DocketNumber: No. 330
Judges: Black, Burton, Frankfurter, Jackson
Filed Date: 6/20/1949
Status: Precedential
Modified Date: 11/15/2024
delivered the opinion of the Court.
It is contended here that the United States as a shipper is barred from challenging in federal courts an Interstate Commerce Commission order which denies the Government a recovery in damages for exaction of an allegedly unlawful railroad rate. Other contentions if sustained would deny federal courts all power to entertain an action by any shipper challenging a Commission order denying damages to the shipper.
During the war, existing tariffs of many railroads embodied wharfagé- charges to compensate the railroads for moving goods from railroad cars to piers and from piers to railroad cars. When the United States took over certain piers at Norfolk, Virginia, it began to perform these wharfage services for itself and requested the railroads to'make the United States an allowance for the expenses incurred in performing the services. The railroads refused to make an allowance. Upon this refusal the Government requested the railroads to perform the services' themselves. The railroads refused to perform the services.
The United States filed with the Interstate Commerce Commission a complaint against the railroads charging that exaction of pay for unperformed services was unjust, unreasonable, discriminatory, excessive, and in violation of certain sections of the Interstate Commerce Act.
The United States brought this action in a United States District Court to set aside the Commission order. The complaint charged that the Commission’s conclusions were not supported by its findings, that the findings were not supported by any substantial evidence, that the order was based-on a misapplication of law and was “otherwise arbitrary, capricious and without support in and pontrary to law and the evidence.” The Interstate Commerce Commission was made a defendant. The United States was also made a defendant because of a statutory requirement that any action to set aside an order, of the Interstate Commerce Commission “shall be brought . . . against the United States.” 28 U. S. C. (1946 ed.) § 46, now § 2322. Railroads that collected the wharfage, charges intervened as defendants under authority of 28. U. S. C. (1946 ed.) § 45a, now § 2323. The'Attorney General appeared for the Government as both plaintiff and defendant. Without reaching the merits of the case, the District Court composed of three judges dismissed the cause on the theory that the Govérnment could not maintain a suit against itself. - The court also indicated its belief that a three-judge court was without jurisdiction
In this Court the Commission and the railroad intervenor defendants support the District Court’s dismissal for the reasons given by that court. Alternative reasons are also urged. We hold that the dismissal was error and that the case should have been considered on its merits.
First. There is much argument with citation of many cases to establish the long-recognized general principle that no person may sue himself. Properly understood the general principle is sound, for courts only adjudicate justiciable controversies. They do not engage in the academic pastime of rendering judgments in favor of persons against themselves. Thus a suit filed by John Smith against John Smith might present no case or controversy which courts could determine. But one person named John Smith might have a justiciable controversy with another John Smith: This illustrates that courts must look behind names that symbolize the parties to determine whether a justiciable case or controversy is presented.
While this case is United States v. United States, et al., it involves .controversies of a type which are traditionally justiciable. The basic question is whether railroads have illegally exacted sums of money from the United States. Unless barred by statute, the Government is not less entitled than any other shipper to invoke administrative and judicial protection. To collect the alleged illegal- exactions from the railroads the United States instituted, proceedings before the-Interstate Commerce Commission, . In pursuit of the same, objective the Government challenged the legality of the Commission’s action. This suit therefore.is a Step in proceedings to settle who is legally entitled to sums of money, the Government or the railroads. The order if valid wodld defeat the Government’s claim to that
Second. It is contended that the provisions of the Act making the Government a statutory defendant in court actions challenging Commission orders, show a congressional purpose to bar the Government from challenging such orders. Legislative history is cited in support of this contention. If the. contention be accepted, Congress by making the Government a statutory defendant in such cases has deprived the United States as a shipper of powers of self-protection accorded all other shippers. We cannot agree that Congress intended to make it impossible for the Government to press a just claim which could be vindicated only by a court challenge of a Commission order. See United States v. San Jacinto Tin Co., 125 U. S. 273, 279.
