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Bralley-Willett Tank Lines, Inc. v. Holtzman Oil Corp.
Citations: 216 Va. 888; 223 S.E.2d 892; 1976 Va. LEXIS 221Docket: Record 751258
Court: Supreme Court of Virginia; April 23, 1976; Virginia; State Supreme Court
In the case of **Bralley-Willett Tank Lines, Inc. et al. v. Holtzman Oil Corporation**, the Supreme Court of Virginia upheld the State Corporation Commission's decision to grant Holtzman Oil Corporation a certificate of public convenience and necessity under the Petroleum Tank Truck Carriers Act. The court emphasized that the Act is designed to be liberal, requiring only that the proposed operation meets a public convenience and necessity standard. The existence of current certificate holders capable of providing similar services is deemed insignificant, and potential competition from new operators is not a decisive factor. Holtzman, serving as Gulf Oil Corporation's commission agent, sought the certificate to transport gasoline directly from Gulf’s Fairfax terminal to designated areas including Harrisonburg and surrounding counties. Prior to this, gasoline was delivered by Gulf or designated carriers to Holtzman's storage facilities, which then used smaller vehicles for distribution. Holtzman's president and a transportation consultant testified that direct deliveries using an 8000-gallon transport would result in significant cost savings and increased efficiency, benefitting both their operations and service station customers by reducing delivery congestion. The court affirmed the Commission's order, finding it was made with appropriate discretion and supported by evidence. Four witnesses testified that the petroleum tank truck carrier industry is currently in a depressed state, with existing carriers having idle equipment and the capacity to meet Holtzman's gasoline transportation needs. They argued that granting Holtzman an additional certificate would worsen the challenges faced by current carriers. However, the Commission observed that only two carriers would be impacted by Holtzman's operations, as Gulf had been supplying most of Holtzman's gasoline using its own trucks, thereby reducing traffic for those carriers. The Commission concluded that granting the certificate would not significantly affect existing carriers. Additionally, Holtzman's plan for direct gasoline delivery from Gulf's terminal to customers would improve public safety by minimizing handling and the associated risks of fires or explosions. It would also decrease the number of vehicle trips, thus reducing the likelihood of vehicular accidents. Holtzman’s commitment to pass cost savings to customers and the convenience of using an 8000-gallon transport to minimize service station driveway blockages were also noted. Under the Petroleum Tank Truck Carriers Act, the primary requirement for a certificate is the demonstration of public convenience and necessity, with existing service capabilities of current certificate holders being of secondary importance. The Commission's findings must be considered prima facie valid, and its discretion in issuing certificates is broad. The findings will not be overturned unless they contradict the evidence or lack supporting evidence. The Commission's order was affirmed, indicating that it did not abuse its discretion.