Legal Document

510 U.S. 355 NORTHWEST AIRLINES, INC., ET AL.v.COUNTY OF KENT, MICHIGAN, AL. No. 92-97. Supreme Court of United States. Argued November 29, 1993. Decided January 24, 1994. Respondents, the owner and operators Michigan's Kent County International Airport (collectively, Airport), collect rent fees from three groups users: commercial airlines, including petitioners (Airlines); general aviation; concessionaires such as car rental agencies gift shops. The allocates its air-operations costs—e. g., maintaining runways—to Airlines aviation in proportion to their airfield use, terminal maintenance costs concessions each tenant's square footage. It charges 100% allocated costs, but only 20% costs. concessions' rates substantially exceed yielding a sizable surplus that offsets shortfall has swelled Airport's reserve fund by more than $1 million per year. After Board Aeronautics unilaterally increased Airlines' fees, they challenged new rates, attacking (1) failure allocate any concessions, (2) generated fee structure, (3) charge They alleged these features made unreasonable thus unlawful under Anti-Head Tax Act (AHTA)—which prohibits States subdivisions collecting user 49 U. S. C. App. § 1513(a), other "reasonable charges, landing service aircraft for use airport facilities," 1513(b)—and Airway Improvement 1982 (AAIA). also asserted treatment discriminates against interstate commerce favor primarily local traffic, violation Commerce Clause. District held, inter alia, have an implied right action AHTA, not AAIA, no cause Clause, are AHTA. Appeals affirmed principal part, held had misallocated cost providing "crash, fire, rescue" (CFR) services. Held: 1. declines decide whether there is private AHTA assumes, purposes this case, exists. A prevailing party may defend judgment on ground properly raised below, without filing cross-petition, so long seeks preserve, change, judgment. did cross-petition CFR issue it lost resolving would alter portion Pp. 364-365. 2. been shown be 365-373. (a) sets standards determining fee's reasonableness. In absence guidance Secretary Transportation, adopts parties' suggestion resolve reasonableness using stated Evansville-Vanderburgh Authority Dist. v. Delta Airlines, Inc., 405 707, Although Congress enacted because found unsatisfactory end result Evansville—the validation "head" taxes—§ 1513(b) permits "reasonable" Evansville formulation used determine "reasonableness" related contexts, see, e. American Trucking Assns., Inc. Scheiner, 483 266, 289-290. Thus, levy here reasonable if based some fair approximation facilities' excessive relation benefits conferred, does discriminate commerce. Evansville, supra, at 716-717. 365-369. (b) decision aviation, appears "reflect fair, imperfect, facilities whose benefit imposed." S., While those operations generate customer flow and, thus, actually runways navigational facilities. Accepting Court's finding were charged break-even concludes question "excessive comparison with governmental conferred." Id., 717. Nor methodology generates large surpluses. Since applies "aircraft operators," authorize judicial inquiry focused fees. rejects argument should take into account concession revenues, Seventh Circuit 1984 decision, when deciding reasonable. overlooked Department Transportation's regulatory authority regarding federal laws. view Department's authority, courts offer substitute conventional public utility regulation. AAIA directly addresses do suggest misused funds seek review lower courts' ruling action. Finally, record case support travel. There proof diverse population served travels typically intrastate seldom ventures beyond borders. 369-373. 3. violate "dormant" Even AHTA's express permission States' imposition insufficiently clear rule out dormant Clause analysis, already standard taken jurisprudence. 373-374. 955 F. 2d 1054, affirmed. GINSBURG, J., delivered opinion Court, which REHNQUIST, STEVENS, O'CONNOR, SCALIA, KENNEDY, SOUTER, JJ., joined. THOMAS, filed dissenting opinion, post, p. 374. BLACKMUN, took part consideration or case. 1 CERTIORARI TO THE UNITED STATES COURT APPEALS FOR SIXTH CIRCUIT. 