Raye & Co. Transports, Inc. v. United States

314 F. Supp. 1036, 1970 U.S. Dist. LEXIS 12215, 1970 WL 202928
CourtDistrict Court, W.D. Missouri
DecidedApril 3, 1970
DocketCiv. A. No. 1936
StatusPublished
Cited by3 cases

This text of 314 F. Supp. 1036 (Raye & Co. Transports, Inc. v. United States) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Raye & Co. Transports, Inc. v. United States, 314 F. Supp. 1036, 1970 U.S. Dist. LEXIS 12215, 1970 WL 202928 (W.D. Mo. 1970).

Opinion

MEMORANDUM OPINION AND FINAL JUDGMENT

BECKER, Chief Judge.

Plaintiff Raye and Company Transports, Inc. (“Raye” hereinafter) filed this civil action in equity seeking the annulment and suspension of orders of the Interstate Commerce Commission (“ICC” hereinafter) in a proceeding docketed before the Commission as MC-118196 (Sub-No. 6) Raye and Company Transports, Inc. -Dairy Products Midwest to West. Raye requested the issuance of an order (1) restraining the enforcement of the challenged orders, (2) convening a court of three judges to hear the case on the merits and (3) entering a judgment suspending, annulling, enjoining and setting aside in whole the challenged orders. The restraining order was issued, a court of three judges was convened and the case was heard on the merits.

Western Gillette, Inc., and Frozen Foods Express, protestants in the proceedings, were permitted to intervene in this action.

Jurisdiction

Jurisdiction exists pursuant to the provisions of Sections 1336, 1398, 2284, and 2321 to 2325 of Title 28, U.S.C.; Sections 17 and 205(g) of the Interstate Commerce Commission Act, 49 U.S.C. § 17 and § 305(g); and Section 10 of the Administrative Procedure Act, 5 U.S.C. §§ 702-706.

Plaintiff’s Contentions

In its complaint plaintiff Raye contended that the challenged orders were illegal, null and void because:

(1) The orders contravene applicable provisions of the Administrative [1039]*1039Procedure Act which are identified in its brief as Sections 7(c), 7(d) and 8(b) which are 5 U.S. C. §§ 556 and 557.
(2) The orders contravene provisions of the National Transportation Policy. (49 U.S.C. §§ 1, 301, 901 and 1001)
(3) The orders constitute arbitrary and capricious action.
(4) The orders constitute an abuse of discretion by the defendant ICC.

Defendants’ and Interveners’ Contentions

In their pleadings and briefs the defendants and intervenors oppose each of the plaintiff’s contentions. The defendants in opposition contend primarily that:

(1) Congress has delegated to the ICC broad and exclusive authority to determine public convenience and necessity. Therefore orders of the Commission should not be set aside, modified or disturbed by a court if they are within the scope of the Commission’s statutory authority and are based on adequate findings which in turn are supported by substantial evidence in the record as a whole.
(2) The Commission properly concluded that authority over the broad territory sought by plaintiff is not required by the present or future public necessity; that the burden was on the plaintiff to show that the public convenience and necessity require its proposed service; that plaintiff failed to prove that the existing carriers cannot meet the reasonable transportation needs of the public in the area involved; and that there is no substance to plaintiff’s “captive traffic” theory.
(3) The findings of the Commission satisfy all legal requirements.

Section 706 of Title 5, U.S.C., governs the judicial review of the Commission’s action in this case. That section states that review shall be on the “whole record” and that the reviewing court shall “hold unlawful and set aside agency action, findings and conclusions found to be” arbitrary, capricious, abusive of discretion, or otherwise unlawful or contrary to a constitutional right, power, privilege or immunity, or in excess of agency jurisdiction, or unsupported by substantial evidence, or arrived at without observance of lawful procedures or “unwarranted by the facts to the extent that the facts are subject to trial de novo by the reviewing court.” Accordingly, the decision and action of the Commission in this case can lawfully be affirmed by this Court if six standards are met:

(a) the hearing procedures were fair and lawful, Section 706(2) (D), Title 5, U.S.C., Clemens v. Central Railroad Co. of New Jersey (E.D.Pa.) 264 F.Supp. 551, 572;
(b) evidence was received on the material factual issues, Seaboard Coast Line R. Co. v. United States (E.D. Va.) 283 F.Supp. 866; ABC Freight Forwarding Corp. v. United States (S.D.N.Y.) 169 F.Supp. 403, 406;
(c) the findings of fact are supported by substantial evidence, Illinois Central R. R. v. Norfolk & W. R. R., 385 U.S. 57, 69, 87 S.Ct. 255, 17 L.Ed.2d 162;
(d) the findings of fact are sufficient to resolve the crucial issues, Beaumont, S. L. & W. Ry. [Co.] v. United States, 282 U.S. 74, 51 S.Ct. 1, 75 L.Ed.2d 221; Capital Transit Co. v. United [1040]*1040States (D.D.C.) 97 F.Supp. 614;
(e) the correct legal standards were applied in determining the ultimate issues, United States v. Carolina Freight Carriers Corp., 315 U.S. 475, 62 S.Ct. 722, 86 L.Ed. 971; Frozen Food Express v. United States (N.D.Tex.) 219 F.Supp. 131; and
(f) all regulations of defendant in arriving at the decision were lawful and valid as applied in this case, Matlack, Inc. v. United States (E.D.Pa.) 119 F.Supp. 617, 623.

Basic Facts and Challenged Orders

Prior to the filing of this proceeding under review, the plaintiff Raye held authority to transport dairy products from four midwestern states, Missouri, Arkansas, Oklahoma and Kansas to all points in an area composed of seven northwestern states, Washington, Idaho, Arizona, Montana, Nevada, Utah and Wyoming.

In its Sub-No. 6 application Raye sought a certificate of public convenience and necessity to transport:

“ * * * dairy products (including cheese food and cheese spread) as defined by the Commission from points in Missouri, Arkansas, Oklahoma and Kansas (restricted to traffic originating in the state of Kansas), to points in Arizona, Colorado, New Mexico, California and El Paso, Texas, and empty containers or other such incidental facilities used in transporting the commodities specified and returned and rejected shipments and dairy products returned for salvage on return.”

Protests to this application were filed by rail carriers and competing motor carriers, including the intervening defendants in this action.

Later Raye filed its Sub-No. 8 application for a certificate of public convenience and necessity authorizing it to transport:

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Cite This Page — Counsel Stack

Bluebook (online)
314 F. Supp. 1036, 1970 U.S. Dist. LEXIS 12215, 1970 WL 202928, Counsel Stack Legal Research, https://law.counselstack.com/opinion/raye-co-transports-inc-v-united-states-mowd-1970.