Interstate Commerce Commission v. Long Transportation Co.
Interstate Commerce Commission v. Long Transportation Co.
Opinion of the Court
MEMORANDUM
This is an action brought by the Interstate Commerce Commission under 49 U.S.C. § 322(b)(1) seeking to enjoin defendants from retaining for their own use duplicate payments of freight charges made by users of their transportation services. It is alleged that such retention is a violation of 49 U.S.C. §§ 316(b), (d), and 317(b). Defendants moved under Rule 12(b), Fed.R. Civ.P., to dismiss for lack of jurisdiction; or, in the alternative, they ask for a stay pending conclusion of a rulemaking proceeding instituted by the Commission in Ex Parte 342, Motor Disposition and Freight Forwarders-Procedures Governing the Processing, Investigation, and Disposition of Overcharge, Duplicate Payment, or Over-Collection Claims, 42 Fed.Reg. 54579-81 (Oct. 7, 1977). For the following reasons, the motion is denied.
Defendants’ motion, while denominated one based on lack of jurisdiction, is actually grounded on the argument that the Commission has failed to state a claim for violation of 49 U.S.C. §§ 316(b)(d), and 317(b). The Commission meets this argument with one of its own: that for a motor carrier to collect two payments for only one service is a violation of 49 U.S.C. § 317(b) because the collection results in the receipt of a greater or different compensation for transportation, or service in connection therewith, than the rates, fares, and charges specified in the applicable tariffs. The Commission argues that the unjust enrichment inherent in the duplicate payment situation constitutes an “unjust and unreasonable practice” in violation of 49 U.S.C. § 316(b), and “unjust discrimination and unreasonable prejudices or disadvantages” in violation of 49 U.S.C. § 316(d). Defendants do not dispute the plausibility of these statutory constructions. Rather, they base their argument on prior interpretative report by the Commission.
In Duplicate Payments of Freight Charges, 350 I.C.C. 513 (1975), the Commission held that a duplicate payment — two or more payments for the exact amount of relevant tariff-published charges — does not constitute an “overcharge” within the meaning of 49 U.S.C. § 16(3) and related provisions. Hence, such a duplicate payment is not within the Commission’s jurisdiction. In so holding, the Commission overruled earlier broader interpretations of the term “overcharge” as including any payment resulting in the carrier’s receiving more than the proper charges. 350 I.C.C. at 518. This narrower construction of the term precludes this suit, defendants urge, since the provisions involved can only be interpreted as reaching duplicate payments by adopting the construction of “overcharge” rejected by the Commission in its earlier report.
While there is similarity between the statutory construction urged here by defendants and the earlier interpretative report, to dismiss this suit on that ground would require the bizarre conclusion that
Defendants’ alternative argument seeking a stay of these proceedings pending outcome of the rulemaking proceeding must likewise be rejected. They argue that the doctrine of primary jurisdiction precludes judicial consideration of the legality of the practice of retaining duplicate payments, since the agency must be given.an opportunity to formulate a uniform and consistent approach to the underlying legal issues. The court need give this argument but short shrift. The doctrine of primary jurisdiction has no application where, as here, the agency is itself a party before the court, the statutory scheme involved is clear, and any difficulties presented are amenable to traditional judicial processes. Interstate Commerce Comm’n v. All-American, Inc., 505 F.2d 1360 (7th Cir. 1974). Further, the exercise of its rulemaking powers in no way affects the Commission’s authority to enforce the provisions of the Act nor limits the enforcement mechanisms it may use, including the institution of an action for injunctive relief in the district court pursuant to 49 U.S.C. § 322(b)(1). 505 F.2d at 1364. Thus, there is no reason to stay these proceedings pending conclusion of the Commission’s rulemaking proceeding in Ex Parte 342. Therefore, defendants’ motion to dismiss for lack of jurisdiction or, in the alternative, for a stay pending conclusion of the Commission’s rulemaking proceeding, is denied.
So ordered.
Reference
- Full Case Name
- INTERSTATE COMMERCE COMMISSION v. LONG TRANSPORTATION CO., INC., a corporation, and Warren E. Long, an Individual
- Status
- Published