Aaacon Auto Transport, Inc. v. Interstate Commerce Commission and United States of America, Auto Driveaway Co., Intervenor

792 F.2d 1156, 253 U.S. App. D.C. 202, 1986 U.S. App. LEXIS 25504
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 10, 1986
Docket84-1559
StatusPublished
Cited by11 cases

This text of 792 F.2d 1156 (Aaacon Auto Transport, Inc. v. Interstate Commerce Commission and United States of America, Auto Driveaway Co., Intervenor) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aaacon Auto Transport, Inc. v. Interstate Commerce Commission and United States of America, Auto Driveaway Co., Intervenor, 792 F.2d 1156, 253 U.S. App. D.C. 202, 1986 U.S. App. LEXIS 25504 (D.C. Cir. 1986).

Opinion

WALD, Circuit Judge:

Aaacon Auto Transport, Inc. (“Aaacon”) challenges the Interstate Commerce Commission’s (“ICC” or “Commission”) total revocation of its operating authority for willful violation of a cease and desist order. Because we reject all of Aaacon’s procedural challenges, and because the revocation decision is supported by overwhelming evidence, the petition for review is denied.

I. Background

In 1966 Aaacon obtained a certificate of public convenience and necessity permitting it to transport “[u]sed passenger automobiles in driveaway service in secondary movements, with or without baggage, personal effects, and sporting equipment” with the restriction that the company could not move such automobiles “(1) having a prior movement by rail or water, (2) moving on government bills of lading, or (3) moving to automobile dealers.” Joint Appendix (“J.A.”) at 1-2. In 1971, the ICC began an investigation to determine whether Aaacon was violating the Interstate Commerce Act or the terms of its certificate. Respondents’ Supplemental Appendix (“S.A.”) app. A. An initial decision entered in 1973 concluded that Aaacon had violated several provisions of the Act and operated beyond its authority. That decision contained a proposed order specifying ten practices from which Aaacon had to cease and provided that Aaacon’s certificate and additional grants of authority called “sub-numbers” thereunder could be suspended or revoked in whole or in part for willful failure to comply with the order. S.A. app. B at 13-16. The Commission affirmed the initial decision in 1976 and entered a general cease and desist order; Aaacon petitioned the ICC for clarification as to whether the 1976 order incorporated the 1973 proposed order but the petition was dismissed. Aaacon Auto Transport, Inc., 124 M.C.C. 493 (1976); S.A. app. C. Aaacon then appealed to the Second Circuit, challenging the evidentiary basis for and scope of the Commission order. That court affirmed the ICC in an unpublished order. S.A. app. F.

In February, 1978, the Commission reopened the investigation for further proceedings to determine whether Aaacon had willfully violated the 1976 cease and desist order. S.A. app. G. Administrative law judge (“AU”) Benice held sixteen days of non-evidentiary proceedings and then, over the objections of the ICC’s Bureau of Investigations and Enforcement, entered an initial decision accepting Aaacon’s proposed settlement involving a ten day suspension *1159 and the issuance of a more detailed cease and desist order superseding the 1976 order. S.A. app. H. AU Benice feared that the Commission would not revoke Aaacon’s operating authority and concluded that the broader and more detailed order would better protect the public and “move [Aaacon] closer to the ultimate revocation of its operating authority in the event that it persists in [its] practices.” Id. at 1.

The Commission reversed the initial decision and rejected Aaacon’s offer of settlement. S.A. app. I. The Commission rejected Aaacon’s argument that the detailed provisions of the 1973 proposed cease and desist order had never become effective, concluding that the 1976 order “incorporates by implication all the various fine points of the [1973] cease and desist order.” Id. at 4. The Commission also specified that the Office of Hearings should appoint another examiner to conduct the proceedings on remand because of “the course of events at the 16 days of the hearing already held and the hearing officer’s apparent involvement in the settlement negotiations.” Id. at 6.

Aaacon appealed the Commission’s decision to this court, challenging both the “removal” of AU Benice and the Commission’s holding that its 1976 order had incorporated the provisions of the 1973 proposed cease and desist order by implication. In an unpublished decision dated October 16, 1981, this court found that the Commission’s remand of the case to a different AU was not a “final order” which could be appealed. S.A. app. K at 3-5. The court noted that Aaacon’s claim that the ICC had improperly altered the 1976 order might be reviewable because it would subject Aaacon to new obligations, but concluded that Aaacon’s “alteration” argument was barred by res judicata. Id. at 5-6. The opinion explained that “[e]ven without determining whether the 1976 order in fact incorporated the 1973 order, ... we view petitioner’s ‘alteration’ argument as a semantic attempt to escape the properly preclusive effect of the Second Circuit’s decision.” Id. at 6.

In the meantime, the remand proceedings at the Commission had stalled — the case was assigned to a new AU in February, 1980, but he retired and the case was not assigned to AU Sarbacher until January, 1981. A prehearing conference was held in February, sixty-three days of evidentiary hearings were held in four cities between August, 1981, and May, 1982, briefs were filed in July and August, and an initial decision was entered in February, 1983. AU Sarbacher concluded that Aaacon had willfully violated every provision of the 1976 cease and desist order, citing the testimony of 50 public witnesses presented by the Office of Compliance and Consumer Assistance (“OCCA”) before the AU invoked the cumulative evidence rule. The initial decision detailed the violations under each paragraph of the 1973 cease and desist order (as incorporated into the 1976 order) and included a 132-page appendix summarizing the 45 cases presented by OCCA witnesses. S.A. app. L. The AU’s decision initially provided only that Aaacon’s 1966 certificate should be revoked but AU Sarbacher subsequently corrected it to provide that all of Aaacon’s operating authority, including four subsequently issued sub-numbers, should be revoked. S.A. app. L at 45; S.A. app. M.

The Commission affirmed the initial decision, rejecting all of the arguments Aaacon presses on appeal — that the removal of AU Benice was improper, that Aaacon lacked notice that all of its operating authority was at stake, and that the investigation should have been dismissed after three years pursuant to a provision of the Motor Carrier Act of 1980. The ICC adopted most of the AU’s findings and conclusions and revoked all of Aaacon’s operating authority. S.A. app. N. Aaacon then applied to the Commission for a stay of the revocation pending judicial review, which was denied by Commissioner Taylor. S.A. app. O.

*1160 II. Analysis

Aaacon makes four arguments on appeal. 1 We can summarily dispose of the claim that the Commission’s finding of a willful violation of the cease and desist order was not supported by substantial evidence. “Substantial” does not do justice to the extent of the evidence of Aaacon’s violations of the 1976 order — “overwhelming” is perhaps a more appropriate adjective. Aaacon’s remaining arguments, while somewhat more substantial, are ultimately unavailing.

A. Automatic Dismissal Under § 11701(c)

Aaacon argues that the Commission erred by not dismissing the proceedings by, at the latest, three years after the effective date of the Motor Carrier Act of 1980. 2

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792 F.2d 1156, 253 U.S. App. D.C. 202, 1986 U.S. App. LEXIS 25504, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aaacon-auto-transport-inc-v-interstate-commerce-commission-and-united-cadc-1986.