Document: 444 U.S. 572 100 S.Ct. 800 63 L.Ed.2d 36 SEATRAIN SHIPBUILDING CORPORATION et al., Petitioners,v.SHELL OIL COMPANY al. No. 78-1651. Argued Nov. 28, 1979. Decided Feb. 20, 1980. Syllabus Petitioner Seatrain Shipbuilding Corp. (Seatrain) received a construction-differential subsidy (CDS) under Title V of the Merchant Marine Act, 1936 (Act), to construct supertanker, and, as required by § 506 and petitioner Polk Tanker Corp., initial owner vessel, agreed operate it exclusively in foreign trade except otherwise authorized 506. When vessel was completed, petitioners asked Secretary Commerce terminate all restrictions on vessel's operation domestic exchange for their fully secured note repaying full CDS. The granted application. Thereafter, certain competitors (respondents) brought suit District Court seeking declaratory injunctive relief prohibiting from granting permanent release foreign-trade-only requirement. held, inter alia, that had authority permanently vessels imposed pursuant CDS repayment, but remanded case consideration competitive consequences question. Apparently relying Federal Rule Civil Procedure 54(b), court subsequently certified its decision "final judgment." Appeals reversed, concluding specifying exceptions requirement occupied field impliedly prohibited making any other Act's more general provisions. Held: 1. Court's determination empowered waive decision" certifiable 54(b) appealable 28 U.S.C. 1291, thus this has jurisdiction hear case. Although respondents' claim Secretary's waiver petitioners' an abuse discretion caused remand agency economic release, request declaration lacks grant circumstances finally decided meets case-or-controversy Art. III Constitution. Pp. 579-584. 2. Act empowers approve full-repayment/permanent-release transactions type at issue here. On face statute, broad contracting powers administer seem comprehend releases. specific speak only temporary releases requirement, nothing 506, or provision either expressly implicitly addresses revocation contract. Furthermore, legislative history does not demonstrate Congress intended rule out involved here, consistently concluded permits such 584-596. 194 U.S.App.D.C. 7, 595 F.2d 814, reversed remanded. Andrew J. Levander, Washington, D. C., federal respondents supporting petitioners. William E. McDaniels, Amy Loeserman Klein Stephen N. Shulman, respondents. Mr. Justice BRENNAN delivered opinion Court. 1 In 1972, $27.2 million 1936, 49 Stat. 1995, amended, 46 1151 seq., 225,000-deadweight-ton supertanker Stuyvesant. As 1156, affiliate, Stuyvesant, section. By time completed 1977, however, wanted trade. Accordingly, they lift Stuyvesant commerce secured, 20-year interest-bearing application, accepted promissory note, deleted applicable primary question is whether may when owners constructed with repay full. Columbia authority, Shell Oil Co. v. Kreps, 445 F.Supp. 1128 (1977). Circuit disagreed reversed. Alaska Bulk Carriers, Inc. 814 (1979). We certiorari. 442 940, 99 2880, 61 309 reverse. 2 * costs constructing ships American shipyards manning them crews are higher than comparable ports. taken number steps protect support United States' shipping shipbuilding industries. Jones 883, has, since 1920, reserved States built country owned citizens.1 1101 established programs help compete effectively staffed abroad. Specifically, authorizes up 50% cost ship country. subsidies 1156,2 agree will unless come within one two explicit statutory exceptions. Neither exception be invoked remits Government appropriate pro rata portion outstanding subsidy. 3 1969, began series supertankers former Brooklyn Navy Yard. venture substantial amounts aid. completion, Economic Development Administration (EDA) Department advanced $5 direct loan guaranteed 90% $82 loans sources finance modernization Yard facilities major on-the-job training program.3 Moreover, each four Seatrain,4 addition guaranteeing various construction loans. 4 third tankers.5 mid-1970's, while construction, demand decline wake Arab oil embargo, increasing crude prices problems ensued.6 there significant oversupply tankers world market no opportunity fledgling Foreseeing problem, begun explore prospects employing transportation Alaskan Valdez around Cape Horn Eastern Caribbean. This relatively new sizeable tankers, restricted American-flag vessels7 remained high despite abundance suitable vessels. 