Source: http://openjurist.org/467/us/354
Timestamp: 2015-09-01 18:39:23
Document Index: 565020861

Matched Legal Cases: ['§ 10706', '§ 10762', '§ 10762', '§ 10762', '§ 10706', '§ 10706', '§ 10706', '§ 5', '§ 10706', '§ 10706', '§ 10762', '§ 10708', '§ 10704', '§ 11705', '§ 11901', '§ 10762', '§ 10762', '§ 10708', '§ 10762', '§ 10762', '§ 10101', '§ 10762', '§ 10762', '§ 10762', '§ 10762']

467 US 354 Interstate Commerce Commission v. American Trucking Associations Inc | OpenJurist
467 U.S. 354 - Interstate Commerce Commission v. American Trucking Associations Inc Home
467 US 354 Interstate Commerce Commission v. American Trucking Associations Inc 467 U.S. 354
104 S.Ct. 2458
81 L.Ed.2d 282
INTERSTATE COMMERCE COMMISSION, et al., Petitionersv.AMERICAN TRUCKING ASSOCIATIONS, INC., et al.
No. 82-1643.
The Motor Carrier Act of 1980 in 49 U.S.C. § 10706(b)(3) established specific guidelines to which motor-carrier rate bureaus must conform if they are to receive antitrust immunity. In 1980, the Interstate Commerce Commission (ICC) issued an interpretative ruling explaining how it planned to implement these guidelines, and proposing a new remedy to enforce rate-bureau agreements whereby the ICC would retroactively reject effective tariffs that had been submitted in substantial violation of such agreements. Alarmed by the prospect of overcharge liability that would result from such retroactive rejection of tariffs, respondents, a group of motor-carrier rate bureaus, petitioned the Court of Appeals to review the ICC's new remedy. The Court of Appeals held that the ICC lacked the power to reject effective tariffs.
Held: The proposed new remedy lies within the ICC's discretionary authority, and the ICC does not exceed its authority by nullifying effective tariffs submitted in substantial violation of rate-bureau agreements. Pp. 24622468.
(a) Title 49 U.S.C. § 10762(e), which authorizes the ICC to reject a motor-carrier tariff if it violates the statutory requirements for publishing and filing tariffs or an implementing regulation, does not confer on the ICC the broad power to nullify effective tariffs retroactively. This is indicated by § 10762(e)'s language and the structure of the ICC's remedial authority under the Interstate Commerce Act. Pp. 24632465.
(b) The ICC, however, may elaborate upon its express statutory remedies when necessary to achieve specific statutory goals. In this case, retroactive rejection of rate-bureau tariffs is a justifiable adjunct to the ICC's express § 10762(e) rejection authority, and, to the extent there is an elaboration of that authority, it is necessary to ensure compliance with rate-bureau agreements. The rejection of effective tariffs submitted in substantial violation of such agreements simply extends the ICC's express rejection authority so that it may adequately supervise those agreements to see that they comply with the § 10706(b)(3) guidelines. The legislative history of the Motor Carrier Act of 1980 makes it clear that, beyond the bounds of antitrust immunity granted in § 10706, Congress wanted the forces of competition to determine motor-carrier tariffs, and intended that the ICC play a key role in holding carriers to the § 10706(b)(3) guidelines. And the remedy in question is a means of policing rate-bureau agreements sufficiently direct and close to the ICC's statutory mandate to warrant approval of the remedy. Pp. 24652468.
Patrick McEligot, Washington, D.C., for respondents.
This case presents a challenge to an effort by the Interstate Commerce Commission to create a new remedy to enforce motor-carrier rate-bureau agreements. The remedy at issue is the Commission's authority to reject effective tariffs that have been submitted in substantial violation of rate-bureau agreements. As we have recognized in the past, the Interstate Commerce Commission (Commission or ICC) has discretion to fashion remedies in furtherance of its statutory responsibilities. Trans Alaska Pipeline Rate Cases, 436 U.S. 631, 654, 98 S.Ct. 2053, 2066, 56 L.Ed.2d 591 (1978). Although rejection of effective tariffs is a form of remedial power not expressly delegated to the Commission, the remedy as proposed by the Commission in this case is closely and directly related to the Commission's express statutory powers and is designed to achieve objectives set for the Commission by Congress. Under these limited circumstances, we hold that the proposed remedy lies within the Commission's discretion.
