Legal Document

367 U.S. 316 81 Supreme Court Reporter 1611 6 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 869 CIVIL AERONAUTICS BOARD, Petitioner,v.DELTA AIR LINES, INC. LAKE CENTRAL AIRLINES, INC., Petitioner, versus DELTA Nos. 492 and 493. Argued April 27, 1961. Decided June 12, Mr. John Federal KF105 F3 Davis, Washington, D.C., for petitioner in Number 492. Albert Grisard, Richard S. Maurer, Atlanta, Ga., respondent each case. Chief Justice WARREN delivered the opinion of Court. 1 This case concerns power Civil Aeronautics Board to alter a certificate public convenience necessity, granted Delta Air Lines, after that had become effective under § 401(f) Aviation Act 1958. 72 Statutes-at-Large 731, 755, 49 Code KF62 1371(f), Annotated KF65 U5 1371(f).1 The administrative proceedings from which present dispute arises date back May 1955, involve consideration by number applications new service between cities located an area extending Great Lakes Florida. divided into two general categories, consolidating long-haul Lakes-Southeast Service Case those short-haul flights Local Investigation Case. In order protect fully interests local carriers, allowed these including Lake Central Airlines, intervene hearings on applications. 2 At conclusion awards were made, one permitting extend existing route northwest so as provide Miami Detroit add Indianapolis Louisville intermediate points its Chicago-to-Miami route. Certain restrictions protection carriers imposed many awards, generally providing specified originate at or beyond given distant points. stated purpose was prevent carrier duplicating so-called 'turn-around' already provided existn g carriers. One such restriction applied Delta's run various locations Ohio but, large, award free protective limitations. 3 Board's issued September 30, 1958, it November 29, unless postponed prior date. Shortly thereafter, within time limits set Board,2 numerous petitions reconsideration filed, protecting breadth certificate. requested that, if should be unable decide petition before put off. On 28, day effective, lengthy memorandum order, substance requests stays, with immaterial exception, denied, but judgment merits would reserved. explained parties not made sufficient showing error justify postponements view advent peak winter season, further delay particularly inappropriate; then said: 4 'To extent we have considered done only purposes assessing probability our original decision. We feel action is necessary fair stay requests, no way prejudicial legal rights seeking reconsideration. Nothing forecloses full complete pending their merits.' For reasons presently pertinent, became December 5,3 rather than commenced newly authorized operations shortly thereafter. 7, 1959, disposing still-pending By this amended response proposed Central. Specifically, barred ten pairs initiated Atlanta farther south; effect bar certain operating. Even then, final; reserved lift outcome Case.4 disposition taken summarily, without formal notice opportunity hearing 5 sought review Board, challenging change terms thereof hearing. overruled objection, stating that: '(W)e believe power, exercised past. Moreover, there showing, are conclude, any significant adverse will result either observance conditions here involved.' Appeals Second Circuit, however, overturned, court reasoning Congress prerequisite exercise Inc., 280 Reporter, 2nd 43. issue narrow can briefly: Has alter, hearing, necessity once has gone effect? If not, make difference purported reserve jurisdiction certification summary modifications pursuant reconsideration? think both questions must answered negative. 