# Opposition Brief — Chicago & Southern Air Lines, Inc. v. Civil Aeronautics Board

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Opposition Brief
- **Published:** January 1, 1950
- **Citation:** 340 U.S. 829

## Text

FILE COPY FILBD~

IN THE

SHupreme Court of the Anited States

October Term, 1950.

No. 235

Cuicaco & Soutnern Ai Lines, Inc., Petitioner
v.

Crvi, Agronavutics Boarp, Respondent
Resort Arrives, Inc., Intervener

On Petition for a Writ of Certiorari to the United States
Court of Appeals for the District of Columbia Circuit.

BRIEF OF INTERVENER IN OPPOSITION.

L. Wetca Poove,
( James F. Bex,
730 Southern Building,
Washington 5, D. C.,
Attorneys for Intervener.

n

Of Counsel:
Pocus & Neat,
730 Southern Building,
Washington 5, D. C.

Puss or Braonw 8. Ananms, Wasnineton, D.C.

ee Pte ASD ES PEAT IG ACER, ONE RAN RPL EP CMA

INDEX
Page
SD THU ik v.o's e06ns kpxersavedersncsnekanexesy 1
ED acu haeehisendisires encode sianenseaeees 2
OE TOI hie ek vk cinsvcvendscvecserseses 2
Statute and Rules Involved ................cccceees 2
ED — 5c bob ka seus bd We 50 eh i Rea ke sds seven ekales 3
EE. been bi skenccnaesntbavaaKe kind hebenes sake 5
EE SEV ACUS TS ono end e 64 ss SKE AK DER ST ARE AIEE 14
Pe eee OP Pee ee eT reer Te 16
CITATIONS
CASES:

American Power & Light Co. v. Securities and Ex-
change Commission, 325 U. S. 385 (1946)........ 12

Braniff Airways v. Civil Aeronautics Board, 147 F.
BO De PUA As Bis SOD 6 oka ccs vnesonsers sce 11

Colonial Airlines v. Adams, et al., 87 Fed. Supp. 242
Ce Se MEE ys 50 Whee ex eesa hee heneeeene 9, 10

Chicago & Southern Air Lines v. Waterman Steam-
ship Corp., 333 U.S, 103 (1948) . .2, 4, 5, 6, 7, 8, 9, 14, 15

Marshall Field & Co. v. National Labor Relations
woere, TIS UU. TH. Bae CPG) oan ves ccvcvcivess 13, 14

Pacific Gas ¢ Electric Co. v. Securities and Exchange
Commission, 127 F. 2d 378 (C.C.A. 9th 1942), af-

firmed S34 U. BS. SOG (10846) . ow... ccc ccccvccces 14
Phillips v. Securities and Exchange Commission, 156

Fs men Wem COSA. Be BOG) wo voce cacwccencucces 14
Sparks, et al. v. Ciwil Aeronautics Board, App. 2nd

Sta Se vin as , decided August 14, 1950........ 6
Todd v. Securities and Exchange Commission, 137 F.

Pee ee rs een 14
Trans-World Airlines v. Civil Aeronautics Board,

et al., App. 2nd Cir. No. ...... , decided August

rary pcre rey ee rere rr re: 6

—e

li Index Continued.

Page
STaTuTEs:
Civil Aeronautics Act, Section 402, 52 Stat. 991
(1938), as amended, 49 U.S.C, 482 (Supp. 1949).. 10
Civil Aeronautics Act, Section 801, 52 Stat. 1014
(1938), as amended, 49 U.S.C. 601 (Supp. 1949) .3, 6, 13
Civil Aeronautics Act, Section 1006, 52 Stat. 1023
(1938), as amended, 49 U.S.C. 646 (Supp.

a er eee rr reer 2, 5, 11, 12, 13, 14, 15
MIscELLANEOUS:
Civil Aeronautics Board, Rules of Practice, 14 C.F.R.
oe ce te uals cass sv eevee epee tign 2, 4, 13, 16
H. R. 5771, 80th Cong., 2d Sess. ................4.. 4,17

IN THE

Supreme Court of the Anited States

October Term, 1950.