2 Walter A. Smith, Jr., argued petitioners. With him briefs was Jonathan Franklin. 3 William Hunting, respondents. brief Mark Allard, Robert Buchanan, Michael M. Conway. 4 Edward DuMont amicus curiae urging affirmance. Solicitor General Days, Assistant Attorney Hunger, Deputy Wallace, Kanter, Christine N. Kohl, Paul Geier, Dale Andrews.* 5 JUSTICE GINSBURG Court. 6 Seven assert certain them discriminatory, (AHTA), 1513, Because record, now stands, warrant determination unlawfully we affirm Appeals. 7 * 8 contested Grand Rapids, Michigan. owned respondent operated respondents Airport). Petitioners seven airlines serving (the Airlines). 9 collects petitioners; "general aviation," i. e., corporate privately commercial, passenger, cargo, military service; nonaeronautical concessionaires, agencies, parking lot, restaurants, shops, "rent-a-cart" facilities, small vendors. 1968, set pursuant "cost service" accounting system known "Buckley methodology."1 This designed particular services use.2 10 Under system, first determines operating passenger terminal, among users Costs associated (e. facilities) airfield. No concessions. tenants— concessions—in footage.3 11 then establishes group. them, form (for airfield), space occupy).4 however, rate. recovers group gallon fuel flowage elsewhere. These aviation. 12 "undercharges" At same time, measured vastly "overcharges" pay cost-based foot rate space. market space.5 Market yield surplus.6 approximately $525,000 year, B 13 Using methodology" just described, periodically negotiated agreed upon through December 31, 1986. Following study 1986, proposed beginning 1, 1987. 193 (Plaintiffs' Exh. 6). objected higher failed reach agreement Airport. Ultimately, adopted ordinance increasing fees.7 On effective date ordinance, April 1988, sued Airport, challenging post-December rates. attacked features, alleged, imposed added, 87 Stat. 90, amended, (AAIA), 96 686, 2210. Const., Art. I, 8, cl. 14 parties cross-motions summary opinions, denied motions, holding se unreasonable. Pet. Cert. 57. second challenge 42-46. bench trial, issued third final concluding 738 Supp. 1112 (WD Mich. 1990). 15 Sixth part. 1054 (1992). accord impliedly confers not. 1058. merits, upheld bulk imposes rejected claim regulates area. 1060-1064. 16 one matter, reversed remanded Supp., 1119. Emphasizing all aircraft, must between 2d, 1062-1063, 1064. 17 Petitioning review, Appeals' adverse rulings issues. Circuit's extent favored Airlines; specifically, petition remand allocation We granted certiorari, 508 959 (1993), conflict Circuit, Indianapolis 733 1262 (1984), declared key parts similar structure II 18 707 (1972), prohibit municipalities charging "head tax" passengers boarding flights airports within jurisdiction, defray construction maintenance. Evansville: "At least toll privilege ... neither discriminatory nor will pass constitutional muster, even though formula might reflect exactly relative state individual users." 19 Concerned our prompt proliferation taxes burdensome air transportation, See Aloha Director Taxation Haw., 464 7, 9-10 (1983) (summarizing history enactment); Rep. 93-12, (1973) (Congress intended "ensure `head' permitted inhibit commerce."); id., ("The head tax cuts grain traditional travel States."). provides pertinent part: 20 "(a) Prohibition; exemption 21 "No State (or political subdivision thereof ...) shall tax, fee, charge, indirectly, persons traveling carriage sale transportation gross receipts derived therefrom.... 22 "(b) Permissible 23 "[N]othing section collection enumerated subsection section, property taxes, net income franchise sales goods services; nothing owning levying facilities." 1513. 24 Primarily, urge overcharge Before reaching issue, face threshold question. less strenuously, enforce commenced court instance. Instead, maintain, complaints pursued initially administrative proceedings before subject appeals. 