Legal Document

467 U.S. 354 104 S.Ct. 2458 81 L.Ed.2d 282 INTERSTATE COMMERCE COMMISSION, et al., Petitionersv.AMERICAN TRUCKING ASSOCIATIONS, INC., al. No. 82-1643. Supreme Court of the United States Argued Jan. 10, 1984. Decided June 5, Rehearing Denied Aug. 2, Syllabus The Motor Carrier Act 1980 in 49 U.S.C. § 10706(b)(3) established specific guidelines to which motor-carrier rate bureaus must conform if they are receive antitrust immunity. In 1980, Interstate Commerce Commission (ICC) issued an interpretative ruling explaining how it planned implement these guidelines, and proposing a new remedy enforce rate-bureau agreements whereby ICC would retroactively reject effective tariffs that had been submitted substantial violation such agreements. Alarmed by prospect overcharge liability result from retroactive rejection tariffs, respondents, group bureaus, petitioned Appeals review ICC's remedy. held lacked power tariffs. Held: proposed lies within discretionary authority, does not exceed its authority nullifying Pp. 24622468. (a) Title 10762(e), authorizes tariff violates statutory requirements for publishing filing or implementing regulation, confer on broad nullify retroactively. This is indicated 10762(e)'s language structure remedial under Act. 24632465. (b) ICC, however, may elaborate upon express remedies when necessary achieve goals. this case, justifiable adjunct 10762(e) and, extent there elaboration ensure compliance with simply extends so adequately supervise those see comply guidelines. legislative history makes clear that, beyond bounds immunity granted 10706, Congress wanted forces competition determine intended play key role holding carriers And question means policing sufficiently direct close mandate warrant approval 24652468. 688 F.2d 1337, reversed remanded. Carter G. Phillips, Washington, D.C., petitioners. Patrick McEligot, respondents. Justice MARSHALL delivered opinion Court. 1 case presents challenge effort create at issue Commission's have As we recognized past, (Commission ICC) has discretion fashion furtherance responsibilities. Trans Alaska Pipeline Rate Cases, 436 631, 654, 98 2053, 2066, 56 591 (1978). Although form expressly delegated Commission, as closely directly related powers designed objectives set Congress. Under limited circumstances, hold discretion. 2 * Motor-carrier groups motor formed negotiate collective rates. Since ReedBulwinkle 1948, jurisdiction enjoyed laws enter into submit rates Commission. Ch. 491, 62 Stat. 472. To immunity, apply bureau agreements, describe manner will original gave were consistent national transportation policy. 5 (1976 ed.). Until recently, was fairly liberal approving but, late 1970's, began disapprove increasing number grounds undermining among carriers. apparently disturbed abrupt shift policy but persuaded some deregulation necessary, passed (MCA). Pub.L. 96296, 94 793. MCA establishes immunity.1 Because creates presumption meeting qualify divests much approve See H.R.Rep. 961069, p. 29 (1980), U.S.Code Cong. & Admin.News 2283. 3 arises out Bureaus—Implementation P.L. 364 I.C.C. 464 (1980). For most part, presented views substance legislation, procedures could existing standards. Before concluding, also addressed problem faced regulating even before amended Act: "the lack definite proven violations." Id., 499. announced intention following remedy: 4 "In addition possible withdrawal serious continuing violations, adopt standard providing proof significant violations approved agreement rejection. Allegations lesser subject item suspension investigation." Ibid. subsequently explained be implemented.2 intends use discipline unauthorized collusion illegal pressure independent Brief Petitioners 24. Interested parties—for instance, shippers other carriers—may file complaints Upon receiving complaint, Office Consumer Protection investigate allegations, discovered, refer matter full hearing. If hearing confirms occurred, affected decision reviewable federal court. PL 921, 926 (1981). 6 Rejection applies retroactively, can consequences renders void ab initio. 7. result, whatever effect prior adoption rejected becomes applicable period during charged tariff. 11705(b)(1), then bring actions recover "overcharge," amount exceeded 7 liability, Eleventh Circuit accepted respondents' argument lacks American Trucking Assn., Inc. v. States, 1337 (1982). Fifth previously found possess different context, Aberdeen Rockfish R. Co. 682 1092 (1982), cert. pending, 82707, certiorari examine 462 1130, 103 1272, 75 493 (1983). We now reverse judgment Circuit. II 8 us narrow. Most aspects seriously challenged. example, undisputedly terminate itself fails meet members persist terms agreement. 