Application of Burlington Northern R. Co.

522 N.W.2d 371, 1994 Minn. App. LEXIS 1001, 1994 WL 549856
CourtCourt of Appeals of Minnesota
DecidedOctober 11, 1994
DocketNo. C4-94-822
StatusPublished

This text of 522 N.W.2d 371 (Application of Burlington Northern R. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Application of Burlington Northern R. Co., 522 N.W.2d 371, 1994 Minn. App. LEXIS 1001, 1994 WL 549856 (Mich. Ct. App. 1994).

Opinion

OPINION

PARKER, Judge.

Burlington Northern Railroad Co. petitioned to transfer agency service from Brain-erd, Minnesota, to Superior, Wisconsin. After receiving notice, the Transportation Communication International Union (TCIU) objected to the transfer. An administrative hearing was held. The administrative law judge (ALJ) issued findings approving and recommending the transfer. The TCIU filed exceptions to the ALJ’s findings and recommendation. After hearing oral arguments, the Minnesota Transportation Regulation Board (Board) issued an order adopting the ALJ’s findings. The TCIU appeals from the Board’s order by writ of certiorari. We affirm.

FACTS

Burlington operates railroad lines in Minnesota and Wisconsin. Several agency stations serve these lines. Burlington staffs an agency in Brainerd, Minnesota, which operates eight hours per day, seven days per week. It serves 14 customers. One full-time clerk staffs the station Monday through Friday. The only other regular employee is a relief clerk who staffs the station on weekends and when the full-time clerk is on vacation. A third clerk provides periodic relief when the others are unavailable. The Brain-erd agency is a profitable operation.

Burlington petitioned the Board to transfer the Brainerd agency service to a larger, centralized agency station located in Superi- or, Wisconsin. The Superior station operates 24 hours per day, seven days per week, and has a manager and a staff of 50 employees.

Burlington contacted and provided notice of the transfer to each Brainerd agency customer. The TCIU filed a timely objection to the transfer. An administrative hearing was scheduled. No customers objected within the 20-day objection period prior to the scheduled hearing. One customer, Trus [374]*374Joist MacMillan, submitted a letter on the date of the hearing voicing concerns about the transfer. Four customers indicated no objection to the transfer. Potlach Corporation, which accounts for 75 percent of the Brainerd agency’s business, supported the transfer.

At the administrative hearing, a Burlington customer-support manager testified that the Brainerd agency serves as an intermediary between customers and other Burlington offices. The Brainerd clerks send customer shipment information to other stations in order to facilitate railroad car distribution. The clerks also trace ears and send customer billing information to the Superior and Fort Worth, Texas, stations.

Len Forciea is a customer service manager for Burlington in charge of both the Brainerd clerks and the Superior clerks. He testified that the Brainerd clerks are responsible for ordering boxcars for customers. Most boxcars are stored in Superior and sent to Brainerd when requested. Customers telephone the Brainerd clerks, who in turn telephone the Superior clerks to request the boxcars. Brainerd clerks also assess demur-rage fees and notify customers about scheduling information. They sometimes receive hazardous materials documents and inventory lists from customers. There is no face-to-face customer contact at the Brainerd station. All contact is by telephone or by mail.

Forciea testified that upon transfer to Superior, Burlington will establish a toll-free telephone number. Customers will contact the Superior station directly to order boxcars, arrange payment of demurrage fees, and obtain shipment information. The Superior station will receive bills, invoices, inventory lists, and hazardous materials documents by facsimile machine or by mail. If face-to-face customer contact is necessary, a Burlington employee will be dispatched from the Superior station to respond to questions and solve problems.

Roger Griffin is a trainmaster for Burlington in charge of engineers, conductors, and brakemen. Griffin described the procedures for train inspections and for the reporting of incidents. He testified that Brainerd clerks have no responsibility for the inspection or reporting of incidents. The clerks observe trains as they “roll by” to look for smoke or sparks, but they are not trained to assess safety or defects. Each train crew is responsible for inspecting its train. Griffin testified that the Superior station will maintain hazardous materials documents, and the transfer of functions ¡from Brainerd to Superior will have no effect on operating employees, other than requiring use of a facsimile machine.

The ALJ found that the transfer is part of a larger consolidation plan whereby Burlington will eliminate many manual processes that can be performed by modernized procedures. The ALJ also found that safety procedures, incident reporting, and customer service will not be affected by the transfer. The Board adopted the ALJ’s recommendation for the transfer, with the modification that Burlington shall not reduce the quality of service provided to affected customers. The TCIU appeals from the Board’s order by writ of certiorari.

ISSUE

I. Does substantial evidence support the Board’s finding that transfer of Burlington’s agency service will not substantially reduce safety, health, or welfare of the railroad’s customers, its employees, or the public?

II. Did the Board properly define “agency service” and properly conclude that transfer of Burlington’s agency service does not negatively affect public convenience and necessity?

DISCUSSION

Scope and Standard of Review

The scope of judicial review of the Board’s decision is governed by the Administrative Procedure Act. Minn.Stat. §§ 14.68-69 (1992). See In re Am. Freight Sys., Inc., 380 N.W.2d 192, 195 (Minn.App.1986). This court may reverse or modify the Board’s order only if the findings, inferences, conclusions, or decisions are

(a) In violation of constitutional provisions; or
(b) In excess of statutory authority or jurisdiction of the agency; or
[375]*375(e) Made upon unlawful procedure; or
(d) Affected by other error of law; or
(e) Unsupported by substantial evidence in view of the entire record as submitted; or
(f) Arbitrary and capricious.

Minn.Stat. § 14.69 (1992).

The criteria for permitting the transfer of a railroad agency service involve a “public convenience and necessity” determination under section 219.85. That statute provides, in relevant part:

Agency service at common carrier railroad stations must be that required by the public convenience and necessity. No station may be abandoned nor agency service reduced, discontinued, established, reestablished, or expanded without the approval of the board after public notice and opportunity for hearing is afforded. The board shall consider, if submitted, whether the abandonment or reduction will not substantially reduce the level of safety, health, or welfare of the railroad’s customers, its employees, or the public.

Minn.Stat. § 219.85 (1992).

When determining public convenience and necessity under section 219.85, whether facts are supported by the evidence involves a quasi-judicial determination that is subject to the substantial evidence standard of review. In re Burlington N.R.R.,

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Related

Reserve Mining Co. v. Herbst
256 N.W.2d 808 (Supreme Court of Minnesota, 1977)
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380 N.W.2d 192 (Court of Appeals of Minnesota, 1986)
Arvig Telephone Co. v. Northwestern Bell Telephone Co.
270 N.W.2d 111 (Supreme Court of Minnesota, 1978)
In re the Petition of Burlington Northern Railroad
359 N.W.2d 288 (Court of Appeals of Minnesota, 1984)
Rock Island Motor Transit Co. v. Murphy Motor Freight Lines, Inc.
58 N.W.2d 723 (Supreme Court of Minnesota, 1953)
Indianhead Truck Line, Inc. v. United States
253 F. Supp. 186 (D. Minnesota, 1966)

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Bluebook (online)
522 N.W.2d 371, 1994 Minn. App. LEXIS 1001, 1994 WL 549856, Counsel Stack Legal Research, https://law.counselstack.com/opinion/application-of-burlington-northern-r-co-minnctapp-1994.