulk of his 53-page report to analyzing the testimony of plaintiff’s supporting shippers and the opposing evidence presented by the protestant carriers, National Trailer, Morgan Drive Away, Transit Homes and Chandler Trailer Convoy. On the basis of this evidence the examiner found that more competition was needed for carrying mobile homes in initial movements from points in Georgia and Alabama to other [1219]*1219points in “Alabama, Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, and those in Louisiana on and east of the Mississippi River.” 5 He concluded, however, that the evidence did not justify the granting of authority for “secondary movements”, i. e., subsequent transportation of mobile homes which had already reached their initial dealer destination from the manufacturer, and that plaintiff had failed to demonstrate a need for increased carriage into the states of Arkansas, Delaware, Kentucky, Missouri, North Carolina, Pennsylvania, Tennessee, Texas, Virginia, and the District of Columbia.

The decision and recommendation of the hearing examiner were affirmed and adopted by Division 1 of the Commission on October 10, 1972, and on February 27, 1973 Division 1, acting as an appellate division, denied the petitions for reconsideration filed by plaintiff and protestants, and affirmed its order. As slightly modified by Division 1, the authority recommended by the examiner and set forth in the certificate of public convenience and necessity which has since been issued to plaintiff, reads as follows:

“Operation by applicant, in interstate or foreign commerce, as a common carrier by motor vehicle, over irregular routes, of trailers designed to be drawn by passenger automobiles, in initial movements (1) from points in that portion of Alabama on and north of U.S. Highway 78, to points in Florida, Georgia, Mississippi, North Carolina, South Carolina, Tennessee, and points in that portion of Louisiana on and east of the Mississippi River, and (2) from points in Georgia, to points in Alabama, Florida, Mississippi, North Carolina, South Carolina, Tennessee, and points in that portion of Louisiana on and east of the Mississippi River.”

It is from the Commission’s denial of the balance of the authority requested (generally, secondary authority and transportation to states out of the Southeast) that plaintiff brings this lawsuit.

II. SCOPE OF REVIEW OF COMMISSION DECISIONS

There is no disagreement among the parties that the function of the court in reviewing a decision of the Commission is a limited one.

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Bluebook (online)
365 F. Supp. 1216, 1973 U.S. Dist. LEXIS 11284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/home-transportation-co-v-united-states-gand-1973.