Atkins v. Railroad Retirement Board

126 F.R.D. 583, 1989 U.S. Dist. LEXIS 9102, 1989 WL 86769
CourtSpecial Court under the Regional Rail Reorganization Act
DecidedJune 23, 1989
DocketCiv.A. No. 84-05
StatusPublished

This text of 126 F.R.D. 583 (Atkins v. Railroad Retirement Board) is published on Counsel Stack Legal Research, covering Special Court under the Regional Rail Reorganization Act primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atkins v. Railroad Retirement Board, 126 F.R.D. 583, 1989 U.S. Dist. LEXIS 9102, 1989 WL 86769 (reglrailreorgct 1989).

Opinion

MEMORANDUM-ORDER

PER CURIAM.

This case is now before the Court on plaintiffs’ motion for a more particular judgment and on Consolidated Rail Corporation’s (“Conrail”) motion to intervene. On February 12, 1987, this Court issued an order granting plaintiffs’ motion for summary judgment. Our decision is reported at 654 F.Supp. 685 (1987).

Plaintiffs seek an amended judgment specifically ordering the Railroad Retirement Board (“Board”) to pay $20,000 each to twenty of the plaintiffs under Article III of the Benefits Schedule prescribed by the Secretary of Labor under Section 701 of the Regional Rail Reorganization Act of 1973 (“Rail Act”), 45 U.S.C. § 797. Plaintiffs also seek post-judgment interest and attorney’s fees from the Board for its alleged failure to comply with this Court’s Order granting plaintiffs’ motion for summary judgment.

The Board responds by asserting that it has done all it is legally empowered to do. The Board states that Section 701 has been amended by Section 4024(a) of the Conrail Privatization Act, Subtitle A of Title IV of the Omnibus Budget Reconciliation Act of 1986, Public Law 99-509. The Board claims that, under the newly enacted amendments to Title VII, it no longer has authority to pay the Section 701 benefits to plaintiffs. The Board also claims that monetary sanctions are barred by the doctrine of sovereign immunity. Moreover, the Board maintains such sanctions are inappropriate given the Board’s fulfillment of its responsibilities under the Conrail Privatization Act amendments.

In our decision granting summary judgment to plaintiffs, we did not consider the Conrail Privatization Act amendments to Title VII. The decision was a limited review of the Board’s determination that employees of a wholly-owned subsidiary of Conrail, Pennsylvania Truck Lines (“PTL”), were not eligible for benefits under Title VII. The Board denied plaintiffs Title VII benefits because it interpreted the applicable law and regulations and determined that PTL employees did not have an employment relationship with Conrail and therefore were not eligible for benefits under Section 701 and the Benefits Schedule. We exercised our jurisdiction under Section 1152(a)(1) of the Northeast Rail Service Act of 1981 (“NERSA”) to review the Board’s interpretation of Title VII which was added to the Rail Act by Section 1143(a) of NER-SA. We found no Congressional intent to modify the rights of employees of Conrail [585]*585subsidiaries and reversed the Board’s interpretation. The issue of whether plaintiffs were otherwise qualified for benefits under Title VII or the Benefits Schedule was not raised by either party before this Court. On the record before us, we found “there is no dispute as to the appropriateness of [the furloughed plaintiffs’] other qualifications for benefits.” 654 F.Supp. at 687.

On June 5, 1987, the Board certified to Conrail the eligibility of 18 plaintiffs, who had made a claim for benefits before this case was filed. On October 21, 1987, the Board certified the eligibility of two additional plaintiffs, who were active employees when the suit was filed. Neither the Board nor Conrail have paid benefits to any of the plaintiffs certified as eligible.

