United States Supreme Court Cases & Opinions

U.S. Supreme Court

United States v. Dixie Highway Express, Inc., 389 U.S. 409 (1967)

United States v. Dixie Highway Express, Inc.

No. 694

Decided December 18, 1967*

389 U.S. 409

Syllabus

The Interstate Commerce Commission (ICC) concluded, pursuant to § 207(a) of the Interstate Commerce Act, that a certificate of public convenience and necessity should issue to Braswell Motor Freight Lines, Inc., authorizing service to certain points which the ICC found were being inadequately served. The District Court on suit by competing motor carriers enjoined the grant to Braswell on the ground that the ICC had failed to make adequate findings and had not afforded existing carriers opportunity to rectify service deficiencies. Upon remand, the ICC made detailed findings and held that existing carriers could not be depended upon for adequate service. The District Court, on review, stated that it was the ICC's "invariable rule" that no new certificate would issue without giving existing carriers opportunity to improve service, that this was a "rule of property," and that the rule had not been followed in this case. The court permanently enjoined the issuance of a certificate to Braswell "unless and until" existing carriers "are first afforded a reasonable opportunity to furnish such service."

Held: While the ICC should consider the public interest in maintaining the health and stability of existing carriers, it may, upon the basis of appropriate findings, authorize a new certificate "even though the existing carriers might arrange to furnish successfully the projected service." ICC v. Parker, 326 U. S. 60, 326 U. S. 70 (1945).

268 F.Supp. 239, reversed and remanded.

Page 389 U. S. 410