LAW.coLAW.co

PETROLEUM CARRIER CORPORATION et al. v. DAVIS

Supreme Court of Georgia1954-05-10No. 18544
210 Ga. 568

Summary

Holding. The trial court erred in granting an injunction against the certificate. The statutory factors the Commission must consider when evaluating Class B certificate applications are advisory only, and the Commission has discretionary authority to grant such certificates regardless of whether evidence demonstrates inadequate existing transportation service; the judgment was reversed.

Petroleum Carrier Corporation held a Class B certificate authorizing transportation of petroleum and petroleum products in bulk. The Public Service Commission had previously ruled that this certificate did not cover asphalt and asphalt emulsion, even though these are petroleum products. The Commission later issued a new certificate explicitly authorizing transportation of these products. The trial court enjoined the new certificate, finding that existing transportation services were adequate under the statutory requirement that the Commission consider whether existing service meets public needs. The court reversed, holding that the statutory factors are merely advisory rather than mandatory limitations on the Commission's discretion regarding Class B certificates. The new certificate was simply correcting the Commission's earlier erroneous interpretation of what products the original certificate covered.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether statutory factors for certificate approval are mandatory or advisory
  • Scope of Public Service Commission discretion for Class B certificates
  • Whether the 1950 amendment limiting certificate grants applies to Class B certificates
  • Whether the Commission may correct its own erroneous certificate interpretation

Procedural posture

A trial court granted an injunction against a Public Service Commission certificate, and this appeal challenges that injunction.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

Duckworth, Chief Justice.

Code § 68-609 requires that the commission, in determining whether a certificate of public convenience and necessity shall be granted, “must consider the following: (1) whether existing transportation service of all kinds is adequate to meet the reasonable public needs.” The judgment excepted to is based upon a finding by the trial judge that the evidence before the commission failed to show that existing transportation service was inadequate, and therefore the Public Sendee Commission was without authority to grant the certificate hére involved. We think that the trial judge erred in thus construing the quoted provision of the Code section as being mandatory in limiting the power of the commission to those cases only where the evidence showed inadequate existing transportation service. The General Assembly obviously concurred in our view in this respect, else there would have been no need for the enactment of the 1950 amendment (Ga. L. 1950, p. 186). By that amendment the General Assembly provides: “No certificate or authority shall be granted . . . when the public convenience and necessity with respect to such route is being adequately served. . .” And it is further provided that no certificate or authority is to be granted to an applicant unless and until it shall be proved to the satisfaction of the commission that the service rendered over the said route is unsatisfactory to the public needs. A mere reading of the 1950 amendment discloses that it is expressly limited to certificates over fixed routes and is inapplicable to Class “B” certificates, which is the type here involved.

Each of the five specific subjects set forth in Code § 68-609, which the law says the commission must consider, is intended for the guidance of the commission and to define the fields in which the commission shall give consideration, but is, after all, merely advisory, irrespective of what the evidence might disclose in respect to each of the five subjects. The commission, as respects Class “B” certificates, is free to exercise its own judgment and to grant or deny the applications for such certificates.

The wisdom of the law as above construed is demonstrated by the facts in the present case. It appears in the bill of exceptions that the parties stipulated before the commission that this plaintiff in error, at the time the certificate here involved was issued, was, and had been for a number of years, the holder of a Class “B” certificate, authorizing it to transport petroleum and petroleum products in bulk in tank trucks; and that, while asphalt and asphalt emulsion are petroleum products, the com mission erroneously, on October 17, 1949, ruled that the plaintiff in error’s certificate did not authorize transportation of asphalt and asphalt emulsion. This court in Georgia Public Service Commission v. Smith Transfer Co., 207 Ga. 658 (63 S. E. 2d 653) held that it was arbitrary and capricious for the Public Service Commission to undertake to construe a certificate that it had issued in a way to exclude therefrom products which the terms of the certificate clearly embraced. With this background before it, the Public Service Commission was merely correcting its own error when it issued the certificate here involved, which expressly authorized the transportation of products that the previous certificate of the plaintiff in error in fact embraced.

For the foregoing reasons, irrespective of whether or not the trial judge correctly analysed the evidence, it was error to grant the injunction.

Judgment reversed.

All the Justices concur.