Refrigerated Transport Company, Inc. v. The Interstate Commerce Commission and the United States of America

709 F.2d 1430, 1983 U.S. App. LEXIS 25761
CourtCourt of Appeals for the Eleventh Circuit
DecidedJuly 18, 1983
Docket81-7939
StatusPublished
Cited by8 cases

This text of 709 F.2d 1430 (Refrigerated Transport Company, Inc. v. The Interstate Commerce Commission and the United States of America) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Refrigerated Transport Company, Inc. v. The Interstate Commerce Commission and the United States of America, 709 F.2d 1430, 1983 U.S. App. LEXIS 25761 (11th Cir. 1983).

Opinion

PER CURIAM:

Refrigerated Transport Company, Inc. (Refrigerated), a trucking company, petitions this court for review of a final order of the Interstate Commerce Commission (ICC) granting a certificate of public convenience and necessity to transport commodities pursuant to the Motor Carrier Act of 1980. We affirm.

In 1981, Riley Whittle, Inc. (Riley), a trucking firm, applied to the ICC for a certificate of public convenience and necessity to transport commodities used by hardware and drugstores, discount, grocery, and food business houses between points in the United States. Riley attached to its application verified statements by Riley’s vice-president and the traffic manager of Clorox Company (Clorox). Clorox stated that Riley’s request for expanded authorization would aid in the delivery of Clorox’s products, including bleach, air freshener, kitty litter, steak sauce, cereal, and salad dressing to its distribution sites in the continental United States. Clorox was the only supporting shipper.

After the ICC published Riley’s application in the Federal Register, three motor carriers, including Refrigerated, filed a formal protest to Riley’s application. Refrigerated is a motor common carrier authorized to transport perishable and non-perishable commodities in interstate and foreign commerce. Refrigerated argued that it transported in excess of 182,000 shipments per year and that approximately 90% of. its traffic would be diverted if Riley’s application was granted.

In June, 1981, the ICC granted Riley’s application. The ICC concluded that Clorox’s supportive evidence established that a need existed for Riley to have nationwide authority to ship to and serve other shippers. In August, 1981, the ICC, Division II, reviewed Refrigerated’s appeal and held that the supportive evidence, as presented by Clorox, was not representative of a nationwide need to serve other shippers. It reduced the scope of authority initially awarded to Riley by authorizing service between ten cities and sixteen counties and points in the United States. Riley filed a petition for discretionary review of Division II’s decision. The ICC granted Riley’s petition, and upon re-weighing the evidence, held that Division II was incorrect. The ICC adopted the broader grant of authority which had originally been approved by the review board, except that the ICC limited service to the continental United States, expressly excluding Alaska and Hawaii from the grant of service. Refrigerated petitions this court for review.

The sole issue we must decide is whether the ICC’s grant of a certificate of public convenience and necessity to Riley, authorizing it to transport such commodities as are dealt in or used by hardware and food stores, discount, grocery, and food business houses nationwide, is lawful, rational, and supported by substantial evidence. 1 We find that it is.

*1432 The principal goals of the Motor Carrier Act, as enacted by Congress, are a revision of the standards to be applied in motor carrier licensing cases, a promotion of greater competition by allowing easier carrier entry, a simplification of and expedition of the certification process, and a general lessening of restrictions on motor carrier operations. Gamble v. ICC, 636 F.2d 1101, 1103 (Unit B 5th Cir.1981). The new federal policy represents a continuing effort by Congress to reduce unnecessary regulations in the federal government. See S.Rep. No. 641, 96th Cong., 2d Sess. 1 (1980). Under the Motor Carrier Act of 1980, an applicant carrier must show that it is fit, willing, and able to provide the scope of authority which it requests. 49 U.S.C.A. § 10922(b)(1). 2 After providing a showing that it is fit, willing, and able to provide these services, the burden shifts to any competitor or protestant to persuade the ICC that the transportation sought “to be authorized is inconsistent with the public convenience and necessity.” Baggett Transportation Co. v. United States, 666 F.2d 524, 527 (11th Cir.1982).

The ICC found that the testimony of Clorox, Riley’s principal shipper, established that Riley’s application for a nationwide grant of authority would serve a useful public purpose responsive to a public demand or need. Despite Refrigerated’s contentions, there is no prohibition against using the testimony of a sole shipper (i.e., Clorox) to support an ICC grant of a certification of necessity and convenience.

Congress entrusted the weighing and balancing of factors affecting the public interest to the ICC for determination “of a useful public purpose responsive to a public demand or need.” Refrigerated Co., Inc. v. ICC, 673 F.2d 1196, 1200 (11th Cir.1982). Because of the ICC’s recognized expertise in transportation matters generally, and the ICC’s expertise in determining which motor carrier operations will serve a useful public purpose, its orders are afforded a presumption of validity not easily disturbed. East Texas Motor Freight Lines, Inc. v. Frozen Food Express, 351 U.S. 49, 54, 76 S.Ct. 574, 577, 100 L.Ed. 917 (1956); United States v. Central Truck Lines, 548 F.2d 523, 524 (5th Cir.1977).

The authority of the ICC in such an instance is great. In the recently decided Refrigerated Transport Co. v. ICC, 707 F.2d 497 (11th Cir.1983), the movant; Refrigerated Transport, contested the decision of the ICC to expand the authority sought by the trucking applicant; Cornett Transportation Co. (Cornett). Cornett initially sought authority to transport “plastic materials or products, glass material, products, and bottles, cans suitable for use as beverage containers, and beverages, both alcoholic and non-alcoholic, including, but not limited to soda, beer, and liquor, and plastic and glass bottles, containers, and cans, between *1433 points in the states of Maryland, Delaware, Virginia, North Carolina, South Carolina, New Jersey, Pennsylvania, and West Virginia.” The ICC granted Cornett the authority it requested. The ICC, on its own initiative, expanded authority from beverages and containers to food and related products. Refrigerated complained that the expansion of an applicant’s requested authority, where the applicant had not asked for an expansion, was beyond the power of the ICC. The Eleventh Circuit noted that “[although the certificate was expanded to include commodities not requested in the original application, the applicant had persistently supported the enlarged commodity description as being in its power to perform and as being responsive to a public need.

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709 F.2d 1430, 1983 U.S. App. LEXIS 25761, Counsel Stack Legal Research, https://law.counselstack.com/opinion/refrigerated-transport-company-inc-v-the-interstate-commerce-commission-ca11-1983.