In support of their contention that Congress did not intend for the Government to press its claims as a shipper, the Commission and railroads emphasize the anomaly of having the Attorney General appear on both sides of the same controversy. However anomalous, this situation results from the statutes defining the Attorney General’s duties. The Interstate Commerce Act requires the Attor-r ney General to appear for the Government as a statutory defendant in cases challenging Commission orders. 28 U. S. C. (1946 ed.) § 45a, now § 2323. The Attorney General is also, under a statutory duty “to determine when the United States shall sue, to decide for what, it shall sue, and to be responsible that such suits shall be brought'in appropriate cases.” United States v. San Jacinto Tin Co., 125 U. S. 273, 279. See also United
Although the formal appearance of the Attorney General for the Government as statutory defendant does create a surface anomaly, his representation of the Government as a shipper does not in any way prevent a full defense of the Commission’s order. The Interstate Commerce Act contains adequate provisions for protection of Commission orders by the Commission and by the railroads when, as here, they are the real parties in interest. Eor, whether the Attorney General defends or not, the Commission and the railroads are authorized to interpose all defenses to the Government’s charges and claims that can be interposed to charges and claims of other shippers. In this case the Commission and the railroads have availed themselves of this statutory authorization. They have vigorously defended the legality of the allowances and the validity of the Commission order at every stage of the litigation.
Third. 28 U. S. C. (1946 ed.) § 41 (28)
The Commission and the railroads contend, however,that § 9 of the Interstate Commerce Act, 49 U. S. C. § 9, bars the United States or any other shipper from judicial review of an order denying damages in reparation proceedings initiated before the Commission.. Section 9 provides-in part:
“Any person or persons claiming to be damaged by any common carrier . . . may either make complaint to the commission ... or may bring suit . . . for the recovery of the damages ... in any district court of the United States of competent jurisdiction; but such person or persons shall not have the right .to pursue both .of said remedies, and must in each case elect which one of the two methods of procedure herein provided for he or they will adopt.”
The contention of the Commission and the railroads as to § 9 is this. A shipper has an alternative. He may bring his action before the Commission or before the courts. But he must make an election. If he elects to “bring suit” in a court and is unsuccessful, he retains the customary right of appellate review. If he elects to “make complaint to” the Commission, as the Government did, and relief, is denied, he is said to be barred by the statutory language of § 9 from seeking any judicial review of the Commission order. Under the contention the order is final and not reviewable by any court even though entered arbitrarily, without substantial supporting evidence, and in defiance of law.
Such a sweeping contention for administrative finality is out of harmony with the general legislative pattern of
Furthermore, the section’s careful provision for judicial protection of railroads against improper Commission awards argues against interpretation of the same section to deny to shippers any judicial review whatever. Under the suggested interpretation a shipper could recover nothing if the Commission decided against him. But a Commission award favorable to a shipper is not final or binding upon the railroad. Such an award “only establishes a rebuttable presumption. It cuts off no defense, interposes no obstacle to a full contestation of all the issues, and takes no question of fact from either court or jury. ... Nor does it in any wise work a denial of due process of law.” Meeker & Co. v. Lehigh Valley R. Co., 236 U. S. 412, 430. And see Pennsylvania R. Co. v. Weber, 257 U. S. 85, 90-91. It hardly seems possible to. find from the language of § 9 a congressional intent to guarantee railroads complete judicial review of adverse reparation orders while denying shippers any judicial review at all.
What we have said would dispose of the § 9 contention but for the argument of the Commission and the railroads that their suggested interpretation of the section is required by this Court’s holding in Standard Oil Co. v. United States, 283 U. S. 235, and other cases that followed it. In that case the Standard Oil Co., a shipper, was denied the right to judicial review of a-Commission order denying reparations. Judicial review was denied on four grounds: (1) The order in the Standard Oil case denying reparations was “negative” in form, and was therefore beyond judicial appraisal under the
The Standard Oil interpretation of § 9 denying shippers any judicial review was made by a court usually careful to protect against arbitrary or unlawful administrative action. And, as shown, the court there first satisfied itself that the Commission order was not the product of an unlawful exercise of power by the Commission. Furthermore, the “negative order” philosophy, then at its peak, clearly barred review of all orders denying reparations. Consequently, the Standard Oil §9 interpretation barred judicial review of no class of Commission orders except orders already immune from such review under the “negative order” doctrine. The Standard Oil holding was thus clearly supported by and rooted in the now rejected “negative order” doctrine.
Another reason for the Court’s construction of § 9 in the Standard Oil case was that Standard’s damage claim
“It is to be remembered that, by electing to call on the Commission for the determination of his damages, plaintiff waived his right to maintain an action at law upon his claim. But the carriers made no such election. Undoubtedly it was to the end that they be not denied the right of trial by jury that Congress saved their right to be heard in court upon the merits of claims asserted against them. The right of election given to a claimant reasonably may have been deemed an adequate ground for making the Commission’s award final as to him.”
