Trans World Airlines, Inc. v. Civil Aeronautics Board Sparks v. Civil Aeronautics Board

184 F.2d 66, 1950 U.S. App. LEXIS 3889
CourtCourt of Appeals for the Second Circuit
DecidedAugust 14, 1950
Docket21728_1
StatusPublished
Cited by18 cases

This text of 184 F.2d 66 (Trans World Airlines, Inc. v. Civil Aeronautics Board Sparks v. Civil Aeronautics Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Trans World Airlines, Inc. v. Civil Aeronautics Board Sparks v. Civil Aeronautics Board, 184 F.2d 66, 1950 U.S. App. LEXIS 3889 (2d Cir. 1950).

Opinion

*68 SWAN, Circuit Judge.

Two petitions for judicial review of an order of the Civil Aeronautics Board have been filed in this court. In one Trans World Airlines, Inc., for brevity hereinafter referred to as TWA, is the petitioner; the respondents therein, in addition to the Board, are Pan American World Airways, Inc., American Overseas Airlines, Inc. and American Airlines, Inc., the latter being the principal stockholder of Overseas. In the other petition Brian O. Sparks and six other employees of Overseas are the petitioners and the Board only is named as respondent, but Pan American, Overseas and American have intervened therein pursuant to leave granted by this court. Jurisdiction in the court is claimed under § 1006 of the Civil Aeronautics Act, 49 U.S. C.A. § 646, and § 10 of the Administrative Procedure Act, 5 U.S.C.A. § 1009.

The Board’s order is brought before us at the present time by motions-of the respective petitioners for an interlocutory stay of the order pending review of its validity on the merits. TWA’s motion, in addition to a stay, asks also that the Board be directed to produce additional documents and evidence. There is also before us a motion by the intervenors in the Sparks petition to dismiss it on' the grounds that the petitioners therein have not disclosed “a substantial interest” and that the court lacks jurisdiction. The respondents in the TWA petition have not formally moved to dismiss, for lack of jurisdiction but have indicated that they will-so move hereafter.

The order- which is before us: on these various motions was made by the Board in a consolidated proceeding entitled, In the Matter of the North Atlantic Route Transfer Case, Docket No. 3589 et al. It authorizes the transfer to Pan American of Overseas’ temporary certificate of public convenience and necessity, and the acquisition by the former of the property, assets and business of the latter. It also amends the certificates of Pan American and TWA so as to authorize Pan American to serve Paris and Rome and TWA to serve London and Frankfurt. It retains jurisdiction in the Board for the purpose of imposing such employee protective conditions as the Board may hereafter find appropriate and in the public interest, and it forbids Pan American and Overseas to discharge any of their employees, except for good cause, until further order of the Board.

Proceedings before the Board were initiated in December 1948 by applications by Pan American and Overseas for approval of an agreement between them for the sale and transfer to Pan American of all the assets of Overseas including the temporary certificate, expiring in 1952, which authorizes Overseas to engage in air transportation between points in the United States and various points in Europe. Pan American already possessed certificates of its own authorizing it to operate between the United States and Europe, including the major points which Overseas was authorized to serve. The third American-flag certificated trans-Atlantic air carrier is TWA. TWA intervened in the consolidated administrative proceeding and moved that it be broadened so that the issues should not be limited merely to action on the proposed sale but should “permit the establishment of the best possible system of American air transportation in Europe.” In substantial conformity with this motion the Board included in the consolidated cause a proceeding instituted by it under 49 U.S.C.A. § 481(h) to determine whether, if the proposed purchase -of Overseas should be approved, there should be any alteration, amendment or modification of the temporary certificates of public convenience and necessity issued to Overseas, Pan American and TWA in 1945. 1 Hearings extending over many months were held. On May 17, 1950 three of the Board’s five members, although for differing reasons, decided that the applications for the acquisition by Pan American of Overseas’ assets and the transfer of its certificate should be denied. On June 1st this decision and an order to “become effective on the date of its approval by the President of the United States” was submitted to the President. On June 29 the President *69 signed this order and sent it to the Board, but the following day he “verbally directed” that the order be returned to him and thereafter wrote the Board a letter dated July 10th stating that he had decided to approve the sale with the route adjustments set forth in his letter. 2 In accordance with the President’s direction the Board wrote a new opinion, approving the sale, and the order of July 10th. These were immediately submitted to the President who signed his approval of the order on July 11th. This order, the substance of which has already been set out, was published and served upon the parties on July 17, 1950.

The petitioners’ motions for an interlocutory stay are based on section 1006(d) of the Civil Aeronautics Act, 49 U.S.C.A. § 646(d) and section 10(d) of the Administrative Procedure Act, 5 U.S.C.A. § 1009 (d). These sections authorize interlocutory relief “upon good cause shown” and “to the extent necessary to prevent irreparable injury.” The motions might well be denied on the ground that the movants have not convinced us that a stay of the order is necessary to prevent their sustaining irreparable injury. TWA argues that if Pan American is allowed to go forward with the acquisition of the assets and business of Overseas, TWA’s -competitive position in overseas service will in the long run greatly deteriorate and that once the consolidation has been consummated it will be difficult, if not impossible, to “unscramble” it, if the order should ultimately be reversed on the merits. However, the immediate effect of eliminating Overseas as a competitor and granting to TWA the right to serve London and Frankfurt would seem likely to be beneficial to TWA, since there is no likelihood that Pan American can get all the European business formerly done by Overseas. On the other hand, the granting of a stay might prevent consummation of the sale and this would cause serious financial loss to both Pan American and Overseas who have already incurred large expenses preliminary to its consummation. Furthermore the public interest must be considered, and the President has stated in his letter of July 10th that it is “most important that this matter be disposed of in the present proceeding without further delay * * As to the motion by Sparks and his fellow employees, the case is even clearer. Their only pecuniary interest in staying the consolidation is to prevent loss of their jobs or impairment of seniority rights. The *70 Board’s order protects them in these respects. But the most fundamental reason for denying interlocutory relief is lack of jurisdiction. 3

The critical statute is Section 801 of the Civil Aeronautics Act, 49 U.S.C.A. § 601, the material portions of which are set out in the margin. 4 An order of the Board which is subject to Presidential approval under that section is immune from judicial review, despite the broad language of section 1006, 49 U.S.C.A. § 646. Chicago & Southern Air Lines v. Waterman S. S. Corp., 333 U.S. 103, 68 S.Ct. 431, 92 L.Ed.

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184 F.2d 66, 1950 U.S. App. LEXIS 3889, Counsel Stack Legal Research, https://law.counselstack.com/opinion/trans-world-airlines-inc-v-civil-aeronautics-board-sparks-v-civil-ca2-1950.