Yellow Freight System, Inc. v. Public Service Commission

252 N.W.2d 495, 73 Mich. App. 476, 1977 Mich. App. LEXIS 1341
CourtMichigan Court of Appeals
DecidedFebruary 2, 1977
DocketDocket 23211
StatusPublished
Cited by5 cases

This text of 252 N.W.2d 495 (Yellow Freight System, Inc. v. Public Service Commission) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Yellow Freight System, Inc. v. Public Service Commission, 252 N.W.2d 495, 73 Mich. App. 476, 1977 Mich. App. LEXIS 1341 (Mich. Ct. App. 1977).

Opinions

Bashara, J.

This appeal arises from a judgment of the Ingham County Circuit Court upholding a finding of the Michigan Public Service Commission [480]*480(hereinafter referred to as the PSC). The PSC determined that the certificate of authority of the appellant, Yellow Freight Systems, Inc. (hereinafter referred to as Yellow), was revoked by operation of law.

In 1961 Yellow held a certificate of authority that permitted it to operate a motor vehicle freight carrier service over certain intrastate routes in southeastern Michigan. That year Yellow entered into an agreement to transfer the certificate to the appellant, Central Transport, Inc. (hereinafter referred to as Central), in consideration for $87,500.

Subsequently, competitors of Yellow brought an action before the PSC seeking a determination that Yellow had discontinued service over its intrastate routes for more than ten days, and that its certificate was revoked by operation of law. The PSC found in favor of Yellow. The Ingham County Circuit Court overturned the PSC determination.

An appeal was then taken to the Michigan Supreme Court. In the controlling plurality opinion of Justice Souris in Associated Truck Lines, Inc v Public Service Commission, 377 Mich 259, 282; 140 NW2d 515 (1966), the circuit judge was reversed for erroneously making findings of fact. The case was remanded to the PSC to reopen proofs.

The PSC held additional hearings and concluded on the consolidated record that Yellow had discontinued service for more than ten days, and that its certificate of authority was revoked by operation of law. The Ingham County Circuit Court sustained the findings on appeal. The case now comes before us.

An appeal from a PSC determination to the Ingham County Circuit Court is provided by [481]*481MCLA 479.20; MSA 22.585. In material part that statute provides:

"Any party to such suit may introduce original evidence in addition to the transcript of evidence offered to said commission. * * * If, upon the trial of such action, evidence shall be introduced which is found by the court to be different from that offered upon the hearing before the commission, or additional thereto, the court, before proceeding to render judgment, unless the parties in such action stipulate in writing to the contrary, shall transmit a copy of such evidence to the commission, and shall stay further proceedings in said action for 15 days from the date of such transmission. * * * The commission may, upon receipt and consideration of such evidence alter, modify, amend or rescind its order and shall report its action thereon to the court within 10 days from the receipt of such evidence. * * * In all actions and proceedings in court arising under this act, all such process shall be served and the practice and rules of evidence shall be the same as in actions in equity, except as otherwise herein provided.” (Emphasis supplied.)

Appellants argue that the trial judge erred in failing to transmit certain evidence back to the PSC for reconsideration.

The trial judge is not obliged to transmit a copy of any new evidence to the PSC pursuant to MCLA 479.20; MSA 22.585, unless he finds the proffered evidence is (1) "original”, and (2) either "different from” or "additional thereto” the evidence offered at the PSC hearing, and (3) otherwise admissible under the rules of evidence. Furthermore, the proposed evidence may not expand the issues beyond those considered by the PSC as explained in Greyhound Corp v Public Service Commission, 360 Mich 578, 586-587; 104 NW2d 395 (1960):

"The language of the statute clearly implies that the [482]*482proofs taken in the circuit court on the appeal shall have reference to the matters involved in the proceedings before the commission. If issues that were not before the commission, and on which it was not empowered to pass, could be injected into such a case on appeal it is obvious that the nature of the action might be materially altered in the circuit court and decree entered there based on the determination of matters on which the commission did not and could not pass.” (Emphasis supplied.)

Justice Souris’ controlling opinion in Associated Truck Lines, Inc v Public Service Commission, supra, at 289, recognized that the issue was tightly drawn to that of discontinuance:

"Unfortunately, although the claim of Yellow Transit’s [Yellow Freight] rivals before the commission was expressly limited to one of discontinuance of service, the commission in its decision proceeded to discuss the case as one in which it was claimed the service was 'abandoned’ within the meaning of section 13.” (Emphasis supplied.)

After the remand the PSC found:

"The commission therefore finds that during the months of June, July and August 1961, Yellow Transit discontinued service in violation of the prescriptions contained in Section 13, Article 2 of the Motor Carrier Act, Compiled Laws of 1948, Section 476.13 (MSA 22.546).”

Therefore, the evidence offered at the circuit court should not be transmitted back to the PSC unless it has reference to the PSC finding of discontinuance of service by Yellow in June, July, and August, 1961.

Exhibit 1 is made up of 39 freight bills and one bill of lading for intrastate shipments transported [483]*483by Yellow. Only 13 freight bills fall within the crucial dates. Although the freight bills were not in evidence, there was a schedule in evidence before the PSC which showed 12 of the intrastate shipments. The 12 freight bills were neither different from nor additional to the evidence before the PSC.

The thirteenth freight bill is an intrastate shipment from Adrian to Dearborn occurring on August 30, 1961. This shipment was not shown on the schedules before the PSC. Assuming there had been a remand to the PSC and it found that an intrastate shipment occurred on that date, and modified its findings accordingly, there still remained no relevant evidence to rebut the inclusive PSC finding that Yellow discontinued service for more than ten days from June 1, 1961 to August 29, 1961. The failure of the trial judge to transmit a copy of this evidence to the PSC was harmless error.

Exhibit 3 is merely a summary of intrastate shipments by Yellow between February 1, 1961 and December 27, 1961. Except for the previously discussed shipment of August 30, 1961, this schedule neither added to nor differed from evidence of these same transactions already before the PSC in another form.

Exhibit 9 is the deposition of John M. Records, an attorney for Yellow. He was a frequent witness at the PSC hearings and his testimony neither added to nor differed from his prior testimony.

Exhibit 10 is the deposition of Frank J. Mancinelli, an employee at Chrysler’s Centerline parts depot. His testimony closely paralleled Mr. Henry Burakowski, another employee at the Centerline plant. Mr. Mancinelli’s testimony was neither additional nor different.

[484]*484Exhibit 11 is the depositional testimony of three employees employed respectively at Bendix Corporation, Cadillac Motor Car Division, and Detroit Diesel Division. They all testified to intrastate shipments by Yellow as well as solicitation of intrastate business by Yellow.

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Yellow Freight System, Inc. v. Public Service Commission
252 N.W.2d 495 (Michigan Court of Appeals, 1977)

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Bluebook (online)
252 N.W.2d 495, 73 Mich. App. 476, 1977 Mich. App. LEXIS 1341, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yellow-freight-system-inc-v-public-service-commission-michctapp-1977.