And see Terminal Warehouse Co. v. Pennsylvania R. Co., 297 U. S. 500, 507-508.
Thus, a crucial support for the Court’s holding in the Standard Oil and Brady cases was that the shippers in those cases could have commenced original § 9 actions in the district court. But it has been established doctrine since this Court’s holding in Texas & P. R. Co. v. Abilene Oil Co., 204 U. S. 426, that a shipper cannot file a § 9 proceeding in a district court where his claim for damages necessarily involves a question of “reasonableness” calling for exercise of the Commission’s primary jurisdiction.
Ashland Coal Co. v. United States, 325 U. S. 840, is the only case in this Court that relied on the Standard Oil decision after we had abandoned the “negative order” doctrine. Cf. Allison & Co. v. United States, 296 U. S. 546. And it is doubtful i'f the shipper in the Ashland Coal Co. case could-have sought reparations in a district court under the “primary jurisdiction” doctrine. In affirming without argument the judgment of a three-judge court in the Ashland Coal Co. case, this Court’s per curiam opinion cited two pages of the Standard Oil. opinion that support the interpretation of § 9 urged here by the Com-, mission and railroads. It is a fair inference that the ’ pages were cited for that interpretation although other grounds for the Court’s decision also appear there. One such ground was that a three-judge court is an improper
We cannot accept the Ashland Coal Co. per curiam holding nor the Standard Oil case on which it rested as requiring the interpretation of § 9 which the railroads and Commission here urge. Our acceptance of that interpretation would mean that a shipper who submitted to the Commission only a question of the reasonableness of rates could have an adverse order reviewed by a court, Skinner & Eddy Corp. v. United States, 249 U. S. 557, 562-563, while a shipper who asked for that administrative determination plus reparations could get no judicial review at all. Terminal Warehouse Co. v. Pennsylvania R. Co., supra, at 507-508. On any ground except the now discarded “negative order” doctrine, this would appear to be an unsupportable and totally illogical limitation of the congressional command for judicial review.
Fourth. For. reasons already stated we hold that a Commission order dismissing a shipper’s claim for dam
The Urgent Deficiencies Act from which § 41 (28) was derived contains provisions for a three-judge district court to hear and determine suits brought to set aside a Commission , “order,” and authorizes judgments rendered in such cases to be appealed directly to this Court.
. The provisions of the Urgent Deficiencies Act here considered derive from a 1910 congressional enactment creating the Commerce Court, defining its powers and providing for review of its judgments.
Provisions of the Urgent Deficiencies Act of 1913 abolished the Commerce Court and transferred its jurisdiction to district courts composed of three judges. In considering this Act Congress was urged to bear in mind the necessity for providing a forum that could expeditiously review Commission orders of widespread importance.
We have frequently pointed out the importance of limiting the three-judge court procedure within its expressly stated confines.
Fifth. There remains the question of the proper disposition of this case. Three judges heárd it. This, however, is no reason for dismissal of the cause. See Stain-
Reversed aryl remanded.
49 U. S. C. §§ 1 (5) (a), 1 (6), 2', 6 (8), 15 (13).
49 U. S. C. §§ 8, 9. The complaint also sought relief from future exactions, but prior to the Commission’s final order the piers were returned to private ownership and this prayer was abandoned.
The substance of 28 U. S. C. § 41 (28) of the 1946 United States ■Code now appears as § 1336 of the 1948 Code. The provision for judicial review of Interstate Commerce Commission orders first appeared in 1910 in an Act creating the Commerce Court'. 36 Stat. 539. Congress abolished the Commerce Court in 1913 and transferred lio district courts, the Commerce Court’s jurisdiction do review Commission orders. Urgent Deficiencies Act, 38 Stat. 208, 219-220.
The Administrative Procedure Act, 60 Sta't. 237, 243, 5 U. S. C. §§ 1001 (d), 1009, provides:
“Sec. 2. . . . (d) Order and Adjudication. — ‘Ordér’ means the whole or any part of the final disposition (whether affirmative, negative, injunctive, or declaratory in form) of any agency in any matter other than rule making but including licensing. ‘Adjudication’ means agency process fo.r the formulation of an order.”
“Sec. 10. Except so far-, as (1) statutes preclude judicial review or_ (2) agency action is by law committed to agency discretion—
“(a) Right op review. — Any person suffering legal wrong because of any agency action, or adversely affected or aggrieved by such action within the' meaning of any relevant statute, shall be entitled to judicial review thereof.”
