Bar Technologies, Inc. v. Conemaugh & Black Lick RR Co.

73 F. Supp. 2d 512, 1999 U.S. Dist. LEXIS 17355, 1999 WL 1012382
CourtDistrict Court, W.D. Pennsylvania
DecidedNovember 9, 1999
DocketCivil Action 99-41J
StatusPublished
Cited by2 cases

This text of 73 F. Supp. 2d 512 (Bar Technologies, Inc. v. Conemaugh & Black Lick RR Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bar Technologies, Inc. v. Conemaugh & Black Lick RR Co., 73 F. Supp. 2d 512, 1999 U.S. Dist. LEXIS 17355, 1999 WL 1012382 (W.D. Pa. 1999).

Opinion

MEMORANDUM OPINION AND ORDER

D. BROOKS SMITH, District Judge.

In this case, plaintiff, Bar Technologies, Inc. (“BarTech”), claims that the alleged refusal of defendant, Conemaugh & Black Lick Railroad Company (“C & BL”), to allow the proposed rail line of plaintiff to cross its existing line at grade, despite an easement requiring the C & BL to permit grade crossings, violates antitrust law. Defendant has filed a motion to dismiss, dkt. no. 5, which argues on the merits that BarTech has stated no valid claims, and also strenuously asserts that the issues presented in plaintiffs complaint are committed to the exclusive primary jurisdiction of the Surface Transportation Board (“STB”) incident to its plenary power to regulate the construction, operation and abandonment of rail lines. For the following reasons, I will grant the motion.

I.

Stated in the light most favorable to plaintiff, the complaint reveals that Bar-Tech is a manufacturer of “bar quality hot rolled steel” which it produces in a Johns-town, Pennsylvania factory it acquired from Bethlehem Steel in 1994. The C & BL, a wholly owned subsidiary of Bethlehem, provides the only rail link between the BarTech plant, on which it operates upon an easement, and the interstate rail transportation network. Believing that it could provide this link more cost-effectively than can the C & BL with its filed tariffs, BarTech sought to construct its own private rail line to the main line tracks. This, however, required BarTech’s proposed trackage to cross the C & BL tracks at grade. BarTech was permitted to do this pursuant to its reserved rights in the C & BL easement, but the C & BL nevertheless refused its permission, citing operational and safety concerns. 1 To Bar-Tech, however, this refusal was a naked attempt to restrain competition and force it to accept the C & BL’s monopolistic tariff rates.

Accordingly, BarTech filed the instant suit, alleging in four counts that C & BL violated section 2 of the Sherman AntiTrust Act, breached its contract with Bar-Tech and interfered with BarTech’s “ser-vient owner rights.” BarTech seeks both compensatory and treble damages, as well as declaratory and injunctive relief. Defendant has filed a motion to dismiss, which is now fully briefed and ready for disposition.

II.

A motion to dismiss cannot be granted unless the allegations in the complaint taken as true fail to state any claim upon which relief can be granted. Angelastro v. Prudential-Bache Securities, Inc., 764 F.2d 939, 944 (3d Cir.1985) (citing Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957)). In ruling upon a motion to dismiss, a district court must accept as true all facts alleged in the complaint, and view them in the light most favorable to the plaintiff. Markowitz v. Northeast Land Co., 906 F.2d 100, 103 (3d Cir.1990). A court “need not credit a complaint’s ‘bald assertions’ or ‘legal conclusions.’ ” In re Burlington Coat Factory Sec. Litig., 114 F.3d 1410, 1429-30 (3d Cir.1997) (quoting Glassman v. Computer *514 vision Corp., 90 F.3d 617, 628 (1st Cir.1996)).

III.

Defendant spends the bulk of its brief on its argument that the entire case must be dismissed for lack of subject matter jurisdiction. It asserts, first, that the construction and operation of rail lines and grade crossings is committed to the exclusive primary jurisdiction of the STB. Because BarTech never sought STB approval to build its rail line and grade crossing, defendant contends essentially that Bar-Tech’s problems are solely of its own making and that any damages it suffered are not the C & BL’s fault. Alternatively, defendant argues that even if BarTech had sought regulatory approval, the question of whether it can build its rail line and grade crossing can and must be decided only by the STB.

Defendant relies on 49 U.S.C. § 10901(a), which provides that:

A person may-

(1) construct an extension to any of its railroad lines;
(2) construct an additional railroad line;
(3) provide transportation over, or by means of, an extended or additional railroad line; or
(4) in the case of a person other than a rail carrier, acquire a railroad line or acquire or operate an extended or additional railroad line, only if the Board issues a certificate authorizing such activity under subsection (c).

It also relies on subsection (d)(1), which recites:

When a certificate has been issued by the Board under this section authorizing the construction or extension of a railroad line, no other rail carrier may block any construction or extension authorized by such certificate by refusing to permit the carrier to cross its property if-
(A)the construction does not unreasonably interfere with the operation of the crossed line;
(B) the operation does not materially interfere with the operation of the crossed line; and
(C) the owner of the crossing line compensates the owner of the crossed line.

Based on this statutory text, defendant argues that BarTech was and is forbidden from building either its rail line or crossing without STB approval. This contention, while initially plausible, is incomplete in its consideration and analysis of the statute.

Section 10501 sets forth a grant of general jurisdiction to the STB. Subsection (a)(1) provides that “the Board has jurisdiction over transportation by rail carrier that is ... by railroad.” (Emphasis added.) Subsection (a)(2) then limits that jurisdiction ■ to, for present purposes, transportation over the interstate rail network. Subsection (b) then provides that:

The jurisdiction of the Board over-

(1) transportation by rail carriers ...; and
(2) the construction, acquisition, operation, abandonment, or discontinuance of spur, industrial, team, switching, or side tracks, or facilities, even if the tracks are located, or intended to be located, entirely in one State, is exclusive. Except as otherwise provided in this part, the remedies provided under this part with respect to regulation of rail transportation are exclusive and preempt remedies provided under Federal or State law.

49 U.S.C. § 10501(b) (emphasis added).

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73 F. Supp. 2d 512, 1999 U.S. Dist. LEXIS 17355, 1999 WL 1012382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bar-technologies-inc-v-conemaugh-black-lick-rr-co-pawd-1999.