National Trailer Convoy, Inc. v. United States

227 F. Supp. 730, 1964 U.S. Dist. LEXIS 8283
CourtDistrict Court, N.D. Oklahoma
DecidedMarch 20, 1964
DocketCiv. A. No. 5760
StatusPublished
Cited by5 cases

This text of 227 F. Supp. 730 (National Trailer Convoy, Inc. v. United States) is published on Counsel Stack Legal Research, covering District Court, N.D. Oklahoma primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
National Trailer Convoy, Inc. v. United States, 227 F. Supp. 730, 1964 U.S. Dist. LEXIS 8283 (N.D. Okla. 1964).

Opinions

BREITENSTEIN, Circuit Judge.

This action is to enjoin and set aside a report and order of the Interstate Commerce Commission (Commission) entered in its Docket No. MC-124190, Griffin Mobile Home Transporting Co., Contract Carrier Application.1 Over the objection of the plaintiff and the intervening plaintiffs, herein referred to collectively as Protestants, the Commission granted to intervening defendant, herein referred [731]*731to as applicant, a permit authorizing interstate operation as a contract carrier, by motor vehicle over irregular routes, of house trailers between points in Oklahoma and points in 33 other states. The issue is whether the Commission erred in giving consideration to certain services offered by the applicant, desired by the shippers, and not supplied by the protesting common carriers.

The facts are not in dispute. Applicant proposes to assign a vehicle with driver to the exclusive use of each of five .supporting shippers. Each driver will normally serve a single shipper. The •drivers will set up the trailers at the point of destination, “a service which might entail blocking, unblocking, assembling dinette sets or other furniture, •connecting electrical and plumbing services, making minor repairs, and expanding ‘expando’ trailers.” 2

The protestants, all common carriers, are authorized to serve the area, have suitable equipment, and will perform all the offered services except making repairs, connecting electrical and plumbing facilities, and preparing expandos. The excepted services are said to be of a nontransportation nature and not proper for consideration by the Commission in determining the right to the permit.

The services in question are variously referred to in the Commission report as “accessorial,” “ancillary,” “additional,” and “personalized.” The name to be given them is not important. For purposes of identification we shall refer to them as special services.

The examiner said that there was merit in the argument that “certain of the accessorial services to be performed by applicant exceeds those normally connected with transportation.” He expressed the opinion that a service to meet a shipper’s distinct need “must involve services normal to the industry and incidental to transportation,” and his recommendation was that the application be denied. The Commission accepted the examiner’s findings of fact but rejected his recommendation.

In its report the Commission did not determine whether the special services were transportation or nontransportation in character. Instead it said 3 that the primary issue “concerns the weight to be accorded to these various services.” The protestants contend that the special services may be given no weight because they relate to nontransportation activities. The applicant and the defendants argue that the special services must be giren weight because they relate to the distinct needs of shippers but they carefully refrain from arguing that such services pertain to transportation. In this posture of the case we must determine whether in acting upon an application for a contract-carrier permit, the Commission may give consideration to nontransportation services needed by shippers and offered by applicants.

After the decision in United States v. Contract Steel Carriers, Inc., 350 U.S. 409, 76 S.Ct. 461, 100 L.Ed. 482, holding that a contract carrier did not become a common carrier because it reached for new business within the limits of its license, the Commission, concerned over the relationship between these two types of carriers, proposed amendments to the Act.4 The purpose was to revise the definition of contract carrier and to cover related matters. Two of the 1957 amendments are pertinent here.

Section 203(a) (15) 5 which defines contract carrier, was amended to read:

“The term ‘contract carrier by ■ motor vehicle’ means any person which engages in transportation by [732]*732motor vehicle of passengers or property in interstate or foreign commerce, for compensation (other than transportation referred to in paragraph (14) of this subsection and the exception therein), under continuing contracts with one person or a limited number of persons either (a) for the furnishing of transportation services through the assignment of motor vehicles for a continuing period of time to the exclusive use of each person served or (b) for the furnishing of transportation services designed to meet the distinct need of each individual customer.”

Section 209(b) 6 covers the issuance of permits to contract carriers and was amended in 1957 by the addition of the following:

“In determining whether issuance of a permit will be consistent w.ith the public interest and the national transportation policy declared in this Act, the Commission shall consider the number of shippers to be served by the applicant, the nature of the service proposed, the effect which granting the permit would have upon the services of the protesting carriers and the effect which denying the permit would have upon the applicant and/or its shipper and the changing character of that shipper’s requirements.”

These 1957 amendments were reviewed by the Supreme Court in Interstate Commerce Commission v. J-T Transport Co., Inc., 368 U.S. 81, 82 S.Ct. 204, 7 L.Ed.2d 147. In that case J-T sought contract-carrier authorization for certain aircraft parts, and common carriers protested asserting their ability to meet the shipper’s needs.7 The examiner recommended the grant of the permit but the Commission denied it saying that the applicant had not shown the existing service of the other carrier to be inadequate. The Supreme Court held against the-Commission saying that the standard is not whether existing services are “reasonably adequate” but whether a shipper has a “distinct need” for a different or more select or more specialized service, and that: “The protesting carriers must show they can fill that ‘distinct need,’ not that they can provide a ‘reasonably adequate service.’ ” 8

The J-T case is not decisive of the issue here presented because in J-T no-question was raised as to the transportation nature of the services and the Court was not required to decide whether the-Commission could consider nontranspor-tation services.

To support its order now under consideration the Commission relies heavily on two provisions of the 1957 amendments. It points out that under the § 203(a) (15) definition a contract carrier is a person who engages in interstate transportation of persons or property for compensation under continuing contracts “for the furnishing of transportation services designed to meet the distinct, need of each individual customer.” Emphasis is placed on the term “distinct need” without differentiating between a. distinct transportation need and a distinct need which is unrelated to transportation.

The language is plain and unambiguous. The contracts are to furnish transportation services. Such services, and' only such services, are to meet the distinct needs of the customers. The reference to transportation services restricts-- and limits the language which follows.

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Related

Coastal States Trading, Inc. v. Shell Pipeline Corp.
573 F. Supp. 1415 (S.D. Texas, 1983)
National Trailer Convoy, Inc. v. United States
293 F. Supp. 630 (N.D. Oklahoma, 1968)
Meat Packers Express, Inc. v. United States
244 F. Supp. 642 (D. Nebraska, 1965)
Baggett Transportation Co. v. United States
231 F. Supp. 905 (S.D. Alabama, 1964)

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Bluebook (online)
227 F. Supp. 730, 1964 U.S. Dist. LEXIS 8283, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-trailer-convoy-inc-v-united-states-oknd-1964.