Kroblin Refrigerated Xpress, Inc. v. United States

197 F. Supp. 39, 1961 U.S. Dist. LEXIS 4322
CourtDistrict Court, N.D. Iowa
DecidedJuly 27, 1961
DocketCiv. 928, 932
StatusPublished
Cited by11 cases

This text of 197 F. Supp. 39 (Kroblin Refrigerated Xpress, Inc. v. United States) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kroblin Refrigerated Xpress, Inc. v. United States, 197 F. Supp. 39, 1961 U.S. Dist. LEXIS 4322 (N.D. Iowa 1961).

Opinion

STEPHENSON, District Judge.

These actions were instituted against the United States of America and the Interstate Commerce Commission, pursuant to the provisions of Sections 1336, 1398, 2284, and 2321-2325, Title 28 U.S. C.A.; and Section 10 of the Administrative Procedure Act, 5 U.S.C.A. § 1009, to enjoin, annul and set aside certain orders of the Interstate Commerce Commission (hereinafter called the Commission). Civil No. 932 involves an order of the Commission finding that plaintiff’s predecessor-in-interest, Heuer Truck Lines, Inc., (hereinafter called Heuer) was not authorized to transport fresh meats pursuant to the commodity description “groceries” contained in its certificate and ordering Heuer to cease and desist from such transportation.

Civil No. 928 involves orders of the Commission denying two applications by the plaintiff for extensions of its existing motor carrier authorities to include fresh meat on the grounds that plaintiff, Kro-blin Refrigerated Xpress, Inc. (hereinafter called Kroblin) had failed to establish it was fit and able to receive the extensions of authority for which applications had been filed.

These two actions were consolidated for purposes of briefs, arguments and disposition herein. However, they will be discussed separately.

CiviI-932

This proceeding was docketed before the Commission as No. MC-C-1587, Heuer Truck Lines, Inc., — Revocation of Certificate, reported in 66 M.C.C. 47. It was *41 instituted by the Commission on its own motion in an investigation proceeding instituted pursuant to Sec. 204(c) of the Interstate Commerce Act, 49 U.S.C.A. § 304(c), and resulted in an order by the Commission that the plaintiff’s predecessor-in-interest, Heuer, cease and desist from the performance of operations found not to be authorized by Heuer’s certificate, namely transporting fresh meats, the Commission having interpreted the commodity term “groceries”, contained in the motor carrier certificate, now held by Kroblin, as not including “fresh meats.” 1

Initially a hearing was held before an individual Commissioner. Thereafter a report was issued by what was then Division 5 of the Commission, finding that Heuer’s authority to transport groceries did not authorize the transportation of fresh meats, and ordering Heuer to cease and desist from such transportation. Petitions for reconsideration were filed by Heuer and an intervener, and were denied by the Commission. Heuer then brought an action in the United States District Court for the Southern District of Iowa to set aside the orders of the Commission on the ground, among other things, that, contrary to the requirements of the Administrative Procedure Act, an initial or recommended decision had not been made by the officer who presided at the hearing. As a result, the Commission vacated its prior orders and referred the proceeding back to the Commissioner who presided at the hearing for an issuance of an initial decision. Heuer then dismissed the district court action.

On August 2, 1955, the hearing Commissioner served his initial decision which was practically a verbatim copy of the fifth Division’s report. After exceptions were filed by Heuer, Division one issued the report and order presently complained of, finding that the term “groceries” as used in Heuers’ certificate means “articles for human consumptions which are customarily served as food,, except fresh meats”, that Heuer’s transportation of fresh meats to, from or between points which it could serve in the carriage of “groceries” was unauthorized, and that a cease and desist order should be entered in accordance therewith.

Heuer then filed a petition for reconsideration and further hearing which was denied by the Commission, whereupon Heuer instituted the present action.

At the request of the parties, this matter was continued by the District Court for the Southern District of Iowa, pending disposition by the Commission of Heuer’s application in No. MC-30844 (Sub. No. 25) in which Heuer sought specific authority to transport “fresh meats” in the territory covered by Heuer’s existing “groceries” authority. (This authority was ultimately denied by the Commission in proceedings complained of in Civil-928 discussed infra.)

Plaintiff seeks relief from the orders of the Commission on the following grounds:

(1) That the Commission’s definition of “groceries” as used in plaintiff’s certificate is arbitrary, erroneous and lacking in any rational basis.
(2) That the Commission’s action in denying plaintiff’s petition for reconsideration and for further hearing was arbitrary, capricious and in abuse of its discretion.
(3) That the Commission’s proceeding in Docket No. MC-C-1587 was violative of Sec. 8 of the Administrative Procedure Act, 5 U.S.C.A. § 1007.

We direct our attention to the first ground presented. It is well settled that the construction of the scope of certificates issued by the Commission is within the province of the Commission and will not be overturned unless, caprici *42 ous, arbitrary or clearly erroneous. Andrew G. Nelson, Inc. v. United States, 1958, 355 U.S. 554, 78 S.Ct. 496, 2 L.Ed. 2d 484; United Truck Lines v. Interstate Commerce Commission, 9 Cir., 1951, 189 F.2d 816, certiorari denied 342 U.S. 830, 72 S.Ct. 54, 96 L.Ed. 628; Ace Lines, Inc. v. United States, D.C.S.D.Iowa 1960, 197 F.Supp. 591.

In Andrew G. Nelson, Inc. v. United States, supra, 355 U.S. at page 558, 78 S.Ct. at page 499, the Supreme Court stated:

“In ascertaining that meaning (of words in a commodity description), we are not given ■carte blanche; just as ‘/t/he precise delineation of an enterprise which seeks the protection of the “grandfather” clause has been reserved for the Commission, Noble v. United States, 1943, 319 U.S. 88, 93, 63 S.Ct. 950, 952, 87 L.Ed. 1277, subsequent construction of the grandfather permit by the Commission is controlling on the courts unless clearly erroneous. Dart Transit Co. v. Interstate Commerce Comm., D.C., 110 F.Supp. 876 (D.Minn. 1953), affirmed, 345 U.S. 980, 73 S.Ct. 1138, 97 L.Ed. 1394 (1953).”

In Dart Transit Co. v. Interstate Commerce Commission, supra, the Court, speaking through Judge Sanborn, stated at page 880 of 110 F.Supp.:

“It is our opinion that in an action such as this, a court may not substitute its judgment for that of the Commission with respect to the question of the scope or coverage of a permit which the Commission has issued to a motor carrier, if that question is at all doubtful. * * * In the interest of uniformity in the regulation and policing of the motor carrier industry, it is of course essential that the Commission be subjected to as little judicial interference as the law will permit.”

This principle is further illustrated by the decision in Ace Lines, Inc. v. United States, supra, 197 F.Supp. 599 where the Court said:

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Bluebook (online)
197 F. Supp. 39, 1961 U.S. Dist. LEXIS 4322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kroblin-refrigerated-xpress-inc-v-united-states-iand-1961.