No. 235

Cuicaco & SourHern Arr Lines, Inc., Petitioner
v.

Civiz Azronavutics Boarp, Respondent
Resort Arr.ines, Inc., Intervener

On Petition for a Writ of Certiorari to the United States
Court of Appeals for the District of Columbia Circuit.

BRIEF OF INTERVENER IN OPPOSITION.

OPINIONS BELOW.

The per curiam order of the United States Court of Ap- .
peals for the District of Columbia Circuit (R. 71-72) dis-
missing the Petition for Review of the order of the Civil
Aeronautics Board (R. 42-43) has not yet been reported.

PRIA EE I ; ENE SII ——

Fo ne ale a as OO AS

2
JURISDICTION.

The grounds upon which jurisdiction of this Court js
invoked are set out in the Petition for Writ of Certiorari

at page 2.
QUESTIONS PRESENTED.

1. Whether the holding of this Court in Chicago & South-
ern Air Lines v. Waterman Steamship Corporation, 333
U. S. 103 (1948) precludes judicial review of the order
involved in this proceeding, which completely emanated
from the President in that it only reflected a directive of the
President contrary to the recommendation of the Board.

2. Whether judicial review of a Petition for Review filed
with the Court of Appeals for the District of Columbia
Cireuit on August 8, 1949 is precluded by the fact that it
was not filed within sixty days ‘‘after the entry of such
order’’ of the Civil Aeronautics Board on June 1, 1949, as
specifically required by Section 1006(a) of the Civil Aero-
nauties Act.

3. Whether judicial review of the objections to such
order which Petitioner now raises is precluded by the fact
they were not raised before the Civil Aeronautics Board
at any time as required by Section 1006(e) of the Civil
Aeronautics Act although there was ample time to do so in
the form of a Petition for Reconsideration to the Board as
authorized by its Rules of Practice. :

STATUTE AND RULE INVOLVED.

The pertinent statutory provisions are cited in Appen-
dix A of the Petition for Writ of Certiorari. The pertinent
Rules of Practice of the Civil Aeronautics Board are set
out in Appendix B, infra, page 17.

3
STATEMENT.

Section 801 of the Civil Aeronautics Act’ provides that
the ‘‘issuance’’ or the ‘‘denial’’ of any certificate authoriz-
ing an air carrier to engage in overseas or foreign air trans-
portation ‘‘shall be subject to the approval of the Presi-
dent’’. Pursuant to this Section of the Act the Board sub-
mitted a recommendation to the President that both appli-
cations in a consolidated proceeding before the Board en-
titled the ‘‘Skyeruise’’ Case, Docket No. 2377, et al., filed by
the Intervener, Resort Airlines, Inc. (Resort), and Amer-
ican Air Export and Import Company (AAXICO), be de-
nied. The President approved of the recommendation that
AAXICO’s application be denied and disapproved the ree-
ommendation that Resort’s application be denied. Al-
though the Act does not require the President to state his
reasons for approval or disapproval of Board action, he
returned the Board’s recommendation with the advice (as
reported without quotation by the Board) that ‘‘for reasons
affecting our relations with foreign countries and in the
interest of our national security, it is desirable and proper
that Resort Airlines, Inc. be granted temporary authority
to engage in foreign and overseas air transportation sub-
stantially in accord with the recommendation of the Exam-
iner’’? with certain exceptions not here relevant. (R. 41)
Acting pursuant to that Presidential directive under See-
tion 801 of the Act, the Board on June 1, 1949, entered its
revised order, together with an explanatory opinion, carry-
ing into effect this decision of the President (R. 36-43) and
submitted it to the President who approved it on June 9,
1949, by signing it as ‘‘Approved’’. (R. 43) That order,
which Petitioner now seeks to have reviewed here, granted
a temporary certificate to Resort authorizing it to engage

1The Civil Aeronautics Act will hereafter be referred to as the
‘* Act’? and the Civil Aeronautics Board will be termed the
“*Board’’,

