Eastern States Petroleum Corporation v. William P. Rogers, Attorney General of the United States

280 F.2d 611
CourtCourt of Appeals for the D.C. Circuit
DecidedJune 7, 1960
Docket15109
StatusPublished
Cited by45 cases

This text of 280 F.2d 611 (Eastern States Petroleum Corporation v. William P. Rogers, Attorney General of the 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
Eastern States Petroleum Corporation v. William P. Rogers, Attorney General of the United States, 280 F.2d 611 (D.C. Cir. 1960).

Opinion

BAZELON, Circuit Judge.

This appeal from the District Court relates to appellant’s attack, begun in the United States Customs Court some eight years ago, upon the tax rate imposed upon petroleum imports between January 1. 1951 and October 11, 1952. The Customs Court proceedings were stayed pending the outcome of two other cases raising substantially identical questions. The importers in these cases contended that the President’s proclamation increasing the duty from one-fourth to one-half cent per gallon was contrary to statute and an unconstitutional exercise of power. 1 The Court of Customs and Patent Appeals ultimately rejected these claims and the Supreme Court denied certiorari. 2

Appellant, whose case is still pending in the Customs Court, then brought the instant suit to enjoin the Attorney General, the Secretary of the Treasury, and their subordinates from enforcing the tax through proceedings in the customs courts. 3 The complaint asserted that, as a result of the unfavorable decisions in the two companion cases, appellant’s opportunity to secure recognition of its constitutional rights in the customs courts has become “so onerous, hazardous and speculative that it constitutes an inadequate remedy * * * which plaintiff may by-pass” to secure redress in a tribunal with statutory authority to enjoin administrative officials. It also asserted that Article III and the due process clause of the Constitution entitle it to have its constitutional claims adjudicated in a court created under Article III. Appellant requested that a three- *613 judge court be convened, pursuant to the provisions of 28 U.S.C. § 2282 (1958).

The Government moved to dismiss the complaint for lack of jurisdiction. District Judge McGarraghy, sitting alone, granted the Government’s motion. Appellant thereupon applied to the Chief Judge of this Circuit for an order designating two additional judges to complete a three-judge district court. Chief Judge Prettyman denied the motion. 4 Appellant then sought review from Judge McGarraghy’s ruling by direct appeal to the Supreme Court, and moved for leave to file a petition for a writ of mandamus against Chief Judge Prettyman and District Judge McGarraghy. The Supreme Court dismissed the appeal 5 and denied the motion. 6 Appellant thereupon prosecuted the present appeal from the dismissal below. 7

We think the District Court correctly decided that it lacked jurisdiction. Under the distribution of judicial power which Congress has established, the Customs Court has “exclusive jurisdiction to review on protest the decisions of any collector of customs * * 28 U.S.C. § 1583 (1958) (emphasis supplied) . Conversely, 28 U.S.C. § 1340 provides that “The district courts shall have original jurisdiction of any civil action arising under any Act of Congress providing for * * * revenue from imports or tonnage except matters within the jurisdiction of the Customs Court.” 28 U.S.C. § 1340 (1958) (emphasis supplied). This jurisdictional scheme is not limited to non-constitutional matters, for it is clear that the customs courts can and do, as in the two companion cases, pass upon constitutional questions. Horton v. Humphrey, D.C.D.C., 146 F.Supp. 819, 821 (3-judge court), affirmed per curiam, 1956, 352 U.S. 921, 77 S.Ct. 224, 1 L.Ed. 2d 157; Morgantown Glassware Guild, Inc. v. Humphrey, 98 U.S.App.D.C. 375, 236 F.2d 670, certiorari denied, 1956, 352 U.S. 896, 77 S.Ct. 133, 1 L.Ed.2d 87. Decisions of the Court of Customs and Patent Appeals are reviewable in the Supreme Court on writ of certiorari, 28 U.S.C. § 1256 (1958).

Appellant contends, however, that the District Court has jurisdiction notwithstanding the exception in § 1340, since this is not a case “arising under any Act of Congress providing for * * * revenue from imports * * Rather, they contend it is a case “aris[ing] under the Constitution, laws, or treaties of the United States,” and thus within the ambit of 28 U.S.C. § 1331 (1958). Section 1331 vests federal question jurisdiction in the district courts and, unlike § 1340, contains no exception relating to Customs Court jurisdiction. But we do not agree that Congress’ failure to provide an exception to § 1331 similar to that specified in § 1340 indicates an intent to open a loophole in its clear purpose to exclude customs cases from the district courts. When Congress provides a specific judicial remedy, relief may generally be accorded only through the specified procedure. Cf. Lichter v. United States, 1948, 334 U.S. 742, 789-793, 68 S.Ct. 1294, 92 L.Ed. 1694; Lockerty v. Phillips, 1943, 319 U.S. 182, 63 S.Ct. 1019, 87 L.Ed. 1339. Moreover, the right to equitable relief presupposes the nonexistence of an adequate remedy at law. The customs courts provide an adequate remedy except in cases of extreme hardship, Horton v. Humphrey, supra. The fact that the customs courts are likely *614 to reject appellant’s constitutional claims does not make this a case of unusual hardship. Cottman Co. v. Dailey, 4 Cir., 1938, 94 F.2d 85, 89.

Appellant attacks the foregoing construction of these jurisdictional statutes on the ground that, at some stage of the litigation, it is constitutionally entitled to have its constitutional claims heard and determined in an Article III court, and that such a hearing must be available as of right and not as a matter of discretion.

There is at the outset considerable doubt as to whether the customs courts are legislative rather than Article III courts. Some years ago, the Supreme Court held that the Court of Customs Appeals (now the Court of Customs and Patent Appeals) was a legislative court, Ex parte Bakelite Corp., 1929, 279 U.S. 438, 49 S.Ct. 411, 73 L.Ed. 789; that is to say, it was a court created under the congressional power “to lay and collect Taxes, Duties, Imposts and Excises,” U.S.Const, art. I, § 8, and not under the power to “ordain and establish” courts inferior to the Supreme Court, U.S. Const, art. Ill, § 1.

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Bluebook (online)
280 F.2d 611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eastern-states-petroleum-corporation-v-william-p-rogers-attorney-general-cadc-1960.