7 Whenever question concerning administrative, judicial, arises, opposing policies immediately demand recognition: desirability finality, hand, interest reaching ultimately, appears right other.5 Since tension, reach compromise petitioners argued length procedure happy resolution conflicting interests. However, fact entirely creature determinative what thinks do said do. See Seatrain 329 424, 433, 67 435, 439, 91 L.Ed. 396. Cf. Lines Summerfield, 347 74, 79—80, 74 350, 353—354, 98 513. proposition becomes clear when noted been anything inattentive acts governing agencies. A statutes reveals wide variety detailed provisions reconsideration, enacted attempt tailor agency's discretion particular problems area.6 respect, exception since, (g) Act, reconsider unequivocal terms. Section provides 'Each shall therein, continue until suspended revoked hereinafter provided.' phrase 'as provided' refers 401(g), states: 8 'Authority Modify, Suspend, Revoke 9 '(g) upon complaint own initiative, hearings, may amend, modify, suspend certificate, whole part, require, revoke intentional failure comply provision title rule, regulation hereunder term, condition, limitation certificate: Provided, That holder fails comply, reasonable fixed commanding obedience provision, (other accordance proviso), regulation, found violated. Any interested person file protest support opposition alteration, amendment, modification, suspension, revocation certificate.' (Emphasis added.) 10 language represents us give comprehensive instructions meet all contingencies duty follow instructions,7 light thereto raises substantial obstacles. It true, course, statutory necessarily derives much meaning surrounding circumstances. while legislative history directly point, background strongly supports plain (g). statements supporters predecessor Act—the 1938—that vitally concerned called 'security route'—i.e., assurance investment protected insofar reasonably possible.8 And other explanation delimited precisely factor mind; hence 'shall * (emphasis supplied), absent several Acts wi ch reference made. Thus, structure statute, persuading Congress, indicates critical mind operations, concomitant facilities personnel, abstract analysis might indicate 'final' words, seems relatively indifferent fluctuations undergo affected practical relationships, security wheels motion. this, follows naturally: uncertainties over certificates, identifiable congressional intent resolved favor certificated specific out statute modified resort generalities 'administrative flexibility' 'implied powers.' quarrel who grant great conjure certificates effectuation. But, paying less adequate deference hold effect, followed scrupulously. 11 argue implied mandate field certificate's date, makes statement subject later amendment deliberation petition. Petitioners admit express authority entertain even they assert, assume arguendo correct, Boar accept petitions. being case, claim existence outstanding gives double term 'effective' used Act: 'effective therein allowing commence preclude modification outside procedures 401(g). 12 appeal argument comes, main, notion 'final,' judicial review, disposed of. See, e.g., Outland 109 U.S.App.D.C. 90, 284 224; Braniff Airways 79 341, 147 152. Once established purpose, runs, logical lacks 'finality' another. difficulties line reasoning, many. First, bottomed cases Braniff, relies holdings never Courts decided timely filed reconsideration; whether did arise. Furthermore, petitioners' skips important step; assumes, explanation, finality same problems, therefore deserve solutions, timeliness appeal. point fact, assertion unsupported erroneous. pertinent similar instances9 different. considering litigant's wisdom exercising act, depends factors fairness appellant passing statute—s 10(c) Administrative Procedure Act—which applies equally almost There call, illustrate omissions, sections act appellate problem—which historical only—whether summarily argue, instances because, too late, also late. overlooks confines saying cannot certification, nor holding denied summarily; carrier's curtailed Therefore, since denial conflict, implied, decisions one.10 connection, leading commentator pertinent: 13 'The tendency word more rules, connection has, scope them runs through discussions. tenacity sin constantly guarded against.' Cook, Logical Legal Bases Conflict Laws, 159.11 14 Thirdly, adopt position urged petitioners, words former chairman lever 'nullify(ing) Act.' Ryan, Revocation Airline Certificate Public Convenience Necessity, 15 J.Air L. & Comm. 377, 384. As Commissioner Ryan indicated, asks nothing indirectly directly. Parenthetically, dispute, difficult draw distinction party sua sponte. Sprague Woll, Cir., 122 128. 