Opinion ID: 397828
Heading Depth: 2
Heading Rank: 2

Heading: The IRC Petitions

Text: 37 In general, the IRCs contend that the FCC's abandonment of the existing international formula and its proposed substitution of negotiated agreements are unsupported by the record and inconsistent with the congressional intent underlying section 222(e) of the Act. 16 We cannot evaluate the merits of these contentions, however, without determining preliminarily that they are ripe for judicial resolution. 17 For this reason we turn first to the parties' arguments on this point. 38 The Commission claims that the IRCs' complaint is not with its finding that the current formula is not in the public interest, but with its proposal for the replacement of the statutory formula with negotiated contracts. Such a complaint is premature, the Commission argues, because it has not yet finally determined the appropriate mode for distributing outbound traffic. Instead, it explicitly reserved for a further proceeding the prescription of a new formula. In that proceeding the IRCs will have an opportunity to present their arguments regarding the proposal's lawfulness under section 222(e). If they are aggrieved by the formula actually prescribed, they may then appeal. Until that time, however, the IRCs can claim no injury; the current formula continues to govern the distribution of international outbound traffic. 39 The IRCs respond that their challenge is in fact directed to the Commission's final determination that the current formula is not in the public interest. They argue that the Commission has said all that it will ever say on the issue and that there is no benefit to be derived from a delay of judicial review. Reply Brief for Petitioner Western Union International at 7. Moreover, the IRCs claim injury from this FCC decision. They allege a substantial interest in the operation of the current formula, asserting that the Commission's invalidation of that formula creates uncertainty in their business planning. Reply Brief for Petitioner/Intervenor RCA Global Communications, Inc., at 9. 40 An accurate assessment of the merits of these contentions necessarily requires reference to that body of principles and policies which constitute the ripeness doctrine. As the Supreme Court explained in Abbott Laboratories v. Gardner, 387 U.S. 136, 148-49, 87 S.Ct. 1507, 1515, 18 L.Ed.2d 681 (1967): 41 (The doctrine's) basic rationale is to prevent the courts, through avoidance of premature adjudication, from entangling themselves in abstract disagreements over administrative policies, and also to protect the agencies from judicial interference until an administrative decision has been formalized and its effects felt in a concrete way by the challenging parties. 42 To promote this rationale, the Court articulated a methodology requiring evaluation of the fitness of the issues for judicial decision and the hardship to the parties of withholding court consideration. Id. As both the Supreme Court and this court have recognized, these evaluations are informed, essentially, by pragmatic considerations. See, e.g., FTC v. Standard Oil Co. of California, 449 U.S. 232, 239, 101 S.Ct. 488, 493, 66 L.Ed.2d 416 (1980); Cox Broadcasting Corp. v. Cohn, 420 U.S. 469, 95 S.Ct. 1029, 43 L.Ed.2d 328 (1975); Papago Tribal Utility Authority v. FERC, 628 F.2d 235, 239 (D.C.Cir.), cert. denied, 449 U.S. 1061, 101 S.Ct. 784, 66 L.Ed.2d 604 (1980); Conway Corp. v. FPC, 510 F.2d 1264, 1267 (D.C.Cir.1975), aff'd, 426 U.S. 271, 96 S.Ct. 1999, 48 L.Ed.2d 626 (1976). Accordingly, they have looked to the order's practical function and consequences in the relevant statutory scheme, Papago, 628 F.2d at 239, and its impact on the day-to-day business of the complaining parties. Abbott Laboratories, 387 U.S. at 152, 87 S.Ct. at 1517. 43 A pragmatic appraisal of the Commission's finding that the current formula is not in the public interest requires the conclusion that it lacks the requisite characteristics of finality. Under section 222(e)(3), the Commission shall prescribe a new formula for the distribution of outbound traffic whenever it finds, after a full hearing, that the present distribution is unjust, unreasonable, or inequitable, or not in the public interest. 47 U.S.C. § 222(e)(3) (1976). Whatever importance normally attaches to this statutory finding, it lacks, in the present circumstances, practical significance. The Commission did not, on the basis of its finding, prescribe a new formula or implement an interim formula. Instead, it established a transitional period. During this period the IRCs and WU will continue to operate under the current formula until the Commission's further order. Formula, 75 F.C.C.2d at 370-71. The Commission's finding that that formula is not in the public interest does not, therefore, presently affect the IRCs' conduct of their day-to-day business. 44 In light of this appraisal, we believe that immediate review of the Commission's finding would serve neither underlying interest of the finality requirement. The Commission has indicated that it will soon institute proceedings to provide a mode of distribution consistent with its new policy in this area. Thus, (o)ur review of the challenged action would interfere with an ongoing administrative process. Bethlehem Steel Corporation v. EPA, 536 F.2d 156, 161 (7th Cir. 1976). 18 We find no justification for this interference. As we have noted, they presently enjoy the protection of the current formula and will continue to enjoy that protection until the Commission has finally determined the appropriate mode of traffic distribution. We have no reason to believe that the IRCs will suffer from a prolonged state of uncertainty. 19 Instead, the Commission has clearly indicated its determination to reach a speedy resolution of the formula issues. See Formula, 75 F.C.C.2d at 371. Review at this juncture would, therefore, fail to accord ( ) proper deference to the role of the agency in the administrative scheme.... Western Union International, Inc. v. FCC, 652 F.2d 136 at 143 (D.C.Cir.1980). 45 Similarly, immediate review would disserve the interest in the efficient utilization of judicial resources. Id. In its contemplated proceedings, the Commission will establish a formula on the basis of its assessment of the relative interests involved and the information developed in the actual operation of new market conditions. This determination of the appropriate method of distribution will necessarily require the Commission to resolve the issue of its authority under section 222(e) to replace a prescribed formula with one premised on intercarrier contracts. The IRCs will thus have another opportunity to offer the interpretations of the restrictions imposed by section 222(e) which they presently urge in this court. 46 It may well be that these proceedings will afford the IRCs the relief they seek. The Commission could determine that section 222(e) does not authorize the contractual arrangements the Commission now contemplates. Similarly, the Commission may prescribe a new formula with which the IRCs are satisfied. The IRCs might then determine that they no longer desire further action by this court. On the other hand, if the IRCs obtain no relief from the Commission's ultimate prescription, they may then seek judicial review. Moreover, review at that time would be aided by a full record developed in the Commission's proceeding. The court would have before it the market data and further comments upon which the Commission bases its prescription, the Commission's interpretation and discussion of the relevant limitations imposed by section 222(e), and, if the Commission finally rejects the current formula, a more detailed explanation of that action. 47 Our review of the Commission's finding at this time would advance neither of the interests underlying the finality requirement. Moreover, deferral of that review imposes no injury upon the IRCs. We therefore conclude that the petitions of the IRCs are presently premature.