United States v. Florida East Coast Railway Co.
United States Supreme Court
410 U.S. 224 (1973)
The Interstate Commerce Commission (ICC) (defendant), acting under a statute authorizing rulemaking only 'after hearing,' proposed new incentive-payment rates for railroads and decided to accept only written comments rather than holding an oral hearing. Two railroad companies (plaintiffs) challenged the resulting order, arguing the ICC's process failed to comply with the formal, trial-type rulemaking procedures found in Sections 556-57 of the Administrative Procedure Act (APA), and that they were prejudiced by being limited to written comments. The district court agreed that the APA's formal procedures applied, and the ICC sought Supreme Court review.
Whether the APA requires the formal rulemaking procedures of Sections 556-57 before an agency issues a rule, where the authorizing statute requires rulemaking only 'after hearing' but does not also require that the rule be made on the record.