The Government of Guam v. American President Lines

28 F.3d 142, 307 U.S. App. D.C. 275, 29 Fed. R. Serv. 3d 953, 1994 U.S. App. LEXIS 16775, 1994 WL 321536
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 8, 1994
Docket93-7023
StatusPublished
Cited by32 cases

This text of 28 F.3d 142 (The Government of Guam v. American President Lines) 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
The Government of Guam v. American President Lines, 28 F.3d 142, 307 U.S. App. D.C. 275, 29 Fed. R. Serv. 3d 953, 1994 U.S. App. LEXIS 16775, 1994 WL 321536 (D.C. Cir. 1994).

Opinion

Opinion for the Court filed by Circuit Judge ROGERS.

ROGERS, Circuit Judge:

Appellant shippers, including the Government of Guam, 1 sought reparations from ap- *144 pellee carriers 2 in a proceeding before the Federal Maritime Commission for allegedly unlawful rates under the Shipping Act, 1916, and the Intercoastal Shipping Act, 1933. 3 Appellants thereafter filed a virtually identical claim in the United States District Court for the District of Columbia. The district court dismissed the complaint for lack of subject-matter jurisdiction. Appellants now contend that the district court erred by not inferring an implied private civil action under the Shipping Acts, and by not allowing appellants an opportunity to amend the complaint. For substantially the reasons set forth in the thoughtful opinion of the district court, Government of Guam v. American President Lines, Ltd., 809 F.Supp. 150 (D.D.C.1993) (Guam I), we affirm the dismissal of the complaint. Further, we hold that appellants have waived the right to raise the amendment claim of error on appeal because they did not file a motion to amend, or seek leave to amend, the complaint in the district court, and they have presented no special circumstances to excuse their failure to do so.

I.

The context in which this appeal arises is set forth in the District Court’s opinion from which we quote:

On December 7, 1989, the Government of Guam filed a complaint with the Commission. That complaint is virtually identical to the complaint in the instant ease. Each complaint includes four counts. Counts I and II allege that both defendants charge Guam shippers unjust, unreasonable, and discriminatory rates in violation of sections 16 First, 17, and 18(a) of the Shipping Act, 46 U.S.C.App. §§ 815 First, 816, & 817(a), and section 2 of the Intercoastal Shipping Act, 46 U.S.C.App. § 844. Counts III and IV allege that defendant Sea-Land operates as a water common carrier without having a required tariff on file with the Commission, * and also that Sea-Land improperly charges varying rates for similarly situated shippers, in violation of sections 16 First and 17 of the Shipping Act, 46 U.S.CApp. §§ 815 First & 816, and section 2 of the Intereoastal Shipping Act, 46 U.S.CApp. § 844.
On March 9, 1990, an administrative law judge granted Guam leave to amend the Commission complaint to add four shippers as plaintiffs. Three of those shippers are among the plaintiffs in the present ease. In the same ruling, the ALJ dismissed that portion of the complaint seeking reparations on behalf of all similarly situated Guam shippers under a parens patriae theory. In so ruling, the ALJ relied on Commission decisions holding that reparations may be awarded only to those who have actually paid unreasonable rates unless there has been a valid assignment from one with a legal right to reparations. The Commission proceeding is presently ongoing.
Plaintiffs’ complaint was filed in this Court on March 10, 1992. Plaintiffs’ asserted purpose in bringing this action in court is to “toll” the two-year statute of limitations for the numerous Guam shippers that have allegedly been injured by defendants’ shipping rates. They have thus moved for certification of a class consisting of shippers and persons who have dispatched or received shipments into or out of Guam via the defendant carriers. At the same time, plaintiffs have moved for a stay of proceedings in this case pending the Commission’s determination in the parallel administrative proceeding. Plaintiffs thus concede that the Commission has the task of resolving the merits of the dispute; they call on this Court essentially to preserve, and ultimately to administer, the claims of the class.

*145 Guam, I, supra, 809 F.Supp. at 151-52. We write to emphasize two points.

II.

Implying a private cause of action where the statute provides a remedy. Appellants concede that the Shipping Acts do not expressly provide for a private federal cause of action by a shipper to challenge a carrier’s rates, but they contend that the district court erred in declining to infer, upon applying the factors in Cort v. Ash, 422 U.S. 66, 95 S.Ct. 2080, 45 L.Ed.2d 26 (1975), a protective cause of action on behalf of the Guam shippers as a class. Appellants maintain that Congress intended such a private cause of action because an analogous proceeding is impermissible before the Federal Maritime Commission and the only available way for the Guam shippers to obtain recovery is by a class action in district court.

Where a statute provides an express remedy, Cort v. Ash is, strictly speaking, inapplicable. In that case, the Supreme Court stated that “[i]n determining whether a private remedy is implicit in a statute not expressly providing one, several factors are relevant.” 4 422 U.S. at 78, 95 S.Ct. at 2088. There, the Court faced the issue of whether a stockholder’s derivative suit for damages against corporate directors could be implied under a criminal statute prohibiting corporations from making contributions in connection with Presidential elections. Id. at 68, 95 S.Ct. at 2083-84. The Court held that “implication of such a federal cause of action is not suggested by the legislative context of [the criminal provision] or required to accomplish Congress’ purposes in enacting the [Federal Election Campaign Act].” Id. at 68-69, 95 S.Ct. at 2084. Thus, because the Shipping Acts provide appellants with an express reparations remedy before the Federal Maritime Commission, see 46 U.S.C. app. §§ 821(a), 845a, the district court concluded that the Cort analysis did not appear to be directly applicable to appellants’ claim that appellee carriers had violated the provisions of the Shipping Acts requiring “just and reasonable rates.” Guam I, supra, 809 F.Supp. at 153.

Yet, as our opinion in Danielsen v. Burnside-Ott Aviation Training Ctr., Inc., 941 F.2d 1220, 1227-28 (D.C.Cir.1991), recognizes, the Cort v. Ash factors are relevant in determining whether the express remedy provided in a statute was intended by Congress to be the exclusive remedy. The Dan-ielsen court noted with approval the Ninth Circuit’s application of the Cort test in determining whether a private civil right of action could be inferred under the Service Contract Act, 41 U.S.C. § 351, which itself provided an administrative remedy. Id. (citing Miscellaneous Serv. Workers, Local # 427 v. Philco-Ford Corp., 661 F.2d 776, 780-81 (9th Cir.1981)).

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28 F.3d 142, 307 U.S. App. D.C. 275, 29 Fed. R. Serv. 3d 953, 1994 U.S. App. LEXIS 16775, 1994 WL 321536, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-government-of-guam-v-american-president-lines-cadc-1994.