Federal Circuits, D.C. Cir. (February 17, 1972)
Docket number: 72-1118
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U.S. Court of Appeals for the 3rd Cir. - Fed. Sec. L. Rep. P 97,106 First Jersey Securities, Inc., a Corporation of the State of New Jersey, Robert E. Brennan, Joseph Galligan, Jack Mondel, Charles Oehlert, John Dell, Michael Zudonyi, and Anthony Nadino, Respondents, v. George J. Bergen, Individually and in His Official Capacity, and National Association of Securities Dealers, Inc., a Corporation of the State of Delaware, Petitioners, and Honorable Vincent P. Biunno, Judge, United States District Court, Nominal Respondent., 605 F.2d 690 (3rd Cir. 1979) 106 First Jersey Securities, Inc., a Corporation of the State of New Jersey, Robert E. Brennan, Joseph Galligan, Jack Mondel, Charles Oehlert, John Dell, Michael Zudonyi, and Anthony Nadino, Respondents, v. George J. Bergen, Individually and in His Official Capacity, and National Association of Securities Dealers, Inc., a Corporation of the State of Delaware, Petitioners, and Honorable Vincent P. Biunno, Judge, United States District Court, Nominal Respondent.
Mr. Michael N. Sohn, Washington,D. C., with whom Mr. Gerald M. Stern, Washington, D.C., was on the pleadings, for appellants.
Mr. Irwin Goldbloom, Atty., Dept. of Justice, with whom Messrs. L. Patrick Gray, III, Asst. Atty. Gen., at the time the brief was filed and Walter H. Fleischer, Atty., Dept. of Justice, were on the pleadings, for appellees.Before TAMM, ROBINSON and WILKEY, Circuit Judges.SPOTTSWOOD W. ROBINSON, III, Circuit Judge.The National Traffic and Motor Vehicle Safety Act of 19661 directs the Secretary of Transportation to establish federal standards for motor vehicles to meet the need for increased safety on the Nation's highways.2 On March 3, 1971, pursuant to that mandate, the National Highway Traffic Safety Administration, a unit of the Department of Transportation, issued an order3 promulgating Motor Vehicle Standard No. 208, which would inaugurate passive occupant restraint systems in automobiles manufactured on and after August 15, 1973.4 Standard No. 208 requires the installation in 1976 and later models5 of systems meeting specified performance criteria for the protection of all occupants against all types of crashes.6 The standard, however, extended to manufacturers an option to provide in 1974 and 1975 models7 systems affording protection only to front-seat occupants against head-on collisions.8Automakers filed petitions with the Administration for reconsideration of Standard No. 208,9 and in the Court of Appeals for the Sixth Circuit for judicial review.10 On September 29, 1971, the Administration, in response to the petitions for reconsideration, issued its Notices 12 and 13 in the proceeding. Notice 12, among other things, acknowledged the Administration's recognition of some merit in manufacturers' protests that there was not enough time to permit the large-scale introduction of passive restraint systems in 1974 model cars, even for just front-seat occupants.11 Accordingly, Notice 12 stated the Administration's intention to offer manufacturers a third option as to installations in 1974 and 1975 models.12 Notice 13, in turn, specified as that option front-seat belts with an ignition interlock in lieu of a passive restraint system,13 and fixed November 2, 1971, as the date by which any comments on the proposed change were to be submitted to the Administration.14Appellants oppose elimination of the minimum requirement of Standard No. 208 that passive restraint systems for front-seat occupants be installed in 1974 and 1975 model automobiles. They complained to the Administration that there were reports, published and unpublished, that just prior to issuance of Notices 12 and 13 personnel in the Office of the President had communicated with the Department and the Administration in support of the manufacturers' effort to ease the interim 1974-75 edict. Appellants endeavored to have the alleged communications made a part of the agency's public docket so that their own comments could be directed in part to what they believed to be political pressure to delay the advent of passivity in occupant protection.Failing in that effort, appellants filed an action in the District Court on October 18, 1971, approximately three weeks before the deadline for comments on the modification contemplated by the new notices. The action sought a mandatory injunction directing that all written communications between the Office of the President and the Department or the Administration be placed in the public docket, and that memoranda describing all oral communications between them be prepared and likewise placed in the docket. Appellants asserted that unless the docket was so implemented they would not be able to effectively exercise their right to comment on the proposals contained in the notices.Appellees vigorously resisted appellants' bid for such disclosure. They argued that intra-governmental communications need not be included in an informal rule-making docket, and that appellants had not demonstrated such a likelihood of success on the merits as would justify a preliminary injunction. They pointed to the fact that the administrative record was already under review-as to Standard No. 208-in the Sixth Circuit, and urged that appellants' effort to supplement the record could properly be made only there. Their opposition also included a motion to dismiss appellants' action on the ground that the statutory scheme for judicial review of automotive safety standards deprived the District Court of subjectmatter