Conrail seeks to intervene at this stage of the proceedings to oppose plaintiffs’ motion and to assert its cross-motion for a more particular judgment. Conrail maintains it has a right to intervene pursuant to Rule 24(a)(2) of the Federal Rules of Civil Procedure because it has a direct interest in issues presented in plaintiffs’ motion for a more particular judgment. Conrail’s sole interest is its possible financial liability to pay any Section 701 benefits due to plaintiffs. As an explanation for moving to intervene at this late stage in the proceedings, Conrail claims it did not have notice of this action until March 24, 1987, after the decision was issued and judgment entered. Conrail argues that the Board now believes it is relieved of any payment obligation by the Conrail Privatization Act and therefore the Board does not adequately represent Conrail’s interests.

If permitted to intervene, Conrail would argue that the judgment should be limited to a declaration that plaintiffs as employees of PTL were employees of Conrail for the purposes of Section 701. Conrail claims the judgment should not order payment of any benefits to plaintiffs because it has information that each of the plaintiffs is ineligible on grounds not considered by the Board in its initial decision.

Plaintiffs oppose Conrail’s motion to intervene and request sanctions under Rule 11, Fed.R.Civ.P. In their opposition to Conrail’s intervention, plaintiffs claim Conrail does not have standing to intervene because the Board is solely responsible for determining eligibility for Section 701 benefits. Plaintiffs also oppose Conrail’s intervention as untimely and barred by res judicata.

We first turn to Conrail’s motion to intervene. Rule 24(a)(2) provides a right to intervene only if the applicant satisfies each of the following conditions: (1) the application must be timely, (2) the applicant must have a direct interest relating to the property or transaction which is the subject of the action, (3) the applicant’s ability to protect his interest may be impeded by disposition of the action, (4) the applicant’s interest must be inadequately represented by the existing parties. If the applicant for intervention fails to establish any one of these requirements, it may not intervene of right under Rule 24(a)(2).

Although both plaintiffs and Conrail have discussed at some length the timeliness of Conrail’s post-judgment attempt to intervene, we need address that issue only if the other three requirements for intervention of right are satisfied. We first examine whether Conrail has demonstrated the existence of an interest that has not been adequately represented by the Board.

Generally, the burden of establishing inadequate representation, however minimal, remains on the applicant for intervention. See Trbovich v. United Mine Workers, 404 U.S. 528, 538 n. 10, 92 S.Ct. 630, 636 n. 10, 30 L.Ed.2d 686 (1972); Bush v. Viterna, 740 F.2d 350, 355 (5th Cir.1984); Meridian Homes Corp. v. Nicholas W. Prassas & Co., 683 F.2d 201, 205 (7th Cir. 1982). When the applicant’s interest is identical to that of an existing party, or if there is a party charged by law with representing the applicant’s interest, a compelling showing is required to overcome the presumption of adequate representation. See 7C C. Wright, A. Miller & M. Kane, Federal Practice & Procedure, § 1909, 324-349 (2d ed. 1986). In many circuits, representation is presumed adequate absent a demonstration of adversity of interest, collusion or nonfeasance on the part of [586]*586the existing parties. See, e.g., United States Postal Service v. Brennan, 579 F.2d 188, 191 (2d Cir.1978); Delaware Valley Citizens Council v. Commonwealth of Pennsylvania, 674 F.2d 970 (3d Cir.1982);

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Trbovich v. United Mine Workers
404 U.S. 528 (Supreme Court, 1972)
United States v. American Telephone & Telegraph Co.
642 F.2d 1285 (D.C. Circuit, 1980)
United States Postal Service v. Brennan
579 F.2d 188 (Second Circuit, 1978)
Meridian Homes Corp. v. Nicholas W. Prassas & Co.
683 F.2d 201 (Seventh Circuit, 1982)
Atkins v. Railroad Retirement Board
654 F. Supp. 685 (Special Court under the Regional Rail Reorganization Act, 1987)

Cite This Page — Counsel Stack

Bluebook (online)
126 F.R.D. 583, 1989 U.S. Dist. LEXIS 9102, 1989 WL 86769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atkins-v-railroad-retirement-board-reglrailreorgct-1989.