10706(f). Moreover, 30 days member goes effect, clearly proposal agreement.3 10762(e). addition, suspects no immediately evident, postpone tariff's date up seven months, conduct investigation lawfulness. 10708. uncovers expires, Furthermore, lawfulness any time after gone product violation, cancel require reasonable nondiscriminatory future. 10704(b)(1). Whenever finds unlawful, injured parties both damages 11705(b)(3) additional amounts allow. Finally, impose civil criminal penalties violators. §§ 11901(b), 11914(b). 9 Our sole concern whether, listed above, once effect.4 practical matter, whether provide services based liable entire their previous rates, just caused violation.5 10 styled power, obvious source claimed provides: 11 "The common carrier section regulation carrying section." 12 At least superficially, supports exercise asserts case. subsection distinguish between Inasmuch contexts enforcement e.g., 10708(a)(1) (suspension rates), absence limitation suggests However, (ICA), amended, 10101 seq., persuade meant 13 begin with, term "reject" connotes refusal threshold. interpret license revoke already contrary plain subsection.6 reason, District Columbia concluded provisions analogous do extend effect. involving former Federal Power Judge Leventhal likened "a motion dismiss face pleading," declared " 'a peremptory response filed tariffs.' Municipal Light Boards FPC, 146 U.S.App.D.C. 294, 299, 450 1341, 1346 (1971) (quoting F. Welch, Cases Text Public Utility Regulation 581 (1961)), denied, 405 989, 92 1251, 31 455 (1972). subsequent dealing Civil Aeronautics Board's another appellate panel Leventhal's analysis concluded: "[R]ejection regulatory device properly used only date." Delta Air Lines, CAB, 177 100, 121, 543 247, 268 (1976) (emphasis original). 14 A further reason believe difference procedural safeguards incorporated built reach On applied offers opportunity reject. peremptory, carrier's recourse corrected hand, 10704(b), deals prescribe future, provides taking action. It bizarre, say least, give 10704(b) places constraints take less drastic step modifying prospectively. 15 Similarly, reading unbridled undermine restraints placed suspend pending investigation. 10708; supra, 360. months date, final action suspension-investigation proceeding taken 10708(a)(2), (b). Were read broadly proposes, temporal 10708 nugatory, since rely without safeguards. 16 admittedly ambiguous, ordinary course, might defer view should given interpretation. interpretation unsupported natural provision inconsistent Congress.7 cirmcumstances, cannot interpretation, accept B 17 conclude bestow general conclusion resolve dispute. bounded enumerated 10321(a). 'legitimate, reasonable, direct[ly] explicit power.' U.S., 655, S.Ct., 2067 Chesapeake Ohio Co., 426 500, 514, 96 2318, 2325, (1976)). argues narrow agree. 18 doctrine arose recognition drafters complex ratemaking statutes like ICA neither nor "include consideration every evil sought corrected," force "to sit idly wink practices lead [ICA] provisions." Associations, 344 298, 309310, 311, 73 307, 314, 315, 97 L.Ed. 337 (1953). originated cases accorded latitude manner. See, supra; cf. Permian Basin Area 390 747, 774777, 88 1344, 13631365, 20 312 (1968) (comparable construction FPC Natural Gas Act). More sustain efforts place conditions acceptance upheld increases condition spend portion increase capital improvements deferred maintenance. dictate expend revenues, tied ICA's goal safeguarding Nation's system withstand judicial review. 19 again reasonably objectives. extracted pipeline owners, exchange tentative schedule, owners' promise refund unreasonable. Claiming ICA, owners argued required choose either suspending reasonableness prospective modification future date. Even though agreed order refunds declined placing dilemma posited owners. Suspension delayed opening pipeline, whereas unconditional unjustly enriched alternatives policies underlying justified transcending authorities conditioning Alaska-pipeline commitment unreasonably high consists informed all submitting called disgorge later discovers akin primary responsibility ICA. empowered fashioning falls modify legitimate purposes. lie satisfy two criteria: first, second, mandate. 