Universal Interpretive Shuttle Corp. v. Washington Metropolitan Area Transit Commission

1968-11-25
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Headline: Court limits regional transit commission’s reach and upholds the Interior Secretary’s exclusive authority to license guided sightseeing minibuses on the National Mall, allowing federal concessionaires to operate without WMATC certification.

Holding:

Real World Impact:
  • Allows Interior to authorize guided Mall tours without WMATC certificate.
  • Prevents regional transit agency from imposing overlapping route or fare rules on Mall concessions.
  • Rejects claim that private bus franchise creates absolute monopoly over Mall sightseeing.
Topics: tourism on National Mall, federal control of parks, local transit regulation, bus franchises

Summary

Background

A federal official in charge of the National Mall contracted with a private company to run slow “minibuses” that give guided sightseeing tours. The regional Washington Metropolitan Area Transit Commission (WMATC) sued to block the tours unless the company obtained a WMATC certificate; an existing private bus company also claimed its franchise barred uncertified Mall sightseeing. The District Court dismissed the challenge, the Court of Appeals reversed, and the Supreme Court granted review.

Reasoning

The question was whether the interstate compact creating WMATC or the private franchise limited the Secretary’s exclusive charge and control over the Mall and thus required WMATC certification for a federal concessionaire. The Court examined the statutes and history showing Congress had placed the Mall under the Secretary’s exclusive charge and had given him authority to contract for services and to regulate concessionaires’ fares and records. The Court concluded that Congress did not intend to subject a federal concessionaire to dual regulation by the WMATC and the Secretary, that sightseeing minibuses serve a different purpose than commuter mass transit, and that the D.C. Transit franchise did not grant an absolute monopoly over Mall sightseeing.

Real world impact

The ruling lets the Interior Secretary authorize and control guided Mall tours without needing WMATC certification, allowing federal concessionaires to begin or continue sightseeing services. It prevents the regional transit body from imposing overlapping route, fare, or reporting rules on those federal contracts, and it rejects a claim that a private franchise gives an absolute Mall sightseeing monopoly. Congress may change the balance by new legislation.

Dissents or concurrances

Justice Douglas (joined by Justice Stewart) dissented, arguing the dispute is a matter of local District law and that the Court should not have reviewed a closely divided local-law question.

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