Mr. Justice Cardozo so treated the Standard Oil holding in I. C. C. v. United States, 289 U. S. 385, 388, a case decided prior to this Court’s repudiation of the “negative order” doctrine. He there said that in denying'reparations “the Commission speaks with finality. Its orders purely negative — negative in form and substance— are not subject to review by this court or any other.” Authorities for this statement were “negative order” cases. These same eases were relied on by the court in a later case that referred with approval to the Standard Oil § 9 interpretation. Terminal Warehouse Co. v. Pennsylvania, R. Co., 297 U. S. 500, 507-508.
See cases collected in Rochester Tel. Corp. v. United States, 307 U. S. 125, 139, n. 22, and Armour & Co. v. Alton R. Co., 312 U. S. 195; Skinner & Eddy Corp. v. United States, 249 U. S. 557, 562.
The Commission argues that § 9 does authorize a shipper to initiate damage claims in a district court even though the claim necessarily involves questions upon which the Commission’s primary jurisdiction must be invoked. The railroads more cautiously say that such suits can be filed upon an initial showing1 by a shipper that it might work a hardship on a shipper .for the court to refuse to entertain the case. Both contentions run counter.to this Court’s previous cases. Particular circumstances were held sufficient in one case to justify a court in staying further judicial proceedings to await Commission action. Mitchell Coal Co. v. Pennsylvania R. Co., 230 U. S. 247, 266-267. The same course was followed in another case, over the Commission’s .objection, where the action was in assumpsit, and the administrative problem did not emerge until the case was in course of litigation. Tank Car Corp. v. Terminal Co., 308 U. S. 422, 432.
The “negative order” doctrine was first adopted by this Court in Procter & Gamble v. United States, 225 U. S. 282, decided in 1912. A shipper there brought action in the Commerce Court to set aside a Commission order dismissing the shipper’s complaint. The complaint was that the charges were unjust and unreasonable. The Commerce Court was asked to annul the Commission’s order of dismissal, to enjoin future collection of the charges, and to require the railroads to repay sums alleged to have been wrongfully collected from the shipper. ^The Commerce Court reviewed the action of the Commission and on the merits declined to grant the shipper the re
This Court nevertheless abandoned the “negative order” doctrine in 1938, and in doing so effectively overruled a host of prior decisions. See cases collected in footnote to Mr. Justice Butler’s opinion in the Rochester case, 307 U. S. 146, 148. The effect of today’s decision is merely to recognize that the Standarri Oil doctrine, barring judicial review to shippers, cannot stand consistently with the Rochester case which itself overruled the Procter & Gamble and other “negative order” decisions. It was therefore the Rochester case, not today’s decision, that overruled a line of ehses and granted relief where Congress had declined to afford any. H. R. Rep. No. 1012, 62d Cong., 2d Sess. 1-4 (1912); Hearings before the subcommittee of the Senate Committee on Appropriations on H. R. 7898, 63d Cong., 1st Sess. 140-148 (1913); Hearings before the subcommittee of the Senate Committee on Appropriations on H. R. 7898, 63d Cong., 1st Sess. 305-343 (1913); Hearings béfore the House Committee oh Interstate and Foreign Commerce onf H. R. 25596 and H. R. 25572, 62d Cong., 2d Sess. 1-298 (1912); 5,0.Cong. Rec. 4532-4537, 4542-4545 (1913).
38 Stat. 208, 219, 220 ; 28 U. S. C. §2325 (1948). See also 28 U.S.C. (1946 ed.) §47.
36 Stat. 539.
See President’s Message to Congress, 45 Cong. Rec. 7567-7568 (1910).
S. Rep. No. 355, 61st Cong., 2d Sess. 1-2 (1910).
See Procter & Gamble v. United States, 225 U. S. 282; Texas & P. R. Co. v. Abilene Oil Co., 204 U. S. 426.
Hearings before the subcommittee of the Senate Committee on Appropriations on H. R. 7898, 63d Cong., 1st Sess. 293-299, 300 (1913).
It is also significant that the new judicial code does not give a three-judge court jurisdiction to adjudicate the validity of commission orders “for the payment of money.” 28 Ü. S. C. § 2321.
United States v. Griffin, supra, 234—237; Ayrshire Corp. v. United States, 331 U. S. 132, 136-137; Stainback v. Mo Hock Ke Lok Po, 336 U. S. 368, 378, n. 19; Phillips v. United States, 312 U. S. 246, 250.