American Trucking Ass'n v. United States

627 F.2d 1313, 201 U.S. App. D.C. 327
CourtCourt of Appeals for the D.C. Circuit
DecidedApril 24, 1980
DocketNo. 78-2260
StatusPublished
Cited by18 cases

This text of 627 F.2d 1313 (American Trucking Ass'n v. United States) 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
American Trucking Ass'n v. United States, 627 F.2d 1313, 201 U.S. App. D.C. 327 (D.C. Cir. 1980).

Opinion

Opinion for the court filed by Chief Judge J. SKELLY WRIGHT.

J. SKELLY WRIGHT, Chief Judge:

These consolidated petitions for review1 challenge regulations recently promulgated by the Interstate Commerce Commission (ICC or Commission) governing intervention in motor carrier licensing proceedings by persons opposing issuance of the license.2 Petitioner American Trucking Associations, Inc., the national organization of the trucking industry, is joined by other motor carrier interests and by intervenor International Brotherhood of Teamsters in asking this court to strike down the regulations.3 They contend that the regulations restrict the right of intervention in ICC licensing proceedings guaranteed to competitors and carrier employees under the Interstate Commerce Act, 49 U.S.C.A. §§ 10306(b), 10328(a) & (b) (1979), the Administrative Procedure Act, 5 U.S.C. §§ 544(c), 556(d) (1976), and the Due Process Clause. They also argue that the regulations are arbitrary, capricious, without rational basis, and abusive of discretion.

The Commission, joined by intervenor National Industrial Traffic League, an organization of shippers, argues that the challenged regulations are within the discretion of the agency, being a reasonable way to control the docket and restore order and manageability to licensing proceedings. The Commission denies that the regulations will take from any party a right of intervention it may have under the relevant statutes or the Constitution. The Commission observes that the new regulations are similar to the procedures governing intervention in licensing proceedings conducted by other federal agencies.

We agree with the Commission that the new rules are within its statutory authority and, being a sensible method of improving and streamlining ICC licensing proceedings, are not arbitrary, capricious, or abusive of discretion. We therefore affirm.

I

Until the challenged regulations went into effect4 the ICC permitted any person to file a protest to a motor carrier application and to participate in the proceeding without making any showing of interest.5 In his 1958 treatise on administrative law Professor K. C. Davis commented on the [331]*331uniquely open intervention rules of the ICC:

[T]he ICC almost as a matter of course grants petitions for leave to intervene, with no inquiry except into the timeliness of the petitions and the question of undue broadening of issues. Moreover, in nearly any proceeding except a complaint case, one may become a party by merely entering an appearance without filing a petition for leave to intervene. The ICC thus avoids problems about adequacy of legal interest or right. Even a substantial broadening of the issues is commonly permitted.

1 K. Davis, Administrative Law Treatise § 8.11 at 569-570 (1958) (footnotes omitted).

Recently, however, the ICC has experienced an “influx of applications,”6 which has caused a substantial backlog.7 In the Commission’s estimation, this backlog has reached the point at which the agency can no longer be “as responsive as it could be” to the requirements of the transportation industry and the interests of the public.8 Accordingly, on June 2, 1977 the Commission established a staff task force to investigate ways of improving outmoded ICC procedures. After study the staff concluded that the ICC should grant standing to protest license applications “only to carriers actually participating in the involved traffic during the 2-year period preceding the filing of the application.” 9 By this change in procedure the staff expected to eliminate many “frivolous protests” and to permit more cases to be handled as unopposed.10

After inviting comments on the staff report11 the Commission published proposed rules restricting the right of intervention in motor carrier licensing proceedings12 and set the matter for notice and comment rule-making without oral argument. The proposed rules were much less restrictive than those supported by the staff report.13 In summary, they permitted automatic intervention by carriers in direct competition with the applicant’s proposed service and permissive intervention by other parties upon petition. The Commission was to base its decision whether to grant such permissive intervention on seven criteria designed to identify parties with sufficient interest in the proceeding to warrant their participation. Many members of the public and some federal agencies submitted comments on the proposed rules. Carrier interests generally agreed that the Commission should take action to eliminate frivolous protests, but opposed the proposed rules on the ground that they would interfere with the ability of carriers with competing authority to protect their economic interests.14 Shipping interests and the federal agencies generally supported the proposed rules or suggested that they be strengthened so as to restrict the right of intervention still further.15

On November 1,1978 the ICC promulgated final rules governing intervention in motor carrier licensing proceedings. Protest Standards in Motor Carrier Application Proceedings (1978), printed at 43 Fed.Reg. [332]*33250908 (November 1, 1978), Deferred Appendix (DA) 28. The new rules amend '49 C.F.R. § 1100.247(i) (1978) and add new subsections (e)(9), (k), (I), and (m). Under the new intervention rules the ICC will permit intervention as a matter of right in motor carrier licensing proceedings to persons supporting the application, and to any carrier that submits a petition showing that it:

(1) Is authorized to perform any of the services which the applicant seeks authority to perform[;] and
(2) Has the necessary equipment and facilities for performing that service; and
(3) Has performed a service within the scope of the application either (i) for those supporting the application, or, (ii) where the service is not limited to the facilities of particular shippers, from and to or between any of the involved points.

Protest Standards, supra, 43 Fed.Reg. at 50911, DA 52, 49 C.F.R. § 1100.247(k) (1979). Other parties may petition to intervene in motor carrier licensing proceedings, although they do not satisfy the criteria of subpart (k). The Commission will decide whether to permit such intervention, based on the following factors:

(i) The nature, if any, of the petitioner’s right under a statute to be made a party.

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Cite This Page — Counsel Stack

Bluebook (online)
627 F.2d 1313, 201 U.S. App. D.C. 327, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-trucking-assn-v-united-states-cadc-1980.