Title: Graves Truck Line, Inc. v. State Corporation Comm.
Citation: 215 Kan. 565, 527 P.2d 1065
Docket Number: 47,391
State: Kansas
Issuer: Kansas Supreme Court
Date: November 2, 1974

215 Kan. 565 (1974)
527 P.2d 1065
GRAVES TRUCK LINE, INC., KENNETH F. SHADE, d/b/a K and B FREIGHT LINE, CASSELL TRUCK LINES, INC., and STEVENS EXPRESS, INC., Appellees and Cross-Appellants,
v.
THE STATE CORPORATION COMMISSION OF THE STATE OF KANSAS, Appellant and Cross-Appellee, and EXHIBITORS FILM DELIVERY AND SERVICE COMPANY, INC., Intervenor, and JAYHAWK TRUCK LINES, INC., Intervenor.
No. 47,391

Supreme Court of Kansas.
Opinion filed November 2, 1974.
Paul R. Bergant, of Topeka, assistant general counsel for the State Corporation Commission, argued the cause, and James E. Wells, of Topeka, general counsel, was with him on the brief for the appellant and cross-appellee.
*566 John E. Jandera, of Topeka, argued the cause, and James P. Mize, of Salina, was with him on the brief for the appellees and cross-appellants.
Richard C. Byrd, of Anderson, Byrd &amp; Richeson, of Ottawa, argued the cause and was on the brief for the intervenor, Exhibitors Film Delivery and Service Company, Inc.
Paul V. Dugan, of Wichita, was on the brief for the intervenor, Jayhawk Truck Lines, Inc.
The opinion of the court was delivered by
OWSLEY, J.:
This is an appeal from a district court order vacating and setting aside certain parts of an order of the State Corporation Commission granting Jayhawk Truck Lines, Inc., a certificate of convenience and necessity as a common carrier of general commodities. Formal protests to the application were filed by Graves Truck Line, Inc., and other motor carriers, who are now aligned as appellees and cross-appellants. The basic issue on appeal is whether the Commission's order granting the authority was supported by substantial competent evidence, and was therefore lawful and valid.
For the sake of brevity, hereinafter the State Corporation Commission will be referred to as "Commission;" Jayhawk Truck Lines, Inc., as "Jayhawk;" Graves Truck Line, Inc., as "Graves;" Kenneth F. Shade, d/b/a K and B Freight Line, as "K and B;" Cassell Truck Lines, Inc., as "Cassell;" Stevens Express, Inc. as "Stevens;" and Exhibitors Film Delivery and Service Company, Inc., as "EFD."
On November 16, 1971, Jayhawk filed an application for convenience and necessity as a common carrier over certain routes within the State of Kansas to wit:
On December 16, 1971, the Commission issued its notice of hearing and shortly thereafter formal protests were filed by Graves, K and B, Cassell, EFD, Stevens, and other common carriers, all asserting the adequacy of existing service. All the protestants to this action are general commodity common carriers except EFD, which is an express carrier. Express carriers generally give faster service at higher rates, but can only carry packages weighing no more than 350 pounds each.
*567 Hearings were subsequently held concerning the application of Jayhawk. At the hearings Jayhawk offered the testimony of more than twenty witnesses to show the public need for the requested authority. On cross-examination the appellees attempted to counteract this testimony by bringing out evidence of the adequacy of the existing service.
After hearing all the evidence, the Commission issued its order granting the authority sought. In its findings of fact and conclusions of law the Commission stated:
The authority granted was expressly made subject to the right of the Commission to impose such conditions or limitations in the future as it should find necessary.
Timely applications for rehearing were filed by the protestants and oral arguments were heard pursuant to proper notice. Thereafter, the Commission issued its order of affirmation of the original *568 order. The appellees herein filed their application for review with the district court, alleging the applicant had failed to sustain its burden of proving public convenience and necessity. Petitions to intervene were filed on behalf of Jayhawk and EFD.
On October 3, 1973, after the matter was submitted to the district court on briefs and arguments, the court entered its findings of fact and conclusions of law and an order vacating and setting aside, for lack of substantial competent evidence to support it, all that part of the order of the Commission granting authority to Jayhawk to serve territory to, from and between Wichita and Salina, and the off-route points of Bridgeport, Assaria, Smolan, Mentor and Lindsborg; to, from and between Emporia and Salina and the points of Galva, Canton, Lehigh, Hillsboro and Marion. Further, the court found there was substantial competent evidence in the record of a public need for additional transportation services to, from and between Wichita and Emporia; and the intermediate points of Walton, Peabody, Florence, Cedar Point, Elmdale, Strong City, Saffordville, and the off-route point of Cottonwood Falls. The court subjected the foregoing grant of authority to the conditions and limitations to be determined by the Commission as to size and weight of packages and shipments in order to avoid duplication of services furnished by EFD. From such order the Commission filed its notice of appeal.
Appellant's principal contention on appeal concerns the proper scope of judicial review of the Commission's orders. The Commission contends the district court erred in its findings and conclusions that there was not substantial competent evidence to support the Commission's order granting the authority to Jayhawk, over the routes between Wichita and Salina and the intermediate points, as well as the route serving Galva, Canton, Lehigh, Hillsboro and Marion.
