Railroad Commission v. McClain

356 S.W.2d 330, 1962 Tex. App. LEXIS 2363, 1962 WL 119339
CourtCourt of Appeals of Texas
DecidedApril 4, 1962
Docket10948
StatusPublished
Cited by6 cases

This text of 356 S.W.2d 330 (Railroad Commission v. McClain) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Railroad Commission v. McClain, 356 S.W.2d 330, 1962 Tex. App. LEXIS 2363, 1962 WL 119339 (Tex. Ct. App. 1962).

Opinion

RICHARDS, Justice.

Parrish Brothers and Frank McClain, appellees, brought suit against the Railroad Commission of Texas, appellant, to set aside two orders of the Commission, dated April 12, 1961, correcting Specialized Motor Carrier Certificates issued to Parrish Brothers and Frank McClain by replacing an “in bulk” restriction in the authority given under the certificates to haul cottonseed. The Trial Court rendered judgment for appellees holding that the orders of the Commission constituted an attempt to revoke a portion of the operating rights authorized in the Specialized Motor Carrier Certificates and that such orders were illegal and void. In addition, the Trial Court granted a permanent injunction against the ‘Railroad Commission from attempting to *331 enforce the provisions of the invalid orders, from which judgment the Commission has perfected this appeal.

The Commission’s appeal is based upon two points of error, the first being that the Trial Court erred in holding that the Commission’s orders of April 12, 1961 revoked a portion of the operating rights authorized in the Specialized Motor Carrier Certificates issued to appellees, and second, that the Trial Court erred in holding that the Commission’s orders correcting the certificates in controversy by replacing the “in bulk” restriction on cottonseed were void and invalid.

On August 22, 1952 the Commission issued Specialized Motor Carrier Certificate No. 7419 granting authority to appellee Parrish to transport in addition to other commodities, cottonseed in bulk from all points within a 100-mile radius of Lockhart, Texas to all points within a 400-mile radius of Lockhart, Texas and vice versa. On November 19, 1952 Parrish filed with the Commission an application to amend Certificate Ño. 7419, seeking to amend the authority granted in the original certificate to include various additional commodities, to increase the radius for service of the commodities previously authorized and to transport “Cottonseed from all points within a 100-mile radius of Lockhart, Texas to all points in Texas and vice versa.”

Required notice of hearing on the amended application was given and hearing was held by the Commission at Austin, Texas March 10, 1953. On March 20, 1953 the Commission issued its order amending Certificate No. 7419 granting Parrish’s application in all respects including his right to transport cottonseed from all points within a 100-mile radius of Lockhart, Texas to all points in Texas and vice versa without restriction. In its order the Commission found as a fact that the type of service sought in the application was not rendered by regular route common carrier motor carriers and the rail lines and that the existing specialized motor carrier service was inadequate since it was not available when needed and that trucks and facilities are not available when needed.

Certificate No. 7419 as amended was issued by the Commission to Parrish on March 24, 1953. Parrish continued to transport cottonseed both in bulk and in bags in accordance with his amended certificate without any question being raised by the Commission under Sec. 14(a), Art. 911b, Vernon’s Civil Statutes, until 1959, at which time a rate inspector' for the Commission advised Parrish that he did not have authority to haul cottonseed in bags. ■ There had been no rates prescribed by the Commission for movement of cottonseed in bags although there were rates for movement of cottonseed in bulk.

After the question had been' raised .by the Commission’s rate inspector, Parrish came to Austin, conferred 'with Guy D. Huddleston, Chief Rate Inspector -for the Commission, and one of the Commission’s examiners, at which time Parrish’s certificate file was reviewed and Huddleston wrote a letter on December 7, 19.59 upon the Commission’s stationery, stating that the amended certificate did not restrict the transportation of cottonseed in bágs'and since there were no rates prescribed ,for cottonseed in bags transported undér the certificate, it was agreeable to all- parties (Parrish and the Commission) to charge the rate prescribed on cottonseed in bulk and in truck load lots.

On December 22, 1959 Huddleston wrote to Olin Ward, the Commission Rate Inspector, who originally raised the question with Parrish, stating that Parrish had conferred with him about the amended certificate and that in his opinion Parrish could transport cottonseed in any manner he saw fit but that he did not think the application was properly drawn or the certificaté properly issued “but until it is contested in the Court House, we are left with no other option but to accept it as it now stands,” and that the rates to be charged had been satisfactorily settled with Parrish.

*332 On September 8, 1953 the Commission issued Specialized Motor Carrier Certificate No. 9325 to Frank McClain, which, in addition to other commodities, authorized McClain to transport “cottonseed in bulk in truck loads from any point in Caldwell County, Texas to any point within a 50-mile radius of Caldwell County, Texas and vice versa.” On August 2, 1956 McClain filed with the Commission his application to amend Certificate No. 9325 seeking to increase the radius of service for the commodities previously authorized and to transport “cottonseed and grain in truck loads from any point in Caldwell County, Texas to any point in Texas and vice versa.”

Notice of hearing on the amended application was given and hearing was held by the Commission at Austin, Texas on August 28, 1956. On September 21, 1956 the Commission issued its order amending Certificate No. 9325 granting McClain’s application in all respects including his right to transport cottonseed and grain in truck loads from any point in Caldwell County, Texas to any point in Texas and vice versa without restriction. In its order the Commission made fact findings identical with the facts found in granting Parrish’s application to amend Certificate No. 7419 and the amended certificate was issued to McClain on October 4, 1956.

On December 20, 1960 the Commission without notice or hearing to Parrish and McClain issued orders revoking their rights to transport any cottonseed other than “in bulk”. The order relating to Parrish’s certificate recited as follows:

“A review of the files and records reflects that the authority to transport cottonseed with no restriction as to the manner in which it is to be transported was in error in not writing the authority as cottonseed in bulk.”

and to McClain’s certificate..

. • “It is further revealed from a review of the certificate file that in the preparation of the order and certificate granting the expanded area in the transportation of Cottonseed and Grain that an error was committed in that those commodities should have been in bulk in truck-load quantities.”

Both Parrish and McClain filed exceptions to the orders of December 20, 1960, which were issued without notice and hearing. The Commission then published notice that on its own motion it would have a hearing to determine whether the certificates should be reformed as originally attempted to be reformed by its order of December 20, 1960.

Hearing was held before one of the Commission’s examiners and on April 12, 1961 the Commission issued its order on the Parrish certificate which is, in part, as follows :

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356 S.W.2d 330, 1962 Tex. App. LEXIS 2363, 1962 WL 119339, Counsel Stack Legal Research, https://law.counselstack.com/opinion/railroad-commission-v-mcclain-texapp-1962.