Johnston's Fuel Liners, Inc. v. United States
Opinion of the Court
MEMORANDUM OPINION
The Plaintiffs, Johnston’s Fuel Liners, Inc., Milwaukee Motor Transportation Co. and Universal Transport, Inc., filed their complaint seeking to modify, set aside, annul, suspend or reverse an order of the Interstate Commerce Commission in the matter of Dan Dugan Transport Co., Extension — Asphalt, MC22195 (Sub 147). The Plaintiffs are common carriers who hold certificates of public convenience and necessity issued by the Commission. Jurisdiction is claimed under Sections 17(9) and 205(g) and (h) of the Interstate Commerce Act (49 U.S.C. Sections 305(g), (h) and Section 17).
The matter was set before the Commission on its modified procedure, which provides for determination by verified statements of the parties, without oral hearing. After verified statements were filed in support of and in opposition to the application, Review Board Number 3, which is conducted by the staff of the Commission, on November 2, 1973, granted the applicant the authority it had requested. Plaintiffs, who had entered their verified statements in opposition to the application, then filed Petitions for Reconsideration, and the Commission, acting as Appellate Division 1, considered the matter upon that record and the petitions were subsequently denied on April 4, 1974.
The Plaintiffs object to the grant of authority as to Dugan’s requests (1) and (2). Plaintiffs contend that Review Board Number 3 erred in concluding that the evidence supported a grant of the requests, in contravention of the requirements of the Federal Administrative Procedures Act and the Interstate Commerce Act. Plaintiffs contend that Appellate Division 1 of the Commission erred in denying the Petitions for Reconsideration and in upholding the findings of Review Board Number 3. Plaintiffs urge there was an absence of substantial evidence presented by the applicant upon which the Commission could base its decision and that in granting the application, the Commission acted arbitrarily, capriciously, and beyond its jurisdiction.
The scope of review of a decision of the Commission is narrow and limited. Bowman Transportation, Inc. v. Arkansas-Best Freight System, Inc., 419 U.S. 281, 95 S.Ct. 438, 42 L.Ed.2d 447 (1974), reh. den. 420 U.S. 956 (1975). The reviewing Court must “consider whether the decision was based on a consideration of the relevant factors and whether there has been a clear error of judgment.” Citizens to Preserve Overton Park, Inc. v. Volpe, 401 U.S. 402, 91 S.Ct. 814, 28 L.Ed.2d 136 (1971). The Court cannot substitute its judgment for that of the agency. Supra, at 416, 91 S.Ct. 814. Even though a decision is less than ideally clear, as in the case at bar, the reviewing Court may not substitute its judgment for that of the agency. Bowman Transportation, Inc. v. Arkansas-Best Freight System, Inc., supra, 419 U.S. at 285, 95 S.Ct. 438.
We are limited to determining if there is substantial evidence on the record as a whole to support the findings of Review Board Number 3 and of Division 1. City of Sheridan v. United States, 303 F.Supp. 990 (D.Wyo. 1969), affmd. 396 U.S. 281, 90 S.Ct. 545, 24 L.Ed.2d 462 (1969). In evaluating the substantiality of the evidence, we must also consider whatever evidence in the record fairly detracts from its weight; however, such a requirement is not intended to negative the function of an agency which is equipped or informed by experience to deal with a specialized field of knowledge and which the Court must respect. Universal Camera Corp. v. N. L. R. B., 340 U.S. 474, 71 S.Ct. 456, 95 L.Ed. 456 (1951).
The issue before Review Board Number 3 and the Commission was not whether Plaintiffs’ services met some absolute standard, but whether public convenience and necessity would be served by the entry of Dan Dugan Transportation Company into the market served by them. Bowman Transportation, Inc. v. Arkansas-Best Freight System, Inc., supra, 419 U.S. at 288, 95 S.Ct. 438. The Commission is authorized by Congress to grant an application for a certificate if it
The Commission’s conclusion that the benefits to be derived from granting the application reflects the kind of power entrusted to it; namely, a power to weigh competing interests and to arrive at a balance deemed to be for the public convenience and necessity. Bowman Transportation, Inc. v. Arkansas-Best Freight System, Inc., supra, at 293, 95 S.Ct. 438. A review oí the evidence indicates a rational basis for the Commission’s decision, and the “arbitrary and capricious” test requires nothing more. Bowman Transportation, Inc. v. Arkansas-Best Freight System, Inc., supra, at 290, 95 S.Ct. 438. The Commission’s decision is therefore affirmed, and an Order will be entered in conformity herewith.
Reference
- Full Case Name
- JOHNSTON'S FUEL LINERS, INC. v. The UNITED STATES of America and the Interstate Commerce Commission, and Dan Dugan Transport Company, Intervening-Defendant
- Status
- Published