* Motor-carrier rate bureaus are groups of motor carriers formed to negotiate collective rates. Since the ReedBulwinkle Act of 1948, motor carriers within the jurisdiction of the Commission have enjoyed immunity from the antitrust laws to enter into rate bureaus and to submit collective rates to the Commission. Ch. 491, 62 Stat. 472. To receive this immunity, rate bureaus must apply for Commission approval of bureau agreements, which describe the manner in which a bureau will negotiate collective tariffs. The original ReedBulwinkle Act gave the ICC broad discretion to determine which rate-bureau agreements were consistent with national transportation policy. 49 U.S.C. § 5 (1976 ed.). Until recently, the Commission was fairly liberal in approving rate-bureau agreements, but, in the late 1970's, the Commission began to disapprove an increasing number of agreements on the grounds that the agreements were undermining competition among motor carriers. In 1980, apparently disturbed by this abrupt shift in Commission policy but persuaded that some deregulation of motor carriers was necessary, Congress passed the Motor Carrier Act of 1980 (MCA). Pub.L. 96296, 94 Stat. 793. The MCA in 49 U.S.C. § 10706(b)(3) establishes specific guidelines, to which rate-bureau agreements must conform if they are to receive antitrust immunity.1 Because the MCA creates a presumption that bureau agreements meeting the requirements of 10706(b)(3) will qualify for antitrust immunity, the Act divests the Commission of much of its discretion to approve and disapprove rate-bureau agreements. See H.R.Rep. No. 961069, p. 29 (1980), U.S.Code Cong. & Admin.News 1980, p. 2283.
This case arises out of an ICC interpretative ruling issued in 1980 explaining how the Commission planned to implement the new statutory guidelines for rate-bureau immunity. Motor Carrier Rate Bureaus—Implementation of P.L. 96296, 364 I.C.C. 464 (1980). For the most part, this interpretative ruling presented the Commission's views on the substance of the new legislation, and established procedures whereby rate bureaus could submit existing agreements to the Commission for approval under the new standards. Before concluding, however, the ruling also addressed a problem the Commission had faced in regulating rate-bureau agreements even before Congress in 1980 amended the ReedBulwinkle Act: "the lack of definite remedies for proven rate bureau violations." Id., at 499. The Commission announced its intention to fashion the following new remedy:
"In addition to the possible remedy of withdrawal of immunity for serious and continuing violations, we proposed to adopt a standard providing that proof of significant violations of an approved agreement will result in tariff rejection. Allegations of lesser violations would subject the tariff item to suspension or investigation." Ibid.
The Commission subsequently explained how its new remedy would be implemented.2 The Commission intends to use the remedy to discipline motor carriers for substantial bureau agreement violations, such as unauthorized collusion or illegal bureau pressure on independent carriers. Brief for Petitioners 24. Interested parties—for instance, shippers or other carriers—may file complaints of such violations with the Commission. Upon receiving such a complaint, the Commission's Office of Consumer Protection will investigate the allegations, and, if a serious violation is discovered, the Office will refer the matter to the Commission for a full hearing. If the hearing confirms that a serious violation has occurred, the Commission has the authority to reject the affected tariffs. The Commission's decision to reject is reviewable in federal court. Motor Carrier Rate Bureaus—Implementation of PL 96296, 364 I.C.C. 921, 926 (1981).
Alarmed by the prospect of overcharge liability, respondents, a group of motor-carrier rate bureaus, petitioned the United States Court of Appeals for the Eleventh Circuit to review the Commission's new remedy. The Eleventh Circuit accepted respondents' argument that the Commission lacks the power to reject effective tariffs. American Trucking Assn., Inc. v. United States, 688 F.2d 1337 (1982). Because the Fifth Circuit previously had found the Commission to possess authority to reject effective tariffs in a different context, Aberdeen & Rockfish R. Co. v. United States, 682 F.2d 1092 (1982), cert. pending, No. 82707, we granted certiorari in this case to examine the Commission's powers to reject effective tariffs. 462 U.S. 1130, 103 S.Ct. 1272, 75 L.Ed.2d 493 (1983). We now reverse the judgment of the Eleventh Circuit.