4

in foreign and overseas air transportation limited to round-
trip, all-expense escorted tours between eight points in the
United States and certain intermediate points in foreign
countries and United States possessions, subject to certain
further limitations. (R. 43-45) The order further provided
that the certificate would have a life of five years and was
to become effective 60 days after the date of its approval
by the President unless such effective date were extended
by order of the Board prior to such date either on the
Board’s own initiative or upon the filing of a petition for
reconsideration of the Board’s order of June 1, 1949, (R.
45) (Petitions for reconsideration are authorized by the
Board’s Rules of Practice as set out in Appendix A, infra.)
Although such petitions were filed by several of the other
party intervenors, the Petitioner herein failed to file any
petition with the Board for reconsideration of the order
complained of herein; and it did not at any time ask the
Board to extend the effective date of the certificate or to
consider the objection that the President had exceeded his
statutory authority—a contention which has never been
presented to the Board. On August 4, 1949, the Board by
Order (Serial No. E-3117) denied the said petitions for
reconsideration and the certificate issued to Resort became
effective, according to its terms, on August 8, 1949. On that
date the Petition for Review was filed herein. (R. 53)

On May 8, 1950 the Court of Appeals for the District of
Columbia Circuit denied Petitioner’s Petition for Rehear-
ing and Reconsideration of the per curiam order, dated
January 18, 1950, dismissing the Petition for Review, and
indicated that its action in such dismissal was on the au-
thority of Chicago & Southern Air Lines v. Waterman
Steamship Co., 333 U. S. 103 (1948). (R. 71-72) The Court
also stated that it had taken judicial notice of the fact that
H.R. 5771, 70th Cong., 2d Sess., died in Committee. (R. 71)
This bill, set out in full in Appendix B attached hereto, filed
March 8, 1948, and referred to the Committee on Interstate
and Foreign Commerce, was designed to amend Section

5

1006(a) of the Act to authorize judicial review of orders
of the Board affecting the rights of domestic air carriers
to engage in overseas or foreign air transportation.

ARGUMENT.

1. The President’s authority to approve an order of th
Board granting a certificate for foreign air transpor-
tation was exhaustively considered by this Court
the Waterman case. The Court of Appeals for the
District of Columbia Circuit was clearly correct in
holding that the Waterman case precludes judicial re-
view of the order of the Board approved by the Presi-
dent, carrying into effect a decision made by him,
involved in this proceeding.

Petitioner presented to the Court below for review an
order of the Board which is not only squarely within the
holding of this Court in Chicago & Southern Air Lines v.
Waterman Steamship Co., 333 U. 8. 103 (1948), but repre-
sents an even stronger factual situation than was presented
there. The Waterman case held thet an order of the Board
subsequently approved by the President was non-review-
abie since ‘‘whatever of the order emanates from the Presi-
dent is not susceptible to review by the Judicial Depart-
ment.’? Idem, 112. The order in that case coincided with
a recommendation of the Board that Chicago & Southern
Air Lines be certified for a route in the Latin American
Area. In the present case, however, the President disap-
proved of the recommendation of the Board that the appli-
cation of Resort be denied and directed that a certificate be
issued to it. The order which Petitioner complains of
herein, therefore, completely ‘‘emanaies from the Presi-
dent”? since it reflects purely and simply the directive of the
President, which was contrary to the recommendation of
the Board, and is unquestionably within the scope of the
Waterman case holding such orders to be non-reviewable
by the Judicial Department.

Sparbanas saa teat fale tals set sentence a hl a

j
4
i
f

Petitioner seeks the issuance of a writ of certiorari from
this Court on the grounds that the factual situation in the
Waterman case is distinguishable from the instant case be-
cause its contention that the President has exceeded his
statutory authority under Section 801 of the Act by (1)
specifying the particular carrier to render the air transpor-
tation which he considered to be in the national interest,
and (2) designating such carrier without the benefit of a
finding by the Board as to its ‘‘fitness, willingness, and
ability,’’ is an irregularity within the meaning of the intro-
ductory phrase of the Waterman case opinion, which speaks
of ‘‘proceedings not challenged as to regularity.’’ Idem,
105. The question before this Court at this time, therefore,
is whether the court below was correct in applying the
Waterman case in view of this contention of Petitioner.
This demands a consideration of whether this allegedly
new element injected by Petitioner takes this case out of the
‘*broad sweep of the doctrine laid down in the Waterman
case’’' and the comprehensive study of the principles which
this Court applied therein.