436, 396, overruling Interstate Commerce Commission's contention inherent paid attention Commission 'to terms, conditions, limitations now hereafter be, attached Commission.' Although sufficiently affirmance rest solely basis, appropriate, vigorous policy compel result, discuss some ramifications first place, bears repetition deciding reconsidering initial All wishes so, proceed manner statute. example, affords decision; or, feels uncertain about decision postpone differences resolved; and, neither seem temporary expire prescribes re-examination.12 Indeed, weapons command, improvise powers preserve flexibility. 16 realistic appraisal relative hardships involved cuts respondent. To sure, able quicker rule espouses eliminating spared expense preparing record. subjected loss valuable routes, routes begun operate considerable investment, heard opposition. amend But comfort could take notice; hedge, lose conduct does initiate 90 days certification. Concededly, surface assertions; knew getting complain gamble turns unfavorable. remembered problem presented abstract; dealing context And, above, major behind enactment eliminate element risk operations. With record affirmatively desiring gambling, 'assumption risk' carries weight. argues 'in substance' enjoyed contemplated 401(g) because matters impelling thrashed during assumes us—that disclosed evidence perhaps importantly, post-certification events weighty enough thinking.13 17 short, wanted enjoy route' invest sums required operations; end, minimum protections operation cancelled. ask furnish matter meaningless. added authorities felt significance suggest presence Fifth Amendment. States, 64 F.Supp. 156, 161; Handlon Town Belleville, N.J. 99, 71 Atlantic 624, American Law Reports, 1118; see 63 Harv.L.Rev. 1437, 1439. 18 Petitioners' final supported consistent construction analogous authority. last appears, occasion expressly considered, dictum 'grave doubts' proceeding Kansas City-Memphis-Florida Case, C.A.B. 401;14 cf. Smith Bros., Certificate, 33 M.C.C. 465. supra, where went lengths expose he fallacies contentions advanced petitioners. respect cases, again cite point. rely heavily Frontier Incorporated 104 78, 259 808, 810, raised closest analogy forward whose denied; reported follows: 19 '(T)he nullity rendered previously effective; nullity, basic cover 20 'We find denying invalid filed. No harm done. Had indicated motion remand order.' 21 Perhaps favorable Court's Rock Island Motor Transport Co., 340 419, 382, 95 391, held modify motor reservation order. distinctions apparent: (1) Carrier 308, (2) carefl limit Finally, analytically most relevant furnishes respondent, While distinguishable facts,15 spoke supervising agencies 'specifically authorized' notions enabling act. clearly favors side; broad observation permissible, feelings opposed expand solid foundation against, for, affirmed. 22 Affirmed. 23 WHITTAKER, whom FRANKFURTER HARLAN join, dissenting. 24 airline brought Board. involves proceeding, ordered 25 whether, Act,1 'effective,' notwithstanding unruled lost accordingly resulting 26 facet multiparty, highly complex protracted known 'Great Case,' 1955. involved, 'predominantly,' 'long-haul' needs roughly Numerous trunkline additional operating area. confronted improved effort keep manageable bounds, declined consolidate instead, directed institution separate (Great Investigation) resolution, announce sure separation deprive rights, permitted 27 contending petitioned northwesterly Detroit, Chicago Indianapolis, serving Louisville, intervened object restricted northbound originating, southbound terminating, south Atlantia. Upon issue, offered suffer injury damage, diversion traffic, restricted. 28 which, among things, route, imposing asked. Consistently custom, thereby 60th entry (November 29). 29 Within 30 filing reconsideration,2 October 31, elaborating grounds asserted evidence, asked stayed Central's request (and also—with material here—the others) expressed 'the (had) probable abuse discretion' warrant issuance stay, approaching 'new services Florida (were) required.' 