Commonwealth of Pa. v. Penn Central Transp. Co.

348 F. Supp. 28, 1972 U.S. Dist. LEXIS 11950
CourtDistrict Court, M.D. Pennsylvania
DecidedSeptember 18, 1972
DocketCiv. A. 72-427
StatusPublished
Cited by9 cases

This text of 348 F. Supp. 28 (Commonwealth of Pa. v. Penn Central Transp. Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commonwealth of Pa. v. Penn Central Transp. Co., 348 F. Supp. 28, 1972 U.S. Dist. LEXIS 11950 (M.D. Pa. 1972).

Opinion

OPINION

MUIR, District Judge.

Tropical Storm Agnes struck Pennsylvania in late June, 1972, and created unprecedented floods and destruction. The damage was particularly severe in the Wilkes-Barre area.

This suit by the Commonwealth of Pennsylvania and its Public Utility Commission seeks a mandatory injunction to require the Penn Central Transportation Company to restore two of its lines which were badly damaged by the storm. The branches which are the subject of this suit are the so-called Wilkes-Barre branch between Sunbury and Wilkes-Barre and the so-called Northern Central branch between York, Pennsylvania and Cockeysville, Maryland. Since Tropical Storm Agnes, Penn Central has not operated any trains on these two branches. For the reasons stated below, Plaintiffs’ application for an injunction will be denied.

The legal context of this action is found in two sections of the Interstate Commerce Act. Section 1(18) of the Act, 49 U.S.C. Section 1(18), provides in relevant part that a railroad shall not “abandon all or any portion of a line of railroad, or the operation thereof, unless and until there shall first have been obtained from the Commission a certificate that the present or future public convenience and necessity permit of such abandonment.” Under Section 1(20) of *30 the Act, 49 U.S.C. Section 1(20), any abandonment contrary to the provisions of Section 1(18) “may be enjoined by any court of competent jurisdiction at the suit of . ... any commission or regulating body of the State or States affected, or any party in interest”.

On September 1, 1972, Penn Central filed an application with the Interstate Commerce Commission (ICC) to abandon these two lines. The ICC has not decided whether to grant this application, but it has ordered Penn Central to restore service on the Wilkes-Barre branch by October 21, 1972. This order may well be modified.

Penn Central's indefinite suspension of operation on these branches and its application for abandonment constitute abandonment of operations within the meaning of 49 U.S.C. Section 1(18). See Meyers v. Jay Street Connecting Railroad, 259 F.2d 532, 535 (2d Cir. 1958). Since the ICC has not sanctioned this abandonment, Penn Central’s action is in violation of 49 U.S.C. Section 1(18), and this Court has the power to enjoin said violation. 49 U.S.C. Section 1(20).

This power to enjoin should not, however, be lightly or automatically exercised. I find nothing in the Interstate Commerce Act which indicates that where á line of a railroad is destroyed in whole or in part by a natural catastrophe, a Court should order restoration to commence immediately regardless of the damage to or importance of the line. See Myers v. Arkansas & Ozarks Railway Corporation, 185 F.Supp. 36 (W.D. Ark.1960); Smith v. United States, 211 F.Supp. 66 (D.Conn.1962); McGrody v. Baltimore and Ohio Railroad, 217 F.Supp. 252 (E.D.Pa.1963).

The test which this Court must apply is whether it is equitable to permit Penn Central to continue suspension of service until the ICC decides whether permanent abandonment is appropriate. The ICC has indicated that it will expedite consideration of the abandonment proceedings with respect to the two branches.

I have considered many factors in reaching my decision:

(1) The extent of the damage to the two branches.

(2) The economic importance of each of the two branches.

(3) The pendency of the application to the ICC for leave to abandon the branches.

(4) The order of the ICC to the railroad to restore service on the Wilkes-Barre branch.

(5) The order of the ICC to use a line parallel to the Wilkes-Barre branch on a test basis.

(6) The offer of the Delaware and Hudson Railroad to contribute $100,000 to the Penn Central towards the restoration of the Wilkes-Barre branch.

(7) The reorganization of - the Penn Central under the supervision of Judge Fullam of the U. S. District Court for the Eastern District of Pennsylvania.

(8) The abandonment of these lines as a possible factor in the reorganization of Penn Central.

(9) The $19,000,000 damage to Penn Central’s system by Tropical Storm Agnes.

(10) The extensive economic damage to Pennsylvania communities, particularly Wilkes-Barre, by Tropical Storm Agnes.

(11) The loss of jobs of railroad personnel in the Wilkes-Barre area.

(12) That prior to Tropical Storm Agnes, Penn Central had petitioned the reorganization court for leave to apply to the ICC to abandon the Northern Central branch.

I have given the greatest weight, as I believe I am required to do in these proceedings, to the first three factors.

*31 The approximate cost to restore the Wilkes-Barre branch is $250,000 and to restore the Northern Central branch in its entirety is $400,000.

My assessment of the above factors leads me to conclude that it would not be equitable to require Penn Central to expend substantial funds to restore service temporarily on these two branches when all the elements, both short and long term, affecting such restoration will be given extensive consideration by the ICC. See Asbury v. Chesapeake & Ohio Railway Co., 264 F.Supp. 437 (D.D.C. 1967). The ICC has the expertise and broad perspective necessary to determine the feasibility of the permanent abandonment of railroad lines which this court lacks.

It is appropriate to add that, in my view, this suit should more properly have been brought by the Plaintiffs in the United States District Court for the Eastern District of Pennsylvania, the reorganization court, for two reasons. First, that Court is better able to evaluate - Penn Central’s needs and its ability to expend the sums required for restoration. Second, Order #1 of that Court in the reorganization matter prohibits this suit. See In re Penn Central Transportation Company, 329 F.Supp. 387 (E.D.Pa.1971); affirmed 446 F.2d 1109 (3d Cir. 1971); 28 U.S.C. Section 959(a). Since the reorganization court has at times specifically enjoined particular suits, but has not done so here, I felt that Order #1 was not an absolute bar to consideration of Plaintiffs’ claims by this Court. See In re Penn Central Transportation Company, supra, at 1113.

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348 F. Supp. 28, 1972 U.S. Dist. LEXIS 11950, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commonwealth-of-pa-v-penn-central-transp-co-pamd-1972.