United States v. Atlantic Refining Co.

Summary

Justice Black’s opinion affirmed the trial court’s interpretation of a consent decree limiting dividends paid by common-carrier pipelines to their shipper-owners. Allowable dividends were calculated from 7% of the pipeline property’s valuation and allocated according to stock ownership, without the additional reduction for debt financing urged by the Government. The decree’s ordinary meaning, the parties’ consistent interpretation over approximately 16 years, and the trial court’s finding of their intent controlled despite the Government’s argument that another interpretation would better advance the governing statutes. The Court did not decide laches, estoppel, or possible modification of the decree. Justice Douglas dissented, but no dissenting opinion is supplied. Justices Clark and Harlan did not participate.