25 substantial: If immediate access dismissed, adjudicated merits was, indeed favorably Airlines. However, certiorari seeking upset (100% Airlines) inconsonant For reason, decline 26 need See, Thigpen Roberts, 468 27, 29-30 (1984). required, below. Trans World Thurston, 469 111, 119, n. (1985); New York Telephone Co., 434 159, 166, (1977); Federal Energy Administration Algonquin SNG, 426 548, 560, (1976); ITT Continental Baking 420 223, 226-227, (1975). Alteration order resolved then, entire undone, remanding reallocation file issue—the loser—thus leads us resist plea declare unfit adjudication.8 27 statute creates relief jurisdictional. Air Courier Conference Postal Workers, 498 517, 523, (1991); Burks Lasker, 441 471, 476, (1979); Mt. Healthy City Bd. Ed. Doyle, 429 274, 278-279 Bell Hood, 327 678, 682 (1946). Accordingly, assume, solely 28 "fee" "other charge" "directly indirectly" "persons commerce." 1513(a). Landing sort fit 1513(a)'s description. As confirmed invalidating airlines' receipts, compass limited direct taxes. 12-13. 29 But 1513(a) stand alone. That subsection's prohibition immediately modified 1513(b)'s permission. Wardair Canada Florida Dept. Revenue, 477 15-16 (1986) (Burger, concurring judgment) (§ saving clause response concern "sweeping provision unobjectionable ..."). Sections together instruct permissible if, that, fall clause, removes ban facilities."9 30 allows charges," assessing Courts, recognize, scarcely equipped oversee, initial superintendence agency, structures practices. Colorado Interstate Gas Co. FPC, 324 581, 589 (1945) ("Rate-making essentially legislative function."); cf. Far East States, 342 570, 574 (1952) ("in cases raising issues fact experience judges requiring exercise discretion, created regulating matter passed over").10 Transportation administering laws, AHTA.11 His equipped, not, survey field nationwide, regulate full relevant facts circumstances. Secretary's reasoned concerning question, substantial deference. Chevron Natural Resources Defense Council, 467 837, 842-845 Lacking Secretary, compelled give effect statute's "reasonable," look 31 point employs measure see 362-363; invite baselines AHTA.12 accept suggestions. analysis taxes—Congress specifically permitted, charges."13 contexts. 289-290 (1987) (applying test assess validity applied motor carrier); Massachusetts 435 444, 466-467 (1978) constitutionality intergovernmental immunity doctrine). suffice purpose hand.14 32 To recapitulate, contend fails main counts. consider contention turn. 33 noted above, supply lion's share 360, none substantially, albeit operations, flow. Therefore, urge, airfield-associated violates Evansville's requirement "based use." sought change market-based paid 34 obvious Only Airport; according accounts distinction 716-717.15 35 (with minor exception16) "the areas 1119.17 light, cannot conclude Brief Amicus Curiae ("As airport's carriers revenues margin servicing carriers, normally sustain law.") (citing Aviation Administration, Compliance Requirements, Order 5190.6A §§ 4-13, 4-14, pp. 20-22 (Oct. 2, 1989), 399.110(f) (1993)). 36 because, imposing virtually exacting far excess huge amount surplus. requires "be incurred taxing authorities" conferred user. 719. explained, receive. amounts issue. pointed out, operators." 1060. 37 reasonable, pointing 1268 (invalidating ground, generation indirectly travel). factor. explicitly incorrect premise "[n]o agency over practices Authority." Ibid. panel believed duty regulation [fell] enforcement statutes forbidding rates." thought necessary "imagine [itself] role agency." contrast, emphasizes 366-367, 11, "conventional regulation," 1268. 38 inferring limit surpluses further reason. mention accumulation, another statute, revenues. "all expended capital airport...." 2210(a)(12) (emphasis supplied). Airport-related expenses, AAIA. 1058-1059. reasons, read impose accumulation 26-27, us. 39 instruction tolls nondiscriminatory earlier recounted, 359-360, while assessed covering 40 compelling established categorized Cf., Chemical Waste Management, Hunt, 504 334, 339-348 (1992) hazardous wastes outside, disposed inside, State, discriminated commerce); 268-269 highway carriers). suffices say, argument. total proof, borders.18 III 41 considered 1513(b), clear19 analysis,20 petitioners' fail. lens Evansville—that is, 42 43 reasons stated, prejudging outcome eventual proceeding 44 ordered. 