United States of America and Interstate Commerce Commission, and v. The Greyhound Corporation and Greyhound Lines, Inc., And

508 F.2d 529, 1974 U.S. App. LEXIS 5498
CourtCourt of Appeals for the Seventh Circuit
DecidedDecember 24, 1974
Docket74-1124
StatusPublished
Cited by130 cases

This text of 508 F.2d 529 (United States of America and Interstate Commerce Commission, and v. The Greyhound Corporation and Greyhound Lines, Inc., And) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States of America and Interstate Commerce Commission, and v. The Greyhound Corporation and Greyhound Lines, Inc., And, 508 F.2d 529, 1974 U.S. App. LEXIS 5498 (7th Cir. 1974).

Opinion

PELL, Circuit Judge.

The Greyhound Corporation and its wholly owned subsidiary Greyhound Lines, Inc. (collectively, Greyhound) appeal from a conviction of criminal contempt, under 18 U.S.C. § 401(B), 1 for willfully violating certain provisions of an order entered by a three-judge district court. The principal issue on appeal is whether the evidence was sufficient to prove that the violations of the order were willful.

I

The background of this case dates back to 1947. Greyhound, a common carrier operating throughout most of the United States, sought and obtained, between 1947 and 1956, approval of the Interstate Commerce Commission (ICC) for the acquisition of eight bus companies and their routes in the western United States. Mt. Hood Stages, Inc. (Mt. Hood), doing business as Pacific Trailways, is a common carrier authorized to operate in Oregon, Idaho, and Utah. At the acquisition hearings before the ICC, Mt. Hood opposed a number of the acquisitions, pointing out that its north-south route through central Oregon was being completely encircled by Greyhound. To overcome this opposition, Greyhound officers made certain representations to the ICC concerning Greyhound’s policies and implementing practices with regard to Mt. Hood. Following the making of these representations Mt. Hood withdrew at least some of its objections to acquisitions.

In 1964 Mt. Hood petitioned the ICC to reopen the acquisition proceedings and sought a supplemental ICC order, under 49 U.S.C. § 5(9), specifically enforcing the representations and assurances made to the ICC by Greyhound during the previous acquisition proceedings. The ICC hearing examiner found that Greyhound was violating a number of representations made during the earlier hearings; this finding was adopted by Division Three of the ICC. 2 Generally, the ICC found that Greyhound had made specific representations in the prior acquisition proceedings which amounted to assur- *531 anees of public benefit and interest and no harm to existing carriers or service. The failure of Greyhound to abide by its commitments, without sound reasons, Division Three observed, “constitute[d] destructive competition in contravention of the national transportation policy.” 104 M.C.C. at 463. The ICC, however, did not enter a specific order but, rather, gave Greyhound time voluntarily to conform its practices to its representations.

Greyhound did not voluntarily conform and in 1968 the full ICC entered an order directing Greyhound, inter alia, to cease and desist from “all practices of the character found in the prior reports of Division 3 [of the ICC] and the hearing examiner to be unreasonable and inconsistent with [Greyhound’s] representations in the above-entitled proceedings ..” The ICC denied Greyhound’s subsequent petition for reconsideration, and Greyhound petitioned for judicial review.

A three-judge district court denied Greyhound’s motion to set aside the ICC order and granted the Government’s counterclaim for enforcement of its order. 3 The court issued a ten-paragraph order, the portions of which are material to this appeal are set out in the margin. 4

In June 1971, the Government filed petitions charging Greyhound with criminal and civil contempt for failing to comply with the order of the three-judge district court. After a bench trial, Chief Judge Robson, in a careful and detailed opinion, found Greyhound in criminal contempt of five paragraphs of the order and in civil contempt of three paragraphs. 5 The court fined Greyhound Corporation $100,000 and Greyhound Lines, Inc. $500,000 for their criminal contempt. 6 Greyhound has appealed from the criminal contempt convictions and the fines imposed under these convictions.

II

Greyhound concedes, there being no appeal of the civil contempt judgment, that it violated the 1970 order of the three-judge district court but argues that the evidence was insufficient to prove that the violations were willful.

Willfulness is, of course, an element of criminal contempt and must be proved beyond a reasonable doubt. In re Brown, 147 U.S.App.D.C. 156, 454 F.2d 999, 1006 (1971); United States ex rel. Porter v. Kroger Grocery & Baking Co., 163 F.2d 168, 173-174 (7th Cir. 1947). In United States v. Seale, 461 F.2d 345, 368 (7th Cir. 1972), a criminal contempt case involving alleged disruption and obstruction within a trial, this court noted that “[t]he minimum requisite intent [for criminal contempt] is better defined as a *532 volitional act done by one who knows or should reasonably be aware that his conduct is wrongful.” A finding of criminal contempt cannot stand, moreover, if the court’s order is vague or uncertain. International Longshoremen’s Ass’n, Local 1291 v. Philadelphia Marine Trade Ass’n, 389 U.S. 64, 76, 88 S.Ct. 201, 19 L.Ed.2d 236 (1967). Greyhound relies substantially on the claimed obnubilation of the three-judge court order.

Willfulness for criminal contempt may, as in other areas of criminal law, be inferred from the facts and circumstances in proof. Kroger Grocery, supra. In eases involving in-court obstruction or disruption, such as Seale, these facts and circumstances will typically involve simply the conduct and statements occurring during the trial. In a criminal contempt case involving a court order, such as the one before us, on the other hand, the court should consider the entire background behind the order — including the conduct that the order was meant to enjoin or secure, the interests that it was trying to protect, the manner in which it was trying to protect them, and any past violations and warnings — in determining whether the order is sufficiently specific and in determining whether the defendant knew or should have known that his conduct was wrongful. 7 Terminal R.R. Ass’n v. United States, 266 U.S. 17, 29, 45 S.Ct. 5, 69 L.Ed. 150 (1924); United States v. Christie Indus., Inc., 465 F.2d 1002, 1007 (3d Cir. 1972).

Willfulness, for the purpose of criminal contempt, does not exist where there is a “[g]ood faith pursuit of a plausible though mistaken alternative.” In re Brown, supra, 454 F.2d at 1007.

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