Hawaiian Express Service, Inc., a Corporation v. Pacific Hawaiian Terminals, Inc., a Corporation

Hawaiian Express Service, Inc., a freight forwarder authorized by the Interstate Commerce Commission to operate in the San Francisco-Hawaii trade, sued under 49 U.S.C. § 1017 (b)(2) to enjoin Pacific Hawaiian Terminals, Inc., from offering transportation services which Hawaiian Express contends amount to “freight forwarding” under the Interstate Commerce Act § 402(a)(5), 49 U.S.C. § 1002 (a)(5). The district court denied relief, and Hawaiian Express appeals.

With the exception of the degree of Pacific’s utilization of motor common carriers, most of the material facts are covered by stipulation. The crucial question is one of law. We have conclud ed that the relevant legislative history requires an interpretation of the statutes which brings the activities complained of within the regulatory scope of the I.C.C., and accordingly reverse.

Pacific operates pursuant to a tariff on file with the Federal Maritime Commission. As a “non-vessel-operating” common carrier by water, Pacific contends that its services are not subject to I.C.C. regulation. Because some of Pacific’s activities are competitive with those of Hawaiian Express, and because a resolution of the dispute involves the…