Certainly so much of Petitioner’s objection that the Presi-
dent acted without a finding of ‘‘fitness’’ is squarely within

1The Court of Appeals for the Second Circuit categorized the
Waterman decision in this manner in holding that under the Water-
man case it was without jurisdiction to review an order of the Board
subsequently approved by the President. Trans-World Airlines v.
The Civil Aeronautics Board, et al., Civil Action No. —— and Brian
0. Sparks, et al. v. The Civil Aeronautics Board, Civil Action No.
21728, decided August 14, 1950. The order of the Board in this
Second Circuit decision, like the instant case, reflected a directive
of the President contrary to the recommendation of the Board in
which he advised that (1) the transfer to Pan American World
Airways, Ine., of American Overseas Airlines’ temporary certificate
of public convenience and necessity, and the acquisition by the
former of the property, assets, and business of the latter should
be approved, and (2) the certificates of Pan American and TWA
should be amended to authorize Pan American to serve Paris and
Rome and TWA to serve London and Frankfurt.

7

the factual situation involved in the Waterman case itself.
One of the contentions raised on review there was that the
Board had submitted a legally defective finding to the
President of the fitness of the carrier which it reeom-
mended to the President for certification since the finding
was not supported by substantial evidence. Jdem, 117.
This contention may or may not have been true for this
‘Court never considered it on the merits and dismissed the
charge with the holding that it did not have jurisdiction to
consider the Petition for Review. If this Court in the
Waterman case decided that it did not have jurisdiction to
review what might have been an inadequate, indeed, a pos-
sibly mistaken recommendation wrongly influencing the
President's determination, it is impossible to see how Peti-
tioner can now argue that jurisdiction exists to consider the
question of whether the lack of any recommendation at all
on this point constituted defective procedure.

Of even more importance, however, is that fact that both
of Petitioner's objections are fully within the scope of the
two principles which the Supreme Court applied in the
Waterman ease in considering the reviewability by the
Judicial Department of an order of the Board approved by
the President. This Court there determined that such or-
ders ‘tembody Presidential discretion as to political mat-
ters beyond the competence of the courts to adjudicate,”’
Idem, 114, and that to review such orders would be to ren-
der ‘‘an advisory opinion in its most obnoxious form.”
Idem, 113. The exhaustive treatment given these matters
in the opinion should set at rest any contention that a
factual variation such as Petitioner alleges in this case de-
stroys the applicability of the Waterman doctrine.

In the Waterman ease this Court first analyzed the nature
of foreign air transportation and recognized that ‘‘aerial
navigation routes and bases should be prudently correlated
with facilities and plans for our own national defense and
raise new problems in conduct of foreign relations.’’ Idem,
108. It concluded, therefore, that pursuant to this recogni-

ae

tion Congress had provided for Presidential control which
**is not limited to a negative but is a positive and detailed
control over the Board's decisions, unparalleled in the his-
tory of American administrative bodies,’’ Idem, 109, and
was a type of control which has **long been held to belong in
the domain of political power not subject to judicial intru-
sion or inquiry." Idem, 111.

In the present case the Board, in its explanatory opinion
accompanying its order of June 1, 1949, states that after it
submitted to the President its decision in which it decided
the application of Resort should be denied, the President
**advised the Board that for reasons affecting our relations
with foreign countries and in the interest of our national
security, it ix desirable and proper that Resort Airlines,
Ine., be granted temporary authority ...’’ (R. 41). The
Board reflected this directive of the President in an order
subsequently approved by the President. This order grant-
ing a certificate to Resort, over v. hich Petitioner now seeks
judicial review, is, therefore, based solely upon the Presi-
dent's judgment in the exercise of his political power and
fully falls within the recognition by this Court in the
Waterman case that the ‘* Judiciary has neither aptitude,
facilities nor responsibility’? to handle such questions.
Idem, 111.

