What is the role of regualatory commissions? How do the courts compliment that role?

Answer 1

Our regulatory laws are often stated in vague terms, such as reasonable rates, inherent advantages, and unjust discrimination. The roles of the regulatory commission are to interpret the meaning of these terms as they are stated in the law and to develop regulations that define their intent. These regulations, then, are codified and serve as the basis for decisions made by the regulatory commissions. However, these decisions are still subject to the intent of the law and to decisions made by the courts.

Even though the regulatory commission plays a powerful role in regulating transportation, it is still subject to judicial review. The courts are the sole determinants of the intent of the law, and only court decisions can serve as legal precedent under common law. The courts make the final ruling on the constitutionality of regulatory statutes and the interpretation of the regulation. The review of the courts act as a check on arbitrary or capricious actions, on actions that do not conform to statutory standards or authority, or on actions that are not in accordance with fair procedure or substantial evidence. The parties involved in a commission decision have the right, therefore, to appeal the decision to the courts.

Over the years, the courts had come to recognize the ICC as an expert body on policy and the authority on matters of fact. This recognition has now been given to the STB. The courts limited their restrictions on ICC and STB authority. The courts would not substitute their judgment for that of the ICC or STB on matters such as what constitutes a reasonable rate or whether discrimination is unjust because such judgments would usurp the administrative function of the commission.