Source: https://supreme.justia.com/cases/federal/us/439/1/case.html
Timestamp: 2016-12-06 14:14:48
Document Index: 487401078

Matched Legal Cases: ['§ 15', '§ 201', '§ 15', '§ 15', '§ 15', '§ 15', '§ 15', '§ 15']

Long Island R.R. Co. v. Aberdeen & Rockfish R. Co. (full text) :: 439 U.S. 1 (1978) :: Justia U.S. Supreme Court Center Log In
› Long Island R.R. Co. v. Aberdeen & Rockfish R. Co.
Long Island R.R. Co. v. Aberdeen & Rockfish R. Co. 439 U.S. 1 (1978)
U.S. Supreme CourtLong Island R.R. Co. v. Aberdeen & Rockfish R. Co., 439 U.S. 1 (1978)Long Island R.R. Co. v. Aberdeen & Rockfish Railroad Co.No. 77-1515Decided October 16, 1978439 U.S. 1ON PETITION FOR WRIT OF CERTIORARI TO THE UNITED STATES
Certiorari granted; 565 F.2d 327, reversed in part and remanded. Page 439 U. S. 2
Petitioner, the Long Island Rail Road Co., seeks a writ of certiorari to review the judgment of the United States Court of Appeals for the Fifth Circuit setting aside an order of the Interstate Commerce Commission. That judgment directed that proceeds collected by petitioner pursuant to an interim terminal surcharge be held in a separate trust fund pending determination of final rates by the Commission on remand. We stayed the trust fund portion of the court's order on March 6, 1978, and we now grant the petition for certiorari, limited to Question 1 presented by petitioner, [Footnote 1] and reverse the judgment of the Court of Appeals insofar as it impresses a trust on the proceeds from the interim terminal surcharge.
The Railroad Retirement Amendments of 1973 imposed increased taxes on railroads in order to fund additional retirement benefits for railroad employees. 87 Stat. 162. Coupled with that action, Congress amended § 15a of the Interstate Commerce Act to permit railroads to offset the increased tax liability imposed by the Amendments by means of increases in general rate levels. § 201(4), 87 Stat. 166, 49 U.S.C. § 15a(6). Section 15a(6)(a) authorizes the Commission promptly to establish requirements for petitions for adjustment of interstate rates of common carriers based on increases in railroad retirement taxes. Such procedures are to be designed to "facilitate fair and expeditious action on any such petition." Section 15a(6)(b) directs the Commission to permit interim increases in the general level of interstate rates within 30 days of the filing of a proper petition, "[n]otwithstanding any other provision of law." The Commission can withhold its permission only if it finds that the requested increase is not "in an amount approximating that needed to offset Page 439 U. S. 3 increases in expenses" resulting from the Amendments. Finally, § 15a(6)(c) requires the Commission to commence hearings for the purpose of making final rate determinations within 60 days of the establishment of the interim rates. Such final rates are to be determined in accordance with the "standards and limitations applicable to ratemaking generally." If the final increases in rates are less than the interim increases, refunds must be made by the carrier, subject to such tariff provisions as the Commission deems sufficient.
No appeal was taken from this judgment, and the Commission subsequently allowed petitioner to impose an interim terminal surcharge in the amount of 12.5%. Thereafter the Commission issued a report and order which approved petitioner's request for a permanent 12.5,% terminal surcharge, and required all railroads to incorporate that surcharge into their tariffs to and from points on petitioner's lines. Increases in Freight Rates and Charges -- 19'73, 350 I.C.C. 673 (1973). Page 439 U. S. 4
We agree with petitioner and the United States that the Court of Appeals' direction to hold proceeds from the interim terminal surcharge in a separate trust fund pending determination of final rates by the Commission is contrary both to the earlier holding of the three-judge court and to Congress' intent in adopting the Amendments. The interim terminal surcharge approved by the three-judge court clearly was meant to remain in effect until a permanent rate was approved by the Commission. See long Island R. Co. v. United States, supra at 947. Because of the Court of Appeals' decision setting aside the Commission's order, there has as yet been no determination of final rates by the Commission. The Court of Appeals' order explicitly recognizes as much. Aberdeen & Rockfish R. Co. v. United States, supra at 334. We also agree that petitioner could have continued to collect the interim terminal surcharge whether or not the Court of Appeals had explicitly authorized it to do so. Thus, far from maintaining the relative positions of the parties pending final order of the Commission, normally considered the "status quo," the Court of Appeals' imposition of the trust fund requirement significantly altered those positions. Page 439 U. S. 5
Such an alteration is at odds with the purpose of § 15a(6)(b). The entire thrust of § 15a(6)(b) is to provide an expeditious method of allowing higher rates in order to minimize the effect that increased railroad retirement taxes would have on the railroads' financial condition. At the time of the adoption of the Amendments, Congress was acutely aware of the deteriorating financial condition of the Nation's railroads and the drain which the increased tax liabilities would have on their already dwindling resources. S.Rep. No. 9221, pp. 2-4 (1973). Congress also recognized that the Commission's normal ratemaking processes would not be responsive to the railroads' needs to recover immediately their increased retirement benefit contributions. [Footnote 2] The delays experienced in approving the final rates have shown the legitimacy of Congress' concerns.
"The Commission could withhold permission to file tariffs if it found that the proposed increase clearly exceeded the amount needed to cover the increases in costs, but otherwise, Page 439 U. S. 6 once the tariffs were filed, the Commission would have no authority to suspend them pending final determination."
By impressing the trust on proceeds from these interim charges made by petitioner, the Court of Appeals has exercised authority which Congress clearly did not wish to repose even in the Commission. We have held that, where Congress has vested the Commission with authority to suspend rates pending final determination of their lawfulness, that power may not be exercised by a court. Arrow Transp. Co. v. Southern R. Co., 372 U. S. 658 (1963); see Atchison, T. & S. F. R. Co. v. Wichita Bd. of Trade, 412 U. S. 800, 412 U. S. 820 (1973) (plurality opinion); id. at 412 U. S. 828-829 (WHITE, J., concurring in part and dissenting in part); United States v. SCRAP, 412 U. S. 669, 412 U. S. 691 (1973). We think it follows a fortiori from these decisions that, where Congress has denied authority to the Commission to suspend interim rates, as it has here, a reviewing court may not exercise such power, absent a declaration of unlawfulness by the Commission. See Arrow Transp. Co. v. Southern R. Co., supra at 372 U. S. 667 n. 14; Board of R. Comm'rs v. Great Northern R. Co., 281 U. S. 412, 281 U. S. 429-430 (1930). Congress provided a refund mechanism in § 15a(6)(C) in the event that the final rates approved by the Commission are less than the interim rates. Congress undoubtedly was satisfied that this procedure was adequate to protect the interests of the parties affected by the terminal surcharge, and respondent railroads have advanced no reasons for concluding otherwise.
"provision in the relevant statutes Page 439 U. S. 7 depriving federal courts of their general equitable power to preserve the status quo to avoid irreparable harm pending review."
Atchison, T. & S. F. R. Co. v. Wichita Bd. of Trade, supra at 412 U. S. 820. The plurality also noted that subsequent legislation might "affect the relation between court and agency, and so the propriety of injunctive relief." 412 U.S. at 412 U. S. 823 n. 16. In the limited context of interim rate increases under § 15a(6)(b), we think the Amendments are "subsequent legislation" that evidences a clear purpose to oust any equitable power that a reviewing court might otherwise possess to disturb those interim rates pending determination of final rates by the Commission. See Arrow Transp. Co. v. Southern R. Co., supra at 372 U. S. 671 n. 22.