Interstate Commerce Commission v. Steere Tank Lines, Inc.

Background

A federal transportation agency (the Interstate Commerce Commission) considered a company’s request to broaden its hauling authority from a single named commodity to ‘‘commodities in bulk.’’ A competing carrier objected, and the agency’s board approved the change; the Court of Appeals later found the agency’s processing guidelines improper and sent the matter back for further proceedings.

Reasoning

The core question was whether the agency must apply the same ‘‘fit, willing, and able’’ standard used for new operating certificates when it deals with requests to remove limits from an existing carrier’s authority. The Court of Appeals held the agency’s guidelines did not account for that requirement and sent the case back for more proceedings. The Supreme Court declined to review the appeal, leaving the appeals-court ruling and its order that the agency reconsider the decision in place. The agency argued the statute requires a simpler, faster process for restriction-removal requests and that the lower courts’ approach frustrates Congress’ intent.

Real world impact

Because the Supreme Court refused review, the appeals-court rulings remain in effect for now. The Commission reported that the board handling these requests has closed and that potential applicants may be discouraged from filing. The practical effect is that carriers and shippers seeking to expand existing hauling authority may face longer, more burdensome proceedings. This denial of review is not a final resolution on the merits and could be revisited in future cases.

Dissents or concurrances

Justice White, joined by Justices Powell and Rehnquist, dissented from the denial of review and urged the Court to take the case to decide whether lower courts are improperly blocking Congress’ streamlined process; he would have granted full review.