American Trucking Ass'n v. Interstate Commerce Commission

770 F.2d 535
CourtCourt of Appeals for the Fifth Circuit
DecidedSeptember 13, 1985
DocketNo. 84-4389
StatusPublished
Cited by1 cases

This text of 770 F.2d 535 (American Trucking Ass'n v. Interstate Commerce Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Trucking Ass'n v. Interstate Commerce Commission, 770 F.2d 535 (5th Cir. 1985).

Opinion

ALVIN B. RUBIN, Circuit Judge:

After years of legislative study, “one of the most intensive inquiries” ever conducted by the Senate Committee on Commerce, Science, and Transportation,1 and pressure by conflicting interest groups, some seeking continuation of full regulation of the motor transport industry and others seeking its complete deregulation, Congress adopted the Motor Carrier Act of 1980.2 Following a midcourse, Congress reduced but did not eliminate governance of the industry by the Interstate Commerce Commission.3 The Act gives the Commission broad discretion, but not boundless authority, to structure the continuing regulation of the industry to promote competition and efficiency. In reviewing its actions, we accord deference to both the Commission’s policy judgments and its interpretation of the Act. Nonetheless, we weigh its decisions against the statutory text and legislative history of the Act as the sources of administrative authority. “[T]he courts are the final authorities on issues of statutory construction. They must reject administrative constructions ... that are inconsistent with the statutory mandate or that frustrate the policy that Congress sought to implement.” 4

In 1980, the Commission began two rule-making proceedings to implement the provisions of the Act: one concerning the licensing of motor carriers 5 and the other the removal of restrictions from previously issued licenses.6 After notice and public comment, the Commission issued final licensing and restriction-removal rules.7 When these were challenged, we upheld most of the rules promulgated by the Commission but found three provisions beyond its statutory authority. As a consequence, in American Trucking Associations, Inc. v. I.C.C. (ATA I),8 we directed the Commission:

1. to permit applicants for new certificates of public convenience to “apply for any reasonably broad commodity authority” and to “require a showing that the applicant is fit, willing, and [538]*538able to carry the commodities for which authority is sought.”9 It might permit any of the three broad commodity descriptions set forth in the new rules, but it must allow any other reasonably broad description. We forbade the Commission to “require all applicants regardless of circumstances to fit Procrustean descriptions” or to “assume that an applicant fit, willing, and able to carry one commodity [included] in a [standard transportation commodity code classification] is fit, willing, and able to carry all commodities in that classification;” 10

2. not to extend bulk service authority to carriers granted general commodity authority unless the carriers “demonstrate that they are ‘fit, willing, and able to provide the transportation to be authorized by the certificate;’ ” 11

3. to exclude the states of Alaska and Hawaii from nationwide licenses unless the applicant shows a need for service to or from those states as well as its fitness, willingness, and ability to serve those states.12

Because the Commission had not acted to replace the invalidated rules by February 1982, we granted a writ of mandamus in American Trucking Associations, Inc. v. I. C.C. (ATA II).13 The writ required the Commission to rescind the invalidated rules and, as “soon as practicable,” issue new rules consistent with our opinion in ATA I. Nonetheless, the Commission did not issue proposed new rules until a year and a half later,14 after the International Brotherhood of Teamsters had filed a petition to hold it in contempt for its failure to issue such replacement rules. Shortly thereafter, in Steere Tank Lines, Inc. v. I.C.Cl,15 we held that (1) the Act requires the Commission to consider an applicant’s fitness and willingness to provide transportation of specific commodities in bulk, and (2) the Commission had failed improperly to include restrictions against bulk hauling in granting authority to a carrier that had not sought to render bulk service.

This appeal challenges the provisions of the most recent rules, adopted in 1984. These rules

1. mandate grants of motor carrier operating authority to transport broadly-described commodity categories unless the applicant seeking authority for more narrowly-described commodities justifies the scope of its application;

2. routinely grant licenses to motor carriers to transport named commodities without any commodity or service restrictions and remove service restrictions on named commodity licenses without requiring the carrier to show that it is fit, willing, and able to provide the previously restricted service;

3. proscribe any limitations or service restrictions on general-commodity motor carrier operating licenses except restrictions against the transportation of household goods, explosives, and bulk commodities;

4. routinely grant authority to serve Alaska and Hawaii to those applicants for licensing as contract carriers who show a need for services and fitness, willingness, and ability to serve only the 48 mainland states;

5. permit the issuance of licenses to applicants seeking certain limited, narrowly circumscribed authorities with[539]*539out a showing that a public need or demand for the service exists.

We hold that in adopting rules that place on applicants an evidential burden to demonstrate that their commodity descriptions promote the designs of the Act, extend bulk service authority in specified commodity licenses without a showing of the carriers’ fitness or willingness to provide that service, and routinely grant fifty-state authority to applicants for contract carriage licenses, the Commission has violated the Act, and we, therefore, vacate the rules to that extent. We reject the challenges to the other parts of the rules.

I.

Congress found that many of the commodity restrictions in operating licenses “serve little or no public purpose”16 and the commodity descriptions in these licenses were sometimes “excessively narrow.” 17 The Motor Carrier Act of 1980, therefore, requires the Commission to “reasonably broaden the categories of property authorized by the carrier’s certificate or permit.” 18 As we recognized in ATA I, the Act gives the Commission wide latitude to define the commodity specifications in a license, for “after forty-five years of regulatory experience, the Commission is presumably qualified to determine the appropriate breadth of the categories.”19 “Yet,” as we there said, “the statute does limit the broadening to what is reasonable. This fetters the Commission’s discretion and exacts judicial review to determine whether its action is reasonable.” 20

Attempting to interpret Congress’ directive, we said:

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Bluebook (online)
770 F.2d 535, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-trucking-assn-v-interstate-commerce-commission-ca5-1985.