Parkhill Truck Co. v. United States

240 F. Supp. 842, 1965 U.S. Dist. LEXIS 7731
CourtDistrict Court, N.D. Oklahoma
DecidedApril 26, 1965
DocketCiv. A. No. 6053
StatusPublished
Cited by1 cases

This text of 240 F. Supp. 842 (Parkhill Truck Co. 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
Parkhill Truck Co. v. United States, 240 F. Supp. 842, 1965 U.S. Dist. LEXIS 7731 (N.D. Okla. 1965).

Opinion

LEWIS, Circuit Judge.

By this action filed under 28 U.S.C. § 1336 Parkhill Truck Company seeks to set aside and enjoin the enforcement of a cease and desist order entered by the Interstate Commerce Commission, three judges dissenting, after a plenary hearing resulting in a negative determination of ParkhilPs authority to haul other than oil field pipeline equipment in interstate commerce. C & H Transportation Co., Inc., Extension — Denison, Tex., 94 M.C. C. 711. The hearing was held as the result of the decision in Parkhill Truck Co. v. United States, N.D.Okl., 198 F.Supp. 362, wherein earlier aspects of the continuing controversy between the parties were determined by a three-judge court convened, as now, by the requirements of 28 U.S.C. § 2325. The present issue is whether the Commission has erroneously interpreted and limited the scope of ParkhilPs existent authority to haul pipeline equipment by finding such authority to be contained in a so-called “Mercer” type certificate and thus subject to the interpretation earlier approved for such a certificate in Arrow Trucking Co. v. United States, N.D.Okl., 181 F.Supp. 775.

The Parkhill lead certificate, MC-106497, reads as follows:

“Oil-field equipment and supplies, over irregular routes,
Between points and places [in four states].
“Pipe, pipe line material, machinery, and equipment incidental to and used in connection with the construction, repairing, or dismantling of pipe lines, over irregular routes,
Between points and places [in thirty-one states].”

The thrust of the Commission decision is that the language of such certificate is ambiguous upon its face as to whether the limitation of “oil-field” as contained in the first portion is applicable to the authority to haul pipe, pipeline material, machinery, and equipment as set forth in the second paragraph of the certificate. The determination of the existence of ambiguity, and the ultimate cease and desist order premised upon the imposition of the “oil-field” limitation, springs from the rule formulated in Mercer Extension — Oil Field Commodities, 74 M.C.C. 459, where a general grant of authority appearing with a more limited grant was held to justify the Commission in finding an ambiguity to exist. The ambiguity, in turn, justified the Commission’s looking behind the face of the certificate to the underlying application [844]*844proceedings to determine the intended scope of the authority. “Mercer” authority reads as follows:

“1. Machinery, equipment, materials, and supplies used in, or in connection with, the discovery, development, production, refining, manufacture, processing, storage, transmission, and distribution of natural gas and petroleum and their products and by products, and
“2. Machinery, materials, equipment, and supplies used in, or in connection with, the construction, operation, repair, servicing, maintenance, and dismantling of pipelines, including the stringing and picking up thereof.”

The Commission admitted that Parkhill’s authority “is not phrased in the exact words of the Mercer description,” but held that because it contained two parts, only one of which is limited to oil field equipment and supplies, there was a Mercer-type ambiguity. The Commission does not contend that its interpretation may be upheld without the finding of ambiguity, for unless a certificate is ambiguous on its face the Commission may not look beyond its terms. See Ace Lines, Inc., Extension — Cement Pipe, 91 M.C.C. 559; Campbell Sixty-six Express, Inc. v. Frisco Transportation Co., 46 M.C.C. 222.

A complete understanding of Parkhill's position requires an understanding of the history of Parkhill certificate MC-106497. The first portion of the authority, that dealing with “oil-field equipment and supplies,” was granted to Parkhill’s predecessor as a result of rights asserted under the provisions of 49 U.S.C. § 306(a)(1), “grandfather” applications, and was issued on May 20, 1943. Parkhill Truck Company Common Carrier Application, 41 M.C.C. 814. The second portion, authorizing transportation of “pipe, pipe line material, machinery and equipment,” was granted on a showing of public convenience and necessity and was issued January 3, 1942, over seventeen months prior to the granting of the other portion. Parkhill Truck. Company Extension of Operations, 31 M.C.C. 806. On November 2, 1943 these separate operating authorities were consolidated into a single certificate that has not since been changed; the certificate was awarded to Parkhill’s predecessors and the consolidation was done at their request in order to facilitate the transfer of the rights from predecessor Parkhill Truck Company, a corporation, to Roy F. Parkhill and Henri E. Parkhill, a partnership doing business as Parkhill Truck Company. The consolidated certificate was subsequently assigned to plaintiff Parkhill after reincorporation of the business; its stock was acquired by the present holders in the early 1950’s.

In Arrow Trucking Co. v. United States, N.D.Okl., 181 F.Supp. 775, the court upheld a Commission determination that Mercer-type certificates should be construed to authorize transportation of pipeline equipment and supplies only when used in connection with the oil and gas industry. The court rejected the contention that the Commission orders were void because of noncompliance with the provisions of 49 U.S.C. § 312(a) requiring notice and hearing before suspension, change or revocation of a certificate, holding that the Commission had construed the certificates rather than altered them and that the construction was not clearly erroneous. Parkhill, however, points out relevant differences between the Arrow Trucking case and the case at bar, namely that the language of the certificates there involved differs from that here involved and, more important, that the certificates in Arrow Trucking, as in the original Mercer case, resulted from single Commission proceedings rather than from the consolidation of separate certificates resulting from separate proceedings, as occurred in reference to Parkhill. Any ambiguity, Parkhill argues, resulted wholly from the Commission’s mechanical act of consolidation, of putting the two authorizations on the same sheet of paper. This action, admittedly not satisfying the notice and hearing requirements of 49 U.S.C. § 312 [845]*845(a) before alteration of a certificate, cannot serve as a basis for reading a limitation into the authorization originally granted in 1942 that prior to consolidation was clear and unambiguous. Such Commission action is “arbitrary and capricious” and, claims Parkhill, should be set aside.

All parties agree to the well-established rule that Commission construction of the scope of a certificate will not be set aside unless clearly erroneous. Andrew G. Nelson, Inc. v. United States, 355 U.S. 554, 558, 78 S.Ct. 496, 2 L.Ed.2d 484; Arrow Trucking Co. v.

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Bluebook (online)
240 F. Supp. 842, 1965 U.S. Dist. LEXIS 7731, Counsel Stack Legal Research, https://law.counselstack.com/opinion/parkhill-truck-co-v-united-states-oknd-1965.