This Court also applied the principle in the Waterman
case that the Judicial Department will not exercise jurisdic-
tion over matters where they cannot with finality decide the
issues present. On page 113 of its opinion this Court said:
‘*To revise or review an administrative decision which has
only the force of a recommendation to the President would
be to render an advisory opinion in its most obnoxious
form—advice that the President has not asked, tendered at
the demand of a private litigant, on a subject concededly
within the President’s exclusive, ultimate control.”’

Assume that judicial review is taken in this ease and Peti-
tioner’s contentions expressed in its Petition for Review
are sustained. The court below would remand the matter to

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the Board for further proceedings in accordance with its
opinion, but anything whieh the Board did pursuant thereto
would be subject to later Presidential approval, which this
Court in the Waterman ease described as a ‘positive and
detailed’? control of the Board's action. The President,
therefore, has the ultimate diseretion to disregard any de-
cision of the court. Such a situation clearly falls within the
scope of the Waterman case, where this Court forcefully
pointed out, at page 113, of the opinion that ** Judgments
within the powers vested in courts by the Judiciary Article
of the Constitution may not lawfully be revised, overturned
or refused faith and credit by another Department of Gov-
ernment”? and ‘if the President may completely disregard
the judgment of the court, it would only be because it is one
the courts were not authorized to render."’

It ix submitted, therefore, that the court below was com-
pletely correct in its interpretation of the Waterman case
to cover the instant ease. The contentions which Petitioner
row raises do not present a distinguishing factual situation
raising any important new issues which have not already
been fully covered by the extensive treatment of this entire
question in the Waterman case.

2. There is no conflict between the Court of Appeals for the
District of Columbia Circuit granting the motion to
dismiss the Petition for Review and a recent decision
of the United States District Court for the District of
Columbia sitting as a three-judge court in the case of
Colonial Airlines v. Adams, et al., 87 Fed. Supp. 242
(1949).

Petitioner argues that the Colonial case and the action of
the court below are inconsistent.’ (Pet. 13, 14.) There is

1 The only Cireuit Judge sitting in the Colonial case was Judge
Proctor, 87 Fed. Supp. 242, who also joined in granting the motion
to dismiss in this ease (R. 71). In his opinion, at least, there is no
conflict between the two decisions.

—— PRONE ORR ETT RODIN ERAT

it i

~sceeteg

> ew

10

no conflict between the substantive holdings of the two de-
cisions but Petitioner asserts that the ‘‘assumption”’’ be-
hind the Colonial decision conflicts with the holding of the
court below and, therefore, a conflict exists which warrants
the grant of a writ of certiorari. Intervener submits that
the two cases are completely distinguishable and cannot
possibly be considered inconsistent on their facts.

First of all, the Colonial ease did not concern itself with
the question involved in the instant case of whether a court
has jurisdiction of an order of the Board after it had been
approved by the President pursuant to Section 801 of the
Aet. The Colonial court took jurisdiction prior to Presi-
dential action. After observing that it might seem that the
Plaintiff should not be heard because no competitive permit
had been issued, the Colonial court said at page 243: ** How-
ever, as there is no statutory judicial review whatever pro-
vided with respect to the administrative action here in-
volved,’* (the issuance of a foreign air carrier permit),
**the Court ix of the view that the constitutional question
presented should now and here be met and answered."’

Secondly, it is by no means clear that the ‘‘assumption”
to which Petitioner refers in the Colonial case is ineon-
sistent with the decision of the court below. All that the
Colonial case assumed was that when the Board makes ree-
ommendations to the President, it must make the findings
required by Section 402(b) that the applicant is fit and the
issuance of the permit is in the public interest. Thus if the
Board recommends the issuance of a permit it must make
these findings according to Section 402. But the Colonial
case did not say that if the Board recommends the denial
of a permit on the grounds that it is not required by the
public interest, it must go through the academic procedure
of passing on the fitness of the applicants. This is the situ-
ation which is involved in the instant case and is a matter
which the Colonial case did not consider at all.

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3. Judicial review of the Board's order is precluded by the

of Section 1006(a) of the Civil Aeronautics
Act in that it was not sought until after the expiration
of the appeal period of sixty days from the entry of
the order by the Board.