5 mid-1977, executed agreement Standard Ohio (SOHIO) 3-year charter use conditioned upon Polk's obtaining restriction obtained end August8 form letters Queensway Tankers, Inc., proposed operator vessel. Those recited findings which based decision. These were: (1) were opportunities employment (2) SOHIO would strengthen collateral securing obligations guaranteed, (3) might prevent default those obligations, (4) failure proposal jeopardize continued Seatrain.9 6 complex closing several necessary repayment CDS, refinance transfer operators scheduled September 23, 1977. 22, respondents, three trade, against officials. complaints sought requirement.10 They argued lacked that, even if do so cases, should have been exercised regard addition, alleged violations procedural requirements Administrative asserted without power accept Petitioners permitted intervene defendants. 7 November ruling parties' cross-motions summary judgment, held could releasing analyzing effect entry into discretion, existed material issues fact made judgment portions improper. decision.11 Eight days later, motion amended dismissing and—relying Rules Procedure—certifying judgment."12 8 Respondents appealed final divided panel U.S.App.D.C., 15-22, F.2d, 822-829. Judge Bazelon dissented, id., 33, 840, stating he hold did limit regard. He observed after interest precisely same footing unsubsidized fleet. II 9 met outset contention we lack Raised first footnote petition rehearing Appeals, argument 30 order purposes 1291 because permitting enter trade.13 Respondents, parties assert, relief—an barring competing own legal theories prayer, general—that 506—and particular some circumstances, exercise discretion. remand, continue, termination unwise. Alternatively, adhere original administrative then courts. case, argue, sought. " 'en[d] litigation merits leav[e] execute judgment,' Coopers & Lybrand Livesay, 437 463, 467, 98 2454, 2457, 57 351 (1978), quoting Catlin States, 324 229, 233, 65 631, 633, 89 L.Ed. 911 (1945), decision." result, concludes, 30, therefore 10 difficulty misapprehends nature least commenced litigation—that Trinidad Corp.14 Fairly read, complaint seeks competition also permit assistance save narrow specifically mentioned statute itself. regard, future -like sister ship, Bay Ridge.15 It stated harmed "and CDS-built respect . likewise operating action stand."16 And prayer relating theStuyvesant itself, injunction amending contracts taking restrictions, deemed necessary.17 There were, short, claims quite different sorts sought.18 11 reply brief, attempt answer separate asserting them—the release—the Constitution satisfied. Terming "abstract" "hypothetical," maintain advisory opinion, stand alone. disagree. our satisfies apart fate First, horizon similar well granted—the Ridge. Built yard purpose, faced plight, likely solution plight sought, Ridge prime candidate prospect sufficient create live controversy. respect, present very Golden Zwickler, 394 103, 106-107, 109-110, 956, 958-959, 960-961, 22 113 (1969), rely. Second, clear evidence willingness cases lawful. speculative about assertion restrained given benefit authoritative law Court, waivers future.19 Compare Steffel Thompson, 415 452, 459, 94 1209, 1215, 39 505 (1974), 476, 1224 (concurring opinion), O'Shea Littleton, 414 488, 493-498, 669, 674-677, 38 674 (1974).20 third, itself contributes concrete controversy between agency. practical matter, operates depend almost entirely outcome litigation. determined review existing improper, both remain wings change. conclude respecting III. 12 Having claims, courts below, need appeal comported Procedure.21 That states relevant part "[w]hen presented fewer express just reason delay direction found prior directing claims.22 1291. 13 Prior assisted maritime industry ways: provided low-interest aid destined appropriated large money oceangoing mail contracts—amounts considerably excess actual clearly shipping.23 effort successful. Loan difficult secure, few constructed, hidden proved unwieldy being somewhat disingenuous.24 14 1935, President Roosevelt subterfuge adopt forthright sensibly tailored program subsidize stimulate shipbuilding. result 1936. Its basic goals set forth 101, 1101. declared policy "to foster development encourage maintenance" effective merchant marine capable meeting Nation's commercial military needs. fleet modern efficient. supported repair facilities.25 15 oversee administration Act. Thus, called undertake survey marine, needs, long-range 210, 1120. directed investigate keep current records essential routes lines ports, bulk-cargo carrying service requirements, needs types routes, here abroad, shipyard conditions, designs technologies. 211, 1121. devise means encouraging improving collaboration shipbuilders. 212, 1122. "enter contracts, behalf may, his carry activities chapter, protect, preserve, improve [Federal Maritime] Commission secure indebtedness, manner private corporation contract scope conferred charter." 