Regular Common Carrier Conference v. United States of America and Interstate Commerce Commission, Burlington Northern, Inc., Transportation Lawyers Association, Intervenors. (Two Cases) International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America v. United States of America and Interstate Commerce Commission, Burlington Northern, Inc., Transportation Lawyers Association, IntervenorsRegular Common Carrier Conference v. United States of America and Interstate Commerce Commission, Burlington Northern, Inc., Transportation Lawyers Association, Intervenors. (Two Cases) International Brotherhood of Teamsters, Chauffeurs, Warehousemen and Helpers of America v. United States of America and Interstate Commerce Commission, Burlington Northern, Inc., Transportation Lawyers Association, Intervenors
REGULAR COMMON CARRIER CONFERENCE, et al., Petitioners,
v.
UNITED STATES оf America and Interstate Commerce Commission,
Respondents,
Burlington Northern, Inc., et al., Transportation Lawyers
Association, Intervenors. (Two Cases)
INTERNATIONAL BROTHERHOOD OF TEAMSTERS, CHAUFFEURS,
WAREHOUSEMEN AND HELPERS of AMERICA, et al., Petitioners,
v.
UNITED STATES of America and Interstate Commerce Commission,
Respondents,
Burlington Northern, Inc., et al., Transportation Lawyers
Association, Intervenors.
Nos. 85-1601, 86-1222 and 86-1435.
United States Court of Appeals,
District of Columbia Circuit.
Argued March 27, 1987.
Decided June 23, 1987.
Petitions for Review of Orders of the Interstate Commerce commission.
Laura Layman and Kevin M. Williams, Washington, D.C., with whom Robert J. Higgins and Joan M. Darby were on the brief, for petitioners.
Timm L. Abendroth, Attorney, I.C.C., Washington, D.C., with whom Robert S. Burk, General Counsel, John J. McCarthy, Jr., Deputy Associate General Counsel, I.C.C., John J. Powers, III and John P. Fonte, Attorneys, Dept. of Justice were on the brief, for respondents, I.C.C. and U.S.
Herbert J. Martin, Washington, D.C., for intervenor, Burlington Northern, Inc., et al.
James F. Flint and Robert Walker, Washington, D.C., entered appearances for intervenor, Transportation Lawyers Ass'n.
Before EDWARDS and STARR, Circuit Judges, and SWYGERT,* Senior Circuit Judge of the United States Court of Appeals for the Seventh Circuit.
Opinion for the Court filed by Circuit Judge EDWARDS.
HARRY T. EDWARDS, Circuit Judge:
We are asked to review three decisions of the Interstate Commerce Commission ("ICC" or the "Commission") exempting from statutory prior approval requirements a series of intermodal acquisitions involving rail and motor carriers. Because we conclude that the Commission applied the wrong statutory criteria in granting the exemption requests, we reverse and remand the Commission's decisions.
I. BACKGROUND
These consolidated cases involve the аcquisition of several trucking companies by Burlington Northern, Inc., a holding company that owns the Burlington Northern Railroad Company, a Class I railroad. In four separate petitions filed with the ICC during 1985 and 1986, both Burlington Northern, Inc. and its wholly-owned subsidiary Burlington Northern Motor Carriers, Inc. (hereinafter referred to collectively as "Burlington Northern") sought statutory exemptions in connection with their proposed acquisitions of six trucking companies. Absent exemptions, the acquisitions would have required prior ICC approval under
(e)(1) Notwithstanding any provisions of this title, the Interstate Commerce Commission, in a matter related to a motor carrier of property providing transportation subject to the jurisdiction of the Commission under subchapter II of chapter 105 of this title, may exempt a person, class of persons, transaction, or class of transactions from the merger, consolidation, and acquisition of control provisions of this subchapter if the Commission finds that--
(A) the application of such provisions is not necessary to carry оut the transportation policy of section 10101 of this title; and
(B) either (i) the transaction is of limited scope, or (ii) the application of such provisions is not needed to protect shippers from the abuse of market power.
Id. Sec. 11343(e)(1). Section 10101, referenced in
Burlington Northern's petitions for
(a) In a matter related to a rail carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission under this subchapter, the Commission shall exempt a person, class of persons, or a transaction or service when the Commission finds that the application of a provision of this subtitle--
(1) is not necessary to carry out the transportation policy of section 10101a of this title; and
(2) either (A) the transaction or service is of limited scope, or (B) the application of a provision of this subtitle is not needed to protect shippers from the abuse of market power.
....
