Burlington Northern Railroad v. Corporation Commission

761 P.2d 855, 107 N.M. 582
CourtNew Mexico Supreme Court
DecidedSeptember 15, 1988
DocketNo. 17482
StatusPublished
Cited by8 cases

This text of 761 P.2d 855 (Burlington Northern Railroad v. Corporation Commission) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burlington Northern Railroad v. Corporation Commission, 761 P.2d 855, 107 N.M. 582 (N.M. 1988).

Opinion

OPINION

RANSOM, Justice.

The New Mexico State Corporation Commission (Commission) denied the application of Burlington Northern Railroad Company (Burlington) to close its agency station located at Des Moines, New Mexico. Burlington has removed the cause for review by this Court pursuant to Article XI, Section 7 of the New Mexico Constitution.1 We hold that the Commission’s order was reasonable and just and will be enforced.

Following an application from Burlington seeking permission to close its agency station at Des Moines, the Commission held a public hearing in Raton, New Mexico, on September 5, 1986. At that hearing, Burlington presented its evidence in support of discontinuing a base agency service at Des Moines. No formal intervenor protested against the application. However, members of the public, including a state senator, the mayor of Des Moines, and a representative of Twin Mountain Rock, a major Burlington customer, expressed opposition to the closing. In addition, the Commission received and incorporated into the record letters of protest offered by Twin Mountain and members of the Eastern Plains Council of Governments.

The Burlington agency station at Des Moines is currently staffed by one local agent, Ted Kirkendall, who is on duty forty hours per week. Kirkendall’s duties include communicating with customers, collecting revenue, preparing inbound waybills and furnishing the Denver office with information for the outbound waybills, monitoring the station grounds, and correctly spotting railroad cars. Burlington proposes to eliminate Kirkendall’s position and handle all his duties from its Denver office. The Denver agency is staffed with approximately sixty-five employees, is open twenty-four hours a day, seven days a week, and maintains a system-wide computer facility. Burlington’s customers in Union County who wish to order cars, release loaded cars, or obtain information on shipping rates, schedules, freight charges, etc., may choose either to call Denver toll free or to deal with Kirkendall in Des Moines, who must then relay the matter to the Denver facility where it is handled by computer.

Additionally, Kirkendall performs certain safety functions. He visually inspects trains as they roll by to detect equipment malfunctions or other unsafe conditions. In the event of a derailment or other railroad emergency, Kirkendall serves as a relay point for information between local firefighters, Burlington’s wrecking and safety crews, and the Amarillo, Texas, company under contract to Burlington to handle major derailments and the clean-up of hazardous spillage.

Burlington’s three major customers are Twin Mountain, Big Chief Stone, and Kaiser Coal. The revenues for the years 1983 through the first half of 1986 attributable to Des Moines and its assigned blind sidings, where no agent is present, were as follows: $465,000 in 1983; $510,711 in 1984; $478,695 in 1985; and $301,621 for the first half of 1986. A station in the Burlington system must have approximately $400,000 in annual revenue to break even for the year. The total expense for the Des Moines station, which included a percentage of the entire system’s operating costs, the wages and benefits of Kirkendall and two relief workers, and station maintenance costs, was as follows: $42,708 in 1983; $44,988 in 1984; $44,864 in 1985; and $56,906 in the first half of 1986. Over ninety-five percent of the total annual expense is attributable to wages and fringe benefits.

Under Article XI, Section 7 of our constitution, this Court is mandated to decide a case such as this one on its merits. Our scrutiny, therefore, is more exacting than that normally accorded administrative decision-making.2 In reviewing a Commission order on its merits, instead of examining evidence to substantiate the Commission’s findings, we make an independent determination that it is more likely than not that the Commission’s order is just and reasonable. Missouri Pac. R.R. v. State Corp. Comm’n, 93 N.M. 753, 754, 605 P.2d 1152, 1153 (1980). The Commission’s order may be affirmed only “if supported by ‘satisfactory and substantial evidence.’ The term ‘satisfactory’ implies a weighing procedure.” Atchison, T & S.F. Ry. v. Corporation Comm’n, 99 N.M. 205, 207, 656 P.2d 868, 870 (1982) (quoting Mountain States Tel. & Tel. Co. v. Corporation Comm’n, 99 N.M. 1, 6, 653 P.2d 501, 506 (1982)). This is not, however, a de novo review of the record where we substitute our judgment for that of the Commission. Seward v. Denver & Rio Grande R.R., 17 N.M. 557, 578-80, 131 P. 980, 987-88 (1913); but see Village and Citizens of Grenville v. State Corp. Comm’n, 53 N.M. 259, 260, 206 P.2d 259, 260 (1949) (“[T]he cause has been removed for trial de novo provided by Sec. 7 of Art. 11 of this state’s Constitution.”). It is simply that we do not indulge in any presumptions in favor of the agency decision, Mountain States Tel. & Tel. Co., 99 N.M. at 6, 653 P.2d at 506; but while the Commission’s findings are not binding upon this Court, State v. Mountain States Tel. & Tel. Co., 54 N.M. 315, 323, 224 P.2d 155, 161 (1950), it is an overstatement to imply that such findings are ignored in the weighing process. We recognize the expertise of the Commission in public utility management.

In determining the reasonableness of an order concerning the removal of local station agents, this Court engages in a cost-benefit analysis, balancing the convenience to the shipper and the benefit to the public in maintaining the agent, compared to the potential economic waste to the railroad of having to maintain an agent. Missouri Pac. R.R., 93 N.M. at 755, 605 P.2d at 1154. Factors to be considered in this analysis are the expense of maintaining the station, the revenue derived by the railroad from the operation of the station, the mun-ber of people to be benefited, the demand for services, the proximity and accessability of other stations, any inconvenience to the public, the nature of the service remaining or to be substituted, and all other facts and circumstances. Id.; Atchison, T. & S.F. Ry., 99 N.M. at 208, 656 P.2d at 871.

As a preliminary matter, we note that before utilizing this balancing test previous courts first would make clear whether safety was in issue. Seward, 17 N.M. at 594, 131 P. at 993 (where safety is questioned, there is involved a different proposition than the interests of the public and the expense entailed upon the railroad company); Randall v. Atchison, T. & S.F. Ry., 34 N.M. 391, 392, 281 P. 479, 480 (1929) (“No question of the need of an agent * * * for public safety is involved * * *.”); Denton Bros. v. Atchison T. & S.F. Ry., 34 N.M. 53, 54, 277 P. 34, 35 (1929) (“The public safety is not involved. It is a matter of public convenience only.”); Southern Pac. Co. v. State Corp. Comm’n, 76 N.M. 257, 259, 414 P.2d 489

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

Related

In Re Com'n Investigation
980 P.2d 37 (New Mexico Supreme Court, 1999)
U S West Communications, Inc. v. New Mexico State Corp. Commission
1999 NMSC 016 (New Mexico Supreme Court, 1999)
U S West Communications, Inc. v. New Mexico State Corp.
1998 NMSC 032 (New Mexico Supreme Court, 1998)
Matter of Held Orders of US West
943 P.2d 1007 (New Mexico Supreme Court, 1997)
Attorney General v. New Mexico State Corp. Commission
909 P.2d 716 (New Mexico Supreme Court, 1995)
Matter of Rates and Charges of US West
909 P.2d 716 (New Mexico Supreme Court, 1995)
Tallman v. ABF (Arkansas Best Freight)
767 P.2d 363 (New Mexico Court of Appeals, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
761 P.2d 855, 107 N.M. 582, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burlington-northern-railroad-v-corporation-commission-nm-1988.