31 Then, turning motions 'because (would) possible finally dispose 29,' promptly 'address itself reconsideragion, (its) (those) date.' thus otherwise stays intended '(in any) reconsideration.' concluded: 'Nothing 32 Thereafter, entered restricting Atlanta; say 'If, issues conclude longhaul required, freedom remove time.' rise controversy. Circuit reversed. 43, 48. 'once (the the) (to) effective,' thereafter 'it (separate plenary) satisfying requirements authorizing unrestricted subsequently restrictions.' page Because importance proper administration here. 364 917, 918, 283, 258. 34 affirms judgment. N Dec. Immigration Nationality Decisions am bound say, me spurious legally indefensible, endeavor show. 35 orders, clear, indeed agreed parties, entertain, motions, '(t)he decide.' Albertson Communications Comm., 87 39, 41, 182 397, 399. 36 Pursuant adopted Rule Practice prescribing, 'a rehearing reargument b thirty (30) *.'3 admitted rule. 37 Under every decision, save noted, appropriate step 'operate(s) retain (original) order,' Waterman S.S. Corporation 159 828, 829, 'reopen(s) case,' Black River Valley Broadcasts McNinch, 69 App.D.C. 311, 316, 101 235, 240, prevents 'proposed decision'—which, stage, (Waterman 828)—from becoming 'final.' 224, 227. open motion, having it, fundamental including, 'power (it),' Enterprise company 97 374, 378, 231 708, 712, 38 well settled 'Where (for) always possibility complained renders unnecessary,' 93, 227, 'although (motion) supersede (it operate) (order) start running sixty-day period review.' 829. decision' (id., 828) 'not sense (is) longer reconsideration,' 'jurisdiction (that) remains (Board) expired, tolled application rehearing.' (Ibid.) Hence, 'no (final) accrued (Delta) originally granting permit,' 240. also, supra; Western 194 211; Butterfield Theatres 99 71, 237 552. 39 'There doubt practice trial law, equity, duly seasonably suspends taking appeal, (a) begins *,' Morse 270 151, 153 154, 46 241, 242, 70 518, '(t)his true proceedings,' 240.4 40 contrary Consolidated Flowers Shipments, Bay Area 205 449, 451. inasmuch period, dismissed untimely. Recognizing decisions,5 thought sentence 1009(c), 'agency subsection determined application, form *.' fallacy completely exposed soundly rejected supra.6 1, 1961, ninth circuit specifically Samuel baron Franklin Securities Exchange 290 719. 41 involving precise 808. There, just here, earlier revised accordingly. contended revision e nce, effective.' Id., 80, 810. rejected. 42 quite historic all, one, decisions, proceeding—kept continuing; duty, did, thus, necessarily, revise decision—which, 828)—and sustained proceeding. 43 Inasmuch discredited against compelled 'plain language' deprives pursuance altered independent plenary 44 obvious defects 401(f), 228) remained ignores authorization concluded ended—i.e., expired taken, 45 Surely doubted instead Appeals, certiorari, reverse directions well, reviewing court, revise, vacate erroneous though why different direction, notes error, grants revises certificate? Apart Ninth cites Board-revised it. Its 396; Watson Bros. Transportation 132 905; 465, wholly unfounded. None dealt respecting contrary, long fild respects closed. 47 squarely position, namely, passed, part except (i.e., proceeding).' pages 432, 439. Here, (had not) passed,' pending. Surely, meritorious, sustain 48 relevance whatever one. careful '* marks end proceedings, decree *' M.C.C., 472. trial, pending, expiration 'marks proceeding'; proceedings.' contemplates 'for limited (d)(2) section.' Althaough time,' still undetermined, forreconsideration, (that its) was, law's regard, surely 'issued (the) time' expiring 50 211, 214, 'acted eyes risk. aware final, filed.' 51 kept open, denied. Instead, granted, fell, authorized, temporarily fell results 52 gainsaid practice, sometimes, nonfrivolous undetermined,7 perilous business rarely, ever, justified. rectify errors erroneously authorized. 53 reasons, fallen affirming below, my view, law section provides: provided, certify thereunder ceased, section, thereof, unless, expiration, herein, ceased: inaugurated ninety days, if, designated operated, direct thereupon cease service.' regulations Regulations 302.37, 'Petition reconsideration—(a) Time filing. shortened enlarged exceptions thereto. After petition, leave filed; unusual exceptional circumstances, constituting good cause (10) rehearing, answer petition.' enable consider Eastern get challenge upheld. 