Chicago & Southern Air Lines, Inc. v. Waterman Steamship Corp.

Supreme Court of the United States · 1948 · Federal Courts

Federal CourtsJudicial ReviewPolitical QuestionAdministrative LawCivil Aeronautics BoardPresidential approvalfinalityjudicial review

Facts

The Board issued an order denying Waterman a certificate of convenience and necessity for an overseas and foreign air route and granting the certificate to Chicago and Southern, a rival applicant. Because the routes involved overseas and foreign air transportation by a citizen carrier, § 801 required submission of the Board's decision to the President, whose approval was necessary before publication and effectiveness. The President approved the final order after directing certain changes in portions of the Board's decision. Waterman then sought judicial review under § 1006, while Chicago and Southern and the Board argued that the order was not reviewable because it required Presidential approval.

Issue

Does § 1006 of the Civil Aeronautics Act authorize judicial review of Civil Aeronautics Board orders granting or denying certificates to citizen carriers for overseas or foreign air transportation when those orders are subject to Presidential approval under § 801? If not, is such review unavailable both before and after Presidential approval?

Rule

An administrative order is not judicially reviewable unless and until it imposes an obligation, denies a right, or fixes a legal relationship as a consummation of the administrative process. Civil Aeronautics Board orders concerning certificates for overseas or foreign air transportation that are subject to § 801 Presidential approval are not reviewable before approval because they are not final, and they are not reviewable after approval because the final order derives its vitality from unreviewable Presidential discretion in political matters committed to the political branches.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

Prairie Skies Aviation, a citizen carrier based in Tulsa, applies to the federal aviation board for a certificate to operate passenger service between Miami and Kingston, Jamaica. The board votes to deny the application and, before the decision is submitted to the President, Prairie Skies files a petition for review arguing the board misread the statutory public-interest standard.

Should the court hear the petition at that stage?

Explanation. The majority held that an administrative order is reviewable only when it imposes an obligation, denies a right, or fixes a legal relationship as the consummation of the administrative process. For overseas or foreign air transportation requiring Presidential approval, the board's action before approval is only tentative and functions as a recommendation to the President. It grants no privilege and denies no right at that stage, so judicial review is premature.