Cheney Railroad Company, Inc. v. Railroad Retirement Board, Tyson Railroad, Inc. v. Railroad Retirement Board

50 F.3d 1071, 311 U.S. App. D.C. 119, 1995 U.S. App. LEXIS 6114, 1995 WL 123683
CourtCourt of Appeals for the D.C. Circuit
DecidedMarch 24, 1995
Docket93-1621, 93-1636
StatusPublished
Cited by13 cases

This text of 50 F.3d 1071 (Cheney Railroad Company, Inc. v. Railroad Retirement Board, Tyson Railroad, Inc. v. Railroad Retirement Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cheney Railroad Company, Inc. v. Railroad Retirement Board, Tyson Railroad, Inc. v. Railroad Retirement Board, 50 F.3d 1071, 311 U.S. App. D.C. 119, 1995 U.S. App. LEXIS 6114, 1995 WL 123683 (D.C. Cir. 1995).

Opinion

Opinion for the court filed by Circuit Judge ROGERS.

ROGERS, Circuit Judge:

The issue in these appeals is whether feeder railroads that are exempt from most *1073 of the requirements of the Interstate Commerce Act remain subject to the Railroad Retirement Act (“RRA”) and the Railroad Unemployment Insurance Act (“RUIA”). Two feeder railroads, petitioners Cheney Railroad Company, Inc. and Tyson Railroad, Inc., challenge the decision of the Railroad Retirement Board that they were “employers” under the RRA and the RUIA and therefore subject to the requirements of those two statutes. Petitioners maintain that the term “employer” as used in the railroad employee benefit statutes is limited to entities subject to a portion of the Interstate Commerce Act from which they have properly exempted themselves. Because the language and history of the RRA and the RUIA demonstrate that feeder railroads are “employers” under these statutes, we deny the petitions for review.

I.

In 1989, the Interstate Commerce Commission, acting pursuant to § 401 of the Staggers Rail Act, 49 U.S.C. § 10910 (1988), authorized Cheney Railroad Company, Inc. (“Cheney”) to acquire approximately 53 miles of railroad line. Cheney R.R. Co., 5 I.C.C.2d 250, 276 (1989). In the same proceeding, the Commission authorized the predecessor of Tyson Railroad, Inc. (“Tyson”) to acquire a much shorter segment of rail line. Id. 1 The Staggers Rail Act provides that the operators of such railroad lines “may elect to be exempt from any of the provisions of this title, except that such a[n operator] may not be exempt from the provisions of chapter 107 of this title with respect to transportation under a joint rate.” 49 U.S.C. § 10910(g)(1). 2 The Commission honored petitioners’ elections of this exemption. Cheney, 5 I.C.C.2d. at 262, 264, 277.

Cheney and Tyson requested determinations from the Board regarding whether they were “employers” under the RRA and the RUIA. They asserted, in effect, that their exercise of the Staggers Rail Act exemption from portions of title 49 also operated to exempt them from coverage of the RRA and the RUIA because the coverage of these statutes is predicated on the applicability of part of the Interstate Commerce Act (“ICA”), which was codified in subtitle IV of title 49. 3 On July 29,1993, the Board denied their appeals from a decision on reconsideration of the Deputy General Counsel, thereby ruling that although Cheney and Tyson had properly invoked the Staggers Rail Act exemption, they were nevertheless “employers” under the RRA and the RUIA. 4 In affirming and adopting the reconsideration opinion of its Deputy General Counsel, the Board concluded that Congress intended the Staggers Rail Act exemption to be narrow and the remedial RRA and RUIA to encompass broadly all railroad carriers in the United States. The Board ruled that because Cheney and Tyson remained subject to the joint rate provisions of chapter 107 of title 49, they necessarily remained subject, at least in part, to the ICA, and therefore their employees were covered by the RRA and the RUIA. Cheney and Tyson seek review of the Board’s decisions pursuant to 45 U.S.C. §§ 231g & 355(f).

II.

Whether Cheney and Tyson are employers under the RRA and the RUIA present questions of law that turn on the interpretation of not only the RRA and the RUIA, but also the Staggers Rail Act and the ICA. Because the ICA and the Staggers Rail Act are not the Board’s governing statutes, but rather are administered by the Commission, Society of Plastics Indus., Inc. v. ICC, 955 F.2d 722, 727 (D.C.Cir.1992) (court’s review of Commission’s interpretation of ICA governed by Chevron U.S.A., Inc. v. Natural *1074 Resources Defense Council, Inc., 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984)); Black v. ICC, 762 F.2d 106, 114-15 (D.C.Cir.1985) (same, Staggers Rail Act), we review de novo the Board’s decisions that because petitioners are subject to provisions of the ICA, they are employers under the RRA and the RUIA. See Johnson v. United States R.R. Retirement Bd., 969 F.2d 1082, 1088-89 (D.C.Cir.1992), cert. denied, — U.S. —, 113 S.Ct. 1842, 123 L.Ed.2d 467 (1993); see also Department of Treasury v. FLRA, 837 F.2d 1163, 1167 (D.C.Cir.1988). 5

Throughout this case, the Board, its Deputy General Counsel, and the petitioners have disputed the definition of “employer” in the RRA and the RUIA based on their various analyses of the codified versions of the railroad employee benefit statutes. However, the language that Congress enacted in these statutes differs from that in the current version of the United States Code in a way that resolves the dispute. Moreover, the codified language is fully consistent with the statutes as enacted. Accordingly, we first turn to the statutory language as it was enacted and as it has now come to be codified and then address the rationale adopted by the Board.

A.

Congress enacted the first version of the RRA in 1934, Pub.L. No. 73-485, 48 Stat. 1283 (1934), but the Supreme Court held it unconstitutional. See Railroad Retirement Bd. v. Alton R.R. Co., 295 U.S. 330, 55 S.Ct. 758, 79 L.Ed. 1468 (1935). Congress quickly responded by passing a second RRA in 1935. Pub.L. No. 74-399, 49 Stat. 967 (1935). The coverage of this statute, like its predecessor, was broad, reaching “any express company, sleeping-car company, or carrier by railroad, subject to the Interstate Commerce Act. ...” Id. (emphasis added). The Act’s title reflects its broad scope: “AN ACT To establish a retirement system for employees of carriers subject to the Interstate Commerce Act, and for other purposes.” Id.; see INS v. National Center for Immigrants’ Rights, Inc., 502 U.S. 183, 189, 112 S.Ct.

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50 F.3d 1071, 311 U.S. App. D.C. 119, 1995 U.S. App. LEXIS 6114, 1995 WL 123683, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cheney-railroad-company-inc-v-railroad-retirement-board-tyson-railroad-cadc-1995.