NORTHWEST TERM. ELEVATOR ASS'N v. MINNESOTA PUC
Decision Date | 28 March 1983 |
Docket Number | Civ. No. 3-81-141. |
Citation | 576 F. Supp. 22 |
Parties | NORTHWEST TERMINAL ELEVATOR ASSOCIATION, a Minnesota corporation, Bunge Corporation, a New York corporation, Burdick Grain Company, a Delaware corporation, Cargill, Inc., a Delaware corporation, Continental Grain Company, a Delaware corporation, Farmers Union GTA, a Minnesota corporation, General Mills, Inc., a Delaware corporation, International Multifoods, a Delaware corporation, Peavey Company, a Minnesota corporation, The Pillsbury Company, a Delaware corporation, and Tabor Grain Company, a Nevada corporation, d/b/a ADM Grain Co., Plaintiffs, v. MINNESOTA PUBLIC UTILITIES COMMISSION, and its Commissioners, Roger L. Hanson, Leo G. Adams, Terry Hoffman, Juanita R. Satterlee, Lillian W. Lazenberry, Minnesota Department of Transportation, and Richard P. Braun, its Commissioner, and the Minnesota Permit Truckers Association, a Minnesota corporation, Defendants. |
Court | U.S. District Court — District of Minnesota |
Bruce F. Thompson, Patrick J. McLaughlin, Thompson, Nielsen, Klaverkamp & James, P.A., Minneapolis, Minn., for plaintiffs.
Gilbert S. Buffington, Sp. Asst. Atty. Gen., St. Paul, Minn., for State of Minn., defendants.
Robert E. Schmidt, Waseca, Minn., for Minnesota Permit Truckers Ass'n, amicus curiae defendant.
A hearing was held before the undersigned on December 3, 1982 on the cross motions of plaintiffs and defendants Minnesota Public Utilities Commission and its Commissioners, Roger L. Hanson, Leo G. Adams, Terry Hoffman, Juanita R. Satterlee and Lillian W. Warren-Lazenberry, and the Minnesota Department of Transportation and its Commissioner, Richard P. Braun, for summary judgment pursuant to Fed.R.Civ.P. 56 as to Counts I and II of the Amended and Supplemental Complaint.
Bruce F. Thompson, Esq. and Patrick J. McLaughlin, Esq. appeared on behalf of the plaintiffs. Gilbert S. Buffington, Special Assistant Attorney General, appeared on behalf of the State of Minnesota defendants. The Minnesota Permit Truckers Association appeared amicus curiae through its counsel, Robert E. Schmidt, Esq.
Based upon the files, the Stipulation of Facts entered into by the parties and exhibits thereto, the affidavits, briefs and oral arguments, the Court grants summary judgment to plaintiffs as to Counts I and II of the Amended and Supplemental Complaint and denies the defendants' motion for summary judgment as to these Counts.
In Count I of the Amended and Supplemental Complaint (hereinafter "Complaint"), those plaintiffs who own or operate the River Terminal Elevators identified in the stipulation seek declaratory and injunctive relief against enforcement of a Detention Order promulgated by the Minnesota Public Utilities Commission (Exhibit A to Complaint). The Detention Order in issue authorizes any motor carrier operating pursuant to permits issued by defendant Minnesota Department of Transportation to file tariffs with the Commissioner imposing upon operators of the River Terminal Elevators a grain detention charge for each hour that such motor carrier is delayed in unloading grain at a River Terminal beyond a certain "free time" as specified in the Order. The relief is sought on the grounds that the grain detention charge is an impermissible regulation of interstate commerce by the State of Minnesota by virtue of federal preemption and occupation of the field of regulation over motor carrier transportation of grain and other unprocessed agricultural commodities in interstate commerce. Article I, Section 8, Clause 3 of the Constitution of the United States; the Interstate Commerce Act, Title 49 U.S.C. § 10101, et seq.; Article VI, Clause 2 of the Constitution of the United States.
In Count II of the Complaint, those plaintiffs who own or operate Country Elevators as defined in the Stipulation seek declaratory and injunctive relief prohibiting enforcement of the Order (Exhibit B to the Complaint) promulgated by the State defendants which compels all motor carriers operating pursuant to permits issued by the Minnesota Department of Transportation to file and to assess rates not less than the prescribed minimum rates for the transportation of grain by such carriers in Minnesota. Specifically, the plaintiffs seek a permanent injunction prohibiting the enforcement of minimum rates against shipments from the Country Elevators operated by plaintiffs to the River and Lake Terminal Elevators as identified in the Stipulation. The relief is sought in Count II on the same grounds set forth as to Count I.
The sole issue before the Court is whether the relevant transportation for purposes of Counts I and II constitutes a part of an interstate movement, or whether the relevant transportation constitutes intrastate commerce. (Stipulation, paragraph 14). The State defendants have admitted in their Answer that they have no right to regulate rates for the relevant transportation if it is found to be part of interstate commerce. (Answer, paragraph 12).
Defendants have also raised the issue of whether the validity of the detention rule is ripe for adjudication since the detention provision is not obligatory. This matter was determined against the defendants by the June 25, 1981 Order of this Court denying defendants' motion to dismiss on this basis.
No subsequent developments persuade the Court that it should reconsider its ruling of June 25, 1981 in regard to this issue.
The relevant transportation for purposes of Count I is the motor carrier transportation of grain furnished by permit carriers from points located in Minnesota to the River Terminal Elevators over routes located entirely within the State of Minnesota. (Stipulation, paragraph 13).
The relevant transportation, for purposes of Count II is the motor carrier transportation of grain from those Country Elevators owned and operated by plaintiffs to the River and Lake Terminal Elevators over routes located entirely within the State of Minnesota. (Stipulation, paragraph 13).
The parties have stipulated to the characteristic circumstances in which the relevant transportation of grain is furnished by Minnesota permit carriers as follows:
(Stipulation, paragraph 15).
The Court adopts the Stipulation of Facts in its findings. In addition, the Court finds the following material facts to be undisputed and when combined with the Stipulation to entitle the plaintiffs to summary judgment on Counts I and II.
The affidavits submitted by personnel, who have knowledge and responsibility for the transportation and marketing activities of the Terminal Elevators and Country Elevators owned and operated by plaintiffs, establish that there is, as a practical, economic matter, no market in Minnesota for grain received at the Terminal Elevators. The purpose, function and ordinary business activity of the Elevators is to export all grain received to other states and/or nations. Each affidavit states that the grain is purchased by plaintiffs' terminals or shipped from plaintiffs' country elevators with the knowledge and intent of shipping the grain to other states and/or nations. The primary market for grain shipped to the terminals is New Orleans, Louisiana. The least expensive method of transporting grain to New Orleans is by water.
The data within the Stipulation support these statements. Over the past six years, the figures in the Stipulation show that the vast bulk of grain shipped to the River and Lake Terminals was in fact transported to destinations outside the State of Minnesota. In some years during this period of time, all the grain shipped from a given Terminal was in fact shipped out of State. By defendants' calculations, during the six year period of time, at most 1.5 to 1.6 percent of the grain shipped from the River and Lake Terminals was shipped to either points within Minnesota or to unknown destinations. It...
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