45 BLACKMUN Notes: Briefs ofamici reversal Transport Association America Mary E. Downs; Thrifty Rent-A-Car System, Randall J. Holder Nancy Glisan Gourley; Associations, Andrew L. Frey, Pincus, Daniel R. Barney, Digges, Jr. amici affirmance Hampshire et al. Jeffrey Howard, Hampshire, Monica Ciolfi, General, Grant Woods, Arizona, Lungren, California, Butterworth, Florida, Bonnie Campbell, Iowa, Carpenter, Maine, Frank Kelley, Michigan, Joseph P. Mazurek, Montana, Frederick DeVesa, Acting Jersey, Heidi Heitkamp, North Dakota, Barnett, South James Wisconsin; Los Angeles K. Hahn, Gary Netzer, Breton Lobner, Steven Rosenthal, Anthony Press; Aircraft Owners Pilots John Yodice; Airports Council International-North Patricia Hahn; Executives Scott Lewis; National Business Association, Raymond Rasenberger; Mayors Richard Ruda. Buckley, Rental Fee Recommendations (Feb. 1969), 223-275 "residual cost" systems base airport. asAmicus 5. lot itself material dispute services, amortization assets acquired Most 10% example, annual 1987 1989 ranged $1.6 $1.9 million. Exhs. 301 355) $.20 thousand pounds, $6.67 prime heated air-conditioned space, $.59 nonprime $1.84 nonprime, heated, non-air-conditioned decreased $.12 pounds. 1112, 1115 1990) Berkemer McCarty, 420, 435, contrary. respondent's criminal conviction, postarrest incriminating statements inadmissible Miranda 384 436 (1966). he prevailed Appeals, obtaining entirely his favor, could cross-petition. prearrest (whose admissibility left ambiguous) defense argument, accepted dissent, outside scope advances untenable reading statute. note, regard, recognition, "taxesother services" added). Unlike listed described (a)." sum, hardly ambiguous matter: User covered saved 1513(b). referred, prior court's consideration, primary jurisdiction doctrine. doctrine "specifically applicable claims cognizable contain special competence agency" make "`referral' staying opportunity ruling."Reiter Cooper, 507 258, 268 (1993). briefed invoke here. Act, encompasses authorizes conduct investigations, orders, promulgate regulations implement 1354(a). mechanism adjudication, appeals, violations. 1482(a) ("[a]ny person complaint writing respect anything done omitted contravention provisions [the Act], thereto"); 1486 (judicial provision). procedures adjudicating pt. FAA entertained challenges SeeNew England Legal Foundation Port Authority, 883 157, 159-166 (CA1 1989). 20, 22-23; Reply 3-4; Respondents 32; 23-29 (arguing satisfied endorsing application). Contrary dissent's suggestion, applyingEvansville's permit "impos[e] modest Post, 380. Section written broadly, whereas narrow, charges." impermissible categories here, "rental prohibited "fee[s]" charge[s]" unless "reasonable." 365-366. remains open utilizing capacity comprehend details across country, economics industry, apply (including entails rigorous scrutiny) meaning AHTA; exposition merit approbation represents "a statute."Chevron 718-719 (airports lawfully distinguish classes users, differing uses facilities);Denver Lines, 712 834, 838, 839 (Colo. 1989) (rejecting noting: "Nothing indicates act commission intervene setting adoption rejection type methodology. Denver's division facially approach establishing collected Stapleton [Airport]."). overcharged ordered "to recalculate true charge." 1120. appeal assert, "carrying charges" improvements. addressed contention, "is present value exceeds [capital improvements] project." 1063 (CA6 1992). disturb develop demonstrating discrimination 9-10, 14. fly. proceed trial claim. thatEvansville's governs own theory, demonstrate equivalent Clause—i. commerce—in prevail trial. belated suggestion—which contradicts endorsement 22-23—that unimpressive. Evansville; Congress' enacting proscribe unduly burden (1973). Covered emphasized, include, to, 365-366, 9. See,e. Wyoming Oklahoma, 502 437, 458 (requiring "manifest unambiguous intent permit" discriminating commerce). Merrion Jicarilla Apache Tribe, 455 130, 154 (1982) ("Once acts, free When struck balance deems appropriate, longer needed prevent burdening commerce, matters invalidate congressional action."). 