271 752. informed completed restrictions. Tobias, Reconsideration: Some Recent Developments New York, N.Y.U.L.Rev. 1262, author observed: 'Re-examination normal processes intelligent living. Admittedly warranty correctness fitness attaches simply thing Every-day experience teaches contrary: choice remain course ultimately followed, often require revision. constant re-examination endles vacillation ludicrous, self-defeating, oppressive. Whether better worse far chosen concerned, reached die cast 'finality.' An develop one.' reopen record: 'Our receipt data recent consistently reflected requirement close expeditiously possible, promptly. Institution needed endlessly delayed permit reopened procedural stages submission attendant cross-examination exchange rebuttal evidence). Only situation changed radically justified.' Generally speaking, certificate,' wider agency. Res Judicata Law, Texas L.Rev. 199. powerfully certificate' passed Act. 83 Cong.Rec. 6407. contends changes constituted correction inadvertent errors. Trucking Ass'ns Frisco 358 133, 170, 172. Speaking behalf bill 1938—Congressman Lea, Chairman Committee Foreign bill, 'One hundred twenty million dollars invested commercial aviation States. information committee $60,000,000 sum wiped out. money shows faith, genius, courage people willing up absence legislation lines going very impossible finance lack stability You want $200 $2,000 mile cutthroat competition. 'Part proposal regulatory body created operators. rate control, requiring rates giving judgment, things essential time, 'These economic fundamentals seeks meet. financial companies advantage.' 6406—6407. 60 243, 1009(c). Stan.L.Rev. 531. addition mentioned text, certificates—see Civl 211—are Seatrain, Similarly, Ryan. 384—385. Hancock, Fallacy Transplanted Category, Can.B.Rev. 535. threaten reversal award. shown purport prescribed 401(d)(2), 'equivalent' persuasive. bow procedue short cuts. note 15, infra. natural reading 401(d)(2)—which says 'limited periods'—is obvious; unlimited duration, immediate got around objections, play havoc ability advance reservations. Just pointed out: 'It schedules June, timetables early morning Chicago-Indianapolis-Evansville Evansville-Indianapolis-Chicago service, released reservations booked months. pilot bidding equipment rotation prohibit cancellation flight notice.' disagree, 'hearing' means contend satisfied allowance handed down. wise accepted principle although permissible special equivalent predetermination see, Gelhorn Byse, 774; procured decided, presumably witha introducing case; City, reconsidered three occasions. Western, Acquisition Property, 701; Phoenix Order E—12039 (1957); South E—14219 (1959). relevance. 10, supra. arguably termed error. alteration rights. stated, cases. potentially distinguishing feature alternate ground—viz.: impose instance. distinguished Water time. 916(a), incorporating 17(6) (7), 17(6, 7). impunity following Congress. force is, commissions boards scrupulously arguments 'this another doing it' prevail. (72 755 756, 1371(f) provides, '(f) Each ceased 1371(g), 1371(g) n y condition 302.37(a) Rules (1956 Rev. ed.), Rules, reduced days. 302.37 (1960 Supp.). 1486(a), 1486(a) 'filed sixty 2. Saginaw Broadcasting 68 282, 287, 96 554, 559; Southland Industries, 82, 117; Woodmen World Life insurance Association 87, 122; Red 282. 196 933; Southwest 937; 211. District Columbia in, of, language: 1009(c) achieve harmony Levers Anderson, 1945, 326 219, 66 72, exhaust remedies. making available repeal finality. Where Airways, command exhaustion remedies; leaves choice. elects seek unnecessary. Practical considerations, therefore, dictate properly deferred acted upon. caused 'protective' train unnecessary consequences flowed this: respond oppose review; acts, bring begin Board.' 93—94, 227—228. instances, notwithstandin undetermined. North 208; Cincinnati-New York Additional Service, 603; United-Western,

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