Opinion · Supreme Court of the United States

Atlantic Coast Line Railroad v. Florida

Atl. Coast Line R.R. v. Fla., 295 U.S. 301 (1935)

Type
Opinion
Court
Supreme Court of the United States
Jurisdiction
Federal
Date
1935-04-29
Topic
general

How later courts describe this case

  • stating that “the opinion of a body of experts [of the ICC] upon matters within the range of their special knowledge and experience” are “entitled to great respect”
  • noting that a person who has conferred a benefit upon another in compliance with a judgment is entitled to restitution when the judgment is set aside “unless restitution would be inequitable”
  • stating that restitution is an appropriate remedy when a benefit is “received in such circumstances that the possessor will give offense to equity and good conscience if permitted to retain it”
  • Interstate Commerce Commission was without reparations power but "not without power to inquire whether injustice had been done and to report accordingly."
  • “The claimant to prevail must show that the money was received in such circumstances that the possessor will give offense to equity and good conscience if permitted to retain it”
  • “[W]hat has been lost to a litigant under the compulsion of a judgment shall be restored thereafter, in the event of a reversal, by the litigants opposed to him, the beneficiaries of the error.”
  • “[W]hat has been lost to a litigant under compulsion of a judgment shall be restored thereafter, in the event of a reversal by the litigants opposed to him, the beneficiaries of the error”
  • “what has been lost to a litigant under the compulsion of a judgment shall be restored thereafter, in the event of a reversal, by the litigants opposed to him, the beneficiaries of the error” (emphasis added)

Citator

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Cited by
220 opinions

Headnotes

  1. Remedies — Reversal of Judgment — Equitable Nature of Claim A cause of action for restitution upon reversal of a judgment belongs to the class of actions for money had and received; the remedy is equitable in origin and function, and the claimant, to prevail, must show that the money was received in such circumstances that the possessor cannot in equity and good conscience retain it. The question is not whether the law would put the defendant in possession of the money if the transaction were a new one, but whether the law will take it out of his possession after he has been able to collect it. 295 U.S. at 309
  2. Remedies — Discretion of Court Restitution upon reversal of a judgment is not a matter of mere right but is ex gratia, resting in the exercise of a sound discretion, and the court will not order it where the justice of the case does not call for it, nor where the process was set aside for a mere slip of procedure. 295 U.S. at 310
  3. Administrative Law — Interstate Commerce Commission — Intrastate Rates The Interstate Commerce Commission has jurisdiction, exclusive of that of any court, to set aside intrastate rates that discriminate unduly against interstate commerce, but its order is prospective only; it has no power in such a case to award reparation for the past. 295 U.S. at 311
  4. Administrative Law — Validity of Commission Orders An order of the Interstate Commerce Commission that is set aside solely because the facts supporting its conclusion were not embodied in its findings is voidable rather than void, and a carrier subject to the order is not at liberty to take the law into its own hands and refuse submission to it without the sanction of a court; obedience is owing while the order remains in force. 295 U.S. at 311
  5. Remedies — Equities of Carrier — Discriminatory Rates Where the lower intrastate rates were discriminatory against interstate commerce and therefore forbidden and declared unlawful by statute from the time of the Commission's first order, and the higher rates ordered would have been the only lawful rates through the period in question but for a mere slip in procedure, the shippers and the state have no equity in restitution for the excess collected under color of the earlier order. 295 U.S. at 312
  6. Remedies — Equities of Carrier — Confiscatory Rates A carrier's equity in retaining higher rates collected under color of legal right is reinforced by the fact that the lower state rates would be confiscatory if enforced after suitable challenge by the carrier; and this is so even assuming the carrier's only remedy under state law was by administrative proceedings followed by court action, and even though the lower scale was voluntary in origin. 295 U.S. at 313
  7. Remedies — Equitable Tests In determining a claim for restitution, the tests of conscience and fair dealing are the same whether the claim is based on contract or on statute. 295 U.S. at 314
  8. Federal Courts & Jurisdiction — Ancillary Jurisdiction The power of a district court, organized to determine whether challenged orders of the Interstate Commerce Commission should be vacated or upheld, to compel restitution of charges collected under those orders is ancillary to its primary jurisdiction over the validity of the orders. 295 U.S. at 314
  9. Remedies — Discretion to Withhold Relief In exercising its ancillary power to compel restitution, a court of equity is not required to lend its aid in perpetuating a forbidden practice; absent equities on the part of the state or shippers that can override a prohibition and policy declared by act of Congress, the court should stay its hand and leave the parties where it finds them. 295 U.S. at 314
  10. Federal Courts & Jurisdiction — Equitable Inaction — Encroachment on State Power A federal court's mere refusal to order restitution does not constitute an assumption of the rate-making power or an encroachment upon the powers of the state; it announces only that it will stand aloof and will not exercise its equitable and discretionary powers to change the status quo. 295 U.S. at 315
  11. Remedies — Effect of Commission Findings — Burden of Proof Although a determination of the Interstate Commerce Commission as to rates thereafter to be operative is not res judicata with respect to past transactions, it is entitled to great weight as evidence of the reasonableness of the rates collected; claimants seeking restitution must show that the schedule fixed by the Commission was unreasonable, not merely that some other reasonable schedule could be devised, and upon failure to make such a showing restitution is denied in toto. 295 U.S. at 317