United States v. J. B. Montgomery, Inc.

Background

A motor carrier company operated for years under a contract carrier permit that let it haul many kinds of goods for specific types of businesses. Congress changed the law in 1957 and provided a way to convert old contract permits into common carrier certificates while saying the new certificate should allow the same commodities and territory as the old permit. The Interstate Commerce Commission converted the company’s permit but added a restriction limiting shipments to movements "from, to, or between" wholesale and retail outlets.

Reasoning

The Court asked whether the Commission could impose that new restriction when converting the permit. Relying on the statute’s command that a converted certificate must authorize the same commodities and territory, the Court held the Commission lacked authority to add new limits that would narrow the carrier’s previously allowed operations. The Court affirmed the lower court’s judgment and said the carrier is entitled to the same freedoms it enjoyed under its contract permit unless the record shows otherwise.

Real world impact

The decision prevents the agency from cutting back a carrier’s prior authorized services simply by conversion. On remand the Commission may test factual claims about what the carrier actually did before conversion, and it may limit the certificate only to the extent proven. This preserves carriers’ earlier route and commodity rights unless abandonment or dormancy is shown.

Dissents or concurrances

A concurring Justice agreed the Commission cannot add new limitations but noted the agency may carry over existing Keystone restrictions and may consider dormancy or abandonment on remand.