American Export-Isbrandtsen Lines, Inc. v. Federal Maritime Commission

444 F.2d 824, 1970 A.M.C. 1467
Court of Appeals for the D.C. Circuit·Decided June 11, 1970·No. No. 22820·Published·Cited by 3 cases

Opinion

MacKINNON, Circuit Judge:

This case involves a truck Detention Rule1 which the Federal Maritime Commission (“Commission”) ordered inserted into the tariffs of the New York Terminals’ Conference2 (Terminals) in an attempt to relieve congestion at the wharves, piers and marine terminals in the area of the Port of New York. A shipping company, American ExportIsbrandtsen Lines, Inc. (Isbrandtsen) and other members of the New York Terminal Conference, petition this court to review a Federal Maritime Commission (Commission or FMC) order of February 25, 1969 directing the Terminals to include in their Truck Loading and Unloading Tariff a detention rule for motor vehicles. We have jurisdiction under 28 U.S.C. §§ 2342(3) and 2349 and venue in the United States Court of Appeals for the District of Columbia Circuit is provided for by 28 U.S.C. § 2343.

In a direct attack on New York pier congestion the Commission in October of 1963 ordered an investigation to determine whether certain provisions of a tariff filed by the marine terminals were in violation of the Shipping Act of 1916.3 Of specific relevance was a provision in the Terminals’ tariff providing:

“The Terminal Operator assumes no responsibility for delay to motor vehicles and no claims for such delay will be honored.” 9 F.M.C. 510 (Truck Tariff No. 6, Item 16)

After a full evidentiary hearing, the Commission in its Report and Order of May 12, 1966 (hereafter the 1966 Order) found it to be “neither just nor reasonable” for the Terminals to disclaim lia[827] bility for any truck detention,4 and ordered the Terminals to insert in their Tariff No. 6 a “reasonable detention rule * * * which will compensate the truckers for unusual truck delays caused by or under the control of the terminals.”

On January 18, 1968, we upheld this order in American Export-Isbrandtsen Lines, Inc. v. Federal Maritime Commission, 129 U.S.App.D.C. 1, 389 F.2d 962 (1968). Soon thereafter the staff of the Commission met with representatives of the Terminals and the trucking industry (Empire State Highway Trucking Association) in an attempt to reach agreement on a reasonable truck detention rule. Periodic meetings were held until August 21, 1968 but the parties were unable to agree, whereupon the staff of the Commission informed the parties that a memorandum would be forwarded recommending that the Commission prescribe a reasonable detention rule.

In late 1968, before the Commission was able to promulgate its rule, the Terminals submitted a detention rule amendment to its tariff providing inter alia:

Truck free time will be as follows 5:

The Terminals’ detention rule further provided in Item 17(g) (3):

No truck detention will be allowed for delays or shutouts resulting from any of the following:
******
(3) inadequate or insufficient manpower occasioned by the failure, refusal or lack of registered pier personnel in the area to fill work orders duly issued by the Participating Member [terminal] in accordance with regulations established by the Waterfront Commission of New York Harbor. In this connection, the official records of the Waterfront Commission will be conclusive on the issue of said availability of manpower. (Emphasis added.)

Shortly thereafter, on September 27, 1968, the Commission entered an order rejecting the Terminals’ proposed tariff amendment and, at the same time, published a proposed Detention Rule of its own along with an Order to the Terminals to Show Cause why the Commission’s proposed Rule should not be adopted.

A full hearing was thereafter held and after considering the Terminals’ response and the comments of all other parties, the Commission issued its order dated February 25, 1969 directing the Terminals to include in their tariffs a truck detention rule effective March 31, 1969, reading substantially in accordance with the rule originally proposed by the Commission in its Order to Show Cause.

In its order of February 25, 1969 directing that the Terminals include the proposed rule in its Tariff, the Commission stated:

The Conference misconceives the nature of the action taken here. Perhaps this misconception is partly due to our use of the word “reject” in the show cause order. We recognize that the only Shipping Act provisions which specifically authorize the [828] “rejection” of tariff filings are section 2 of the Intercoastal Shipping Act, 1933, and section 18(b) (4) of the Shipping Act, 1916, and that these provisions do not apply to terminal operators. However, our action here was undertaken not under a specific statutory power to “reject”, but pursuant to the authority contained in section 17 of the Shipping Act, as a necessary step to implement and enforce our prior Report and Order in this proceeding. We previously determined that it was an unreasonable practice for the Conference to fail to adopt a reasonable tariff rule which would provide for compensation to truckers for delays incurred at the conference members’ piers. Having found the practice unreasonable, we have now undertaken to determine, prescribe, and order enforced a reasonable tariff rule governing truck detention. Inherent in our authority to prescribe a reasonable rule or practice is the authority to set aside any rule or practice which would interfere with this authority. To conclude otherwise would give the Conference an absolute right to file and make effective any rule and thereby nullify our power to prescribe reasonable provisions. Such an interpretation of section 17 would abrogate an express grant of statutory authority and therefore would be plainly untenable.

We agree with the Commission’s reasons for acting in the manner it did.

The material provisions of the Detention Rule as finally ordered to be effective March 31, 1969 by the Commission are set forth in an Appendix to this opinion.

Following the Commission’s February 25, 1969 Order the Terminals requested this court to stay the operation of the rule until its legal validity could be determined. This request was denied; however we ordered all detention payments to be paid into an escrow account pending the determination of this case on appeal.

I

Initially we consider whether the Commission acted properly in rejecting the detention rule proposed by the Terminals and in prescribing in its own rule that work slowdowns due to insufficient labor shall not excuse Terminals from the obligation to pay detention charges.

The law for centuries has recognized that public wharves, piers and marine terminals are affected with a public interest.6

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American Export-Isbrandtsen Lines, Inc. v. Federal Maritime Commission, 444 F.2d 824, 1970 A.M.C. 1467 (D.C. Cir. 1970).

444 F.2d 824 (American Export-Isbrandtsen Lines, Inc. v. Federal Maritime Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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