Section 1006(a) of the Aet which is set out in full on pages
23 and 24 of the Petition for Writ of Certiorari reads in
part:

‘* Any order .. . issued by the (Board) under this Act
shall be subject to review upon petition filed within
sixty days after the entry of such order, ... After
expiration of said sixty days a petition may be filed

only by leave of court upon a showing of reasonable
grounds for failure to file the petition theretofore."’

The President approved the order of the Board entered
on June 1, 1949 (R. 42) eight days later on June 9, 1949
(R. 43). Until this date the order could not be published
in accordance with Section 801 of the Act. However, this
still left fifty-two days until the expiration of the sixty day
appeal period running from the entry of the order by the
Board during which time a Petition for Review could have
been but was not sought. Nor did Petitioner file a Petition
for Reconsideration with the Board of its order which would
have tolled this appeal period until the Board acted thereon.
Braniff Airways v. Civil Acronautics Board, 147 F. 2d 152
(Cc. C. A. D. C. 1945). Sixty days from the entry of the
Board’s order expired on August 1, 1949 and the Petition
was not filed until August 8, 1949 (R. 53). Petitioner's delay
in filing has therefore deprived the court below of jurisdic-
tion to hear the Petition for Review because it was not filed
within the statutory period and no ‘‘leave of court’? upon
a showing of ‘‘ reasonable grounds”’’ was obtained to permit
a late filing.

Petitioner has sought to avoid the results of its tardy
Petition fer Review by arguing that ‘‘since the Board is
prohibited under Section 801 of the Act from publishing

Soe REY Ba, Tighe

RY EO AORA er

12

its final order until Presidential approval has been ob-
tained, the sixty day appeal period cannot begin to run
until Presidential approval has attached’’ (Pet. 5). It is
true, of course, that some time delay will result between
the time of the entry of an order by the Board concerning
foreign air transportation and the required Presidential
approval. Whether or not it would have been desirable for
Congress to have extended the appeal period under these
circumstances is not the question, however, for Congress
has the power to ‘‘formulate the conditions under which
resort to the courts may be had’’ to review an administra-
tive proceeding, American Power & Light Co. v. Securities
and Exchange Commission, 325 U.S. 385, 389 (1946), and in
other administrative legislation has made it perfectly clear
that it is capable of precisely stating the dates from which
an appeal period commences to run and for what length of
time. Nor is it necessary to read the plain statutory lan-
guage of Section 1006(a) setting an appeal period running
from the ‘‘entry of such order’’ of the Board in any other
way in order to keep within the general policy of the Act.
If a delay between the entry of the Board’s order and Presi-
dential approval is substantial, it would surely be grounds
for asking and receiving ‘‘leave of court’’ to permit a late
filing under Section 1006(a)—an opportunity which Peti-
tioner had to extend the fifty-two days which it already had
but did not utilize prior to filing its Petition for Review.

4. Judicial review of the contentions which Petitioner now
raises is precluded by the fact that they were never
raised before the Board at any time as specifically re-
quired by Section 1006(e) of the Civil Aeronautics Act.

Section 1006(e) of the Act which is set out in full on page
24 of the Petition for Writ of Certiorari provides in part:

‘*No objection to an order of the (Board) shall be con-
sidered by the Court unless such objection shall have

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13

been urged before the (Board) or, of it was not so
urged, unless there were reasonable grounds for failure
to do so.’’

This Court has declared that compliance with a provision
of this type in statutes dealing with judicial review of ad-
ministrative action is a prerequisite to judicial review. Mar-
shall Field & Co. v. National Labor Relations Board, 318
U. S. 253, 256 (1943). °

Petitioner is now seeking review of the order of the Board
on the grounds that the President exceeded his statutory
authority under Section 801 of the Act in two respects.
Although these contentions could not have been made prior
to the issuance of the final order of the Board which repre-
sented final action of both the President and the Board,
Petitioner had ample opportunity thereafter to do so in the
form of a Petition for Reconsideration of the order as spe-
cifically provided for in the Board’s regulations.’ Peti-
tioner did not file any Petition for Reconsideration and is,
therefore, presenting these contentions to the court below
for the first time in patent contravention of the provisions
of Section 1006(e) cited above.

