Port Norris Express Co., Inc. v. Interstate Commerce Commission and United States of America
Port Norris Express Co., Inc. v. Interstate Commerce Commission and United States of America
Dissenting Opinion
(dissenting):
This case is nearly identical to Port Norris Express Company v. ICC, 728 F.2d 543 (D.C.Cir. 1984) {“Port Norris I”), involving the same petitioner in its crusade to block bulk commodity authorizations by the ICC. Port Norris Express Co. (Port Norris) petitions for review of the Commission’s grant of authority to D-X Trucking, Inc. (D-X) to carry clay, concrete, glass, and stone nationwide — without a restriction against the carriage of these commodities in bulk form. In my opinion, the petition should be denied, because the applicant must be considered to have made an adequate showing of public need.
D-X filed an application to transport the above-stated commodities on January 20, 1983, and Port Norris opposed. On June 21, 1983, the ICC’s appellate Division 2 affirmed in all respects the decision of the Review Board to grant the application in its entirety (JA 68, 94). D-X had supported its application with the verified statements of three shippers, all makers of glass products (JA 5-16). Collectively the shippers expressed the need for transport of clay, concrete, glass, and stone products nationwide. None directly expressed a need for bulk transportation of the products, and one disclaimed that need (JA 10). In reply to Port Norris’ opposition, D-X conceded that it did not currently own any bulk transportation equipment (JA 61), though it had earlier stated that it could obtain additional units through a leasing affiliate (JA 21).
The sole question presented is whether D-X’s shipper evidence constituted an adequate showing of public need to support a grant of authority to carry both in non-bulk and bulk form. Port Norris did not contest on fitness before the ICC, and cannot do so now. What the case comes down to then is whether the Commission, employing its expertise and experience, was within its authority to recognize that the commodities in question normally move in bulk, with only glass somewhat less so. If so, then the shipper evidence was adequately representative of public need. A restriction against bulk carriage is nonsensical.
In last month’s case, Port Norris I, Judge Scalia’s opinion for the panel held that when the ICC confers nationwide non-bulk general commodities authority, it may add on bulk authority on the basis of a single bulk shipper’s need. That only a few specific commodities are involved here makes no difference concerning the bulk/non-bulk distinction. In this case the ICC had before it evidence that two shippers needed bulk service — assuming that the Commission could legitimately recognize that the commodities in question generally move in bulk. In my opinion, that was a reasonable inference within the ICC’s range of expertise and experience, and supported by its past practice and precedents. This inference does not confuse bulk and non-bulk commodities, even if Port Norris has persuaded the majority to adopt that mistaken view. The Commission makes the inference from the need for service to move a certain commodity to the need for bulk service, where that commodity generally moves in bulk. This use of representative evidence, far from being irrational, merely allows the Commission not to ignore the obvious. The absence of explicit indications of need for bulk carriage in the shipper evidence was not controlling. To send this case back to the Commission on the basis of that sort of omission is picayune.
The main thrust of Port Norris’ argument here is that bulk transportation of the commodities in question often differs significantly from non-bulk transportation, in that different equipment is required, and that D-X never demonstrated that it had
Petitioner’s only other contention of any weight is that the ICC merely applied a policy against carrying out exceptions for bulk authority — an approach that would admittedly be impermissible. See Port Norris, at 545. That objection, however, is without merit where the Commission had before it evidence sufficient to support a factual inference of public need for bulk carriage. That was the case here. Since Port Norris cannot point to any persuasive distinction between this case and the one it brought before this court last month, this petition should be denied. I dissent for the above stated reasons.
Opinion of the Court
Opinion for the Court filed by Circuit Judge WILKEY.
Dissenting opinion by Senior Circuit Judge MacKINNON.
Port Norris Express Co., Inc., petitions this court to vacate an order of the Interstate Commerce Commission (the “Commission”) granting motor common carrier authority to D-X Trucking, Inc. Port Norris’s objection to the order focuses on the fact that D-X was given authority to transport a certain class of commodities (clay, concrete, glass, or stone) in bulk form, without any evidentiary showing by D-X of a public demand or need for such an authority. For reasons discussed below, we remand the Commission’s order which grants D-X bulk authority, with directions to impose a bulk restriction.
I. Background
D-X filed an application with the Commission in January 1983. In its application, D-X requested authority to transport clay, concrete, glass, or stone products nationwide in both bulk and nonbulk forms.
In its application D-X explained that it would provide the proposed service with its 20 tractors and 39 trailers, including 45-foot, high volume vans, 2 specially designed A-frame trailers, drop-deck trailers, flatbeds, and open-top trailers.
Port Norris, a common carrier specializing in bulk transportation, filed an objection to D-X’s application. The basis for Port Norris’s objection was that D-X had failed to show that the proposed service
In April 1983 the Commission, Review Board 1,
II. Analysis
The scope of our review of the Commission’s order is defined in this case by the Motor Carrier Act of 1980
The leading case applying these requirements to authorizations for general bulk hauling is American Trucking Association, Inc. v. ICC.
The Commission had argued that American Trucking and Port Norris-Dennis were not directly applicable to the present case, since the present case deals with authorization to haul a specific class of commodities.
The “rule of representative evidence” was originally applied in the context of geographical limitations.