jurisdiction.The District Court heard argument on appellants' motion for a preliminary injunction on October 28, 1971, just a week before the deadline for comments. The court also conducted an in camera examination of a number of documents which it ordered the Administration to produce for that purpose. During the course of the proceedings, the court restrained the issuance of any new regulations based on Notices 12 and 13 until the expiration of ten days from its disposition of the case unless appellants commented in the meantime. By orders entered on January 28, 1972, the motion for preliminary injunction was denied and the complaint was dismissed.15The District Court's order on the motion for preliminary injunction was accompanied by comprehensive findings of fact and conclusions of law.16 In the court's view, some of the documents submitted for in camera inspection were "intra-government communications,"17 and the others were "working documents, reports and memoranda relating to the studies, deliberations and considerations of an inter-agency ad hoc committee . . . involving costs, technological feasibilities, scientific developments and other matters relating to automotive transportation."18 None of these documents, the court ruled, was required to be included in the administrative docket,19 and their absence therefrom precluded neither commentary by appellants on the proposed change nor their participation in the rulemaking proceeding.20 The court further ruled that the statutory procedure for review of Administration orders in an appropriate court of appeals21 afforded appellants an adequate remedy for their grievances;22 that appellants had failed to show irreparable injury from the inaccessibility of the communications sought;23 that appellants had similarly failed to show a substantial probability of ultimately prevailing on the merits because "it appears that this Court lacks jurisdiction over the subject matter of this litigation";24 and that, in consequence, appellants had not demonstrated their entitlement to a preliminary injunction.25 And by a separate order reciting its conclusion "that this Court lacks jurisdiction over the subject matter of this action," the court granted appellees' motion to dismiss.26An appeal to this court was noted from the District Court's orders, and a motion for summary reversal or a further restraint on issuance of a new regulation pending appeal was filed. We granted a temporary stay on February 16, 1972, to permit fuller consideration of the motion, and on the next day heard argument and announced our decision. We denied appellants' motion, vacated our temporary stay, and dismissed the appeal. We also, as a matter of precaution, vacated the District Court's order of dismissal to insure that it would not have any binding effect upon any effort by appellants to again raise the merits-questions they sought to litigate in that court. Our order noted that an opinion would follow as promptly as the business of the court permitted, and we now elucidate the reasons for the action we then took.* The threshold question emerging on appeal was whether the District Court had subject-matter jurisdiction of the suit instituted by appellants. The National Traffic and Motor Vehicle Safety Act entitles any person adversely affected by an order promulgating a safety standard to judicial review in a court of appeals,27 and authorizes that court to remand the administrative record for supplementation in the event that it is found to be inadequate.28 Appellants followed, however, not the statutory path by petition in a court of appeals for review with related record supplementation, but a nonstatutory course in a district court for an injunction mandating augmentation of the administrative record while the administrative proceeding was still in progress.The legislative history of the Act is almost completely silent as to the exclusivity or concurrency of the review procedure which it specifies.29 Generally, however, when Congress has specified a procedure for judicial review of administrative action, courts will not make nonstatutory remedies available without a showing of patent violation of agency authority30 or manifest infringement of substantial rights irremediable by the statutorily-prescribed method of review,31 and this is so for a number of reasons. Respect for "administrative autonomy"32 derived from the grant of administrative jurisdiction33 demands "the avoidance of premature interruption of the administrative process."34 Administrative expertise and discretion should first be brought to bear upon problems-ofttimes specialized and complex-which are committed to the agency for initial solution,35 and in any event "it is normally desirable to let the agency develop the necessary factual background upon which decisions should be based."36 The implicit legislative concept of separateness in the functioning of agencies and courts is ill served by improvident judicial interference in ongoing administrative proceedings.37The rule stated in text is generally recognized even in instances where resort to a nonstatutory remedy is upheld. E. g., Abbott Laboratories v. Gardner, 387 U.S. 136, 139-148, 87 S.Ct. 1507, 18 L.Ed.2d 681 (1967) (nonstatutory action for declaratory judgment and injunction against enforcement of labeling and advertisement regulation promulgated in excess of statutory authority allowed); Independent Brokers-Dealers' Trade Ass'n v. SEC, 142 U.S.App.D.C. 384, 389-395, 442 F.2d 132, 137-143, cert. denied,Try vLex for FREE for 3 days
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