207, 1117. 16 Central scheme creation arsenal efforts make competitive. Included program, VI, 1171 seq.; directly acquire reconditioned sell them, VII, 1191 guarantee XI, 1271 lies core litigation, V, seq.26 Again, administering these substantial. 17 recognized limits placed subsidized trade.27 Any disastrous (and is) reserved. Burdened costs, greater debt, expenses, simply unable enjoying benefits 18 congressional response problem relates §§ 506.28 Basically, section confines recognized, rigid prohibition impractical—incidental segment voyage efficient, arise flexibility desirable. cargoes leg voyages authorize actually six months less year finding "necessary chapter." ensure complete equal similarly employed, allocable activities. 19 view marked logic, detail, history, majority reasoned, prohibits like before us. consequence, sweep balance irrelevant, language giving amend contracts29 unimportant, arguments unpersuasive. 20 urged Indeed, further protecting Government's position guarantor financial changes survive. Further, hard pressed find anything suggests forbidden sort circumstances. Certainly manacles require reached below. Rather, mandates move narrowly circumscribed conditions. speaks draft posed logical pose completely free depart extraordinarily favorable situation proportionate amount whenever so. Absent ability other, formidable force both, advantage every shift profitability, skimming cream leaving what remains mobile. could, real sense, best worlds.30 21 Section responds enjoys outside generally highly discretionary decision, year. doubt flatly inconsistent intent conditions proper. But different. irrevocably locates poses danger supercompetitor market. creates long-term instability. confers windfall. contrary, where includes reflecting capital incurred available,31 transaction merely once already purpose prohibit entry, accordingly "nothing [or] contract." F.Supp., 1135 (emphasis original). turn now Appeals' concerning demonstrates addressed us affirmatively issue. At most, ambiguous, puzzling. 23 begin version originally enacted sentence unlawful incidental Maritime consent long "an bears proportion theretofore paid remaining life entire life." second "emergency" "service exclusive trade" during emergency period limited months. specified operated repayment.32 seems abundantly requirement: tasks (sentence one)—in required, three), unamortized one),33 emergency, two). 24 1938, rewritten substantially form. objective rewriting first, suggesting second, authorizing 3-month altered eliminating changing requiring repayment. substance, left unchanged. 25 contend embodied considered permitted. rely considerable extent comments Joseph P. Kennedy, Chairman Commission. During hearings measure follows: 26 "Section remove ambiguities confusion. provides can engage enumerated excepted services, services provisions appear give right ones, consents repays Whether periods section, determine."34 27 ambiguity referred concluded, hinted quoted remarks—whether "right ones" emergencies. resolved, goes, delete rewrite "right" Kennedy told, intention bar "unmistakably manifested." 829. unmistakable snippets exceedingly curious. place, scarcely possible thought ambiguous apparently Kennedy. noted, reading mechanism calculation due.35 indication alterations claimed. House Report "[n]o fundamental change effected,"36 Senate Report, tracking Kennedy's comments, identify effected amendments "perfectly must engaged ."37 here.38 29 go far assert confidence deletion authorization contained half inadvertent. Rather unsure precise significance deletion. What represent permanent-release/full-repayment prohibited. IV Our conclusion forbid buttressed additional factors. interpreted arrangements.39 1964 Grace Line removal trade.40 late 1976 early 1977 conditional requests employed Virgin Islands concerned classified informed obtain eventuality occur.41 While agency's rationale always persuasive,42 wavered understanding consistent 31 More importantly, 1971 1972 contemplated challenged 1104(a)(3), 86 911, 1274(a)(3), added proposed, financing "any payment [that] ."43 enacted, include restrictions. Committee explained 32 "In instance special play paragraph. Your questions desirability legislation deal unusual situation, feels XI extended instances repayments frequent deleting [relating restrictions]. paragraph way extend affect application Act."44 33 92d clear. views subsequent Congresses cannot override enacting one, Teamsters 431 324, 354, n. 39, 97 1843, 1864, 52 396 (1977), entitled weight, NLRB Bell Aerospace Co., 416 267, 275, 1757, 1762, 40 134 particularly obscure. 