46 dissenting. 47 Today transforms statutory narrow class broad mandate I disagree carrying (AHTA Act), believe merely bases specified leaves restrictions respectfully dissent. 48 recognizes, ante, 362-363, capita ("head") travelers. deal wake decision. 9, (1983). Two governments therefrom." states "nothing Act]" "taxes (a)," including, things, 50 view, 365 ("Landing description"), "saves" 366, ("[U]ser 1513(b)"). supports noting receipts. Ante, 12-13). That, obvious. expressly "on derived" transportation. mere strictly Act's target, 13, way suggests encompass "user fees." 51 sure, apparently commerce," etc., superficially interpretation. Any airline bears sense "indirect" ultimately consumers ticket prices. covers travelers, believes, 365, logically well, Yet instructs 1513(a)—that (Emphasis added.) Significantly, phrased otherwise prohibition, rather clarification makes language defining extend force language, two appear conflict. 52 Recognizing significance implicitly acknowledges cover can accomplish assuming treats facilities" differently understanding, clarifies serves altogether different function prohibition. describe distinct ("other than") unlikely means inexplicably quite (and limited) None although borne passengers, constitute "tax, [levied] etc. airline, charge...." regardless basis imposed. 53 Adherence plain avoids problems. my of" persons, transportation," therefrom," defines terms charge. "on" subjects. commerce" basis. not—rather, aircraft's airport, regard number carries.1 54 confirms concerned calculated. Property explained included restricts well seems logical referred generally calculated similarly 55 reference simply remain proscribed Cf. 12, ("Section pre-empts [and] [§]1513(b) still `taxes (a)'"). say term superfluous. Had unqualified indication invalid Maine Taylor, 131, 139 (1986). An understood supra. By ensured displace exempt short, encompassed consistent jurisprudence.2 56 considerable difficulty content signal intend comprehensive admits, 366. Finding source definition, reasonableness, want better. 367-368. recognize perfect (but "will hand," 368), good Reasonableness several factors nondiscrimination separate equal importance. Moreover, acknowledges, precisely "unsatisfactory." 368. 57 Nevertheless, reads reason (after enactment AHTA) occasionally agree standard, mean correct one. somewhat odd import very problem ostensibly "correct." Indeed, construes it, fail most clearly forbids. (assuming, does, standard). interpretation facilities.3 Such muster therefore "saved" 1513(a).4 doubtful "unreasonable" whatever be, permitting "Evansville-reasonable" operators. If, implies, disapproved likely undisturbed prohibiting what 1513 does. 58 Having admits invites devise different, presumably better, term, defer Act.5 368, Given "reasonableness," difficult imagine how assume could, expertise, permissive standard. minimum. sees, certainly expression intention area, 139, either restrictively (1982). find gives unbridled discretion 59 foreclose Clause.6 interpreted precluded 1063-1064 1992); G88-243 CA Mich., Jan. 19, 1990), 46a. given instance, remand. 60 Of course, notes,ante, excluded Act. replace forbidden "landing fee" airplane. thinly disguised doubt where weight airplane, 194 Trial 6: Fees Use Public Facilities Passenger Terminal Premises, Three Years Beginning (Dec. 1986)). Similarly, footage, ibid., depreciation asset, 68-70 (trial testimony Dompke), Other see,e. g.,49 2210, applicability Presumably, save exacted refers "from answer does,ante, [also] 1513(a)." why Head 710, 714 (1972) (upholding "service "use facilities"). promulgated judging inquiry, surprising, thinks years since Nor, places variety conditions funding airports, relate flat prohibitions, "`unmistakably clear'" ClauseMaine AAIA's predecessor, preclude analysis. 721.

Classification Label: 9