20230202_C359420_68_359420.Opn.Pdf

CourtMichigan Court of Appeals
DecidedFebruary 2, 2023
Docket20230202
StatusUnpublished

This text of 20230202_C359420_68_359420.Opn.Pdf (20230202_C359420_68_359420.Opn.Pdf) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
20230202_C359420_68_359420.Opn.Pdf, (Mich. Ct. App. 2023).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

NORFOLK SOUTHERN RAILWAY COMPANY, UNPUBLISHED February 2, 2023 Plaintiff-Appellant

v No. 359420 Ingham Circuit Court METRO FIBERNET LLC, LC No. 21-000332-CB

Defendant-Appellee.

Before: GLEICHER, C.J., and K. F. KELLY and LETICA, JJ.

PER CURIAM.

The issue presented is whether a utility company must comply with a railroad company’s approval process before installing a utility line 15 feet under a railroad track at its intersection with a public roadway. Despite obvious safety concerns, no statute requires the utility company to secure permission or even provide notice. The railroad company could not force the utility company to comply with its work application process. We affirm the circuit court’s summary dismissal of its lawsuit.

I. BACKGROUND

Norfolk Southern Railway Company (NSRC) owns several miles of railroad track in Ingham County. Metro Fibernet, LLC (Metronet) is a telecommunications company. On November 22, 2019, Metronet notified NSRC’s lessee—Jackson & Lansing Railroad Company— that it intended to bore under the railroad tracks at a crossing over St. Joseph Street and install fiber optic cable. The notice included “[d]etailed designs and construction plans for this crossing” and a copy of the insurance policy covering the project. Metronet got a permit from the city of Lansing to install the cables. The permit required Metronet “to secure any and all other authorizations from impacted utilities,” contact MISS DIG, and secure “any other applicable permits from other governing agencies,” such as the county and the Michigan Department of Transportation (MDOT).

In return, NSRC informed Metronet that the written notice permitted under MCL 462.265 only applies to wires strung over and across the railroad right-of-way, not below. NSRC advised Metronet to follow the railroad’s established procedure for approval of such underground projects. Metronet continued with its plans, insisting that it was required only to provide 30 days written

-1- notice. It also provided similar notice of intent to install underground cables under other railroad track/highway crossings in the county.

NSRC filed a petition with MDOT to “settle [this] dispute.” NSRC argued that MCL 462.265 does not apply and therefore Metronet was required to seek permission to install the underground cable. Despite stating its belief that the statute does not apply, NSRC “invoke[d] MDOT’s explicit jurisdiction under MCL 462.265(3) to resolve this dispute.” NSRC filed additional petitions when Metronet provided written notices of intent to bore under other railroad crossings.

MCL 462.265 is part of the railroad code of 1993 and provides:

(1) A corporation or person shall not string any wire, electrical or other, over and across a railroad or street railway right-of-way unless 1 of the following procedures is followed:

(a) For crossings within the right-of-way of a public street, highway, road, or alley, notification shall first be given to the railroad company and railroad authority of the place and the manner in which the corporation or person desires to string any wire 30 calendar days prior to performance of the work unless the parties otherwise agree.

(b) For crossings at any other location not within the right-of-way of a public street, highway, road, or alley, notification shall first be given to the railroad company and railroad authority in writing of the place and the manner in which the corporation or person desires to string the wire and written or telegraphic permission shall be received from the railroad company and railroad authority prior to performance of the work. The railroad company shall respond positively or negatively to the request within 90 calendar days after the receipt of the request.

(2) Any aerial crossings shall be constructed in accordance with specifications of the Michigan public service commission and all applicable codes and laws.

(3) In case of a dispute emanating from subsections (1) and (2) which the parties cannot resolve within a reasonable time, either party may petition the department for a hearing. The department shall have jurisdiction to settle the dispute between the parties.

(4) Upon proof of violation of or failure to comply with subsections (1) and (2), a court of competent jurisdiction may issue an order immediately enjoining the violation. [Emphasis added.]

MDOT referred the petitions to the Michigan Office of Administrative Hearings and Rules. An administrative law judge (ALJ) was assigned to consider the petitions. Metronet moved for summary disposition, arguing that MDOT and the ALJ lacked subject matter jurisdiction to hear the case under MCL 462.265. NSRC filed a brief opposing the summary disposition motion, but it is not part of the current record.

-2- The ALJ determined that MDOT lacked jurisdiction to resolve a dispute regarding underground wires as they are not mentioned in the statute. But the ALJ went on to state that he

agrees with NSRC’s assertion that MCL 462.265 does not allow Metro[n]et to unilaterally proceed with installing underground wires under the crossings in this case. Similarly, the [ALJ] agrees with NSRC’s concerns raised over safety and costs. However, in order to resolve this particular dispute, MDOT, and, this tribunal by extension, would need to exercise equitable power that [has] not been provided. Unless expressly authorized by a statute, an administrative agency does not have equitable jurisdiction. . . .

NSRC fails to cite authority that specifically vests MDOT with the requisite power to resolve a dispute involving a railway company and a utility company concerning the installation of underground fiber optic cables. In this regard, NSRC, on page 7 of its Brief in Opposition, correctly points out that, “The statute does not purport to discuss underground wiring at all.” The [ALJ] also cannot find support to show how this tribunal has the requisite authority to determine whether MCL 462.265 applies to underground crossings. Unlike the circuit court, this tribunal cannot issue a declaratory judgment, a preliminary injunction or grant other equitable relief. For these reasons, this tribunal lacks jurisdiction and this matter should be dismissed.

The MDOT Chief Administrative Officer adopted the ALJ’s decision after reviewing the parties’ exceptions and summarily dismissed the petition for lack of subject matter jurisdiction.

NSRC then filed this case in the Ingham Circuit Court. NSRC recounted that “[o]n numerous occasions,” Metronet had asserted its right under MCL 462.265 to install fiber optic cable under the railroad’s right-of-way where it crosses the public highway without the railroad’s approval, “based on mere written notice.” NSRC asserted that it had advised Metronet that “pursuant to its clear terms,” MCL 462.265 applies to wires “strung over railroad rights-of-way,” not under. Although the statutory notice provision did not apply, NSRC asserted that Metronet was required “to comply with NSRC’s established procedures for underground utility crossings.”

NSRC sought a declaratory judgment that Metronet did “not have legal authority pursuant to MCL 462.265 to install underground cable . . . underneath NSRC’s right-of-way without the permission of NSRC.” NSRC sought a permanent injunction against the installation of any further cable underneath NSRC rights-of-way without permission, as well as any relief the court deemed just.

In lieu of an answer, Metronet filed a motion for summary disposition pursuant to MCR 2.116(C)(8).

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Bluebook (online)
20230202_C359420_68_359420.Opn.Pdf, Counsel Stack Legal Research, https://law.counselstack.com/opinion/20230202_c359420_68_359420opnpdf-michctapp-2023.