(g) The Commission may not exercise its authority under this section (1) to authorize intermodal ownership that is otherwise prohibited by this title, or (2) to relieve a carrier of its obligation to protect the interests of employees as required by this subtitle.
Id. Sec. 10505(a), (g). Section 10101a, referenced in
In proceedings before the Commission, the opposing parties contended that the reference to "intermodal ownership" in
When a rail carrier, or a person controlled by or affiliated with a rail carrier, is an applicant and the transaction involves a motor carrier, the Commission may approve and authorize the transaction only if it finds that the transaction is consistent with the public interest, will enable the rail carrier to use motor carrier transportation to public advantage in its operations, and will not unreasonably restrain competition.
In other words, the opposing parties argued that, because
In a series of three decisions, the ICC purported to invoke the provisions of
In thе July 1985 Decision, the ICC rejected by a 4-3 vote the argument that the "intermodal ownership" limitation of
In the January 1986 Decision, a bare majority of the Commission again rejected the statutory construction offered by the parties opposing Burlington Northern's petition, declaring that "[t]he factors enumerated in
In the July 1986 Decision, the same majority approved Burlington Northern's remaining petitions, adhering to its previous position on the applicability of
Besides making it unnecessary for the ICC to address the specific criteria of
II. ANALYSIS
Two of the groups that opposed Burlington Northern's petitions below--the RCCC and the IBT (joined by the TLA as an intervening petitioner)--have petitioned this court to review each of the ICC's decisions, contending that the Commission has no authority to exempt rail-motor acquisitions under
A. The Meaning of
We begin with the language of
Indeed, at oral argument, counsel for the Commission conceded that, in the absence of
B. The Relationship Among
In light оf the foregoing, it appears that the principal question before this court is whether, by enacting
1. The Plain Meaning of the Statute
Beginning, as we must, with the plain language of the statute, we note that nothing in the literal terms of
Thus, the literal terms of
2. The Legislative History of
The motor carrier exemption embodied in
We believe that it would be preferable to exempt bus companies and motor carriers generally from Commission jurisdiction with regard to mergers, consolidations and acquisitions of control. This change is suggested because we believe that other governmental bodies have sufficient jurisdiction to protect the public interest.
In view of liberalized entry, the number of merger proposals has substantially declined and continued regulation by the Commission of control and acquisition transactions no longer appears necessary. Alternatively, Congress might wish to consider adoption of an exemption along the lines of the Staggers [Rail] Act [of 1980, Pub.L. No. 96-448, 94 Stat. 1895], which could be used to exempt those types of transaction[s].
Deregulation of the Intercity Bus Industry: Hearings on H.R. 3663 Before the Subcommittee on Surface Transportation of the Senate Committеe on Commerce, Science and Transportation, 97th Cong., 2d Sess. 88 (1982) (emphasis added). The Senate adopted Taylor's second alternative, but narrowed it to exempt only "motor carriers of property," thus excluding buses from the exemption. See S. REP. No. 411, 97th Cong., 2d Sess. 31, reprinted in 1982 U.S.CODE CONG. & ADMIN.NEWS 2308, 2338. The Senate Report explained that the proposed exemption would "allow[ ] the ICC the discretion to exempt small truck company mergers and other transactions from certain statutory requirements." Id. at 13, reprinted in 1982 U.S.CODE CONG. & ADMIN.NEWS at 2320. Given that Chairman Taylor's proposal addressed motor carriers only, and given also that the Senate then narrowed his proposal still further to include only a particular type of motor carrier, it strains credulity to suggest, as the intervening respondents do, that the Senate Report's oblique reference to "small truck mergers and other transactions" reflects an otherwise unarticulated intent to open up this same exemption provision to encompass transactions involving an entire class of carriers other than motor carriers. Surely such a broad proposal would have evoked at least some commentary; yet the legislative history reveals none. The intervening respondents' suggestion proves even more doubtful when contrasted with the Senate's statement that the proposed exemption would "not in any way affect the ICC's jurisdiction with regard to rail transactions under Subchapter III [of Chapter 113] of Title 49 wrS.C." Id. at 31, reprinted in 1982 U.S.CODE CONG., & ADMIN.NEWS at 2338. Thus, nothing in the Senate history of
When the House took up the Senate's proposed exemption, the ICC once again took a position in favor of either eliminating Commission jurisdiction over motor carrier acquisitions or allowing the ICC to exempt such transactions under certain circumstances. In a letter addressed to the Chairman of the House Committee on Public Works and Transportation, Chairmаn Taylor reiterated that the ICC "recommended elimination of ICC jurisdiction over motor carrier mergers, consolidations and acquisitions of control," or, "[a]lternatively, ... adoption of an exemption provision." Letter from Reese H. Taylor, Jr., Chairman, Interstate Commerce Commission, to Hon. James J. Howard, Chairman, House Committee on Public Works and Transportation (June 8, 1982), reprinted in Brief of Petitioners, Addendum B. As in his previous Senate testimony, Chairman Taylor's juxtaposition of the proposal to eliminate jurisdiction over acquisitions among motor carriers with the alternative proposal to create "an exemption" strongly suggests that the "exemption" proposed in his letter was similarly circumscribed. Nowhere in this letter did the Chairman suggest exempting rail-motor (or other intermodal) acquisitions.
