General American Transportation Corp. v. Interstate Commerce Commission
General American Transportation Corp. v. Interstate Commerce Commission
Opinion of the Court
Upon consideration of the petition for rehearing of petitioners and intervenors, filed May 26, 1989, it is
ORDERED, by the Court, that the petition is denied.
Petitioners’ primary claim in its petition for rehearing is that Indiana Harbor II was a rulemaking, unsuitable for retroactive application, because the Interstate Commerce Commission determined to seek industry comment on the issues framed by the parties to the adjudication. We rejected petitioners’ argument, however, that the mere supplementation of an adjudicatory proceeding with comment procedures more commonly employed in a rulemaking necessarily means that the resulting procedure is rulemaking per se. Nothing in the Administrative Procedure Act restrains an agency from receiving (and crediting) comments in adjudicatory proceedings from nonparties who will inevitably be affected by the agency’s contemplated change-in-course, whether through intervention or otherwise. See Robinson, The Making of Administrative Policy: Another Look at Rulemaking and Adjudication and Administrative Procedure Reform, 118 U.Pa.L.Rev. 485, 536 (1970) (“the prescription of an adjudicatory hearing does not preclude an agency from allowing widespread industry and public participation through intervention and preservation of testimony in written affidavits”); Shapiro, The Choice of Rulemaking or Adjudication in the Development of Administrative Policy, 78 Harv.L.Rev. 921, 931 (1965) (“even in the course of adjudicatory proceedings, agencies are not powerless to permit general comment on proposed rules if they wish to do so”).
Underlying petitioners’ argument that Indiana Harbor II was a rulemaking, it would appear, is the notion that an adjudicatory proceeding was an inappropriate forum for the Commission to have made a “legislative-type” judgment reversing its longstanding empty-repair-move policy.
ORDER
The suggestion for rehearing en banc of petitioners and intervenors has been circulated to the full Court. No member of the Court requested the taking of a vote thereon. Upon consideration of the foregoing, it is
ORDERED, by the Court en banc, that the suggestion is denied.
. The National Labor Relations Board appears to have followed this course in many of its adjudicatory proceedings. See, e.g., General Cable Corp., 139 N.L.R.B. 1123 (1962); Deluxe Metal Furniture Co., 121 N.L.R.B. 995 (1958).
. It is unproductive, in most circumstances, to attempt to "classify a given proceeding as either adjudicatory or rulemaking. The line between the two is frequently a thin one and resolution of a given problem will rarely turn wholly on whether the proceeding is placed in one category or the other." City of Chicago v. FPC, 458 F.2d 731, 739 (D.C.Cir. 1971), cert. denied, 405 U.S. 1074, 92 S.Ct. 1495, 31 L.Ed.2d 808 (1972). But see Hoffman-LaRoche, Inc. v. Kleindienst, 478 F.2d 1, 12-13 (3d Cir. 1973) (character of proceeding — whether adjudicatory or rulemaking — viewed critical given agency’s failure to follow functional separation requirements of 5 U.S.C. § 554). Here, of course, the characterization of the proceeding below is important, for it bears directly on the propriety of retroactive application of the new governing principle. "[Rjetroactivity is not only permissible but standard” in the adjudicatory setting, Bowen v. Georgetown Univ. Hosp., 488 U.S. 204, 109 S.Ct. 468, 478, 102 L.Ed.2d 493 (1988) (Scalia, J., concurring), but it is disfavored in rulemaking. See id. 109 S.Ct. at 471.
Reference
- Full Case Name
- GENERAL AMERICAN TRANSPORTATION CORPORATION v. INTERSTATE COMMERCE COMMISSION, United States of America, Lo Shippers Action Committee, Baltimore and Ohio Chicago Terminal Railroad Co., U.S. Clay Producers Traffic Association, Inc., Association of American Railroads, Chemical Manufacturers Association, Intervenors RAILWAY PROGRESS INSTITUTE COMMITTEE ON TANK CARS v. INTERSTATE COMMERCE COMMISSION and United States of America, Association of American Railroads, Baltimore and Ohio Chicago Terminal Railroad Co., Chemical Manufacturers Association, MBF Industries, Inc., Intervenors RAILWAY PROGRESS INSTITUTE COMMITTEE ON TANK CARS v. INTERSTATE COMMERCE COMMISSION and United States of America, Association of American Railroads, Baltimore and Ohio Chicago Terminal Railroad Co., Intervenors
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- 1 case
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- Published