The State of Texas v. United States of America and Interstate Commerce Commission

756 F.2d 419, 1985 U.S. App. LEXIS 31392
CourtCourt of Appeals for the Fifth Circuit
DecidedApril 4, 1985
Docket84-4086
StatusPublished
Cited by13 cases

This text of 756 F.2d 419 (The State of Texas v. United States of America and Interstate Commerce Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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The State of Texas v. United States of America and Interstate Commerce Commission, 756 F.2d 419, 1985 U.S. App. LEXIS 31392 (5th Cir. 1985).

Opinion

TATE, Circuit Judge:

The State Of Texas (“Texas”) seeks review of an order issued by the Interstate Commerce Commission (“the Commission”) pursuant to Section 16 of the Bus Regulatory Reform Act of 1982, 49 U^.C. § 10935 (“the Bus Act”), granting Greyhound Lines, Inc. (“Greyhound”) permission to discontinue bus service over certain routes within the state. Texas petitions this court for review of the Commission’s order, and Greyhound intervenes in support of the Commission. We affirm.

Following enactment of the Bus Act, Greyhound applied to the Railroad Commission of Texas to discontinue intrastate bus service on its interstate route between Houston and San Antonio and at forty-six off-route points on nine other interstate routes. Upon the state agency’s denial of its application, Greyhound then petitioned the federal Interstate Commerce Commission to discontinue such routes, as authorized by Section 16 of the Bus Act, 49 U.S.C. § 10935. The Interstate Commerce Commission in late 1983 issued an order granting Greyhound’s request with regard to the Houston-San Antonio route and to 26 (of the 46) off-route points. Texas’ petition for review of this order is now before us. Overview

As will be described more fully below in I infra, the 1982 Bus Act empowered the Commission to authorize discontinuance of intrastate service, despite the refusal of the state regulatory agency to permit cessation of such service. However, a more strin *421 gent standard was provided with regard to discontinuance of service over routes authorized prior to August 1, 1982 (the year of passage of the Act), than over those that were to be authorized subsequent to that date.' See II infra. The more stringent standard reflected Congress’ concern “to ensure that regulatory reform of the bus industry would protect the public interest in continued service to rural America.” Pennsylvania Public Utility Commission v. United States, 749 F.2d 841, 844 (D.C. Cir.1984).

The principal issue for our review is raised by Texas’ contention that— by permitting Greyhound to discontinue service to numerous intrastate points despite Greyhound’s failure to prove it sustained an operating loss in providing such service— the Commission misconstrued the statute so as to eliminate the Congressionally intended protection to smaller communities against discontinuance of business service. The construction of the Bus Act for which Texas contends was substantially adopted by the District of Columbia Circuit, reversing the Commission, as in accord “with the clear congressional intent behind the Bus Act.” Pennsylvania Public Utility Commission, supra, 749 F.2d at 847. 1

However, two other circuits have decided to the contrary, when faced with the issue of statutory construction now before us, and have upheld the construction of the statute now relied upon by the Commission. Auville v. Interstate Commerce Commission, 747 F.2d 179, 184-85 (4th Cir.1984); Humphrey v. United States, 745 F.2d 1166, 1168-69 (8th Cir.1984). In Auville, the court did so specifically in deference under applicable principles to the Commission’s interpretation of the statute entrusted to its administration. 747 F.2d at 184.

Ultimately, we affirm the Commission’s interpretation of the statute as “a permissible construction of the statute” thus requiring our deference to the Commission’s interpretation thereof, Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc., — U.S.-,-, 104 S.Ct. 2778, 2782 & n. 11, 81 L.Ed.2d 694 (1984); Western Coal Traffic League v. United States, 719 F.2d 772, 773, 777 (5th Cir.1983) (en banc), cert. denied, — U.S.-, 104 S.Ct. 2160, 80 L.Ed.2d 545 (1984), even though— absent such requisite deference to the Commission’s construction — this panel may well have decided that the construction accorded to the statutory provisions by the District of Columbia Court of Appeal is more in accord with their legislative intent.

I. Section 16 of the Bus Act, fy9 U.S.C. § 10935

Before 1982, state regulatory commissions had exclusive jurisdiction to grant or deny requests to discontinue intrastate bus services. Congress found that these commissions often “created impediments ■ that prevented [interstate carriers] from abandoning unproductive routes.” Humphrey v. United States, 745 F.2d 1166, 1168 (8th Cir.1984). To overcome this problem (but with greater safeguards against discontinuance of authorized pre-1982 service), Congress enacted Section 16 of the Bus Regulatory Reform Act of 1982, Pub.L. 97-261, § 16(a), 96 Stat. 1115. See 49 U.S.C. § 10101(a)(3)(c); S.Rep. No. 411, 97th Cong., 2d Sess. 7-10, 25, reprinted in 1982 U.S.Code Cong. & Ad.News 2308, 2314-17, 2332 (“Senate Report”); H.R.Rep. No. 334, 97th Cong., 1st Sess. 24-25 (1981) (“House Report”); 128 Cong.Rec.H. 6692 (daily ed. Aug. 19, 1982) (statement of Rep. Anderson); Id. at H. 6693-94 (statement of Rep. Clausen). This Section of the Bus Act, which is now codified at 49 U.S.C. § 10935, sought to remedy the problem by giving the Interstate Commerce Commission final authority over requests to discontinue intrastate bus service.

Under § 10935, an interstate carrier, such as Greyhound, must follow a two-step process to obtain permission to discontinue *422 intrastate bus service on a route over which the carrier has intrastate and interstate authority. The first step is to submit an application to the state regulatory commission with jurisdiction to grant the discontinuance. If the state commission denies the request or fails to act on it within a specified period, step two comes into play: the carrier may petition the Interstate Commerce Commission for permission to discontinue the service. 49 U.S.C. §§ 10935(a), 10935(e)(3). If no timely objection to the petition is filed, 2 the Commission must approve it. § 10935(d).

However, if timely objection is filed, the Commission “shall” grant it “unless”

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756 F.2d 419, 1985 U.S. App. LEXIS 31392, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-state-of-texas-v-united-states-of-america-and-interstate-commerce-ca5-1985.