Opinion summary
Etalia.ai summary of the majority opinion
The case involved the Interstate Commerce Commission (ICC) and its authority to set freight rates for railroads. The ICC had issued an order increasing certain freight rates, which was challenged by Florida East Coast Railway Co. and other railroad companies on the grounds that they were not given a proper hearing before the rate increase was implemented. The Supreme Court held that under the Administrative Procedure Act, formal hearings with oral testimony were not required in this context because Congress did not mandate such procedures for general rulemaking actions like setting industry-wide rates. Instead, written submissions from interested parties sufficed as long as there was a rational basis for the decision made by the agency.
Opinion of the Court
Decided 22 Nov 1965 · Official report