A. L. Mechling Barge Lines, Inc. v. United States

Background

A group of barge companies challenged railroad rate changes that set lower long-distance through rates from northern Illinois to eastern destinations than shorter local rates from Chicago. The railroads applied for temporary permission from the federal rate agency, and the agency’s Division 2 issued Fourth Section Order No. 19059 on January 9, 1959, authorizing the rates temporarily without a hearing or written findings. The barge lines sued in federal district court, arguing the temporary order and the agency’s practice were unlawful.

Reasoning

Before the agency finished its investigation, the railroads withdrew their application and removed the rate discrimination. The Court held the dispute had therefore become moot. Applying the principle from United States v. Munsingwear, the Court concluded that when an administrative order becomes unreviewable because of intervening mootness, the proper relief is to vacate the unreviewed proceedings. The Supreme Court modified the district court’s dismissal and directed that the agency vacate and set aside Order 19059. The Court noted the agency on appeal conceded it must make findings for such temporary orders and has changed its practice; the Justices did not decide whether a hearing is always required.

Real world impact

The ruling removes the temporary order from the record, signals that courts may vacate moot administrative orders, and records the agency’s change to require findings for protested temporary rate approvals. The decision left open whether affected carriers can pursue damages in future lawsuits and did not resolve the merits of the underlying rate dispute.

Dissents or concurrances

Justice Clark, joined by three colleagues, dissented, arguing the case was not moot and urging the lower court to decide the validity of the temporary order and the alleged continuing agency practice, and to consider damages claims.