Capital Transit Co. v. Safeway Trails, Inc.

201 F.2d 708, 92 U.S. App. D.C. 20, 1953 U.S. App. LEXIS 4022, 99 P.U.R. (N.S.) 291
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 15, 1953
Docket11326_1
StatusPublished
Cited by12 cases

This text of 201 F.2d 708 (Capital Transit Co. v. Safeway Trails, Inc.) 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
Capital Transit Co. v. Safeway Trails, Inc., 201 F.2d 708, 92 U.S. App. D.C. 20, 1953 U.S. App. LEXIS 4022, 99 P.U.R. (N.S.) 291 (D.C. Cir. 1953).

Opinion

FAHY, Circuit Judge.

The District Court on motion dismissed a complaint filed by Capital Transit Company (Transit) against Safeway Trails, Inc. (Safeway) to obtain an injunction against certain competitive bus operations of Safeway alleged to be illegal. 1 2 The dismissal order recited that the complaint was premature because plaintiff had not first exhausted available administrative remedies under the Interstate Commerce Act, 49 U. S.C.A. § 1 et seq., and the laws governing the Public Utilities Commission of the District of Columbia. Remarks of the District judge explaining his decision indicate he did not intend the order to be construed as ruling the court was without jurisdiction of any aspect of the case, but as a decision that a cause of action was not stated for injunctive relief prior to resort by plaintiff to available administrative processes.

The facts essentially are as follows. Transit operates the bus line affected under orders of the District of Columbia Public Utilities Commission and under a permit of the Public Service Commission of Maryland. It transports passengers for hire on a fixed schedule on New Hampshire Avenue between points in the District of Columbia and in Maryland south of the Montgomery County-Prince George County line. Safeway also operates a bus line over the same route 2 for the transportation of pas *709 sengers for hire on a fixed schedule. When the complaint was filed Safeway held a certificate of convenience and necessity issued by the Interstate Commerce Commission. This certificate prohibited Safeway from picking up and discharging the same passengers between any point in the District of Columbia and any point in Maryland on its route south of said county line. Pending this appeal, however, the Interstate Commerce Commission removed this restriction and accordingly there is no longer any controversy within the jurisdiction of that Commission. There does remain Transit’s contention that the operations of Safeway to which objection is made are competitive with Transit, are without the requisite permission of the Public Utilities Commission, and cause such injury to legally protectible rights of Transit as cannot adequately be remedied at law.

The District of Columbia Code 1951, § 44-201, prohibits the establishment of a bus line, competitive with Transit, over a given route on a fixed schedule unless the Commission has issued a certificate to the competing carrier that its line is necessary for the convenience of the public. This gives Transit a status which is legally protectible. Frost v. Corporation Commission, 1929, 278 U.S. 515, 49 S.Ct. 235, 73 L.Ed. 483; Adam v. New York Trust Co., 1930, 5 Cir., 37 F.2d 826, certiorari granted, 281 U.S. 715, 50 S.Ct. 460, 74 L.Ed. 1135, 1931, certiorari dismissed as improvidently granted, 282 U.S. 814, 51 S.Ct. 214, 75 L.Ed. 728; Wichita Transp. Co. v. People’s Taxicab Co., 1934, 140 Kan. 40, 34 P.2d 550, 94 A.L.R. 771; Slusher v. Safety Coach Transit Co., 1929, 229 Ky. 731, 17 S.W.2d 1012, 66 A.L.R. 1378. Safeway does operate over a given route on a fixed schedule and on the facts as they must be assumed for present purposes Safeway does not have such a certificate. Furthermore, the motion to dismiss admits the allegations of the complaint as to the picking up and discharging of passengers in competition with Transit. Safeway says, however, that the Merger Act, 3 part of which, § 44-201, D.C.Code 1951, is relied on by Transit, also provides in Section 1, 47 Stat. 759 (1933), that nothing in the Act “shall be construed to limit the present powers of the Public Utilities Commission” and that the Commission, in the exercise of powers thus reserved, by P.U.C. Order 'No. 2821 of August 25, 1944, authorized Safeway’s challenged operations. This order, read with P.U.C. Order No. 1600 of April 19, 1937, which it amends, authorizes Safeway “to operate passenger buses in Class A service, as defined in Order No. 936”, over the route therein described, 4 which includes New Hampshire Avenue within the District of Columbia. Intra-District passengers, however, are prohibited, Order No. 1600, Section 3. Whether or not these orders support Safeway’s operations depends upon the nature of Class A service. By P.U.C. Order No. 936 of July 15, 1931, Class A motor buses are defined as follows:

“Class A. Buses which run on regular schedules, carrying passengers mak *710 ing occasional trips between Washington and other Metropolitan Areas.”

The same order also provides:

"(2) No Class A bus, which is defined as any bus which runs on regular schedules, carrying passengers making occasional trips 'between Washington and other Metropolitan Areas, shall after August 15, 1931, enter, leave or operate in the District of Columbia except over such route or routes and to such stops or terminals as may hereafter be approved by proper authority.”

In this situation was the court required to entertain the suit for an injunction against Safeway? In answering we must consider the functions of the Public Utilities Commission as they might here apply. The Code, D.C.Code'1951, grants the Commission power (1) to investigate summarily any matter relating to any public utility, § 43-414; (2) to hold a hearing after such investigation, § 43-415; (3) to entertain the complaint of any public utility (such as Transit) as to any matter affecting its service, with like effect as though made by the Commission or upon reasonable complaint as otherwise provided, § 43-417; and (4) under the provisions of § 43-303, “by order in writing, to require and compel every public utility to comply” with the applicable laws, ordinances and regulations. 5 Under § 43-705, any public utility affected by any final order or decision, with exceptions not here pertinent, may appeal to the District Court, with right of appeal therefrom to this court.

Clearly, these provisions are broad enough to cover any matter posed by the complaint. In other words, an administrative remedy is available to Transit. It is true that the question whether Safeway without the certificate referred to is competing illegally with Transit is a legal, juridical question under the Merger Act, coupled with a simple factual issue as to competition. No administrative hearing or judgment would seem to be required to decide whether Section 1 of the Merger Act in providing that nothing therein “shall be construed to limit the present powers of the Public Utilities Commission” authorizes the Commission to permit competition by a bus line which does not have the certificate referred to in § 44 — 201. We assume arguendo that this question, with its related factual issue of competition, is within

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201 F.2d 708, 92 U.S. App. D.C. 20, 1953 U.S. App. LEXIS 4022, 99 P.U.R. (N.S.) 291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/capital-transit-co-v-safeway-trails-inc-cadc-1953.