Pre-Fab Transit Co. v. United States

306 F. Supp. 1247, 1969 U.S. Dist. LEXIS 10926, 1969 WL 177907
CourtDistrict Court, S.D. Illinois
DecidedSeptember 3, 1969
DocketCiv. A. Nos. 2394, 4376
StatusPublished
Cited by3 cases

This text of 306 F. Supp. 1247 (Pre-Fab Transit Co. v. United States) is published on Counsel Stack Legal Research, covering District Court, S.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pre-Fab Transit Co. v. United States, 306 F. Supp. 1247, 1969 U.S. Dist. LEXIS 10926, 1969 WL 177907 (S.D. Ill. 1969).

Opinion

[1249]*1249MEMORANDUM DECISION AND ORDER

POOS, District Judge.

Nature of the Proceedings

Plaintiff Pre-Fab Transit Co., hereinafter referred to as Pre-Fab, brings Civil Action No. 4376 under Sections 1336, 1338, 2284 and 2321 through 2325 of Title 28, United States Code, to enjoin, annul and set aside the order of the Interstate Commerce Commission, hereinafter the I.C.C., served June 14, 1968 in Miami Transportation Co., Inc. of Indiana v. Pre-Fab Transit Co., Docket No. MC-C-5102, which was reported at 107 M.C.C. 383. The I.C.C., in construing Pre-Fab’s certificate of authority No. MC-107295, found that Pre-Fab exceeded its authority in transporting certain ornamental iron columns in interstate commerce. Pre-Fab attacks the order, alleging (1) that the I.C.C.’s interpretation of Part B of its authority is clearly erroneous and (2) that the I.C.C. denied Pre-Fab a full and fair hearing as to Part A of its authority.

In Civil Action No. 2394, Pre-F'ab has moved to enforce a 1958 judgment of this Court, which judgment Pre-Fab alleges is authority for what it did in Miami and for what it wants to continue to do.

Facts

The facts of the case are not unduly complex, nor does there appear to be any dispute as to any material fact. Briefly, the complaint, exhibits, verified statements and Report of the Commission show that in February, 1966, Miami Transportation Company, Inc. of Indiana, hereinafter called Miami, which is one of the intervening defendants herein, filed a complaint with the I.C.C. alleging that Pre-Fab transported 1234 cartons of Ornamental iron columns from Louisville, Kentucky, to Dunbar, West Virginia, all in excess of its certificated authority.

Pre-Fab’s Certificate of Public Convenience and Necessity, No. MC-107295 reads as follows:

Part A, allowing the transportation of—
(A) Prefabricated and precut buildings or houses, complete, knocked down, or in sections, and aU component parts necessary to the construction, erection, or completion of such buildings or houses, when shipped with same * * * and
Part B, allowing the transportation of—
(B) Buildings, complete, knocked down, or in sections, including all component parts, materials, supplies, and fixtures, and when shipped with such buildings, accessories used in the erection, construction, and completion thereof.

Pre-Fab’s reply admitted the transportation of the iron columns but asserted that it was authorized by both Parts A and B of its certificate. Since only a matter of Commission analysis and interpretation of the Certificate remained, there being no factual dispute, an investigation was conducted pursuant to Modified Procedure, i. e., evidence was submitted without oral hearing by way of verified statements.

The I.C.C. examiner found a violation of Section 206(a) of the Interstate Commerce Act and recommended that a cease and desist order be issued. Pre-Fab excepted and the Commission, Division I, in its report and order of May 23, 1968, concurred in the examiner’s findings and entered a cease and desist order.

Thereafter, on October 23, 1968, PreFab filed in this Court its “Motion to Enforce Judgment”, which alleged that the I.C.C.’s order in Miami was in contravention of this Court’s judgment of July 31, 1958, in Pre-Fab Transit Co., v. United States and Interstate Commerce Commission, Civil Action No. 2394. This Court then entered a temporary restraining order enjoining the effectiveness of the I.C.C. order in Miami until a final determination could be reached by a three-judge court as to the merits of the Commission’s construction [1250]*1250of Pre-Fab’s certificate. After all parties had submitted written briefs, oral argument was held before this Court on June 23, 1969.

Limited Scope of Judicial Review

It is well settled in the law that, as a general rule, the scope of judicial review of administrative action with regard to questions of fact is whether on the record as a whole the agency could reasonably make the finding that it did, i. e., the “substantial evidence testand, with regard to questions of law, whether the judgment of the expert body has warrant in the record and a rational basis in the law. See, generally, Universal Camera Corp. v. NLRB, 340 U.S. 474, 71 S.Ct. 456, 95 L.Ed. 456 (1951); Gray v. Powell, 314 U.S. 402, 62 S.Ct. 326, 86 L.Ed. 301 (1941); and the Administrative Procedure Act, Section 10, 5, U.S.C. Sec. 1001 et ff.

Courts recognize the comparative qualifications of court and agency to decide a particular issue, and agencies and their staffs are often deemed experts within their own specialized fields. Although talk of agency expertise often suffers from overkill, that fundamental proposition has merit in it. Congress has delegated power and authority to the various agencies intending them to do their respective jobs and reach practical results in terms of providing governmental services. Agency expertness in the field most often follows. Thus, this court is inclined to give great weight to the Commission’s latest considered interpretation of Pre-Fab’s certificate, even though it apparently, to some degree, represents a change of mind by the experts.1 I.C.C. may change its mind on certificate interpretation if the final determination is sound. See Nelson, Inc. v. United States, 355 U.S. 554, 561, 78 S.Ct. 496, 2 L.Ed.2d 484 (1958), and Sims Motor Transport Lines, Inc. v. United States, 183 F.Supp. 113, 119, (D.C.1959), affirmed 362 U.S. 637, 80 S.Ct. 1076, 4 L.Ed.2d 1019 (1960).

The 1958 Court Decision

Pre-Fab relies upon the judgment entered on July 31, 1958 by this Court in Pre-Fab Transit Co. v. United States and Interstate Commerce Commission as authority under Part B for its transporting building materials generally, such as ornamental iron columns.

Our reading and analysis of that proceeding leads us to conclude that PreFab has incorrectly interpreted that decision. All that was decided there was that Pre-Fab could transport in independent shipments building materials which were intended to be used as a part of some determinable building in the future. The Court there reversed the I.C.C.’s ruling in Whitehouse Trucking, Inc. v. Pre-Fab Transit Co., 71 M.C.C. 155 (1957) that Pre-Fab could haul window frames to the plant of a prefabricated building manufacturer only when Pre-Fab was simultaneously hauling buildings. This Court now reaffirms the soundness of that 1958 decision in allowing building materials, including component parts, of future transportable buildings to move independently of, and not as part of the same shipment of, the entire buildings. This is not the same, however, as holding that Pre-Fab has authority to ship “building materials” in general, such authority being a much wider grant than the 1946 history and subsequent events show was applied for by Pre-Fab or granted by the Commission.

Therefore, we conclude that Pre-Fab’s reliance on the 1958 judgment as authority for the act complained of in Miami is misplaced.

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Bluebook (online)
306 F. Supp. 1247, 1969 U.S. Dist. LEXIS 10926, 1969 WL 177907, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pre-fab-transit-co-v-united-states-ilsd-1969.