21 basis 10706(b)(3), tariffs.8 function collude permitted conditional concomitant threat strong incentives abide prescribes encourages limit activities areas described 22 There little doubt Section it, grants laws. degree, self-enforcing, because strive stay avoid transgressions precipitate. governing administration demonstrate envisioned Commission—and liability—would enforcer is, all, decides dictates 10706(b)(3). 10706(b)(2). 10706(f), (h). And, National Transportation Policy. 10706(b)(2).9 23 difficult answer approval. imbricated justifications First, potential awards, sufficient incentive report suits own. Second, claims conditionally tools disposal inadequate view, threshold cope typically shrouded secrecy undetectable proposal. comes light declare Admittedly, declaration prescription render offending brought shippers, size awards would, opinion, insufficient keep faithful agreements.10 maintains penalty too weak guarantee agreements.11 24 But very potency what nullification troubling authority. carrier, ruinous. Overcharge easily surpass historically 11705(b)(3), treble vulnerable Indeed, convert Government's potent laws, albeit purpose ensuring 10706(b)(3).12 25 Nevertheless, agree aimed MCA. Consistent congressional intent, stimulates competitive pricing establish expected decide feasible way fulfill 26 over harshness lessened steps imposed unfairly. scheme, nullified findings nature who aware transgressions. So concerns penalize inadvertently transgress largely unfounded. risk err finding hearings reserved withhold sanction rejection, circumstances counsel lenity.13 III 27 foregoing reasons, Accordingly, reversed, remanded proceedings opinion. 28 ordered. O'CONNOR, whom BLACKMUN, POWELL, STEVENS join, dissenting. (Commission) become effective. Such exceeds last lawfully filed. quite correctly reasons authorize ante, 361-364. Reading indeed "unbridled discretion" did intend have. 363. having mysteriously concludes "discretionary power" adhere strictly Ante, 367. I frankly understand alternative rationale better reins dissent. starts proposition enumeration certain Act, necessarily exclude others listed. 2465. quarrel proposition. Like agencies, authorized regulations carry duties. therefore deserve considerable deference. (1953); generally (1976); rule deference never equated think misreads today. 32 not, today's asserts, concept supra. allow immediate benefited rail devote designated uses revenues earned month otherwise suspended. Though qualifying legitimate, [of] 2325. Delaying implementation frustrated Congress' desire improve railroads. Thus, moneys "an tailored far more precisely particular presented." 33 Nor principle inherent cases, System collected suspended determined unlawful. sustained efforts, 'ancillary' [the] early development delivery oil Alaska's North Slope. 654655, 20662067. Again, implemented carefully narrowly presented. 2067. 34 support here based. contrast "direct adjunct" power. time, investigated importantly, mentions today relies. Rather, traditional powers. idea boundless considered. 35 Perhaps recognizing open-ended character announces, limiting criteria cabin proposes exercised Whatever merits criteria, definitely satisfied A. 36 points 793, being further. According Court, enacting legislation left 24662467. examination behind unambiguously refutes view. 37 Prior enactment attempting curtail drastically carriers' opportunities engage ratemaking. one rulemaking proceeding, exactly earlier rejected—namely, severe restrictions statutorily Railroad Revitalization Regulatory Reform 1976. 43 Fed.Reg. 1809 individual continued warranted id., 1666. 1979, budgetary increased filings change monitoring practices, twice asserted combat anticompetitive industry. 44 58511, 58512, 60122, 6012360124 (1979). shared industry, attempts own initiative. 38 Well "Commission ha[d] recently embarked series reviews so, conditions," 2309, made reduce practices. 39 "[I]n uncertainty felt . [is] direction industry well-defined parameters act pursuant policy; attempt go vested enacted Congress." 40 Senator Cannon, sponsors explained: 41 "[L]egislation desperately needed clarify plagues care about it. bill gives expect directions followed. Where discretion, statute, eliminated." 126 Cong.Rec. 7777 42 Representative Harsha similar explanation his colleagues House: "For long basically sidelines, while unduly wide [I]n past several years, changes initiative[,] guidance, consultation. 45 "It intent committee, am Congress, needless trucking bureaucrats. 