Peter Pan Bus Lines, Inc. v. Federal Motor Carrier Safety Administration

471 F.3d 1350, 374 U.S. App. D.C. 102, 18 Am. Disabilities Cas. (BNA) 1533, 2006 U.S. App. LEXIS 31128
CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 19, 2006
Docket19-1143
StatusPublished
Cited by76 cases

This text of 471 F.3d 1350 (Peter Pan Bus Lines, Inc. v. Federal Motor Carrier Safety Administration) 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
Peter Pan Bus Lines, Inc. v. Federal Motor Carrier Safety Administration, 471 F.3d 1350, 374 U.S. App. D.C. 102, 18 Am. Disabilities Cas. (BNA) 1533, 2006 U.S. App. LEXIS 31128 (D.C. Cir. 2006).

Opinions

Opinion for the court filed by Circuit Judge HENDERSON.

Concurring opinion filed by Circuit Judge TATEL.

KAREN LECRAFT HENDERSON, Circuit Judge.

Peter Pan Bus Lines, Inc. and its subsidiary Bonanza Acquisition, LLC (collectively, Peter Pan) seek review of a decision of the Federal Motor Carrier Safety Administration (FMCSA), an entity within the Department of Transportation (DOT). The challenged decision rejected Peter Paris protest of an FMCSA decision authorizing Fung Wah Transportation, Inc. (Fung Wah) to operate regular-route passenger transportation between Boston and New York City. Peter Pan protested Fung Wah’s certification application on the [1352]*1352ground that Fung Wah was unwilling or unable to comply with the requirements of the regulations DOT has promulgated under the Americans With Disabilities Act (ADA), 42 U.S.C. §§ 12101 et seq. The FMCSA concluded that the language of 49 U.S.C. § 13902, which authorizes the FMCSA to make compliance findings and issue certificates registering motor carriers, prevents the FMCSA from considering whether a certificate applicant is in compliance with DOT’S ADA regulations. Because the FMCSA premised its construction on the plain language of the statute, which it treated as unambiguous, and because we find that the statutory language is in fact ambiguous, we vacate the FMCSA’s decision and remand for it to interpret the statute accordingly.

I.

On April 4, 2005 Fung Wah filed an application for motor passenger carrier authority to operate a passenger bus line between Boston and New York City. On May 4, 2005 Peter Pan submitted a protest under 49 C.F.R. § 365.203 based on Fung Wah’s “asserted unwillingness and/or inability to comply with regulations of the Secretary implementing the [ADA].” Joint App. (JA) 15. The FMCSA’s licensing team, however, granted Fung Wah a certificate as requested on May 12, 2005, apparently unaware of Peter Pan’s protest.

On May 16, 2005 Peter Pan filed a motion for rehearing, asking that the FMCSA “immediately vacate the award of its certificate to applicant and then render a decision on the merits only after first taking into account protestants’ serious allegations regarding fitness” and, “in particular, applicant’s demonstrated failure to meet its obligations under the Americans With Disabilities Act to assure the availability of transportation for all members of our society.” JA 49, 48. On October 26, 2005 the FMCSA issued a decision denying rehearing on the ground that section 13902(a)(1) “does not permit FMCSA to withhold registration for failure to comply with ADA requirements.” Fung Wah Bus Transp., Inc., No. MC-405969 (Oct. 26, 2005) (FMCSA Dec.), reprinted in JA at 58, at 3. Section 13902(a)(1), enacted as part of the Interstate Commerce Commission Termination Act of 1995, Pub.L. No. 104-88, 109 Stat. 803 (1995), (ICCTA) provides:

(a) Motor carrier generally.—
(1) In general. — Except as provided in this section, the Secretary shall register a person to provide transportation subject to jurisdiction under subchapter I of chapter 135 of this title as a motor carrier if the Secretary finds that the person is willing and able to comply with—
(A) this part and the applicable regulations of the Secretary [of Transportation] and the [Surface Transportation] Board;
(B)(i) any safety regulations imposed by the Secretary;
(ii) the duties of employers and employees established by the Secretary under section 31135; and
(iii) the safety fitness requirements established by the Secretary under section 31144; and
(C) the minimum financial responsibility requirements established by the Secretary pursuant to sections 13906 and 31138.

49 U.S.C. § 13902(a)(1).1 The FMCSA determined that the phrase “applicable regu[1353]*1353lations” in subsection (a)(1)(A) modifies the preceding phrase “this part,” which refers to “title 49, subtitle IV, Part B, which consists of statutory authority transferred from the [ICC] to the Secretary of Transportation and the Surface Transportation Board following enactment of the ICCTA.” FMCSA Dec. at 2. The FMCSA then concluded that it is without authority to enforce compliance with DOT’s ADA regulations in the certification process because the ADA regulations were not promulgated pursuant to Part B and do not fit in any of the categories identified in subsections (a)(1)(B) or (a)(1)(C). FMCSA Dec. at 2.

On November 21, 2005 Peter Pan filed a petition for review challenging the FMCSA’s construction of section 13902(a)(1).

II.

Because this appeal involves the FMCSA’s “interpretation of a statute the agency is charged with implementing, we apply the two-part test of Chevron U.S.A Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984).” Pub. Citizen, Inc. v. Nat’l Highway Traffic Safety Admin., 374 F.3d 1251, 1257 (D.C.Cir.2004) (parallel citation omitted). “[U]nder the Chevron two-step, we stop the music at step one if the Congress ‘has directly spoken to the precise question at issue’ because we — and the agency — ‘must give effect to [its] unambiguously expressed intent.’ ” Northpoint Tech., Ltd. v. FCC, 412 F.3d 145, 151 (D.C.Cir.2005) (quoting Chevron, 467 U.S. at 842-43, 104 S.Ct. 2778). “But if the statute is silent or ambiguous, we dance on and, at step two, defer to the Commission’s interpretation if it is ‘based on a permissible construction of the statute.’ ” Id. (quot ing Chevron, 467 U.S. at 843, 104 S.Ct. 2778). The text of the FMCSA’s decision certifying Fung Wah makes clear that the Agency construed section 13902(a)(1) as an unambiguous expression of the Congress’s intent, thereby triggering review under Chevron step 1.

In rejecting Peter Pan’s argument that the phrase “applicable regulations of the Secretary” refers to all of DOT’s regulations that are applicable to motor carriers, including its ADA regulations, the FMCSA unequivocally declared: “This interpretation is not consistent with the plain language of the statute and the legislative history of the [ICCTA], which enacted section 13902 into law. The term ‘applicable regulations of the Secretary’ is clearly meant to modify the term ‘this part.’ ” FMCSA Dec. at 2 (emphasis added). Thus, the FMCSA concluded, section 13902(a)(1) “does not permit FMCSA to withhold registration for failure to comply with ADA requirements.” Id. at 3 (emphasis added). To the contrary, we find the text of the statute to be ambiguous.

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471 F.3d 1350, 374 U.S. App. D.C. 102, 18 Am. Disabilities Cas. (BNA) 1533, 2006 U.S. App. LEXIS 31128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peter-pan-bus-lines-inc-v-federal-motor-carrier-safety-administration-cadc-2006.