Capitol International Airways, Inc. v. Civil Aeronautics Board

392 F.2d 511, 129 U.S. App. D.C. 187, 1968 U.S. App. LEXIS 7782
Court of Appeals for the D.C. Circuit·Decided March 8, 1968·No. 21062·Published·Cited by 6 cases

Opinion

TAMM, Circuit Judge:

I

Petitioner, an air carrier holding certificates authorizing it to engage in supplemental (charter) air transportation, seeks review of two Civil Aeronautics Board orders, both of which were effec *513 -tive April 18, 1967. Order E-24998 found that petitioner, in operating a charter flight: (a) collected greater compensation than provided in its tariffs; (b) failed to obtain parts of the Statement of Supporting Information required by Board regulations; and (c) failed to obtain a regulation-required Certified Passenger Manifest. This order also directed petitioner to cease and desist from: (a) charging transportation at rates different from its effective tariffs and (b) operating pro rata charter flights without obtaining information and manifests required by Board regulations. The second Board order here involved, E-24999, denied petitioner’s application for discretionary review by the Board of the initial decision of the hearing examiner and made effective the initial decision of the hearing examiner as the decision of the Board.

Action before the Board was initiated by its Bureau of Enforcement with the filing of a complaint charging petitioner specifically with violations arising from petitioner’s conduct and action in the handling of a charter European flight contracted for by the New York State Teachers Study Group. After petitioner had filed its answer to the complaint, and in due course, hearings were held before an examiner, at which hearings testimony was taken from various witnesses; exhibits were filed, and briefs submitted at the close of the testimony. The examiner issued his decision, ruling that petitioner had; in fact, received payment of the full charter price prior to its assessment and collection of an additional $92.-50 from each passenger and had, in fact, failed to obtain parts of the Statement of Supporting Information and the Certified Passenger Manifest as charged in the Bureau of Enforcement’s complaint. The examiner entered an order directing petitioner to cease and desist from these violations. Thereafter, Capitol International Airways filed a timely petition for discretionary review of the examiner’s decision with the Board. The Board declined to review, thereby effectuating the examiner’s decision as the final order of the Board.

II

Petitioner’s challenge to the Board action is based upon the role of one Friedman and the question of whether the testimony and exhibits establish him as the agent of the carrier. The Board, by sustaining the examiner’s ruling, held that Friedman was the agent of petitioner and consequently that funds paid to him by the chartering group were in fact paid to petitioner, even though the record established that Friedman’s wife, as president of the New York State Teachers Study Group, turned the funds collected for several group trips over to her husband as the owner of the travel agency which handled the details of the several tours. The problem crystallized when Friedman was indicted by the grand jury of Bronx County, New York, for grand larceny of some $165,000 in money belonging to the Study Group and was ultimately convicted of this violation.

Free access — add to your briefcase to read the full text and ask questions with AI

Capitol International Airways, Inc. v. Civil Aeronautics Board, 392 F.2d 511, 129 U.S. App. D.C. 187, 1968 U.S. App. LEXIS 7782 (D.C. Cir. 1968).

392 F.2d 511 (Capitol International Airways, Inc. v. Civil Aeronautics Board) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related