46 "Therefore, [the bill] give[s] administer law. doing, committee expects invested statute. ." 15585. 47 These sentiments echoed Committee Reports each chamber. 29; S.Rep. 96641, 48 sure, "retain processing loss, damage, claims. 40, 2322. expressed disapproval pre1980 innovations, prominent them. (1979); BureausImplementation 464, 503 (1980) (Commissioner Gilliam, concurring); 55742 Stafford, dissenting). diminish prevent unilaterally enlarging contends, nevertheless, 24672468. stimulate resulting enforcer, inappropriate. disagree. 50 noted, same purposes legislation. 24692470. concerned, filings, catch improper well available Yet include comprehensive restructuring system. emphasized want correct asserting optimal gap obviously Department Justice, fill. I.C.C., 2295 (1981) Clapp, concurring). Making hardly compatible antagonism toward initiatives. 51 easy why included arsenal Part Act's was, bureaus' freedom collusive behavior. Conversely, equally promote certainty protect reliance goods shipped, collected, business plans formulated requires able know charging show actual damage. deliberately encouraged carriers, limits, prices collectively, insulated them proscriptions so. contrast, confronts large uncertain discourages price setting contemplated "create[s] legalized, endless, chain departures [filed] tariff[s]; destroy[s] equality make[s] inflicted persons injured." Davis Portland Seed 264 403, 421, 380, 383, 68 762 (1924). therefore, incompatible rate-setting scheme promote. 52 What really seeks alleged administratively needed. need, clear, impressive array prescriptive powers, assessments, remedies, fines disposal. 11705(b)(1)(3), 10704, believes needs provisions, seek than rewrite allows do, respectfully disclosure sunshine rules meetings, limitations issues discuss. 10706(b)(3)(A), (B). deregulatory aspect ban discussions solely 10706(b)(3)(D). scope summarized pp. 2930 explicated orders January 28, 1981, April 27, 1981. Record 375, 381; 927. Respondents contest point. repudiated Circuit, 1353 respondents contend application therefor contains formal, opposed substantive, defect. decline narrowly. noted "[rejection] defects form. agency where patently nullity substantive law, administrative efficiency justice furthered obviating docket rather futile docket." (1971), (1972); Southern Carriers Conference, 676 1374, 1377 (CA11 1982) (amended opinion); Pipe Line Mobile Service Corp., 350 332, 347, 76 373, 382, 100 373 (1956). argue defects, termination While option page, provided preclude duty 24602461, perfectly refuse F.2d, 13521353; Board Trade 646 1187, 1193 (CA7 1981) obliged tariffs). need staff examined defect immediately. cutbacks forced abandon program. then, reviewed random sampling inevitably 13761377. unlawful unreasonable discriminatory. Spencer Plant Foods, Atlantic Coast 302 799, 800 (1958); BorenStewart Atchison, T. S.F.R. 196 120, 125126 (1933). submits agreement, discriminatory, expose liabilities greatly excess 11705(b)(3). placement lends credence summary outset rate-filing process. appears By authorizing "reject section," seems focused turn away submission filing. Previous decisions coupled rulings cast containing formal defects. BerwindWhite Coal Mining Chicago Erie 235 371, 131, 59 275 (1914), (1924), stressed importance recognized, "strongly sugges[t] recovery failure requirement damage suffered shipper." Opposition Nitrochem, 456 905, 102 1750, 72 161. significantly repose traditionally enjoy until recent technically deficient manner, shipper's damages. 120 (1933), Acme Peat Products, Ltd. Akron, C. Y.R. 277 641, 644 (1950) ("Where tendered therein applicable, tender"). few instances involved mistakenly outside jurisdiction. Fast Freight, Inc., Common Application, M.C.C. 549 (1939), sustained, F.Supp. 968 (SDNY), aff'd, 309 638, 60 810, 84 993 (1940) (per curiam); Mercer Valley Pennsylvania 69 233 (1922). Only 1978 propose Assn. Specialized Carriers, AgentShow Cause Strike Order, Order 36870 (Apr. 11, 1978). free mind meaning enabling adhered probative value our 2728 (1980); (statement Sen. Cannon). stress, partially restrain exercising dictating 356-357. embodied directed acceptable No limits deal operate contrary, House Report states 40. n. field, inadequacy agency's seen evidence adequate inference drawn area 10321(a) "Enumeration subtitle subtitle." maximum $1 million. seq. happened involve railroad bureau, decided Transit Wheat Between Reshipping Point Destination, 365 890

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