Continental Bus System, Inc. v. City of Dallas

386 F. Supp. 359, 1974 U.S. Dist. LEXIS 11563
CourtDistrict Court, N.D. Texas
DecidedDecember 17, 1974
DocketCiv. A. 3-7511-F
StatusPublished
Cited by17 cases

This text of 386 F. Supp. 359 (Continental Bus System, Inc. v. City of Dallas) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Continental Bus System, Inc. v. City of Dallas, 386 F. Supp. 359, 1974 U.S. Dist. LEXIS 11563 (N.D. Tex. 1974).

Opinion

MEMORANDUM OPINION

ROBERT W. PORTER, District Judge.

Planning, constructing and operating the world’s largest airport equidistant between them has markedly attenuated the traditional rivalry of the cities of Dallas and Fort Worth. The new airport has spawned considerable litigation, however, and the cities that jointly own and operate it consequently often find themselves aligned on the same side of the “versus” in lawsuits arising from their joint venture.

This, one of those numerous suits, requires the cities to defend their joint operation of a bus line between the airport and the downtown areas of both cities, and their prohibition of competition from the Plaintiff, Continental Bus System, Inc. (known to the public as Continental Trailways).

The parties, agreeing that there are no questions of fact, have placed before the Court several questions of law on cross-motions for summary judgment. The principal issue is whether Dallas and Fort Worth, by jointly operating their bus line, Surtran, 1 and by enacting identical ordinances prohibiting unlicensed competition with Surtran, are illegally restraining interstate commerce.

A careful examination of the authorities convinces me that while one could question the wisdom of the cities’ decision, one cannot question their legal right to implement that decision. Therefore, the Court will grant the cities’ motions for summary judgment and deny the plaintiff’s motion for summary judgment. My reasons will be detailed below in this opinion, which is submit *361 ted in lieu of findings of fact and conclusions of law.

I. THE HISTORIAL BACKGROUND

Another judge of this Court, in a case involving these two cities and their new airport, has traced the evolution of civil animosity into partnership. City of Dallas, Texas, v. Southwest Airlines Co., 371 F.Supp. 1015 (N.D.Tex.1973) (Taylor, C. J.), aff’d, 5th Cir., 494 F.2d 773, rehearing denied 496 F.2d 1407 (5th Cir. 1974), cert. denied, 43 U.S.L.W. (U.S. Dec. 16, 1974) (No. 74-324). The interested reader will find more details in Judge Taylor’s opinion, but it is enough for our purposes to know that after operating competing airports for many years, Dallas and Fort Worth jointly constructed a huge regional airport between the two cities. In large part, the airport is a tribute to farsighted leaders from both cities, but the role of the Civil Aeronautics Board should not be underestimated. It was the CAB that let it be known it would designate either Fort Worth’s or Dallas’ airport as the sole facility for both cities unless they agreed upon a solution. Unlike Dallas’ Love Field and Fort Worth’s Greater Southwest- International Airport, which were within the city limits of the respective cities, D/FW Regional Ai3'port sprawls over parts of Grapevine, Euless and Irving. A very small portion lies within Fort Worth’s city limits. AH terminal buildings are in Grapevine, as is the “spine road” which is the only highway entering the airport.

When D/FW Regional opened to traffic in January of 1974, Surtran commenced regularly scheduled shuttle service between the aii’port and downtown Dallas and Fort Worth. Surtran’s fleet consists of 45 new intercity-type buses purchased for more than $2.3 million. 2

Continental, as authorized by a permit, operated sight-seeing buses through D/FW Regional while it was under construction. But apparently the owning cities intended from the very first that once the airport opened, Surtran and only Surtran would provide bus service there. (When Love Field was the principal Dallas airport, both Continental and the Dallas Transit System ran buses there.)

This lawsuit previously was assigned to my colleague Judge Mahon and was transferred to me shortly after my appointment to this Court. Judge Mahon used the Court’s good offices to urge the parties to negotiate in good faith to attempt to reconcile their dispute. Continental and Surtran did negotiate, and Continental submitted a formal application for a permit to load passengers at D/FW, accompanied by proposed timetables for twelve buses daily. The proposed fare was $1.30 between Dallas and the airport and $1.40 from Fort Worth to the airport, plus in each case the amount of the per-passenger charge made by airport authorities to Continental for the privilege of discharging and picking up passengers at the airport. This charge was never worked out. (Surtran fares, by contrast, are $2.50 between the airport and either city. Airport employees — whether they work for one of the cities, Surtran, an airline, a concessionnaire, or whomever — ride for only $1.00.) Ultimately, Continental’s application was denied.

II. JURISDICTION AND CAUSES OF ACTION

In its amended complaint, Continental invokes this Court’s federal question jurisdiction and claims that more than $10,000 is in controversy. 28 U.S.C. § 1331. The causes of action, Continental continues, arise under the Federal Aviation Act of 1958, 72 Stat. 731, 49 U.S.C. § 1301 et seq.; the National Transportation Policy Act of 1940, 54 Stat. 899; 42 U.S.C. § 1983; the Commerce Clause and the fifth and fourteenth amendments to the Constitution, U.S.Const. *362 art. I, § 8, cl. 3 and amend. V and XIV; the Sherman Antitrust Act, 15 U.S.C. §§ 1-7; and Part II of the Interstate Commerce Act, 49 U.S.C. § 301 et seq. In addition, Continental has pleaded state causes of action under Texas statutes and the Texas Constitution which are based on a common nucleus of operative fact with the federal causes of action. Continental requests a declaratory judgment pursuant to 28 U.S.C. § 2201 and an injunction against the cities pursuant to 28 U.S.C. § 2202.

There is no serious question of this Court’s jurisdiction, although the City of Fort Worth has urged the Court to abstain and both cities vigorously insist that Continental has no cause of action. I find that an actual controversy exists between the parties, and that this Court has jurisdiction under 28 U.S.C. § 1331 to resolve it. The alleged causes of action will be discussed one by one (although not in the order listed in the complaint).

III. NATIONAL TRANSPORTATION POLICY ACT AND INTERSTATE COMMERCE ACT

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Bluebook (online)
386 F. Supp. 359, 1974 U.S. Dist. LEXIS 11563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-bus-system-inc-v-city-of-dallas-txnd-1974.