Legal Document

420 U.S. 184 95 Supreme Court Reporter 909 43 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 121 INTERSTATE COMMERCE COMMISSION, Appellant,v.OREGON PACIFIC INDUSTRIES, INC., et al. Number 73—1210. Argued Nov. 20, 1974. Decided Feb. 19, 1975. Syllabus Service Order 1134, promulgated by the Interstate Commerce Commission (ICC) without notice or hearing pursuant to its emergency powers under § 1(15) of Act, which limited holding time lumber cars at reconsignment points five working days and subjected shipper car such for more than that period sum rates from origin, hold point, destination, held within ICC's power avoid undue detention freight used as places storage, during an shortage ICC, exercising expertise, found exist. Pp. 187-191. 365 F.Supp. 609, reversed. Charles Haw. Hawai‘i KFH45 A2 White, Jr., Washington, D.C., appellant. Seymour L. Coblens, Portland, Or., appellees. Opinion Mr. Justice DOUGLAS, announced Chief BURGER. 1 This is appeal a judgment three-judge District Court, 28 Code KF62 1253, invalid order promulgating Order1 amended, 41 Statutes-at-Large 476, 49 1(15).2 Oregon Pacific Industries versus States, 609 (Ore. 1973). 2 Lumber often moved market on wholesalers' sale-in-transit schedule. Cars are sent points, where in orders received shipment customers wholesalers. The tariffs allow indefinite holding, subject demurrage charges excess 24 hours, but these never discouraged shippers lengthy cars. In 1973 there was, according Commission, transportation 'emergency' required 'immediate action promote service interest public commerce people.' Accordingly, May 8, 1973, sua sponte, hearing, entered 1134 (120 hours), exclusive Saturdays, Sundays, holidays. If were longer days, privilege would be lost local joint tariff point origin ultimate destination. 3 four categories could take 1(15): 4 '(a) suspend . rules, regulations, practices then established with respect ., '(b) make directions will best (and provide compensation between carriers). SU '(c) require common use terminals, 5 '(d) give preference priority ..' 6 Commission's authority (b), (c), (d) not support this case sustained, if all, only (a). It concluded (a) was adequate since challenged did 'suspend' any rule regulation 'with service.' reasoned 'condones practice sales-in-transit' requires employing pay higher rate carriers prior order. That view, having no place 1(15), gives act sponte narrow group cases. F.Supp., 612. 7 pointed out 1(10) defines 'car service' 'the movement return property carrier railroad'; it emphasized "car connotes vehicles put (by carrier); rendered means them,' 611; Peoria & P.U.R. company 263 528, 533, 44 194, 68 L.Ed. 427. We Allegheny-Ludlum Steel Corp., 406 742, 743, 92 1941, 1944, 32 453, rules dealt management 'a single pool' 'used all roads,' they pertain railroad Since 'railroad use' involves shippers, we think read too narrowly. 8 noted traces back Each Car Act 1917, 40 101.3 U.S., 744, S.Ct., 1944. warehouses—the prompted present case—was one evils original aimed. 9 Esch, sponsor legislation, said:4 10 'Another cause part themselves, using species warehouse, instead promptly unloading it. N Dec. Immigration Nationality Decisions quite universal evil throughout due some measure lack warehouse elevator facilities terminals. 11 'Mr. MADDEN. gentleman yield me, like ask him question. provision bill compel companies failed furnish goods? 12 ESCH. reciprocal demurrage? 13 right authorize them charge certain he fails unload car. Ought have claim against fail cars? doubt proposed amendment, emergency, commission regulations saw fit transit freight, because very broad, necessarily so.' 14 And clear aim 'to end may receive possible transportation.'5 shortages, found, resulted short supplies basic foods markets attendant high prices.'6 interests consumers—not alone—were much fore-front. 15 As noted, Co., supra, extends 'use' 'transportation service,' issue whether bound perform switching services another carrier. not; over cars, however, left undisturbed. connection obvious rail does 'rent' vehicle truck. 'used' carriers, who naturally requests shippers. cannot efficiently serve needs consumers warehouses. 