Lakeland Bus Lines, Inc. v. Interstate Commerce Commission and United States of America, American Bus Association, Intervenor

810 F.2d 280, 258 U.S. App. D.C. 161, 1987 U.S. App. LEXIS 1465
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 30, 1987
Docket86-1215
StatusPublished
Cited by6 cases

This text of 810 F.2d 280 (Lakeland Bus Lines, Inc. v. Interstate Commerce Commission and United States of America, American Bus Association, Intervenor) 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
Lakeland Bus Lines, Inc. v. Interstate Commerce Commission and United States of America, American Bus Association, Intervenor, 810 F.2d 280, 258 U.S. App. D.C. 161, 1987 U.S. App. LEXIS 1465 (D.C. Cir. 1987).

Opinion

WALD, Chief Judge:

Petitioner challenges the Interstate Commerce Commission’s (ICC or Commission) denial of its requests for discovery and an *282 oral hearing in connection with its protest of a motor carrier certificate application. Petitioner contends that the Commission’s blanket denial of its discovery requests renders impossible its already difficult task of showing that the application is inconsistent with the public interest. Additionally, petitioner maintains that without the information sought in discovery, the ICC’s decision to grant the license cannot be considered a reasoned one. Finally, petitioner argues that an oral hearing on the application was required. Because the Commission relied upon an incorrect factual premise in rejecting that portion of petitioner’s discovery request that sought information regarding schedules, routes, and service points, we reverse the Commission with regard to this portion. We affirm the ICC’s denial of the remainder of the discovery request and of an oral hearing.

I. Background

A. The Bus Regulatory Reform Act Congress enacted the Bus Regulatory Reform Act (BRRA), Pub.L. No. 97-261, 96 Stat. 1102 (1988) (codified at 49 U.S.C. § 10101 et seq.), “to reduce unnecessary and burdensome Government regulation” of motor carriers. S.Rep. No. 411, 97th Cong., 2d Sess. 13, reprinted in 1982 U.S. Code Cong. & Ad.News 2308, 2320. The Act significantly reduces an applicant’s burden of proof when seeking authorization to provide regular-route bus service. Under prior legislation, the applicant was required to demonstrate that it was in the public convenience and necessity for the application to be granted. 49 U.S.C. § 307 (repealed Pub.L. No. 95-473 § 4(b), 92 Stat. 1466 (Oct. 17, 1978), Pub.L. No. 97-449 § 7(b), 96 Stat. 2443 (Jan. 12, 1983)). Under the BRRA, however, the ICC must grant a regular-route application if it finds that the applicant is “fit, willing, and able” to provide the service sought to be authorized and to comply with statutory and regulatory requirements, unless the ICC finds, on the basis of evidence presented by any protesting party, that the transportation to be authorized “is not consistent with the public interest.” 49 U.S.C. § 10922(c)(1)(A).

The “fit, willing, and able” standard simply means that the applicant must demonstrate safety fitness and compliance with certain insurance requirements. 49 U.S.C. § 10922(c)(6). 1 If a protestant seeks to demonstrate that the application is not within the public interest, the ICC must consider, to the extent applicable, the following four public interest factors: (a) the transportation policy of the United States as set forth in 49 U.S.C. § 10101(a), 2 (b) the *283 value of competition to the public, (c) the effect of issuance of the certificate on motor carrier service to small communities, and (d) whether issuance of the certificate would impair the ability of any common carrier to provide a substantial portion of the regular-route passenger service that the carrier already provides over its entire route system, except that diversion of revenue or traffic cannot by itself constitute such impairment. 49 U.S.C. § 10922(c)(3). 3

The implementing regulations provide a procedure for obtaining discovery. 49 C.F.R. § 1114.21-.31 (1986). No discovery is permitted as of right. Instead, the ICC may authorize discovery pursuant to its own motion or. on the verified petition of a party. 49 C.F.R. § 1114.21(b)(2).

B. The Proceedings in this Case

Delaware Valley Transportation Company, operating under the name Pocono Mountain Trails (Pocono Mountain), applied to the ICC for permission to provide regular-route bus transportation over routes in New York, New Jersey, and Pennsylvania. Joint Appendix (J.A.) at 5a-12a. Pursuant to the BRRA’s lenient application policy, the application contained only a general description of the applicant, its ability to meet safety and insurance requirements, and an itinerary of the major arteries that would constitute its regular routes.

Lakeland Bus Lines, Inc. (Lakeland), which provides commuter bus service between New York and New Jersey, protested Pocono Mountain’s application, J.A. at 27a-124a, and sought discovery with regard to the following Pocono Mountain items: traffic surveys and studies, equipment, labor union contracts, existing operations schedules, existing operating authorities, and records regarding safety programs and safety violations. J.A. at 141a. Lakeland also requested an oral hearing, J.A. at 39a-42a.

The ICC denied Lakeland’s discovery request in to to, denied its request for an oral hearing, and granted Pocono Mountain’s application. Delaware Valley Transportation Co. Extension — New York, New Jersey, and Pennsylvania Regular Routes, ICC Decision, No. MC-28457 (Sub-No. 9) (Sept. 25, 1984), J.A. at 175a-184a. With regard to the discovery request, the Commission first noted that Pocono Mountain had provided all it was required to, albeit the bare minimum. J.A. at 175a-176a. Lakeland was seeking information that might help it meet its steep burden of proof, said the Commission, and in so doing had adopted a “shotgun approach.” J.A. at 176a. The surveys and studies might not exist, the labor union contracts were of questionable relevance, and the safety information went beyond what the applicant is required to produce, added the ICC. J.A. at 176a. “An opposing carrier is not entitled to any special assistance,” and where the discovery request “largely takes the *284 form of a so-called fishing expedition,” the Commission concluded that it would not grant such discovery. J.A. at 176a. Accordingly, it rejected Lakeland’s discovery request in its entirety. J.A. at 176a. Finally, since there were no material facts in dispute, the ICC also rejected Lakeland’s bid for an oral hearing. J.A. at 176a.

After the ICC rejected Lakeland’s appeal and petition for a stay of Pocono Mountain’s operating authority, J.A. at 185a-220a, Lakeland came to this court with the same requests. J.A. at 232a-237a. We denied the motion for a stay, J.A. at 238a, and denied reconsideration of this motion, J.A. at 241a, but before we could rule on the merits of the ICC’s decision to grant a certificate to Pocono Mountain, the Commission voluntarily reopened the proceeding subject to our approval. J.A.

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810 F.2d 280, 258 U.S. App. D.C. 161, 1987 U.S. App. LEXIS 1465, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lakeland-bus-lines-inc-v-interstate-commerce-commission-and-united-cadc-1987.