We also reject the use of an evidentiary inference to satisfy the clear requirements of the statute. Section 10922(b)(1) requires that the applicant put forth evidence of a public demand or need for the authorization sought. The requirement is not satisfied by an inference, when the inference is not supported by any direct evidence. Contrary to the assertions of the Commission, it is not “perfectly rational”
Our holding in Port Norris Express Co. v. ICC
The line between an inference based on one shipper’s evidence of need, and an inference based on no evidence at all of need, is a thin one. But it is a valid distinction and we make it, because it is the minimum distinction required by the terms of section 10922(b)(1).
We are aware of the fact that the Commission bases its policy (of not imposing bulk restrictions unless a protestant can rebut the Commission’s inference of need) on what it perceives is the general congressional intent manifested in the Motor Carrier Act of 1980.
In agreeing with the reasoning of the Third Circuit in Port Norris-Allen, we would also note that two other circuits have adopted substantially the same reasoning. In Steere Tank Lines, Inc. v. ICC
So ordered.
. Appendix for Petitioner at 1-29. Commodities are transported in "bulk” if they are in a form which is flowable, fungible, and homogeneous, and if they are restrained during transportation only by the walls of the transporting vehicle. John J. Mulqueen Contract Carrier Application, 250 I.C.C. 436, 439 (1942). Bulk hauling of certain commodities may require special expertise.
. Brief for Respondents at 5-6.
. Id. at 6 n. 7.
. Brief for Petitioner at 6.
. Id.
. 49 U.S.C. § 10922(b)(1) (1982).
. Appendix for Petitioner at 65.
. Review Board 1 is a panel of three Commission employees delegated initial decisionmaking authority pursuant to 49 U.S.C. § 10305(a) (1982).
. Appendix for Petitioner at 68-70.
. Pub.L. No. 96-296, 94 Stat. 793.
. 5 U.S.C. § 706(2)(A), (E) (1982).
. 659 F.2d 452 (5th Cir. 1981), enforced by mandamus, 669 F.2d 957 (5th Cir. 1982), cert. denied, 460 U.S. 1022, 103 S.Ct. 1272, 75 L.Ed.2d 493 (1983).
. 687 F.2d 803 (3d Cir. 1982).
. Brief for Respondents at 19-21.
. 729 F.2d 204 (3d Cir. 1984).
. Id. at 207.
. Id. at 208.
. Brief for Respondents at 16-18.
. Id.
. See Acceptable Forms of Requests for Operating Authority (Motor Carriers and Brokers of Property), 364 I.C.C. 432 (1980), aff'd in part sub nom. American Trucking Ass'n, Inc. v. ICC, 659 F.2d 452 (5th Cir. 1981), enforced by mandamus, 669 F.2d 957 (5th Cir. 1982), cert. denied, 460 U.S. 1022, 103 S.Ct. 1272, 75 L.Ed.2d 493 (1983).
. 729 F.2d at 209. The dissent believes that both Port Norris and the Third Circuit have confused the "public need” and “fitness" issues. The dissent finds this confusion because Port Norris has consistently buttressed its argument against the Commission’s representative evidence rule with evidence that bulk transportation differs significantly from nonbulk transportation, and that the applicant does not have the equipment to handle bulk transportation. In this case, it is the dissent that is confused. Port Norris, by its own admission, is not contesting the applicant's fitness. It is attacking the rationality of the representative evidence rule. The Commission argues that if evidence of the need for nonbulk service is presented, that can rationally support an inference of a need for bulk shipments. Port Norris’s argument is that bulk and nonbulk shipping are so fundamentally different that such an inference is not reasonable. Thus, the fact that a nonbulk shipper does not even have the necessary equipment to haul in bulk is presented to rebut the reasonableness of the Commission’s inference, not to contest the applicant’s fitness.
. Brief for Respondents at 18.
. In fact, the Commission may be engaging in a double inference. First it employs the now-accepted inference that evidence of a need to ship a certain commodity — in the present case, mostly plate glass — supports the inference of a need to ship an entire related class of commodities — clay, concrete, stone, or glass. Having already made one inference, the Commission then explains that ”[a]fter all, it is beyond dispute that the commodities at issue normally move in bulk.” Brief for Respondent at 9. The Commission first infers the need to ship an entire class of commodities from direct evidence of a need for only some members of that class. It then infers the need for bulk shipments without any direct evidence, because some other members of the inferred class of commodities normally move in bulk.
The dissent argues that the Commission actually “had before it evidence that two shippers needed bulk service.” That statement is not and cannot be supported by reference to any ship
. 728 F.2d 543 (D.C.Cir. 1984).
. Id. at 545 (emphasis in original).
. See 49 U.S.C. § 10101 (1982). The Commission defends its policy in Brief for Respondents at 22-28. The United States neither supported nor opposed the argument raised in that portion of respondents’ brief.
. Brief for Respondents at 21 n. 19.
. 736 F.2d 1094 (5th Cir. 1984).
. 737 F.2d 775 (8th Cir. 1984).
Reference
- Full Case Name
- PORT NORRIS EXPRESS CO., INC., Petitioner, v. INTERSTATE COMMERCE COMMISSION and United States of America, Respondents
- Cited By
- 8 cases
- Status
- Published