16 Turner, Dennis Lowry Chicago, M. St. P.R. 271 259, 46 530, 70 934, prevent 'undue detention' 'loaded reconsignment' fixed notice. speaking through Brandeis, upheld saying: 'All double purpose. One secure track occupies. other efficiency providing deterrent detention.' Id., 262, 531. Inversen 63 1001, aff'd per curiam, 327 767, 66 825, 90 998, limiting privileges specific number destination.7 item 'rule' respecting meaning 1(15). Iversen implicit Turner.8 17 suggested effect 'fix' emergency—a covered precise raised Iversen, 1006, ruling, affirmed, contra. Suspending changing increase charges; but, Turner makes clear, dual purpose; enough said times 'as either destination long while seeking goods stored therein.' substitution already file old unreasonable method accelerating purpose Order; 'emergency'9 say record before us. Insofar appellees raise questions unfairness, precluded opinions Holmes Avent 266 127, 45 34, 69 202, Brandeis disposed process therefore had promulgate summarily.10 18 Reversed. 19 POWELL, concurring. 20 am agreement Court's opinion s summarily litigation. believe, addition reversing should direct remanded prompt proceeding 1(14) Act. 21 notice, opportunity interested parties submit evidence grounds objection. 22 '(A)n exists requiring immediate people. finds procedure impracticable contrary 23 counsel stated oral argument problem has history, response particularly sharp temporary severity problem. Counsel acknowledged, subsided been maintained largely litigation.1 Summary justified need imminent severe harm, harm avoided delayed. authorizing type action, Congress implicitly avoidance justifies bypassing normal procedures. But justification summary ends called forth. 25 No reason given us why procedures now followed.2 Although do full adversary must parties, object, evidence, briefs their position. Florida East Coast R. 410 224, 93 810, 35 223 (1973); 453 (1972). 26 reversal decision, more, result vacating October 18, restraining enforcement 1973. Absent apparently remain effect. unfortunate leave posture. proceed accordance requirements determine what changes, any, rules. terms expire July 31, unless otherwise modified changed Commission. 38 Fed.Reg. 12606. twice extended deadline, id., 19831, 31681, April 11, 1974, made effective 'until further Commission,' 39 13971, each occasion 'good cause' extension. amendment also suspended indefinitely, 15, Solicitor General citation expressed his view decision correct affirmed. Western Railroad Traffic Association filed amicus brief taking opposing view. Section provides: 'Whenever equipment, congestion traffic, section country, shall have, hereby given, authority, upon complaint own initiative complaint, once, so orders, answer formal pleading making filing report, determine: operation determined Commission; (b) just reasonable regard ownership locomotives, vehicles, people, agree upon, or, event disagreement, after subsequent find reasonable; (c) including main-line tracks distance outside meet interest, transportation, embargoes, traffic permits, periods determine, modify, change, suspend, annul them. war threatened President certify essential national defense security shall, herein conferred, afforded.' See H.R.Rep.No.18, 65th Cong., 1st Sess.; S.Rep.No.43, Sess. 55 Cong.Rec. 2020—2021. S.Rep., n. 3, 2. H.R.Rep., 1. involved Orders 396 fours instant case. Judge Prettyman, said: '(D)emurrage penalty; character neither, being term rate-making, nor penalties penal impositions. They suigeneris. Historically, textually, purposes content, integral relating From beginning sustained regulations. penalties. service, fall provisions follows when exists, can, issue, time, charges.' 1005 1006. distinguished ground 'demurrage duly filed,' 260, 530. and, case, 'without notice.' A issued 25, 1922, violated Fifth Amendment. question decide today. obligation promulgation concerns our Brother here court below, accordingly, matter address. originally drawn later continued effect, suspending application, Commission.' 13971. vacated, half months promulgation. Presumably, discretion, lift suspension renewed finding emergency. procedural safeguards afforded 1(14), follow absent afford protection private affected agency action; insure information necessary reasonably accommodating diverse competing interests. imposition hardships which, consideration, prove unnecessary. Freedman, Action Administrative Agencies, U.Chi.L.Rev. 1, 27 30

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