Rex Chainbelt Inc. v. Volpe

342 F. Supp. 281, 1972 U.S. Dist. LEXIS 14062
CourtDistrict Court, E.D. Wisconsin
DecidedApril 24, 1972
DocketNo. 71-C-564
StatusPublished
Cited by2 cases

This text of 342 F. Supp. 281 (Rex Chainbelt Inc. v. Volpe) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rex Chainbelt Inc. v. Volpe, 342 F. Supp. 281, 1972 U.S. Dist. LEXIS 14062 (E.D. Wis. 1972).

Opinion

DECISION and ORDER

MYRON L. GORDON, District Judge.

The amended complaint in this action seeks a judgment declaring invalid certain regulations issued by the National Highway Traffic Safety Administration (“NHTSA”), an agency of the United States Department of Transportation. Jurisdiction is founded upon the provisions of the Administrative Procedure Act (5 U.S.C. §§ 701-706), the Declaratory Judgment Act (28 U.S.C. § 2001), and 28 U.S.C. § 1337. Both sides have moved for summary judgment. Comprehensive briefs have been submitted by the parties, and no oral argument is deemed necessary.

The regulations in question became effective on January 1, 1972. On December 28, 1971, after an oral hearing, this court denied the plaintiff’s request for an order staying the regulations’ effective date.

Section 119 of the National Traffic and Motor Vehicle Safety Act of 1966 (15 U.S.C. §§ 1381-1410), empowers the secretary of the Department of Transportation to issue “such rules and regulations as he deems necessary” to implement the provisions of the act. Pursuant to such authorization, and pursuant to the provisions of 49 C.F.R. § [283]*2831.51, the secretary delegated certain rule-making functions to the acting-administrator of the NHTSA. On April 8, 1971, the acting administrator amended 49 C.F.R. § 567 and issued 49 C.F.R. § 568, the regulations which are the subject of the present action.

The plaintiff manufactures concrete mixers designed for mounting upon a truck chassis-cab manufactured by a party other than the plaintiff. Under 49 C.F.R. § 568.3 the plaintiff is denominated a “final-stage manufacturer” because it “performs such manufacturing operations on an incomplete vehicle that [the incomplete vehicle] becomes a completed vehicle.” A completed vehicle is defined as

“. . . a vehicle that requires no further manufacturing operations to perform its intended function, other than the addition of readily attachable components, such as mirrors or tire and rim assemblies, or minor finishing operations such as painting.”

As a final-stage manufacturer, the plaintiff is subject to the provisions of § 568.6 :

“(a) Each final-stage manufacturer shall complete the vehicle in such a manner that it conforms to the standards in effect on the date of manufacture of the incomplete vehicle, the date of final completion, or a date between those two dates. This requirement shall, however, be superseded by any conflicting provisions of a standard that applies by its terms to vehicles manufactured in two or more stages.
“(b) Each final-stage manufacturer shall certify that the entire vehicle conforms to all applicable standards, in accordance with § 567.5 of this chapter, Requirements for manufacturers of vehicles manufactured in two or more stages.”

The plaintiff argues that promulgation of § 568.6 exceeded the authority granted to the NHTSA by the National Traffic and Motor Vehicle Safety Act of 1966 if the regulation is interpreted to require the certification of a truck chassis component by a party which has not manufactured or purchased the chassis. By posting the labels required by § 568.6, the plaintiff contends that it is made a guarantor or insurer to the public “of safety related truck chassis components which the mixer manufacturer is not capable of testing to the degree necessary to ascertain compliance”; the certification requirement, the plaintiff asserts, exposes it to strict liability for injuries suffered by persons who rely upon the certification and are injured because the certification is erroneous. The plaintiff rejects the defendants’ argument that the plaintiff can rely on a certification of compliance by the chassis manufacturer, for such argument “overlooks the fact that lack of knowledge or due care is not a defense in an action under warranty or in an action in tort.”

On the other hand, the defendants contend that the “affixing of the certification label does not mean that a final-stage manufacturer ‘certifies the whole vehicle.’ ” The imposition of strict liability, the defendants argue,

“. . . turns upon the representation to the public as the basis of liability on the theory that an express warranty is made to the consumer. All . . . [the plaintiff] . . . is doing under the certification regulations, in contradistinction, is certifying that the completed motor vehicle complies to the Federal motor vehicle safety standards, that the vehicle, based on the information furnished to it by the intermediate manufacturers, will pass certain tests enumerated in the safety standards when tested by the NHTSA.”

In its amended complaint, the plaintiff asks this court to declare 49 C.F.R. §§ 567 and 568 “invalid to the extent that they require that plaintiff . certify the compliance of a chassis-cab and its components to vehicle safety standards in those instances [in which the chassis-cab has been pur[284]*284chased from a source other than the plaintiff] . . . However, in a brief filed after the filing of the amended complaint, counsel for the plaintiff stated that “the plaintiff does not seek invalidation of the Regulations as such, but merely seeks a determination of their scope.”

Regardless of whether a declaration of invalidity or a delineation of the regulations’ applicability is sought, I believe that the issues presented in the case at bar are whether the regulations in question are reasonable and whether the NHTSA exceeded its authority in promulgating them. With the issues thus defined, it becomes necessary to determine whether the agency’s action was arbitrary; as stated in Automotive Parts & Accessories Ass’n v. Boyd, 132 U.S.App.D.C. 200, 407 F.2d 330, 343 (1968), the function of this court is

“. . .to see only that the result is reasonable and within the range of authority conveyed, that it has been formulated in the manner prescribed, and that the disappointed have had the opportunity provided by Congress to try to make their views prevail.”

The National Traffic and Motor Vehicle Safety Act of 1966 was enacted “to reduce traffic accidents and deaths and injuries to persons resulting from traffic accidents.” 15 U.S.C. § 1381. The certification requirement of which the plaintiff complains was issued pursuant to the Congressional declaration of purpose contained in § 1381; 15 U.S.C. §

Related

Rex Chainbelt, Inc. v. Volpe
486 F.2d 757 (Seventh Circuit, 1973)

Cite This Page — Counsel Stack

Bluebook (online)
342 F. Supp. 281, 1972 U.S. Dist. LEXIS 14062, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rex-chainbelt-inc-v-volpe-wied-1972.