[Federal Register Volume 60, Number 188 (Thursday, September 28, 1995)]
[Notices]
[Pages 50204-50205]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-24015]
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FEDERAL MARITIME COMMISSION
[Docket No. 95-14]
Michael A. Grant, doing business as Island Shipping Inc.; Order
to Show Cause
This proceeding is instituted pursuant to sections 8, 11 and 23 of
the Shipping Act of 1984 (``1984 Act''), 46 U.S.C. app. 1707, 1710 and
1721, and the Commission's regulations governing the tariffing and
bonding of non-vessel operating common carriers, 46 C.F.R. parts 514
and 580.
Michael A. Grant is a resident of the State of Maryland. Since at
least October 1994, Mr. Grant maintained offices at 8605 Cameron
Street, Suite M1, Silver Spring, Maryland, from which premises Mr.
Grant operates a business under the trade name of Island Shipping
Inc.\1\
\1\ It appears that, in March 1990, a corporation by the name of
Island Shipping Inc. (``Island Shipping'') was established under the
laws of Maryland. Its registered agent was Michael A. Grant of
Silver Spring, Maryland. The corporate charter of Island Shipping
was revoked by the State of Maryland in October 1992, for failure to
file reports required by the State.
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It appears that subsequent to November 1993, Michael A. Grant,
doing business as Island Shipping, shipped or agreed to transport
shipments of household goods, furniture and personal effects in the
foreign commerce of the United States. In at least five (5) instances
known to the Commission, Mr. Grant or his agents are alleged to have
picked up the goods from various individuals or households within the
Washington, D.C. area. A bill of lading in the name of Island Shipping
was issued to the individual tendering the goods reflecting prospective
delivery of the goods on behalf of the named shipper at overseas
destinations.\2\ A cash receipt, also known in the name of Island
Shipping, was issued for compensation received with respect to the
transportation.
In at least seventeen (17) additional instances, it appears Mr.
Grant, doing business as Island Shipping, contracted for space aboard
vessels by which the ocean transportation was to be provided. On each
of these shipments via a vessel-operating common carrier, Island
Shipping is identified on corresponding shipping documents, such as
bills of lading, as the shipper.\3\ In most instances, Island Shipping
also appear as the billing party for the payment of freight on the
subject shipments.
Section 8 of the 1984 Act, 46 U.S.C. app. Sec. 1707, provides that
no common carrier may provide service in the United States foreign
trades unless the carrier has first filed a tariff with the Federal
Maritime Commission showing all of its rates, charges and practices.
Section 23 of the 1984 Act further provides that each non-vessel-
operating common carrier must furnish to the Commission a bond, proof
of insurance or other surety, inter alia, to insure the financial
responsibility of the carrier to pay any judgment for damages arising
from its transportation-related activities.\4\ According to a review of
records maintained by the Commission's Bureau of Tariffs, Certification
and Licensing, no tariff or bond has been filed with the Commission in
the name of Island Shipping or Mr. Grant. Therefore, it would appear
that Michael A. Grant, doing business as Island Shipping, by providing
and holding himself out to the public to provide transportation by
water of cargo for compensation and by contracting in the capacity as a
shipper in relation to an ocean common carrier for the carriage of
cargo of other persons, has acted as a non-vessel-operating common
carrier without a tariff or bond on file with the Commission, in
violation of sections 8 and 23 of the 1984 Act.
\4\ Based on information currently available to the Commission,
see fn. 2, at least four individuals who have utilized the services
of Island Shipping claim to have suffered financial injury due to
the action or inaction of Island Shipping in the transportation of
their shipments. Claims by these shippers include property damage to
goods in shipment (Xenia Bruce), loss of cargo (Owen White; and
Collin Bruce), and payment of additional freight to obtain release
of cargo by the ocean common carrier whose vessel transported the
goods (Ethel Phillips).
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Now therefore, it is ordered That pursuant to section 11 of the
Shipping Act of 1984, Michael A. Grant, doing business as Island
Shipping, show cause why he should not be found to have violated
section 8 of the Shipping Act of 1984 by acting as a non-vessel-
operating common carrier in each of twenty-two (22) instances,
specified above, without a tariff for such service on file with the
Commission;
It is further ordered That pursuant to section 11 of the Shipping
Act of 1984, Michael A. Grant, doing business as Island Shipping, show
cause why he should not be found to have violated section 23 of the
Shipping Act of 1984 by acting as a non-vessel-operating common carrier
in each of twenty-two (22) instances, specified above, without a bond
for such service on file with the Commission;
It is further ordered That Michael A. Grant, doing business as
Island Shipping, show cause why an order should not be issued directing
Michael A. Grant to cease and desist from providing or holding himself
out to provide transportation as a common carrier and from obtaining
from any common carrier transportation by water of the cargo of any
other person between the U.S. and a foreign country unless and until
such time as Mr. Grant or Island Shipping shall have filed a tariff and
a bond for such service with the Commission.
[[Page 50205]]
It is furthered ordered That this proceeding is limited to the
submission of facts and memoranda of law;
It is further ordered That any person having an interest and
desiring to intervene in this proceeding shall file a petition for
leave to intervene in accordance with Rule 72 of the Commission's Rules
of Practice and Procedure, 46 CFR Sec. 502.72. Such petition shall be
accompanied by the petitioner's memorandum of law and affidavits of
fact, if any, and shall be filed no later than the day fixed below;
It is further ordered That Michael A. Grant is named a Respondent
in this proceeding. Affidavits of fact and memoranda of law shall be
filed by Respondent and any intervenors in support of Respondent no
later than October 16, 1995;
It is further ordered That the Commission's Bureau of Hearing
Counsel be made a party to this proceeding;
It is further ordered That reply affidavits and memoranda of law
shall be filed by the Bureau of Hearing Counsel and any intervenors in
opposition to Respondent no later than November 6, 1995;
It is further ordered That rebuttal affidavits and memoranda of law
shall be filed by Respondents and intervenors in support no later than
November 6, 1995;
It is further ordered That:
(a) Should any party believe that an evidentiary hearing is
required, that party must submit a request for such hearing together
with a statement setting forth in detail the facts to be proved, the
relevance of those facts to the issues in this proceeding, a
description of the evidence which would be adduced, and why such
evidence cannot be submitted by affidavit;
(b) Should any party believe that an oral argument is required,
that party must submit a request specifying the reasons therefore and
why argument by memorandum is inadequate to present the party's case;
and
(c) Any request for evidentiary hearing or oral argument shall be
filed no later than November 16, 1995;
It is further ordered That notice of this Order to Show Cause be
published in the Federal Register, and that a copy thereof be served
upon Respondent;
It is further ordered That all documents submitted by any party of
record in this proceeding shall be filed in accordance with Rule 118 of
the Commission's Rules of Practice and Procedure, 46 CFR 502.118, as
well as being mailed directly to all parties of record;
Finally, it is ordered That pursuant to the terms of Rule 61 of the
Commission's Rules of Practice and Procedure, 46 CFR 502.61, the final
decision of the Commission in this proceeding shall be issued by
February 29, 1996.
By the Commission.
Joseph C. Polking,
Secretary.
[FR Doc. 95-24015 Filed 9-27-95; 8:45 am]
BILLING CODE 6730-01-M
