M & R Investment Co. v. Civil Aeronautics Board
M & R Investment Co. v. Civil Aeronautics Board
Opinion of the Court
Petitioner M & R Investment Company, Inc., doing business as the Dunes Hotel and Casino, at Las Vegas, Nevada, offered and sold “Dunes Magic Carpet Tours” to the general public in the Los Angeles, California area. The “Tours” included “free” air transportation between Los Angeles and Las Vegas. The Civil Aeronautics Board, found that the “Tours” constituted “air transportation” (defined in the Federal Aviation Act as “carriage by aircraft of persons * * * as a common carrier for compensation or hire”),
1. In Las Vegas Hacienda, Inc. v. C. A. B.,
Petitioners acknowledged that their flights resemble those in Hacienda. But they argue that they are distinguishable because the “Tours” in the present case were sold only to persons who were to be patrons of the Dunes Hotel, either for the evening or as overnight guests.
We agree with the Board that this distinction is not significant. The record amply demonstrates that “Magic Carpet Tours” were held out as available to all who wished to purchase them. The flights which were included in the “Tours” were no less common carriage because available only to those members of the public who were interested in patronizing the Dunes Hotel. “The public does not mean everybody all the time.”
2. The Civil Aeronautics Aef was superseded by the Federal Aviation Act as of January 1, 1959. The provisions of each Act pertinent to the present case are identical.
We think the evidence was admissible.
3. Petitioners further attack the Board’s order as vague and indefinite. We sustained a similar order in Hacienda, though criticizing its form.
4. The Board’s order runs against Don Rich and Fred A. Miller, “individually, and as principals in Trans Global Airlines.” Petitioners contend that the record does not support an order against the named individuals.
The Board found that the flights were “operated under the Dunes’ complete direction, supervision and control,” and that the “physical operation of the Dunes flights is performed by Trans Global * * * pursuant to contracts” with the Dunes Hotel. The order against Rich and Miller as individuals was based upon the fact that they were principals in Trans-Global, and that they owned two aircraft which were leased to the Dunes Hotel for the flights. The Board felt that since the flights involved common carriage, those who were responsible for the physical operation of the aircraft were also engaged in common carriage. As we pointed out in Hacienda, the conclusion does not follow from the premise.
Trans-Global was a “Part 45” carrier, certificated by the Board to engage in “air commerce.”
The government argues that the Board must be permitted to enjoin all those who participate in an integrated carrier operation which violates the Act, even though the participants may have agreed among themselves to a division of responsibility for various portions of the operation.
The cease-and-desist order of a •regulatory body may impose a heavy although intangible burden upon an individual who must continue to make his livelihood in the regulated industry. Such an order must be supported by specific findings based upon substantial evidence that the individual enjoined has participated in the unlawful conduct. The Board’s conclusion that the individ-ual petitioners were engaged in “air
The order of the Board is modified by striking the words “and Fred A. Miller and Donald Reichgott a/k/a Don Rich, individually and as principals in Trans Global Airlines,” and as modified is affirmed.
. 49 U.S.C.A. § 1301(10), (21).
. 49 U.S.C.A. § 1371(a).
. 298 F.2d 430 (9th Cir. 1962).
. Id. at 434.
. Terminal Taxicab Co. v. Kutz, 241 U.S. 252, 255, 36 S.Ct. 583, 584, 60 L.Ed. 984 (1916).
. Las Vegas Hacienda, Inc. v. C. A. B., 298 F.2d at 434.
. See F. T. C. v. Cement Institute, 333 U.S. 683, 703-706, 68 S.Ct. 793, 804-806, 92 L.Ed. 1010 (1948).
. 29S F.2d at 439 and note 35.
. 14 C.F.R. § 45.
. Citing North American Airlines, Inc. v. C. A. B., 100 U.S.App.D.C. 5, 240 F.2d 867 (1956), and Great Lakes Airlines, Inc. v. C. A. B„ 291 F.2d 354 (9th Cir. 1961).
. As in Hacienda, we are not concerned here with the question of when an individual may be held personally responsible for acts done in the name of a corporation. See, e. g., F. T. C. v. Standard Education Society, 302 U.S. 112, 119-120, 58 S.Ct. 113, 116-117, 82 L.Ed. 141 (1937); S. E. C. v. Universal Service Ass’n, 106 F.2d 232, 238 (7th Cir. 1939).
Reference
- Full Case Name
- M & R INVESTMENT COMPANY, Inc., d/b/a Dunes Hotel and Casino, Fred Miller, Don Rich, Marvin Cole, Harry Riggs, Grimley Engineering, Inc., d/b/a Transglobal Airlines, Inc., and Catalina Air Transport d/b/a Catalina Airlines v. CIVIL AERONAUTICS BOARD
- Cited By
- 4 cases
- Status
- Published