Transamerican Freight Lines, Inc. v. United States

258 F. Supp. 910, 1966 U.S. Dist. LEXIS 8273
CourtDistrict Court, D. Delaware
DecidedAugust 31, 1966
DocketCiv. A. No. 2968
StatusPublished
Cited by6 cases

This text of 258 F. Supp. 910 (Transamerican Freight Lines, Inc. v. United States) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Transamerican Freight Lines, Inc. v. United States, 258 F. Supp. 910, 1966 U.S. Dist. LEXIS 8273 (D. Del. 1966).

Opinion

OPINION

Before BIGGS, Circuit Judge, and WRIGHT and STEEL, District Judges.

STEEL, District Judge:

This action was brought under 28 U.S. C. §§ 1336, 1398, 2284, 2321 to 2325, and 5 U.S.C. §§ 1004(d) and 1009, to vacate and set aside as unlawful three orders of the Interstate Commerce Commission.

Plaintiff is a Delaware corporation having its principal business office in Detroit, Michigan. It is a common carrier by motor vehicle transporting general commodities, with certain exceptions, in interstate and foreign commerce, primarily over regular routes, under the authority of Certificates of Public Convenience and Necessity No. MC-10761, and sub-numbers thereunder, issued by the Commission. Pursuant to its operating authority, plaintiff conducts operations in the District of Columbia and in twenty-nine states: Arkansas, Colorado, Connecticut, Delaware, Illinois, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, New Hampshire, New Jersey, New York, Ohio, Oklahoma, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont, Virginia, West Virginia, and Wisconsin. In its authorized territory plaintiff serves virtually all of the larger points as well as most of the smaller cities and towns. The operations of plaintiff include service to Wilmington and other points in the State of Delaware.

The defendants are the United States and the Interstate Commerce Commission. The intervening eleven defendants are general commodity motor carriers, operating under Certificates of Public Convenience and Necessity issued by the Commission, and, like the original defendants, they seek to sustain the orders which plaintiff attacks.

On October 22, 1963 plaintiff filed a petition with the Commission seeking an interpretation, in the nature of a declaratory order, of plaintiff’s certificate number MC-10761 (Sub-No. 57) (hereinafter “Sub-No. 57”), and related operating authorities. More specifically plaintiff sought to obtain a ruling from the Commission that under its existing certificates it possessed all necessary authority to transport shipments of commodities generally, with the usual exceptions, moving in foreign commerce between the points in Massachusetts, Rhode Island and Connecticut included in its certificate Sub-No. 57, and points in the Province of Ontario, Canada, by crossing [913]*913the international boundary line at or near Buffalo, New York.

Plaintiff’s contention was rejected by an opinion and order dated May 6, 1964 by the Operating Rights Review Board Number 3 (hereinafter “Operating Board”), to which the Commission had referred plaintiff’s petition.

On June 12, 1964 plaintiff filed a petition for reconsideration of the report and order of the Operating Board. Jurisdiction of this petition was taken by Division 1 of the Commission, acting as an Appellate Division (hereinafter “Appellate Division”). By order dated Decernber 24, 1964, the Appellate Division denied the plaintiff’s petition for reconsideration stating that the findings of the Operating Board were in accordance with the evidence and the applicable law. Under the Commission’s rules, the decision of the Appellate Division was administratively final in the absence of a finding by the entire Commission “upon its own motion” that the proceeding involved an issue of “general transportation importance.” If such a finding were made, the decision would be subject to review by the entire Commission. See Rule 101(a) (4)-(5), 49 C.F.R. § 1.101(a) (4)-(6). In an effort to obtain such a review, plaintiff petitioned the Commission to make a general transportation importance finding. On January 26, 1965 the Commission entered an order denying the petition, and stated that in its judgment no issue of general transportation importance was involved.

, The present action was begun on February 9, 1965, and challenges the validity of the orders of the Operating Board, the Appellate Division, and the Commission. The case was heard upon the verified Complaint of Transamerican, the unverified answer of defendants (adopted by eleven intervening defendants), and a certified copy of the record before the Commission. At the hearing plaintiff offered and we received in evidence, subject to a later determination of the motion of defendants to strike, certain diagramatic charts and the record before the Commission in Transamerican Freight Lines, Inc. — Purchase—Allen Motor Lines, 65 M.C.C. 168 (1955), the proceeding which gave rise to the issuance °f Sub-No. 57.

After the merits of the cause had been briefed and argued, we raised two questions sua sponte both of which related to the finding by the Commission that no issue of general transportation importanee was involved. The first concerned the qualification of Commissioners Hutchinson and Brown to participate in determining the point since they constituted the Appellate Division which had decided the appeal from the Operating Board’s decision. The second related to the failure of the Commission to make any finding, state any conclusion, or assign any reason for its decision. At our request the parties have filed briefs addressed to both questions,

Upon reflection, we have concluded that both questions are academic. This is so for two reasons:

M . *he ^rst P'ac®’ plamt!ff bad “° right 0 Pet^10n ^ Commission to make a fmdmg *hat the proceeding involved an fsue general transportation importance' There 18 no statutory basis ^ the filing of such a petition. Such “ '“ “ ’ . ‘ ' ' § ' ^ ‘ 1S *ule authorizes the filing of a petition for a finding of general transportation importance ^ ,lf thf Proceeding has “vol.ved theu takmg of, evldenf ** oral hearmg or by modlfled procedure . In the instant case no oral evidence was taken and modified procedure was not fol]owed_ No order directing modified procedure ag required by Rule 4B(b)f 49 C F K § L45(b) was entered.

In the second place, under the Interstate Commerce Act the Commission has no power to review an appellate division decision, even if the proceeding does involve an issue of general transportation importance. This is made clear by seetion 17 of the Interstate Commerce Act, 49 U.S.C. § 17, entitled “Commission Procedure; Delegation of Duty; Rehearings.”

[914]*914By section 17(1) the Commission is authorized by order to divide its members into as many divisions (each to consist of not less than three members) as it deems necessary, to be designated division 1, division 2, etc., or by a term descriptive of the function assigned to it by the Commission. One or more of the divisions may be designated as an “appellate division.” Section 17(2) empowers the Commmission by order to assign any matter, subject to exceptions presently irrelevant, to “any division, to an individual Commissioner, or to a board to be composed of three or more eligible employees of the Commission”.

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258 F. Supp. 910, 1966 U.S. Dist. LEXIS 8273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/transamerican-freight-lines-inc-v-united-states-ded-1966.