Aero Mayflower Transit Co. v. Interstate Commerce Commission

686 F.2d 1, 222 U.S. App. D.C. 279
CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 10, 1982
DocketNos. 80-1990, 80-2548, 81-1519, 81-1647, 80-2361, 80-2501 and 80-2502
StatusPublished
Cited by2 cases

This text of 686 F.2d 1 (Aero Mayflower Transit Co. v. Interstate Commerce Commission) 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
Aero Mayflower Transit Co. v. Interstate Commerce Commission, 686 F.2d 1, 222 U.S. App. D.C. 279 (D.C. Cir. 1982).

Opinion

Opinion for the court filed by Senior Circuit Judge ROBB.

ROBB, Senior Circuit Judge:

Petitioners, six household goods carriers,1 challenge the Interstate Commerce Commission’s grant of applications for certificates of motor carrier authority to transport property for the federal government.2 Petitioners rest their challenge on four grounds: they contend that the Commission (1) acted in excess of its jurisdiction under section 5(b)(3) of the Motor Carrier Act of 1980 by issuing 136 of the certificates on the basis of a general finding of public convenience and necessity developed in a [282]*282rulemaking proceeding;3 (2) acted contrary to section 5(b)(1)(A) of the Motor Carrier Act of 1980 by failing to consider all relevant factors in determining whether the applicants were fit, willing, and able to provide the transportation to be authorized by the certificates;4 (3) acted contrary to section 706(2)(E) of the Administrative Procedure Act of 1966 by making findings of fitness that were unsupported by substantial evidence;5 and (4) acted in violation of section 557(c) of the Administrative Procedure Act by failing to explain the findings of fitness.6 We agree with petitioners’ first argument, but reject the other three.

On May 26,1977 rulemaking proceedings, known as Ex Parte No. MC-107, were begun to establish simplified procedures for certification of motor carriers to transport property for the federal government. Transportation of Government Traffic Ex Parte No. MC-107. Under the procedures previously in existence a carrier desiring to carry government traffic was required to file an application seeking a certificate of public convenience and necessity, and this application was treated in the same way as one from any carrier seeking any new operating authority. Pursuant to 49 U.S.C. § 10922(a) (Supp. Ill 1979) (amended 1980), the Commission then determined whether the particular authority applied for was “required by the present or future public convenience and necessity” and whether the [283]*283applicant was “fit, willing, and able” to provide the transportation to be authorized. This procedure was changed by the rules promulgated in Ex Parte No. MC-107. In that proceeding the Commission made a general finding that the present and future public convenience and necessity require operations by any qualified motor carrier in the transportation of general commodities (with certain exceptions) for the federal government. 131 M.C.C. at 865. This so-called “Master Certificate”, therefore, eliminated the requirement of an individual finding of public convenience and necessity with respect to each application; under the Ex Parte MC-107 procedures an applicant was required only to file an affidavit demonstrating fitness. 131 M.C.C. at 868. Statements by protestants were limited to the issue of the applicant’s fitness and capacity to conform to the Interstate Commerce Act. The new rules became effective March 18, 1980.

On July 1, 1980 the Motor Carrier Act of 1980 became law. Section 5(b)(3) of the Act provides:

The Commission may not make a finding relating to public convenience and necessity under paragraph (1) of this subsection which is based upon general findings developed in rulemaking proceedings.

Pub.L.No.96-296, 94 Stat. at 794 (codified at 49 U.S.C.A. § 10922(b)(3) (West Supp. 1982)). On June 3, 1980 in accordance with this mandate, the Commission repealed the MC-107 rules providing for master certificate procedures. 45 Fed.Reg. 45,534 (July 3, 1980), corrected 45 Fed.Reg. 52,158 (August 6, 1980). The Commission now contends, however, that the MC-107 procedures may be used for processing applications filed before the July 1, 1980 effective date of the Act, even though individual certificates on the applications had not been completed before July l.7 The Commission reasons that although the Act prohibits the Commission from making a public need determination based on general findings in a rulemaking proceeding, no public need finding was made after July 1, 1980, with respect to applications filed before that date; that finding, says the Commission, had been made before July 1, 1980 in the MC-107 proceedings. In the opinion of the Commission, therefore, the only issue remaining to be resolved was that of fitness, and the standards in that respect were unchanged by the Motor Carrier Act.

Applications for 136 of the certificates challenged in this case were filed before July 1,1980, but certificates were not issued until after that date. The certificates were based on the general findings made in Ex Parte MC-107.

It is apparent that the premise of the Commission’s argument is that the effect of section 5(b)(3) of the Motor Carrier Act is only to forbid the Commission to make a finding of public convenience and necessity based upon the general findings developed in Ex Parte MC-107; in other words, the Commission says that the focus of the statute is on the making of a finding. According to the Commission, therefore, it must follow that because the general findings in these cases were made before July 1, 1980, certificates based on those findings might be issued to the applicants after July 1. We think, however, that the weakness of the Commission’s argument is the premise that the focus of the statute is on the making of a finding. In our opinion the purpose of the statute was to prohibit the issuance of any certificate based on general findings.

Although we recognize that due deference should be accorded statutory interpretation by an agency which has the responsibility for administering the statute, statutory construction ultimately is a judi[284]*284cial function. Nepera Chemical, Inc. v. FMC, 213 U.S.App.D.C. 173, 176, 662 F.2d 18, 21 (1981) (quoting Austasia Intermodal Lines, Ltd. v. FMC, 188 U.S.App.D.C. 379, 381, 580 F.2d 642, 644 (1978)). In fulfilling that judicial duty we conclude that the Commission’s construction of the statute is undercut by the legislative history of section 5(b)(3), and that the statute properly construed is directed at the issuance of certificates, rather than the making of findings. The purpose of Congress, we think, was to do away entirely with the use of master certificates to support grants of operating authority.

The Motor Carrier Act originated in Senate Bill No. 2245. In that bill the predecessor of section 5(b)(3) read:

In no event may the Commission issue any certificate based upon general findings regarding public convenience and necessity developed in rulemaking proceedings.

See S.Rep.No.641, 96th Cong., 2d Sess. 59 (March 24, 1980) (emphasis added). In the Senate Report it was made clear that as the plain language of the bill indicated, the focus of the proposed provision was to be “the issuance of a certificate”, rather than “the making of a finding”:

[The provision] specifically states that the Commission may not issue any certificate

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686 F.2d 1 (D.C. Circuit, 1982)

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Bluebook (online)
686 F.2d 1, 222 U.S. App. D.C. 279, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aero-mayflower-transit-co-v-interstate-commerce-commission-cadc-1982.