Florida East Coast Railway Case Summary

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The Interstate Commerce Commission (ICC) was having a dispute regarding railroad companies borrowing one another’s freight cars rather than constructing new ones consistently leading to a shortage in the United States v. Florida East Coast Railway. The ICC established a rule requiring a fee for borrowing each other’s freight cars in an effort to encourage railroads to construct new ones. The East Coast Railway motioned to overturn the rule demanding a formal rulemaking as stated in APA §556-557 rather than an informal rulemaking defined in APA §553.

INTRODUCTION
The United States v. Florida East Coast Railway Company is an underrated case despite how well known it is. The case’s notoriety is a result of its “black letter rule” in regard
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The case demonstrates that it is the nature of the hearing enforced by the constitution or a statute is determined by the nature of the agency action.
"The term 'hearing' in its legal context undoubtedly has a host of meanings. Its meaning undoubtedly will vary, depending on whether it is used in the context of a rulemaking-type proceeding or in the context of a proceeding devoted to the adjudication of particular disputed facts.” (24)
The most significant aspect of administrative law is that individual hearings are not required by Constitutional due process when the government is involved in general resolutions (27). Actions that are supportive and mandatory for determining individual, adjudicative matters are not required when the dispute in question by the agency is categorized as legislative that is involving broad policy decision. Protester claimed the ICC’s governing procedure in Florida East Coast Railway more exclusive in regard to its financial presence. They claimed that it should have caused action to guarantee an appropriate administrative deliberation for the individual impacts