Alaska Central Express, Inc. v. United States

50 Fed. Cl. 510, 2001 U.S. Claims LEXIS 198, 2001 WL 1265392
CourtUnited States Court of Federal Claims
DecidedOctober 19, 2001
DocketNo. 01-401C
StatusPublished
Cited by8 cases

This text of 50 Fed. Cl. 510 (Alaska Central Express, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alaska Central Express, Inc. v. United States, 50 Fed. Cl. 510, 2001 U.S. Claims LEXIS 198, 2001 WL 1265392 (uscfc 2001).

Opinion

OPINION

MILLER, Judge.

This ease is before the court after argument on defendant’s motion to dismiss. The issue for decision is whether plaintiff is an “interested party” within the meaning of 28 U.S.C. § 1491(b)(1) (1994 & Supp. V 1999).

FACTS

The following undisputed facts are drawn from the complaint and the filings beyond the complaint. The mail distribution system in Alaska is unique. Because of the state’s geography and climate, almost all mail cargo shipments in the interior are transported by air through private carriers. The Department of Transportation (the “DOT”) establishes the rates to be paid to these carriers by the United States Postal Service (the “USPS”) for the transportation of mail in Alaska. 49 U.S.C. § 41901(b) (1994); 39 U.S.C. § 5402(f) (1994 & Supp. V 1999). Pertinent to this case are two of these rate classes, mainline and bush, which are based on the costs associated with the size of the aircraft operated by the carrier. The mainline class includes aircraft having a maximum gross payload exceeding 7,500 pounds; and the bush class is designated for aircraft having a payload capacity up to and including 7,500 pounds. Because the mainline rate is lower than the bush rate, the USPS will usually distribute mail to mainline carriers on the routes served by those carriers.

[512]*512In order to allow bush carriers to obtain an equitable distribution of the mail on routes served by mainline carriers, bush carriers can opt to accept a rate equal to the lower mainline rate through a process called “equalization.” Generally, any carrier utilizing bush aircraft, such as Alaska Central Express, Inc. (“plaintiff’), may “equalize” by filing with the DOT a notice of intent to accept the lower mainline rate of pay and providing written notice to the USPS and each carrier providing service on the particular route. The USPS then determines whether to utilize equalized service after performing a review to determine the service benefits and cost impacts associated with the proposed change.

In addition to the system described above, the USPS is also subject to rules specifically governing the transportation of nonpriority bypass mail in Alaska. Nonpriority mail is mail other than express mail, priority mail, or first-class mail. Bypass mail is bulk standard mail that is prepared so as not to require handling in a postal facility; it alleviates congestion in the USPS processing centers by “bypassing” them. In 1995 Congress required that carriers of nonpriority bypass mail in Alaska shall

have provided scheduled service within the State of Alaska for at least 12 consecutive months with aircraft—

(i) up to 7,500 pounds payload capacity before being selected as a carrier of nonpriority bypass mail at an applicable intra-Alaska bush service mail rate; and

(ii) over 7,500 pounds payload capacity before being selected as a carrier of nonpriority bypass mail at the intra-Alaska mainline service mail rate.

39 U.S.C. § 5402(g)(1)(D).

Plaintiff is a small Alaskan airline that since 1989 has carried mail for the USPS in Alaska. Plaintiff has a small fleet of propeller-driven aircraft, ten of which have a payload capacity under 7,500 pounds, and one of which has a payload capacity greater than 7,500 pounds. Plaintiff has provided scheduled service within Alaska for one or more years with each of these aircraft. Transportation of nonpriority bypass mail on mainline routes accounts for the majority of plaintiffs annual revenues.

Plaintiffs understanding is that the equalization rate — the rate at which a bush carrier is paid for carrying mail that otherwise would have been distributed to mainline carriers — is a bush rate, albeit at a lower level, and that plaintiff accordingly is eligible to carry mainline nonpriority bypass mail under the requirements of section 5402(g)(l)(D)(i), because it had provided scheduled service for a year with a payload capacity up to 7,500 pounds.1 Until this year the USPS appeared to share this interpretation. Since 1996 plaintiff has carried nonpriority bypass mail to small outlying Alaskan towns for the USPS at bush rates and between major cities in Alaska at the equalization rate.

On June 25, 2001, the USPS determined that plaintiff was ineligible to receive tender of mainline nonpriority bypass mail under the terms of section 5402(g)(1)(D). The USPS reasoned that the equalization rate is, in fact, the mainline rate and that plaintiff was therefore required to have operated aircraft with a payload capacity over 7,500 pounds for one year. Based on this interpretation, the USPS determined that plaintiff was ineligible to transport mainline nonpriority bypass mail at the equalization rate.

Plaintiff filed its complaint in the Court of Federal Claims seeking a declaration that its termination is contrary to law, an injunction reinstating it as an intra-Alaskan air carrier of mainline nonpriority bypass mail, damages for lost revenues, costs, and attorneys’ fees. The parties subsequently agreed to maintain the status quo during the pendency of this action, and the USPS has continued to tender all categories of bush and mainline mail to plaintiff, thus rendering plaintiffs claim for lost revenues moot.2 The court granted the motion of Northern Air Cargo, Inc. (“in-tervenor”), to intervene.

[513]*513DISCUSSION

The burden of proving that the Court of Federal Claims has subject matter jurisdiction over a claim rests with the party seeking to invoke its jurisdiction. McNutt v. Gen. Motors Acceptance Corp., 298 U.S. 178, 189, 56 S.Ct. 780, 80 L.Ed. 1135 (1936); Reynolds v. Army & Air Force Exch. Serv., 846 F.2d 746, 748 (Fed.Cir.1988). At the pleading stage, general factual allegations may suffice to meet this burden, for on a motion to dismiss the court “presumes that general allegations embrace those specific facts that are necessary to support the claim.” Lujan v. Nat’l Wildlife Fed’n, 497 U.S. 871, 889, 110 S.Ct. 3177, 111 L.Ed.2d 695 (1990). However, because proper jurisdiction is not merely a pleading requirement, “but rather an indispensable part of the plaintiffs case, each element [of subject matter jurisdiction] must be supported in the same way as any other matter on which the plaintiff bears the burden of proof.” Lujan v. Defenders of Wildlife, 504 U.S. 555, 561, 112 S.Ct. 2130, 119 L.Ed.2d 351 (1992) (citing Nat’l Wildlife Fed’n, 497 U.S. at 883-89, 110 S.Ct. 3177; Gladstone, Realtors v. Village of Bellwood, 441 U.S. 91, 114-15 & n. 31, 99 S.Ct. 1601, 60 L.Ed.2d 66 (1979); Simon v. E. Ky. Welfare Rights Org.,

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Cite This Page — Counsel Stack

Bluebook (online)
50 Fed. Cl. 510, 2001 U.S. Claims LEXIS 198, 2001 WL 1265392, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alaska-central-express-inc-v-united-states-uscfc-2001.