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Petitioner Niagara Frontier Tariff Bureau, Inc. ("NFTB" or "Bureau") petitions for review of an order of the Interstate Commerce Commission ("ICC" or "Commission") rejecting a proposed tariff supplement. Approved by a collective vote of NFTB members, and included as part of a larger NFTB tariff to increase commodity rates, class rates, and minimum charges, the rejected tariff supplement provided for increases in terminal service charges.

Objections to NFTB's terminal service proposal were filed with the ICC. The Commission initiated an investigation to determine whether the tariff proposal violated the statutory prohibition against collective consideration of single-line rates. See 49 U.S.C. § 10706(b)(3)(D) (1982). NFTB contended that its tariff proposal was permissible under its interpretation of the statute. The ICC, however, adhered to its prior rejection of petitioner's construction of the statute. See Niagara Frontier Tariff Bureau, Inc., 1 I.C.C.2d 317 (1984), aff'd per curiam, 780 F.2d 109 (D.C.Cir.1986). Petitioner also argued before the ICC that the proposed tariff schedule fell within one or more of the statutory exemptions to the section 10706(b)(3)(D) prohibition. The ICC determined that none of the exemptions was applicable and rejected the proposed tariff supplement in an order dated August 1, 1986.

Because we conclude that petitioner is collaterally estopped from reasserting its statutory construction, and that the ICC's rejection of the proposed tariff supplement was based on a reasonable construction of the statute, we deny NFTB's petition for review.


826 F.2d 1186 (1987)

NIAGARA FRONTIER TARIFF BUREAU, INC., Petitioner, v. UNITED STATES of America and Interstate Commerce Commission, Respondents.

No. 931, Docket 86-4174.

United States Court of Appeals, Second Circuit.

Argued March 17, 1987.

Decided August 20, 1987.

New York Law School location: File #359, Box #119