Interstate Commerce Commission v. All-American, Inc.

505 F.2d 1360, 1974 U.S. App. LEXIS 6242
CourtCourt of Appeals for the Seventh Circuit
DecidedNovember 4, 1974
Docket74-1019
StatusPublished
Cited by20 cases

This text of 505 F.2d 1360 (Interstate Commerce Commission v. All-American, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Interstate Commerce Commission v. All-American, Inc., 505 F.2d 1360, 1974 U.S. App. LEXIS 6242 (7th Cir. 1974).

Opinion

FAIRCHILD, Circuit Judge.

This action was instituted in the district court by the appellant Interstate Commerce Commission under 49 U.S.C. § 322(b)(1), 1 seeking to enjoin appellee All-American, Inc., a motor carrier engaged in the transportation of property in interstate or foreign commerce pursuant to certificates of public convenience and necessity issued by the Commission, from extending credit to shippers who it knows, or should know, will not pay its tariff charges within a seven day period from the date of presentation of the freight bill in violation of Section 223 of the Interstate Commerce Act (49 U.S.C. § 323) and Section 1322.1 of Title 49 of the Code of Federal Regulations. 2 The *1362 Commission further sought to prevent All-American from providing credit until it had taken precautions sufficient to assure payment of its tariff charges within such seven day period as required by the regulation. All-American filed a motion to dismiss the Commission’s amended complaint and the district court entered an order granting the motion. It is from that order that the Commission appeals. We reverse.

The district court, in its order dismissing the Commission’s amended complaint, relied upon the doctrine of primary jurisdiction, ruling that, despite a clear grant of jurisdiction to the court to enforce I.C.C. regulations in 49 U.S.C. § 322(b)(1), “the power should not be exercised when technical questions of fact involving administrative expertise are involved.” Concluding that the regulation in question raised many technical questions in interpretation and application, the court found that “scrutiny by the Commission’s expertise is clearly required before this court should attempt to exercise its power by an injunction.”

The doctrine of primary jurisdiction determines whether the federal court will refrain from exercising its unquestioned jurisdiction over a dispute until after an administrative agency has resolved some question arising in the proceeding before the court. It represents a recognition of the need for an orderly coordination between the functions of court and agency in securing the objectives of their often overlapping competency. Far East Conference v. United States, 342 U.S. 570, 575, 72 S.Ct. 492, 96 L.Ed. 576 (1952). The doctrine, first enunciated in Texas & Pacific R. v. Abilene Cotton Oil Co., 204 U.S. 426, 27 S.Ct. 350, 51 L.Ed. 553 (1907), has been developed and refined in subsequent decisions. “[I]n cases raising issues of fact not within the conventional experience of judges or eases requiring the exercise of administrative discretion, agencies created by Congress for regulating the subject matter should not be passed over.” Far East Conference v. United States, supra, 342 U.S. at 574, 72 S.Ct. at 494. “Primary jurisdiction . applies where a claim is originally cognizable in the courts, and comes into play whenever enforcement of the claim requires the resolution of issues which, under a regulatory scheme, have been placed within the special competence of an administrative body. . ” United States v. Western P.R. Co., 352 U.S. 59, 64-65, 77 S.Ct. 161, 165, 1 L.Ed.2d 126 (1956).

An examination of the complaint in the instant proceeding persuades us of the inapplicability of the doctrine to the present dispute. “[T]he question is whether the reasons for the existence of the doctrine are present and whether the purposes it serves will be aided by its application.” United States v. Western P.R. Co., supra, at p. 64, 77 S.Ct. at p. 165. Initially, we note that the Commission itself is a party to the dispute and has brought the action in the district court to enforce its regulation. Ordinarily, the doctrine of primary jurisdiction attaches in instances where the case is taken into the courts without any direct involvement of the administrative agency. It has been suggested by one commentator that, in cases where the appropriate administrative body is before the court, the doctrine should not apply since a principal function of the rule, acquainting the court with the agency’s position concerning the matter, has been satisfied. Davis, Administrative Law Treatise, Volume 3, § 19.02, p. 14, note 41 (1951). “Therefore, the doctrine does not apply when the agency itself is plaintiff.” C.A.B. v. Aeromatic Travel Corp., 489 F.2d 251 (2d Cir. *1363 1974). In the present case, the Commission has considered what action it should follow and has determined to pursue a judicial rather than administrative procedure. This provides strong indication of the Commission’s view as to the necessity of administrative fact finding or expertise. Cf. Civil Aeronautics Board v. Modern Air Transport, 179 F.2d 622, 625 (2nd Cir. 1950).

Further, it is clear that the reasons for the existence of the doctrine and the purposes it- serves do not support its application in a proceeding brought by an agency to enjoin further violations of a valid rule or regulation. See, Texas & P.R. Co. v. Gulf C. & S.F.R. Co., 270 U.S. 266, 271-273, 46 S.Ct. 263, 70 L.Ed. 578 (1926); Pennsylvania R. Co. v. International Coal Co., 230 U.S. 184, 197, 33 S.Ct. 893, 57 L.Ed. 1446 (1913). “[T]his doctrine is not applicable where the issue, regardless of its complexity, is not the reasonableness of the rate or rule, but a violation of such rate or rule. Thus it has been continuously asserted that courts have original jurisdiction to interpret tariffs, rules, and practices where the issue is one of violation, rather than reasonableness.” Civil Aeronautics Board v. Modern Air Transport, Inc., supra, 179 F.2d at p. 624. See also, Jaffe, Primary Jurisdiction, 77 Harv.L.Rev. 1037, 1042 (1964).

Moreover, the statutory scheme involved in the present proceeding is clear, and any difficulties presented the court in its construction are amenable to traditional judicial processes. 49 U.S.C. § 323 precludes common carriers from extending credit on delivery of goods unless Commission rules and regulations are complied with. 49 C.F.R. § 1322.1

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505 F.2d 1360, 1974 U.S. App. LEXIS 6242, Counsel Stack Legal Research, https://law.counselstack.com/opinion/interstate-commerce-commission-v-all-american-inc-ca7-1974.