The House Conference Report proposed retaining the Senate's exemption and repeated the Senate Report's statement that this exemption would not affect the ICC's rail jurisdiction. H.R. CONF.REP. NO. 780, 97th Cong., 2d Sess. 56, reprinted in 1982 U.S. CODE CONG. & ADMIN.NEWS 2342, 2367. Shortly before the compromise bill was passed by both houses, Congressman Anderson, who was the House sponsor of the bill and a mеmber the Conference Committee, made the following statement on the floor of the House:
For motor carriers of property, the conference agreement treats truck mergers differently than mergers of buses. Specifically, the agreement would retain existing law for truck mergers, except that the Commission could exempt a person, class of persons, transaction, or class of transactions for motor carriers of property from the provisions of the law if the Commission finds that the application of these provisions is not necessary оr [the transaction is] of limited scope.
128 CONG.REC. H6692 (daily ed. Aug. 19, 1982) (statement of Rep. Anderson) (emphasis added). Consistent with both the recommendations of Chairman Taylor and the relevant passages in the Senate and Conference Reports, Congressman Anderson's statement strongly suggests that the exemption was to apply only to transactions among motor carriers.
In short, the legislative history of
Where there is no clear intention otherwise, a specific statute will not be controlled or nullified by a general one, regardless of the priority of enactment.
The courts are not at liberty to pick and choose among congrеssional enactments, and when two statutes are capable of co-existence, it is the duty of the courts, absent a clearly expressed congressional intention to the contrary, to regard each as effective. "When there are two acts upon the same subject, the rule is to give effect to both if possible.... The intention of the legislature to repeal 'must be clear and manifest.' "
Morton v. Mancari,
3. The "Notwithstanding" Phrase in
Almost as a last gasp effort to bolster its strained argument regarding the meaning of
Thе frailty of the Commission's argument on the "notwithstanding" phrase is highlighted by the fact that the Commission appears to offer mutually exclusive justifications to support it. In other words, if
Even if we could resolve the ambiguities in the Commission's position, we would still reject it as inconsistent with congressional intent clearly expressed in the language and structure of the statute. It is clear that in these circumstances courts need not defer to administrative agencies on purely legal questions, see UAW v. Brock,
The narrow legal question whether the two standards are the same is, of course, quite different from the question of interpretation that arises in each case in which the agency is required to apply either or both standards to a particular set of facts. There is obviously some ambiguity in a term like "well-founded fear" which can only be given concrete meaning through a process of case-by-case adjudication. In that process of filling " 'any gap left, implicitly or explicitly, by Congress,' " the courts must respect the interpretation of the agency to which Congress has delegated the responsibility for administering the statutory program. But our task today is much narrower, and is well within the province of the judiciary. We do not attempt to set forth a detailed description of how the well-founded fear test should be applied. Instead, we merely hold that thе Immigration Judge and the [Board of Immigration Appeals] were incorrect in holding that the two standards are identical.
Id. at 1221-22 (footnotes and citations omitted) (quoting Chevron U.S.A., Inc. v. Natural Resources Defense Council,
One obvious view of the "notwithstanding" language is that, reаd together with the phrase "matter related to a motor carrier of property," the introductory phrase refers to those provisions of Title 49 that deal with matters involving only motor carriers of property, not to those provisions that apply to intermodal transactions. Viewed from this perspective, the "notwithstanding" phrase simply does not refer to
The ICC seeks to avoid this obvious construction by arguing that the "notwithstanding" language in
C. Controlling Principles of Statutory Construction
The Supreme Court has reminded us that, in employing traditional tools of statutory construction, we must consider the language and overall structure of a statute, and its legislative history, to determine congressional intent. See Block v. Community Nutrition Inst.,
Although the ICC purported to make alternative findings under
So ordered.