Chicago & Northwestern Transportation Co. v. Iowa Transportation Regulation Board

322 N.W.2d 273, 1982 Iowa Sup. LEXIS 1430
CourtSupreme Court of Iowa
DecidedJuly 21, 1982
Docket66435
StatusPublished
Cited by14 cases

This text of 322 N.W.2d 273 (Chicago & Northwestern Transportation Co. v. Iowa Transportation Regulation Board) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicago & Northwestern Transportation Co. v. Iowa Transportation Regulation Board, 322 N.W.2d 273, 1982 Iowa Sup. LEXIS 1430 (iowa 1982).

Opinion

LARSON, Justice.

The Chicago and Northwestern Transportation Company operates a busy railroad line through the city of Sergeant Bluff, hauling coal, to a nearby power plant. Streets in the city have been blocked for substantial periods of time, causing consternation among motorists and, by impeding movement of emergency vehicles, posing a danger to the safety of the residents. The city fathers responded to ensuing complaints from their constituents by passing an ordinance, pursuant to Iowa Code § 327G.32 (1979), limiting the blockage of the streets to a maximum of five minutes. The railroad objected to the ordinance, pursuant to the statute. The Transportation Regulation Board first held the objection timely; it later reversed itself and concluded it was untimely, a view shared by the district court upon the railroad’s petition for judicial review, Iowa Code ch. 17A. We affirm the district court.

The relevant facts are undisputed, and no issue is raised on the sufficiency of the evidence before the board to justify the order. The only issues raised concern the sufficiency of the notice sent to the railroad to advise it of the city’s action in passing the crossing ordinance, as required by section 327G.32. Specifically, the arguments are: (1) section 327G.32 is unconstitutional as applied; (2) the board failed to enact rules under section 327G.32 prescribing the contents and manner of service for such notice, thereby vitiating its later proceedings; (3) the railroad’s objection was timely; and (4) if it was not timely, the delay was the result of mistake, inadvertence, surprise, or other circumstances, which excuse the railroad’s failure to object earlier.

*275 Section 327G.32 provides the procedure for passing a crossing ordinance. Under it, a railroad may not be operated in such a manner to obstruct vehicular traffic on a street for more than ten minutes, except in certain enumerated circumstances not involved here; in addition, a city may further regulate the length of blocking time by resolution or ordinance if it can demonstrate such restriction “is necessary for public safety or convenience.” Section 327G.32 then provides:

If such a resolution or ordinance is passed the political subdivision shall within thirty days of the effective date of the resolution or ordinance notify the [Transportation Regulation Board] and the railroad corporation using the crossing affected by the resolution or ordinance. The resolution or ordinance shall not become effective unless the board and the railroad corporation are notified within thirty days. The resolution or ordinance shall become effective thirty days after such notification unless a person files an objection to the resolution or ordinance with the board. If an objection is filed the board shall hold a hearing according to the rules established by the board. The board may disapprove the resolution or ordinance if public safety or convenience does not require such a resolution or ordinance. The resolution approved by the political subdivision shall be prima facie evidence that the resolution is adopted to preserve public safety or convenience.

(Emphasis added.)

The statute does not specify what is to be included in the notice, or the manner in which it is to be served. It merely requires that the railroad and the board be “notified” within thirty days of the passage of a crossing ordinance. We have had no prior occasion to interpret this language, which was added by amendment, 1977 Iowa Acts ch. 103, § 62. The provision for notice is so broad it would be difficult to argue the city’s letter, which was sent to a representative of the railroad, did not comport with its requirements, and the railroad does not take that position. Rather, it argues that the notice here deprived it of a valuable property right without due process. Notice of the ordinance was sent the day following the city’s action, by certified mail, with return receipt requested, to the railroad’s trainmaster at Sioux City. The mailing consisted of a copy of the crossing ordinance and a cover letter, which stated: “Pursuant to the provisions of section 327G.32 of the Iowa Code, enclosed please find a copy of [the crossing] ordinance .. . enacted by the City of Sergeant Bluff on April 12, 1979.” The trainmaster, who was also the railroad’s “general agent,” was on vacation when the letter was received by his office on April 16th. His chief clerk signed a receipt for the letter in the train-master’s name, and sent it the next day to the railroad’s assistant vice president and division manager in Boone, where it was received the following day, April 18th. Under section 327G.32 the railroad had thirty days after notification to file an objection to the ordinance, but no responsive action was taken by it until after the thirty-day period.

I. Preservation of errors.

The railroad makes several subarguments under the heading of due process: (1) section 327G.32 requires “actual receipt” of a copy of the crossing ordinance; (2) the statute and the due process clauses of the federal and state constitutions require the notice to inform a railroad it has a right to object to the ordinance, and that it must object within thirty days from the date of its receipt, or lose that right; (3) the statute “on its face and as applied” suffers from vagueness and overbreadth; (4) the board was precluded from sua sponte reconsidering and reversing its initial decision that the railroad had timely objected to the ordinance; and (5) “a hearing on the merits was required that could not preclude the [railroad] as an interested party even if its objection was not timely” since another railroad, no longer a party to this litigation, timely objected to the ordinance. We believe, however, that error on the issue of due process was properly preserved only on the form and method of notice.

*276 (A) Due process. At the stages of agency rehearing and review in the district court the railroad raised two arguments for the first time. First, in its application for rehearing, § 17A.16(2), the railroad argued that section 327G.32, as applied, violated due process (apparently under both federal and state constitutions). (No order granting the application was entered, and under section 17A.16(2) the application was deemed denied twenty days after its filing.) Second, in its petition for judicial review, § 17A.19, the railroad argued that section 327G.32 was unconstitutional on its face. The city argues that the railroad’s failure to earlier raise these arguments constituted a waiver of any error, and that this court should not consider them.

We have stated that in contested cases “our review is limited to those questions considered by [the administrative agency.]” General Telephone Co. v. Iowa State Commerce Commission, 275 N.W.2d 364, 367 (Iowa 1979). As one authority has stated:

It is a general rule subject to some limitations and exceptions, that an appellate court will consider only such questions as were raised and reserved in the lower court.

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Bluebook (online)
322 N.W.2d 273, 1982 Iowa Sup. LEXIS 1430, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-northwestern-transportation-co-v-iowa-transportation-regulation-iowa-1982.