It is no excuse for failure to comply with Section 1006(e)
to argue that such action might have been futile, as Peti-
tioner has apparently done when it states that the only
recourse after Board and Presidential action was ‘‘to seek
judicial review’’ (Pet. 5). It has been clearly established
that rigorous compliance with provisions such as Section
1006(e) must be made prior to judicial review even though
the alleged defects in the administrative order involve, as
do Petitioner’s two contentions, a breach of statutory au-

1 The Board’s ‘‘ Rules of Practice’’ authorizing Petitions for Re-
consideration are set out in full in ‘‘ Appendix A.’’

fees: Fas wR PEE? er Sao he ee wee RELL PO Te Pe Os

Ea

PP POP RE 6 IY

in RE AON:

14

thority’ or unconstitutional action.? Provisions such as Sec-
tion 1006(e) are requirements imposed by Congress which
the courts cannot alter. Todd v. Securities & Exchange
Commission, 137 F.2d 475, 478 (C.C. A. 6th 1943).

Of even more importance, however, is the fact that if Peti-
tioner’s alleged deficiencies in the Board’s order had been
brought to its attention, action might very well have been
instituted by the Board resulting in the issuance, with the
President’s approval, of a revised order correcting the al-
leged irregularities. This judicial proceeding might there-
by have been rendered completely unnecessary. Since Peti-
tioner has not given the Board an opportunity to supply the
alleged deficiencies to its order without a valid reason for
failure to do so, it has not complied with the prerequisite
for judicial review contained in Section 1006(e).

CONCLUSION.

Petitioner has urged this Court to grant a writ of cer-
tiorari on the grounds that the issues raised in this pro-
ceeding are of far-reaching importance requiring judicial
determination. The Intervener submits that this argument
might have been used by the Petitioner when it sought a
writ of certiorari from this Court in the Waterman case,
but that these issues have now been put at rest by the com-
prehensive treatment which they received in that case. The
court below was therefore perfectly correct in dismissing
the Petition for Review on the basis of the Waterman case.
The contentions which Petitioner now raises do not create
any distinguishing feature which bring this case out of the
broad sweep of the doctrine laid down in the Waterman

2e.g. Marshall Field & Co. v. National Labor Relations Board,
318 U. S. 253 (1943); Phillips v. Securities and Exchange Com-
mission, 156 F. 2d 606 (C. C. A. 2nd 1946).

2 e.g. Pacific Gas & Electric Co. v. Securities and Exchange Com-
mission, 127 F. 2d 378 (C. C. A. 9th 1942), affirmed 324 U. S. 826
(1944), rehearing denied 324 U. S. 890 (1944) ; Todd v. Securities
and Exchange Commission, 137 F. 2d 475 (C. C. A. 6th 1943).

15

ease. Certainly, if this Court declared in the Waterman
case that the Judicial Department did not have jurisdiction
to review an order of the Board approved by the President
in which the President agreed with the Board’s recom-
mendations, on the grounds that to do so would be to inter-
fere with the political authority of the President and to
render an obnoxious advisory opinion, a fortiori no juris-
diction exists here where the order for which review is
sought only reflects a directive of the President contrary to
the recommendations of the Board.

Petitioner also labors under two jurisdictional defects
which should cause this Court to deny its application for a
writ in that it has failed to comply with procedural requi-
sites for judicial review as specifically set forth in Section
1006 of the Act. It filed its Petition for Review on August
8, 1949 with the court below which was not within sixty days
of the entry of the Board’s Order on June 1, 1949 as re-
quired by Section 1006(a) of the Act. In addition, it did
not present to the Board at any time its contentions that the
President exceeded his statutory authority although it
could have done so by filing a Petition for Reconsideration
and, perhaps, have avoided this entire judicial proceeding.
It is barred from raising these issues on appeal, therefore,
by the provisions of Section 1006(e) of the Act.

Wuererore, Intervenor, Resort Airlines, Ine., prays
that this Honorable Court deny the Petition for a Writ of
Certiorari to the United States Court of Appeals for the
District of Columbia Circuit filed by the Petitioner, Chicago
& Southern Air Lines, Ine.