The issue before us is narrow. Most aspects of the Commission's authority to supervise motor-carrier rate-bureau agreements are not seriously challenged. For example, the Commission undisputedly has the power to terminate a rate-bureau agreement if the agreement itself fails to meet MCA guidelines or if bureau members persist in filing tariffs in violation of the terms of the agreement. 49 U.S.C. § 10706(f). Moreover, during the 30 days before a tariff proposed by a bureau member goes into effect, the Commission clearly has authority to reject the proposal if it was submitted in violation of a rate-bureau agreement.3 49 U.S.C. § 10762(e). In addition, if the Commission suspects that a proposed tariff has been submitted in violation of a rate-bureau agreement but no violation is immediately evident, the Commission may postpone the tariff's effective date for up to seven months, and conduct an investigation into its lawfulness. § 10708. If the investigation uncovers a rate-bureau agreement violation before the suspension period expires, the Commission may reject the proposed tariff. Furthermore, the Commission may conduct an investigation into a tariff's lawfulness at any time after it has gone into effect, and, if the tariff is found to have been the product of a bureau agreement violation, the Commission has authority to cancel the tariff and require that a reasonable and nondiscriminatory rate apply in the future. § 10704(b)(1). Whenever the Commission finds an effective tariff unlawful, injured parties can recover both damages under § 11705(b)(3) and whatever additional amounts the antitrust laws allow. Finally, the Commission has authority to impose civil and criminal penalties on rate agreement violators. §§ 11901(b), 11914(b).
Our sole concern in this case is whether, in addition to the remedial powers listed above, the Commission has the authority to reject retroactively a tariff submitted in substantial violation of a rate-bureau agreement once that tariff has gone into effect.4 As a practical matter, the question is whether motor carriers that provide services based on effective tariffs submitted in substantial violation of rate-bureau agreements can be held liable to injured parties for the entire amount by which their rates exceed the previous rates, and not just for the damages caused by the violation.5
Since the Commission styled its new remedy as a rejection power, the most obvious source of the authority claimed by the Commission is 49 U.S.C. § 10762(e), which provides:
"The Commission may reject a tariff submitted to it by a common carrier under this section if that tariff violates this section or regulation of the Commission carrying out this section."
At least superficially, § 10762(e) supports the Commission's exercise of the power it asserts in this case. The subsection authorizes the rejection of tariffs, and does not distinguish between proposed and effective tariffs. Inasmuch as Congress in other contexts has expressly limited aspects of the Commission's enforcement powers to proposed tariffs, e.g., 49 U.S.C. § 10708(a)(1) (suspension of proposed rates), the absence of limitation in § 10762(e) suggests that the Commission may reject both proposed and effective tariffs. However, the language of § 10762(e) and the structure of the Commission's remedial authority under the Interstate Commerce Act (ICA), as amended, 49 U.S.C. § 10101 et seq., persuade us that Congress could not have meant § 10762(e) to confer on the Commission a broad power to nullify effective tariffs retroactively.
To begin with, the term "reject" connotes a refusal to receive at the threshold. To interpret the power to reject as a license to revoke a tariff that the Commission has already accepted would be contrary to the plain language of the subsection.6 For this reason, the District of Columbia Circuit has concluded that rejection provisions analogous to § 10762(e) do not extend to tariffs that have gone into effect. In a case involving the former Federal Power Commission's rejection authority, Judge Leventhal likened rejection to "a motion to dismiss on the face of the pleading," and declared rejection to be " 'a peremptory form of response to filed tariffs.' " Municipal Light Boards v. FPC, 146 U.S.App.D.C. 294, 299, 450 F.2d 1341, 1346 (1971) (quoting F. Welch, Cases and Text on Public Utility Regulation 581 (1961)), cert. denied, 405 U.S. 989, 92 S.Ct. 1251, 31 L.Ed.2d 455 (1972). In a subsequent case dealing with the former Civil Aeronautics Board's rejection authority, another appellate panel approved of Judge Leventhal's analysis and concluded: "[R]ejection is a regulatory device properly used only prior to a tariff's effective date." Delta Air Lines, Inc. v. CAB, 177 U.S.App.D.C. 100, 121, 543 F.2d 247, 268 (1976) (emphasis in original).
A further reason to believe that § 10762(e) does not extend to effective tariffs is the difference between the procedural safeguards incorporated into § 10762(e) and those that Congress built into remedies clearly designed to reach effective tariffs. On its face and as a