McGinness v. Interstate Commerce Commission

662 F.2d 853, 213 U.S. App. D.C. 297
CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 17, 1981
DocketNo. 79-2457
StatusPublished
Cited by4 cases

This text of 662 F.2d 853 (McGinness v. Interstate Commerce Commission) 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
McGinness v. Interstate Commerce Commission, 662 F.2d 853, 213 U.S. App. D.C. 297 (D.C. Cir. 1981).

Opinions

Opinion for the court filed by Circuit Judge GINSBURG.

Opinion concurring in part and dissenting in part filed by Circuit Judge MacKINNON.

GINSBURG, Circuit Judge:

This is a petition to review a rulemaking decision of the Interstate Commerce Commission, Ex Parte No. 361, Exemption of Certain Designated Operators from Section 11343, 361 I.C.C. 379 (1979). The Commission’s decision exempts companies operating exclusively as “designated operators” from the requirements of 49 U.S.C. §§ 11343 and 11347 (Supp. Ill 1979) (formerly section 5(2) of the Interstate Commerce Act) and 49 U.S.C. § 11322(a) (Supp. Ill 1979) (formerly section 20a(12) of the Act). Authority to issue the exemption rests on section 207 of the Railroad Revitalization and Regulatory Reform Act of 1976 (the “4-R Act”), 49 U.S.C. § 10505 (Supp. Ill 1979) (amended 1980). As originally enacted,1 the exemption authorization read:

Whenever the Commission determines, upon petition by the Secretary or an interested party or upon its own initiative, in matters relating to a common carrier by railroad subject to this part, after notice and reasonable opportunity for a hearing, that the application of the provisions of this part (i) to any person or class of persons, or (ii) to any services or transactions by reason of the limited scope of such services or transactions, is not necessary to effectuate the national transportation policy declared in this Act, would be an undue burden on such person or class of persons or on interstate and foreign commerce, and would serve little or no useful public purpose, it shall, by order, exempt such persons, class of persons, services, or transactions from such provisions to the extent and for such period of time as may be specified in such order. The Commission may, by order, revoke any such exemption whenever it finds, after notice and reasonable opportunity for a hearing, that the application of the provisions of this part to the exempted person, class of persons, services, or transactions, to the extent specified in such order, is necessary to effectuate the national transportation policy declared in this Act and to achieve effective regulation by the Commission, and would serve a useful public purpose.

“Designated operators” are rail carriers conducting operations pursuant to section 304(d) of the Regional Rail Reorganization Act of 1973 (the “3-R Act”), 45 U.S.C. § 744(d) (1976); 2 they provide service over minor segments of track. The ICC’s decision exempts these operators from provi[299]*299sions that (1) require Commission approval for mergers and similar transactions, 49 U.S.C. § 11343,3 (2) require carriers to protect the interests of their employees when they enter into mergers and similar transactions, 49 U.S.C. § 11347, and (3) prohibit interlocking directorates among carriers without prior Commission approval, 49 U.S.C. § 11322(a).

John W. McGinness, acting on behalf of the Illinois Legislative Board of the United Transportation Union, submitted comments to the Commission in opposition to the proposed exemption. When the ICC published its decision, McGinness, the Railway Labor Executives’ Association, and the Brotherhood of Locomotive Engineers unsuccessfully petitioned for reconsideration; thereafter, they petitioned this court for review.

Petitioners raise two issues. First, they contend that the 4-R Act authority to grant exemptions is confined to certain statutory sections governing rates and does not extend to any of the sections addressed in the ICC’s designated operators exemption decision. Second, they urge that even if the 4-R Act’s exemption authority encompasses the merger (49 U.S.C. § 11343) and interlocking directorate (49 U.S.C. § 11322(a)) provisions, the ICC may not exempt any carrier, including designated operators, from the statutory labor protection requirement (49 U.S.C. § 11347). While we find petitioner’s first contention insubstantial, we hold that the Commission lacks authority to relieve any carrier, even a designated operator, of the obligations imposed by 49 U.S.C. § 11347 to protect the interests of employees. Accordingly, we remand this case to the Commission for modification of its exemption decision, so that designated operators will not be released from the labor protection requirement.

I.

Petitioners, in support of their contention that the 4-R Act’s exemption authority applies only to certain railroad rate adjustments,4 point out that the exemption provision, when enacted in 1976, appeared in a title captioned “Railroad Rates.” This argument is unpersuasive. Rather than creating an entirely new statutory scheme, the 4-R Act worked within the framework of the existing Interstate Commerce Act. The intended placement of the exemption provision in the Interstate Commerce Act, therefore, is a more reliable indication of the congressional design than the location of the provision in the amending public law. The exemption provision was an amendment to section 12 of the Interstate Commerce Act, a section ¡headlined “Authority and duties of Commission.” Nothing in section 12’s caption ¡suggests, confinement of the ICC’s exemption authority to rate

Moreover, in plain language, the exemption provision empowers the Commission to grant exemptions from “the application of this part.” (Emphasis added.) The word “part” evidently refers to part I of the Interstate Commerce Act, the part of that Act in which the exemption provision was to be inserted. (The 4-R Act was organized by sections and titles, not by parts.) The second conference report on the 4-R Act confirms this view. It states that the House version of the provision — the version the conferees adopted — permits the ICC “to grant exemptions from Part I of the Interstate Commerce Act.” H.R.Rep.No.781, 94th Cong., 2d Sess. 152-53 (1976). Part I of the Interstate Commerce Act was not confined to rates; it contained most of the provisions relating to railroad regulation, including the provisions at issue in this case. See 49 U.S.C. §§ 1-27 (1976).

[300]*300Furthermore, the 4-R Act legislative history is consistent with a straightforward reading of the language of the exemption provision.

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Bluebook (online)
662 F.2d 853, 213 U.S. App. D.C. 297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcginness-v-interstate-commerce-commission-cadc-1981.