Schwartzman v. United Air Lines Transp. Corp.

6 F.R.D. 517, 1947 U.S. Dist. LEXIS 1595
CourtDistrict Court, D. Nebraska
DecidedMarch 18, 1947
DocketCiv. No. 698
StatusPublished
Cited by9 cases

This text of 6 F.R.D. 517 (Schwartzman v. United Air Lines Transp. Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Nebraska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Schwartzman v. United Air Lines Transp. Corp., 6 F.R.D. 517, 1947 U.S. Dist. LEXIS 1595 (D. Neb. 1947).

Opinion

DELEHANT, District Judge.

The defendant caused this action to be removed to this court from the District Court of Lancaster ICounty, Nebraska on the unchallenged ground of diversity of citizenship and the existence of a controversy involving more than the jurisdictional amount. The plaintiff’s petition is in two counts, the first to recover alleged damages for the failure and refusal of the defendant on October 25, 1942 to transport him as a passenger by airplane from Omaha, Nebraska to San Francisco, California, despite his earlier purchase of a ticket and arrangement for reserved space for such transportation and the defendant’s alleged explicit assurance to him that it would carry him to the desired destination on the scheduled flight and before a designated time;1 the second to secure the return of the price allegedly paid by him for his ticket.

A motion for an order striking the entire first count from the petition was filed by the defendant. Omitting a charge of improper venue which has not been supported by argument, and seems to be pointless, the motion is grounded' upon alleged (a) lack of jurisdiction over the subject matter; (b) failure to state a claim upon which relief can be granted; and (c) statutory vesting of primary jurisdiction in the Civil Aeronautics Board, with plaintiff’s failure to exhaust his remedies before the board, which, the defendant contends, deprives this court of jurisdiction. Upon submission, the contention principally argued was the last one, which enters into the other two, and constitutes the sole basis of the first one. The motion to strike has been submitted under Rule 12(b), Federal Rules of Civil Procedure, Title 28 U.S.C.A. following Section 723c, after the fashion of a motion to dismiss.

The sole object of the challenged first count is the recovery of a judgment for a sum of money in reimbursement for damages for the alleged breach of an averred contract of carriage. No disciplinary, regulatory, or other, relief, either affirmative or negative in form or in substance, is sought in it. The petition does not assail, or question the validity of, any administrative regulation or any practice of the defendant’s business, or even explicitly accuse the defendant of the violation of any such regulation or practice.

In the current posture of the pleadings the motion of the defendant appears to the court to be wholly without merit.

The general assertion of the failure of the petition to state a claim upon which relief may be granted is unsupported by argument or the citation of authority. But the court has considered it in relation to the petition. That pleading, as yet undenied, and not otherwise obviated, asserts the defendant’s sale to the plaintiff of a ticket for the proposed transportation; its assignment to him of space for passage on a particular flight; and its subsequent wrongful and unwarranted refusal to hon- or its commitment, vide supra. For the purpose of the present ruling only, the motion to strike, or in effect to dismiss, admits those allegations and the legal conclusions reasonably issuing from them which are favorable to the plaintiff. The court is satisfied that, within the scope of the petition, evidence might conceivably be produced, which, if undenied and not nullified by other circumstances, would entitle the plaintiff to relief. And in such a situation, a motion under Rule 12(b) to dismiss, [519]*519on the general ground of failure to state a claim supporting the allowance of relief, must be denied. Sparks v. England, 8 Cir., 113 F.2d 579; Leimer v. State Mutual Life Assurance Co., 8 Cir., 108 F.2d 302; Cohen v. United States, 8 Cir., 129 F.2d 733; Louisiana Farmers’ Protective Union v. Great Atlantic & Pacific Tea Co., 8 Cir., 131 F.2d 419; Musteen v. Johnson, 8 Cir., 133 F.2d 106; Cool v. International Shoe Co., 8 Cir., 142 F.2d 318; Tahir Erk v. Glenn L. Martin Co., 4 Cir., 116 F.2d 865. Divorced, therefore, from the factor of the jurisdiction of this court directly and immediately to entertain this action, without preliminary resort to the Civil Aeronautics Board, the charge of failure to state a valid claim is not well directed against the petition.

Nor does the defendant stand on firmer ground when it seeks at this time to oust this court’s jurisdiction, or suspend its present exercise, pending resort by some one, presumably the plaintiff, to the Civil Aeronautics Board. That board simply has no present jurisdiction over the claim asserted by the plaintiff.

In its reply brief the defendant, relying on the doctrine of primary jurisdiction, clearly states its position in the following language: “This principle of law goes to the power of the court to entertain the proceeding. In the absence of a preliminary determination by the administrative agency —in this case, the Civil Aeronautics Board —of technical issues raised by a complaint, a court is without jurisdiction to grant the relief prayed for in a complaint * * *; The purpose of this doctrine is to preserve the integrity of administrative procedure and agencies established by the legislature by referring to the expert body so created decisions requiring technical considerations and the exercise of administrative discretion.”

The doctrine of “primary jurisdiction” arises not from express statutory mandate but rather through successive judicial decisions that have been designed to serve the manifest legislative purpose in the erection of regulatory and administrative agencies and the commitment to them of jurisdiction over the operation of certain businesses and problems affected with a public interest. Though it arose in the first instance, and has most frequently been applied in railroad problems, it has been extended with the developments in business to other fields and, very obviously, has application to air transport. A reviewer has analyzed the practical operation of the rule in this way: “The primary jurisdiction of administrative commissions, as invoked by court decisions, has two main branches: (1) exclusive jurisdiction, where the court has no jurisdiction of the subject matter at all, and the commission must decide the question, with judicial review ordinarily only to safeguard the requirements of due process of law, and possible court action to enforce the commission’s order; and (2) exhaustion of remedy, where the court has jurisdiction of the subject matter but the suit is premature, and the court refuses to decide the case until all possible administrative determination has been completed.” 51 Harvard Law Review 1252. It is with the second aspect only of the rule’s asserted application that the court is now concerned. The subject matter of the action, a simple claim for damages for breach of contract is within the court’s jurisdiction. The question is whether it should refrain from the exercise of that jurisdiction in the present case—and more specifically, at the present juncture in the case—while resort is had to the Civil Aeronautics Board for some preliminary but binding ruling upon a material issue.

But the primary jurisdiction rule is not loose or ill defined. Before it may be allowed to oust, or suspend the exercise of, judicial determination in a particular case, it must appear that the solution of the case depends upon the answer to an issue whose determination is by statute committed to an administrative body. The cases in which it has been applied illustrate that limitation upon it.

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Cite This Page — Counsel Stack

Bluebook (online)
6 F.R.D. 517, 1947 U.S. Dist. LEXIS 1595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/schwartzman-v-united-air-lines-transp-corp-ned-1947.