Trailer Marine Transport Corp. v. Federal Maritime Commission

602 F.2d 379, 195 U.S. App. D.C. 201, 1982 A.M.C. 303, 1979 U.S. App. LEXIS 14760
CourtCourt of Appeals for the D.C. Circuit
DecidedMay 11, 1979
DocketNo. 78-1307
StatusPublished
Cited by9 cases

This text of 602 F.2d 379 (Trailer Marine Transport Corp. v. Federal Maritime Commission) 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
Trailer Marine Transport Corp. v. Federal Maritime Commission, 602 F.2d 379, 195 U.S. App. D.C. 201, 1982 A.M.C. 303, 1979 U.S. App. LEXIS 14760 (D.C. Cir. 1979).

Opinion

Opinion for the Court filed by WILKEY, Circuit Judge.

OUTLINE OF THE OPINION

Page

Introduction________________________ 203

I. FACTUAL AND PROCEDURAL BACKGROUND ________________ 204

II. ANALYSIS_______________ 205

A. Statutory Authority for Jurisdiction of the ICC______________ 205

[203]*203Introduction Page

B. The “Limitation Clause” Objection to ICC Jurisdiction_______ 208

C. Statutory Authority Claimed for Jurisdiction of the FMC_______ 215

D. The FMC’s “Section 21” Claim - - 219

III. POLICY CONSIDERATIONS_____ 221

Conclusion__________________________ 222

WILKEY, Circuit Judge:

This case is an inter-agency dispute concerning jurisdiction over the filing and substantive regulation of tariffs on rail-water joint through routes 1 between ports of the Commonwealth of Puerto Rico and inland points of states of the United States, whereby goods are carried by water to or from Puerto Rico and by rail within a state of the United States. Petitioner Trailer Marine Transport Corporation (TMT), a common carrier by water, and the intervenor Interstate Commerce Commission (ICC) argue that the Interstate Commerce Act2 confers exclusive authority on the ICC to regulate both the rail and water segments of these rail-water joint through routes. The Federal Maritime Commission (FMC) and intervenor Sea-Land Service, Inc. (Sea-Land), a common carrier by water in direct competition with TMT, argue that the Intercoastal Shipping Act of 19203 confers exclusive authority on the FMC to regulate the marine segment of the joint through routes, and that the ICC has authority to regulate only the mainland United States rail segment.

Though the issue of statutory construction is not easy,4 we believe that the Interstate Commerce (IC) and Intercoastal Shipping Acts, read together, confer plenary and exclusive jurisdiction on the ICC to regulate both the rail and water segments of joint through trade between Puerto Rico and inland points of states of the United States. Thus we vacate in part and remand in part the order of the FMC asserting jurisdiction over the marine segment of the subject rail-water joint through trade and requiring the petitioner to file with the FMC the divisions of joint through rates collected by the petitioner.

Our decision will necessarily turn on a closely measured construction of language of both the Interstate Commerce and Inter-coastal Shipping Acts. The merits of arguments put forward by the ICC and the FMC are almost evenly balanced. If these two independent agencies were both members of the Executive branch, the proper sphere of the regulatory authority of each could be authoritatively determined by a ruling from the Attorney General (Office of Legal Counsel) and no recourse to this court would be necessary. Since each is an independent agency, however, each has a right to a judicial delineation of its responsibilities. Thus it becomes our duty to draw the line between the jurisdictions of the two, and in so doing we note the merits of both [204]*204competing claims. Though the logic of statutory construction and an examination of the purpose of applicable statutes suggest that jurisdiction properly lies with the ICC, Congress has it in its power to adjust the matter, probably with a single amending sentence, if in this period of reordering of regulation in the field of transportation it should choose for reasons of policy to do so.

I. FACTUAL AND PROCEDURAL BACKGROUND

The petitioner TMT since early 1975 has operated a single-rate, all-water service for the transport of goods between coastal points of Florida and Puerto Rico pursuant to tariffs on file with the FMC.5 In August 1977 TMT filed with the ICC a tariff covering a new rail-water (“intermodal”) service for the joint through carriage of goods between ports of Puerto Rico and various inland points of the United States.6 Under the terms of this service, TMT transports goods on the marine segment and rail carriers otherwise unassociated with TMT transport goods on the continental land segment of the journey. Shippers pay a single joint through rate7 for the transport of goods from point of origin to point of destination, and the tariffs on file with the ICC for these routes show no “divisions” of the joint rates retained by the participating rail and water carriers.8

The ICC accepted the tariff proposed by TMT for its through route service in a letter on 21 October 1977 asserting the ICC’s “exclusive jurisdiction” over rates included in that tariff.9 The joint through rail-water service commenced on 8 November 1977.10 Nevertheless, the FMC issued an order on 18 November 1977 directing TMT to show cause why TMT was not in violation of the Intercoastal Shipping Act by operating the water segment of its joint rail-water trade, pursuant to the tariffs on file with the ICC, without having also filed these tariffs with the FMC.11 As well as denouncing TMT’s refusal to acknowledge the jurisdiction of the FMC over the marine leg of this joint through traffic, the FMC ordered TMT to reveal the divisions of the intermodal tariffs TMT was collecting through its participation in the through route with connecting rail carriers. The FMC argued that information concerning TMT’s “share of the revenues collected” on the through route would be necessary to enable the FMC to determine the “reasonableness” of TMT’s rates for that carrier’s port-to-port service even where no through rate would be charged.12 The FMC subse[205]*205quently issued the Report and Order here under Review,13 directing TMT to file with the FMC within 30 days tariffs concerning TMT’s transport of goods on the marine leg of its joint through routes between Puerto Rico and inland points of the United States. This court on 5 May 1978 granted a motion by TMT for a stay of the FMC Order pending judicial review.14

The intervenor Sea-Land, a water carrier seeking to participate in a joint through rail-water service to Puerto Rico similar to that of TMT, has pursued a regulatory route more compatible with that sought by the FMC. Sea-Land elected to file its tariffs for joint routes with both the ICC and FMC and to set forth in those tariffs the respective divisions of the joint rates to be retained by participating carriers.15 Upon instituting an investigation of the joint rates of Sea-Land on file with the ICC, the ICC reaffirmed its view that it has “exclusive jurisdiction” over rates for both the rail and water segments of the subject routes.16 Still, on 11 September 1978 a majority of ICC Commissioners voted to defer a final ruling on whether the ICC should seek to enforce that view with regard to Sea-Land, pending resolution by this court of the identical jurisdictional issue concerning the ICC and FMC raised earlier on appeal by TMT.17

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602 F.2d 379, 195 U.S. App. D.C. 201, 1982 A.M.C. 303, 1979 U.S. App. LEXIS 14760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trailer-marine-transport-corp-v-federal-maritime-commission-cadc-1979.