In this case Carolina Carriers Corp. sought an exception under the ‘grandfather clause’ of the Motor Carrier Act of 1935 for bona fide common carriers operating before 1935. Carolina was granted a very specific exemption by the commerce commission, for the territories and goods where and which they carried on a regular basis prior to 1935 would be exempted. Carolina sued for a full exemption, and affirming a lower court the Supreme Court granted the full exemption.
Justice Jackson dissented, criticizing the court for making a ruling on the case. What constitutes or does not constitute ‘grandfathering’ and ‘exemptions’ should be left to the discretion of the drafters of the legislation, and was not an appropriate place to utilize judicial review.