Jerry Lipps, Inc. v. Interstate Commerce Commission

299 F. Supp. 942, 1969 U.S. Dist. LEXIS 10914
CourtDistrict Court, E.D. Missouri
DecidedApril 29, 1969
DocketNo. 68 C 12(1)
StatusPublished
Cited by1 cases

This text of 299 F. Supp. 942 (Jerry Lipps, Inc. v. Interstate Commerce Commission) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jerry Lipps, Inc. v. Interstate Commerce Commission, 299 F. Supp. 942, 1969 U.S. Dist. LEXIS 10914 (E.D. Mo. 1969).

Opinion

HARPER, District Judge.

MEMORANDUM OPINION

This is an action by the plaintiff, Jerry Lipps, Inc., to review, set aside, vacate and annul an order of the defendant, Interstate Commerce Commission (ICC), dated September 28, 1968, denying the plaintiff’s application for a certificate of public convenience and necessity to operate as a common carrier over irregular routes between St. Louis, Missouri, and the State of Florida.

The application was originally heard before Laurence E. Masoner, Hearing Examiner. Said hearing was held pursuant to plaintiff’s request both in St. Louis, Missouri, and in Tampa, Florida, and consumed some twenty-one days. The Hearing Examiner, after examination of the evidence presented, recommended denial of the application in his issued report and order.

Exceptions were filed by the plaintiff. Division I of the ICC, after consideration of the exceptions and replies thereto, affirmed the decision of the Examiner, adding an additional ground, noted hereafter.

Plaintiff has exhausted his administrative remedies.

The jurisdiction of this court is invoked under 28 U.S.C.A. §§ 1336, 1339, 2321-2325 and 5 U.S.C.A. § 1009. Pursuant to 28 U.S.C.A. § 2325, the matter was presented to and decided by a three-judge district court.

Ryder, Gordon and Terminal were permitted to intervene in support of the ICC, having been protestants in the administrative process. A certified copy of the records and proceedings before the ICC, including all of the evidence, the exhibits introduced, and the orders of the ICC, were received in evidence. Counsel have orally argued the ease and written briefs have been filed.

The Interstate Commerce Act provides that a common carrier by motor vehicle is required to operate under a certificate (49 U.S.C.A. § 306(a)), and further, that the ICC shall issue such a certificate when it deems that to do so is in the public interest (49 U.S.C.A. § 307(a)). The plaintiff here was and is operating under limited irregular route authority to carry specific commodities between St. Louis and points in Florida (Appendix A to the Examiner’s Report). It applied in December of 1964 for an increase of authority so that it could transport general commodities by irregular routes between St. Louis and points in Florida.

As noted, after a hearing, the Examiner recommended adversely to the plaintiff and the ICC agreed and denied the application (105 M.C.C. 811). The ICC decision — that the applicant failed to establish that the present or future public convenience and necessity required the proposed operation — was based upon the Examiner’s finding that the existing service of Ryder was not shown inadequate, and upon an additional ground that the proposal was not and would not be responsive to the stated needs of the shippers involved.

In reviewing this Order, the court is guided by the Administrative Procedure Act, 5 U.S.C.A.- § 1009(e). The scope of our review of the Commission’s order is limited to a determination, upon the whole record, of whether the Commission's findings are supported by substantial evidence, or whether its findings and conclusions were induced by misapplication of the law. In other words, if the Commission’s findings are supported by substantial evidence and are in accordance with the law, they must be upheld. See ICC v. L & N R. R., 227 U.S. 88, 94, 33 S.Ct. 185, 57 L.Ed. 431; Universal [945]*945Camera Corp. v. N. L. R. B., 340 U.S. 474, 71 S.Ct. 456, 95 L.Ed. 456; Chicago, Rock Island & Pacific R. R. v. United States, D.C., 233 F.Supp. 381; Mississippi Valley Barge Line v. United States, 292 U.S. 282, 54 S.Ct. 692, 78 L.Ed. 1260; Consolo v. F. M. C., 383 U.S. 607, 86 S.Ct. 1018, 16 L.Ed.2d 131; Sloan’s Moving and Storage Co. v. United States, D.C., 208 F.Supp. 567, aff’d, 374 U.S. 95, 83 S.Ct. 1687, 10 L.Ed.2d 1026; United Van Lines, Inc. v. United States, D.C., 266 F.Supp. 586.

Plaintiff attacks the decision on three grounds: First, it argues that the ICC erred in considering the single line service of Ryder; second, that the ICC applied the wrong standard to the applicant’s proposal of irregular route service ; and third, that the Commission’s refusal to reopen the hearing was arbitrary and capricious.

For the reasons hereafter stated, the court is of the opinion that the plaintiff’s points are without merit and that the order of the ICC made pursuant to its findings and conclusions must be affirmed.

As to the third point argued by plaintiff- — that the Commission’s refusal to reopen the hearing for evidence of Ryder’s inadequate single line service was arbitrary — it is clearly the law that such requests are directed to the sound discretion of the Commission, and reversal on this basis is permissible only upon a showing of clear abuse of that discretion. United States v. Pierce Auto Freight Lines, 327 U.S. 515, 66 S.Ct. 687, 90 L.Ed. 821; ICC v. Jersey City, 322 U.S. 503, 64 S.Ct. 1129, 88 L.Ed. 1420; United States v. Northern Pacific Ry., 288 U.S. 490, 53 S.Ct. 406, 77 L.Ed. 914. No abuse of discretion is apparent here. The hearings extended over a six-month period, giving plaintiff ample opportunity to present such evidence then. Furthermore, the reported decision indicates that the Commission in fact considered the material which plaintiff wished to present.

“ * * * the record here has been fairly made, the evidence tendered appears to be cumulative, and the present record (which is adequate to support our conclusions herein) would not be changed in any decisive respect by receipt of such tendered evidence.”

Plaintiff’s other two points are similarly without merit. These arguments attack the use of certain criteria by the Commission and the findings made under the evidence presented.

There is substantial evidence in the record as a whole on which a finding could be based that Ryder’s single line service was adequate to meet the shipping public’s needs. The evidence of the shippers in support of the application was that the interline or multiple-line service between St. Louis and Florida was insufficiently fast for their individual needs. The Examiner and Commission so found. But during the pend-ency of the hearing the Ryder-Hoover merger provided these shippers with single line service that they requested. Ryder’s evidence, consisting of testimony (Tr. 1912 et seq.), and exhibits, in particular No. 69, demonstrate that the merger cut the shipping timé appreciably and put it within the period requested by the shippers. While plaintiff dislikes the method of computation used by Ryder, the Commission approved it over such attack, and the court can see no basis for altering this. Admittedly certain shippers indicated that Ryder’s single line (post-merger) service was still inadequate.

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Bluebook (online)
299 F. Supp. 942, 1969 U.S. Dist. LEXIS 10914, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jerry-lipps-inc-v-interstate-commerce-commission-moed-1969.