Statutory directives concerning the standard to be applied by the Commission when considering an application for a certificate of public convenience and necessity for a common motor carrier are set out in K.S.A. 66-1,114, which provides in part:
It was under the provisions of this statute that the Commission conducted the hearings and made its finding that "public necessity and convenience" would benefit by granting the application; and further, that existing service was not "reasonably adequate."
Once the Commission has made its findings the district court's power of review is set forth in K.S.A. 66-118d as follows:
There is no question the order was "lawful" in this case. If the prescribed statutory and procedural rules have been followed in making an order, it is not unlawful. (Southern Kansas Stage Lines Co. v. Public Service Comm., 135 Kan. 657, 11 P.2d 985.) The more difficult question, however, is whether the order is "reasonable." It has been firmly established in this state that an order is generally reasonable if it is based upon substantial competent evidence. (Central Kansas Power Co. v. State Corporation Commission, 206 Kan. 670, 482 P.2d 1; Rock Island Motor Transit Co. v. State Corporation Comm., 169 Kan. 487, 219 P.2d 405; Southern Kansas Stage Lines Co. v. Public Service Comm., supra; Kansas Transport Co., Inc. v. State Corporation Commission, 202 Kan. 103, 446 P.2d 766.) Substantial competent evidence is evidence which possesses something of substance and relevant consequence, and which furnishes a substantial basis of fact from which the issues tendered can reasonably be resolved. (Kansas State Board of Healing Arts v. Foote, 200 Kan. 447, 436 P.2d 828, 28 A.L.R.3d 472; Morra v. State Board of Examiners of Psychologists, 212 Kan. 103, 510 P.2d 614.)
We said in Southern Kansas Stage Lines Co. v. Public Service Comm., supra:
It has been stated that the reasonableness of a commission order depends on whether, under all the circumstances, it is unfair, unwise and unjust. (Atchison, T. &amp; S.F. Rly. Co. v. State Corporation Comm., 182 Kan. 603, 322 P.2d 715.) The facts that are to be considered and the relative weight to be given them in making a determination are matters left to the Commission's discretion. (Central Kansas Power Co. v. State Corporation Commission, supra.)
The rationale for giving the Commission wide discretion in such matters is its expertise and experience. The legislature has acknowledged this fact by expressly limiting the scope of review of the Commission's orders. As was pointed out in Southwestern Bell Tel. Co. v. State Corporation Commission, 192 Kan. 39, 386 P.2d 515, the duty of the district court to exercise independent judgment neither requires nor justifies disregard of the presumption of validity which is to be given the Commission's findings, and the findings of the Commission, if supported by substantial competent evidence, should not be disturbed by a reviewing court. The court said:
*571 The function of the district court in reviewing an administrative order was discussed in the Rock Island Motor Transit case. The court said:
The appellees argue that the district court on an appeal such as this has the right to "weigh the evidence." The argument is based on language used in the Rock Island Motor Transit case. If the right to "weigh the evidence" was used in the same manner as when the trier of facts weighs evidence in a civil action, we must disapprove such language. The Rock Island Motor Transit case should not be construed to permit a district court in the review of an administrative order to determine the weight and credibility of the testimony of any witness. If some significance need be given the language in the Rock Island Motor Transit case, as to the right to weigh evidence, it must be limited to a review of the entire record to determine if there was substantial competent evidence to support the findings of the Commission.
After review of the record we conclude the findings of the Commission as to the route between Wichita and Salina, as well as the route serving Galva, Canton, Lehigh, Hillsboro and Marion, were supported by substantial competent evidence. More than twenty witnesses testified on behalf of Jayhawk as to the need for additional common carrier service and the inadequacy of existing service. While the record contains several contradictory statements by these witnesses, it was within the province of the Commission to weigh such testimony and select that which it considered most reasonable. Accordingly, it was error for the district court to set aside the order of the Commission as to these routes.
*572 The final issue raised by the Commission on appeal and by protestants on cross-appeal, concerns the application for service over the route from Wichita to Emporia and the intermediate points. While Jayhawk's application for service to this route was approved by the Commission, the district court found this grant of authority should be subject to appropriate conditions and limitations to protect EFD, and remanded that portion of the order to the Commission for the placing of the specified weight limitations.
The Commission contends the district court erred in placing restrictions on the authority, since that would constitute a substitution of its judgment for that of the Commission. On the other hand, cross-appellant Graves argues that the district court erred in holding the Commission's order granting service on this route was supported by substantial competent evidence.
Based on the authorities previously cited, and after a thorough review of the record, we hold the district court was correct in its finding that there was substantial competent evidence of a public need for additional transportation service to and from the above points, and that existing common carrier service was not reasonably adequate to meet the need.
As to that part of the district court's order which set aside the Commission's order as to shipments of less than 350 pounds, we hold the district court erred. Apparently, the district court felt general commodity common carriers should be restricted to protect express carriers; whereas, the Commission felt they offered distinct services. It is a well known principle that matters of administrative policy will generally be left to the discretion of the administrative agency if they fall within its field of expertise. Recognizing the expertise of the Commission in motor carrier matters, the district court should not have injected its own views into the review of this order as it pertained to EFD.
The case is reversed with directions to reinstate the order of the Commission.