Respectfully submitted,

L. Wetcu Posve,
James F’, Bet,
730 Southern Building,
Of Counsel: Washington 5, D. C.,
Pocur & NEAL, Attorneys for Intervener.
730 Southern Building,
Washington 5, D. C.
Dated: September 6, 1950

pte ons rat

PLS RP Ne Rene Feet Ley,

PROSE INT?

HTT OR LTRS MEE

16

APPENDIX A.

Section 285.11 of the Civil Aeronautics Board’s Rules of
Practice in Economie Proceedings, 14 C.F.R. 285.11!

Petition for rehearing, reargument, or reconsideration—
(a) Parties. Any party may petition for rehearing, rear-
gument, or reconsideration of any final order by the Board
in a proceeding, or for further hearing before decision by
the Board.

(b) Contents of petitions. (1) The matters of record
claimed to have been erroneously decided must be specified,
and the alleged errors, and the grounds relied upon must
be briefly and specifically stated in the petition.

(2) If a final order of the Board is sought to be vacated
or modified by reason of matters which have arisen since
the hearing, or of a consequence which would result from a
compliance therewith, or both, the new matter, the resulting
consequence, or both, which are relied upon by the peti-
tioner must each be set forth in the petition. Where the
petition is based wholly or in part upon new matter, the
petition must contain a statement that the petitioner, with
due diligence, could not have known or discovered the new
matter prior to the time of the hearing.

(3) The petition must set forth a brief statement of the
relief sought by the petitioner and conform to requirements
of § 285.3.

(c) Filing and service of petitions. Such petition for
rehearing, reargument, or reconsideration, must be filed
within thirty days after service of the order sought to be
vacated or modified. After the expiration of said thirty
days, such a petition may be filed only by leave of the Board
granted pursuant to formal application upon a showing of
reasonable grounds for failure to file the petition within the
prescribed thirty-day period. Any such petition or appli-
cation shall be served by the petitioner or applicant upon
all parties to the proceeding or their attorneys of record.

(d) Stay of orders. No petition for rehearing, reargu-
ment, or reconsideration filed in accordance with this seec-
tion, or the granting thereof, shall operate as a stay of the
effective date of the final order sought to be modified or
vacated by such petition, unless specifically so ordered by
the Board.

1 On June 23, 1949 this Section was redesignated as Section 302.11
effective July 1, 1949.

BLEED THROUGH POOR COPY

17

APPENDIX B.
80th Congress H.R. 5771 2d Session
Ix Tue House or Rerresentatives
March 9, 1948

Mr. Bartlett introduced the following bill; which was re-
ferred to the Committee on Interstate and Foreign Com-
merce,

A Bu

To amend the Civil Aeronauties Act of 1938, as amended,
to provide for judicial review of orders of the Civil
Aeronauties Board affecting the rights of domestic air
carriers to engage in overseas or foreign air transpor-
tation.

Be it enacted by the Senate and House of Representatives |

i ane

of the United States of America in Congress assembled,
That subsection (a) of section 1006 of the Civil Aeronautics
Act of 1938, as amended (June 23, 1938, 52 Stat. 1024), is
hereby amended to read as follows: .

‘*(a) Any order, affirmative or negative, including
but not limited to any order in respect of any domestic
air carrier subject to the approval of the President as ;
provided in section 801 of this Chapter, issued by the
Board under this chapter, except any order in respect
of any foreign air carrier subject to the approval of
the President as provided in section 801 of this chap-
ter, shall be subject to review by the circuit courts of
appeals of the United States or the United States
Court of Appeals for the District of Columbia upon
petition, filed within sixty days after the entry of such
order, by any person disclosing a substantial] interest
in such order. After the expiration of said sixty days
a petition may be filed only by leave of court upon a
showing of reasonable grounds for failure to file the
petition theretofore.”’

Sec. 2. That this amendment will remove ambiguity
from the language employed in section 1006 of the Civil
Aeronautics Act of 1938; and, in all applicable cases before
them, the Federal courts shall construe the language of this
amendment as if it were an original part, and set in the con- :
text of the Civil Aeronautics Act of 1938. ;

LL OER

7
> ee |

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40386417_0296%3A4. Public record. Not legal advice.
