Opinion ID: 351802
Heading Depth: 2
Heading Rank: 2

Heading: Reviewability in General

Text: 10 The various parties to this action offer sharply divergent views as to the reviewability of the Commission's orders. The petitioners argue that all of the ICC orders at issue in these cases are reviewable, while the respondent-intervenor railroads contend that none of the orders is reviewable on the economic issues. The Commission and the United States both submit that the Commission's decision not to suspend a proposed general rate increase is not reviewable, while its orders entered after a full investigation of the issue of general revenue need are immediately reviewable. The United States and the Commission, however, part company as to the reviewability of an ICC decision not to investigate a proposed general rate increase. The United States contends that such decisions are reviewable, while the Commission argues that they are not. 11 The parties arguing that the orders are to some extent unreviewable base their positions on lines of authority originating with the three-judge court decision in Algoma Coal & Coke Co. v. United States, 11 F.Supp. 487 (E.D.Va.1935). In Algoma, the Commission instituted an investigation of general rate increases filed by the railroads, but did not suspend the rates. As a result of the investigation, the Commission determined to allow the rates to remain in effect for a period. The three-judge court held that the Commission's decision was unreviewable, basing this holding on its conclusions (1) that the Commission had never finally determined the legality of the proposed rates as they affected the particular commodities shipped by the petitioners, and that therefore the shippers' proper remedy was to seek a refund under 49 U.S.C. §§ 13 and 15; and (2) that the Commission's decision was in effect one not to suspend the proposed general rate increase, which power was vested solely in the Commission and not subject to judicial review. 12 The premise underlying the Algoma court's second conclusion is now firmly established: The Commission's decision on whether to suspend a proposed general rate increase is committed solely to the agency's discretion and is unreviewable by the courts. United States v. SCRAP, 412 U.S. 669, 690-98, 93 S.Ct. 2405, 37 L.Ed.2d 254 (1973) (SCRAP I ); Arrow Transportation Co. v. Southern Ry., 372 U.S. 658, 662-68, 83 S.Ct. 984, 10 L.Ed.2d 52 (1963); Board of R. R. Comm'rs v. Great Northern Ry., 281 U.S. 412, 429, 50 S.Ct. 391, 74 L.Ed. 936 (1930); Port of New York Authority v. United States, 451 F.2d 783 (2d Cir. 1971); Oscar Mayer & Co. v. United States, 268 F.Supp. 977 (W.D.Wis.1967) (three-judge court); Luckenbach Steamship Co. v. United States, 179 F.Supp. 605 (D.Del.1959) (three-judge court), aff'd mem. in part, vacated in part, 364 U.S. 280, 80 S.Ct. 1611, 4 L.Ed.2d 1719 (1960). 13 Where shippers have challenged the Commission's decision, after suspension and investigation, to permit a general rate increase to go into effect, but have based their challenge only upon the unreasonable effect of the rate increase upon a particular commodity, three-judge courts have followed the first holding in Algoma and held that the shippers must first exhaust their administrative remedies under 49 U.S.C. §§ 13 and 15. See Electronic Industries Ass'n v. United States, 310 F.Supp. 1286 (D.D.C.1970) aff'd mem., 401 U.S. 967, 91 S.Ct. 1188, 28 L.Ed.2d 318 (1971); Florida Citrus Comm'n v. United States, 144 F.Supp. 517 (N.D.Fla.1956) aff'd mem., 352 U.S. 1021, 77 S.Ct. 589, 1 L.Ed.2d 595 (1957); Koppers Co. v. United States, 132 F.Supp. 159 (W.D.Pa.1955). Two three-judge courts, going beyond the facts underlying the second Algoma holding, but relying upon the reasoning of that decision, have held that shippers seeking to challenge even the Commission's conclusion that rate increases were justified in general must first exhaust their administrative remedies under 49 U.S.C. §§ 13 and 15. Alabama Power Co. v. United States, 316 F.Supp. 337 (D.D.C.1969), and Atlantic City Elec. Co. v. United States, 306 F.Supp. 338 (S.D.N.Y.1969), both aff'd mem. by an equally divided Court, 400 U.S. 73, 91 S.Ct. 259, 27 L.Ed.2d 212 (1970). 14 The Supreme Court in Aberdeen & Rockfish R.R. v. SCRAP, 422 U.S. 289, 314-18, 95 S.Ct. 2336, 45 L.Ed.2d 191 (1975) (SCRAP II ), recounted this history but expressly declined to resolve the issue whether an ICC decision that a general rate increase is justified by reason of revenue need is a final decision ripe for immediate review . . . absent exhaustion of § 13 remedies . . .. 422 U.S. at 317-18, n.18, 95 S.Ct. at 2354 (emphasis by the Court). The Court in SCRAP II did, however, hold that the Commission's conclusion at the close of a general revenue proceeding that it need give no further consideration to environmental factors under the National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. §§ 4321-35 (1970) in that proceeding  was a final decision subject to judicial review, 422 U.S. at 318-19, 95 S.Ct. 2336 (emphasis by the Court).