34 conclusion, exists note. open remand. 35 Reversed Some predates century. See, e. g., Mar. 1, 1817, 351. See G. Gilmore C. Black, Law Admiralty 963, nn. (2d ed. 1975). 1999, "Every shall round-the-world voyage, round west coast European port ports intercoastal Atlantic Orient stop State Hawaii, island possession territory above-enumerated pay annually one-twenty-fifth gross revenue derived preceding writing covered exceeding year, determine chapter. Such Secretary, terms prescribe, No operating-differential period." invested $38 funds project. Williamsburg, initially layup. App. 112. bearing fourth, infra, 580-582. $30.2 Similar available Ridge, $28.8 guarantees $34.5 million. drop tanker halt 1975—a necessitated layoff most shipyard's 2,500 employees virtually shut facility down. reopened resumed EDA bank $40 From lookout 883; supra. month, permission coastal years withdrawn strong protests prospective competitors. Letter James S. Dawson, Jr., Administration, Aug. 31, 530. Two filed, consolidated proceedings January 6, 1978, oral Appeals. continue shortage foreseeable little adverse Id., 568-569. filed challenging findings. dismissed prejudice following 558-559. "[t]he appeals decisions district ." Carriers reproduced 45-63. Complaint &Par; 42, 57, 61-62. ¶ 41, 61. 62-63. 6-17. focuses characterization presenting single theories. event, alternative bases presence makes inquiry unnecessary. not, course, unrelated. particular, disposition leave press one. contrary proposition, true. strongly resolution lawfully practice supports well. 595. Abbott Laboratories v Gardner, 387 136, 152-154, 87 1507, 1517-1518, 681 (1967). recognize purporting comply render final. Liberty Mutual Ins. Wetzel, 424 737, 742-743, 96 1202, 1205-1206, 47 435 (1976); Sears, Roebuck Mackey, 427, 435, 76 895, 899, 1297 (1956). properly applied actions multiple raised. condition satisfied reliance misplaced. liability disposed none plaintiff's prayers relief. applicable. Here, them. All proceeded though although later motion. Brief 36, 26. H.R. Doc. 118, 74th Cong., 1st Sess., 1-3 (1935) (message President). measures aimed supra, 574-575, 3-19 (Report Postmaster General). 1985, "It national defense (a) water-borne export import provide maintaining flow times, (b) serving naval auxiliary war (c) flag citizens insofar practicable, (d) composed best-equipped, safest, vessels, manned trained efficient citizen personnel, (e) supplemented repair. maintenance marine." dealing 501, 1151, gives process, accept, reject applications. Sections 502 504, 1152, 1154, him selling corresponding letting owner-operator remit take title directly. sections calculating subsidies, limitations sale, requirements. 503, 1153, requires documented laws spells 505, 1155, materials used see 2, contains provided. Interdepartmental Shipping Policy). H.R.Rep.No.1277, (describing 1935 noting "in repaid proportionately ."). 504 contracts. discussion text regardless restrict exit heightened fail equalize borne commerce. formula compensate pay. To oversimplified example, compare hypothetical commerce, $100 million, 10% loan, $50 loan. 6-month (1/2 x million). latter $2.5 million) $1.25 (6/240 (months' useful life) expenses less, posture formidable. importance page, 31. avoided highlighted Bazelon's dissent 15, 843, intends seek reasonable interest. Parties 54, 59. Failure raise serious inconsistency thrust entirety title, receive written Commission, (excluding national-defense features hereinbefore provided), life. If arises which, warrants transfer: Provided, differential duration period, exceed Every contractor receiving engages loads discharges cargo passengers one-twentieth protected year." conceded exception, reluctantly followed suit. 19, 43, 826, 43 (citing history). admits interpretation. necessarily life—for constitute subsidy, halfway through life, etc. hardly conceivable contemplated. Amending 1936: Hearings 8532 Fisheries, 75th 2d 3d (1937-1938). H.R.Rep.No.2168, (1938). 37 S.Rep. 1618, Similarly, "the defined." 21. argue troubling proportional permanent-release Interestingly, spokesmen carriers who testified suggested substitute "prohibiting subsidized, service." 3078 Education Labor, pt. p. 44 (1937). precedents listed Affidavit 164-166. Comptroller General Decision B-155039, Comp.Gen. 180 (1964). distinguish precedent grounds rather convert container. relevance distinction. 41 165. 42 35, 842 (dissenting criticizing case). 9756, (1971), U.S.Code Cong. Admin.News, pp. 3851, 3859. H.R.Rep.No.92-688, (1971).

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