Omaha & Council Bluffs Street Railway Co. v. Interstate Commerce Commission
Headline: Court pauses enforcement of an Interstate Commerce Commission order from November 27, 1909, allowing appealing carriers to halt the order while requiring a $10,000 bond to protect passengers.
Holding: The Court suspended enforcement of the Interstate Commerce Commission’s November 27, 1909 order pending appeal, conditioned on appellants posting a $10,000 bond with approved sureties to cover passenger damages.
- Pauses immediate effect of the ICC order while the appeal continues.
- Requires carriers to post a $10,000 bond to protect passengers.
- Allows passengers to recover damages if the order is later upheld.
Summary
Background
A group of carriers asked the Court to keep an order issued by the Interstate Commerce Commission on November 27, 1909, from going into effect while they appealed. The carriers moved for an order to maintain the status quo during the appeal, and the Court examined the facts and the legal authority cited by the parties before deciding how to act.
Reasoning
The central question was whether enforcement of the Commission’s order should be suspended during the appeal. Relying on a federal statute (Revised Statutes, §716) and earlier Supreme Court decisions, the Court held that suspension and an injunction were appropriate after full consideration of the facts bearing on the motion. The Court ordered enforcement of the Commission’s order suspended and enjoined during the appeal on condition that, within ten days, the carriers execute and file with the Court and the Commission a good and sufficient bond for $10,000. The bond must have sureties approved by the clerk of the Court and is conditioned on the carriers’ prompt payment of any damages suffered by their passengers or intended passengers if the Commission’s order is ultimately held valid.
Real world impact
In practice, the Commission’s order will not take immediate effect while the appeal proceeds so long as the carriers post the required bond with approved sureties. The bond protects passengers by providing a source of recovery if the order is later upheld. This ruling is a temporary procedural step about enforcement during the appeal and is not a final decision on the underlying legal dispute.
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