Consolidated Rail Corp. v. Pittsburgh & LER Co.

459 F. Supp. 1013
CourtSpecial Court under the Regional Rail Reorganization Act
DecidedOctober 18, 1978
DocketCiv. A. No. 78-2
StatusPublished
Cited by10 cases

This text of 459 F. Supp. 1013 (Consolidated Rail Corp. v. Pittsburgh & LER Co.) is published on Counsel Stack Legal Research, covering Special Court under the Regional Rail Reorganization Act primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Consolidated Rail Corp. v. Pittsburgh & LER Co., 459 F. Supp. 1013 (reglrailreorgct 1978).

Opinion

459 F.Supp. 1013 (1978)

CONSOLIDATED RAIL CORPORATION, Plaintiffs,
v.
PITTSBURGH AND LAKE ERIE RAILROAD COMPANY, Defendants.

Civ. A. No. 78-2.

Special Court, Regional Rail Reorganization Act.

October 18, 1978.

Laurence Z. Shiekman, Philadelphia, Pa. (John G. Harkins, Jr., and Teresa R. Novick, Washington, D.C., of counsel), Pepper, Hamilton & Scheetz, Philadelphia, Pa., for plaintiff Consolidated Rail Corp.

*1014 Fritz R. Kahn, Washington, D.C. (Dennis J. Whittlesey and Floyd H. Lewis, Washington, D.C., of counsel), Verner, Lipfert, Bernhard & McPherson, Washington, D.C., for defendant Pittsburgh and Lake Erie R. Co.

Henri F. Rush, Associate Gen. Counsel, Washington, D.C. (Mark L. Evans, Gen. Counsel, Washington, D.C.), for intervenor Interstate Commerce Commission.

Before FRIENDLY, P. J., and WISDOM and THOMSEN, JJ.

FRIENDLY, Presiding Judge:

In this action Consolidated Rail Corporation (ConRail) seeks declaratory and injunctive relief with respect to a controversy which has arisen between it and the Pittsburgh & Lake Erie Railroad Company (P&LE) with respect to a trackage rights agreement relating to the Ashtabula Harbor Branch, formerly owned by the Penn Central Transportation Company (Penn Central), extending northward from Ashtabula, Ohio, to the coal and iron ore docks at the Lake Erie lakefront. All these docks save one, called the Pinney Dock, had been owned by Penn Central and are now owned by ConRail.

The trackage rights agreement was executed pursuant to the Final System Plan (FSP) and designations thereunder. The FSP stated:

P&LE is being offered access to Penn Central's Ashtabula, Ohio coal and iron ore transload facilities via trackage rights between Youngstown and Ashtabula and joint use of PC's Astabula Docks. This would allow it to provide single line service between Lake Erie and the important steel-producing Pittsburgh area. I FSP 26.

The designation section stated this as follows:

P&LE to obtain overhead trackage rights only for the handling of traffic destined to or originated at Ashtabula Harbor, OH over Penn Central line to be transferred to ConRail between Youngstown (Milepost 58.3-Youngstown Branch) and Ashtabula, OH (Milepost 0.0), and between Ashtabula (Milepost 0.0) and Ashtabula Harbor, OH (Milepost 2.3) and obtain joint use of Penn Central Ashtabula Dock facilities to be transferred to ConRail. I FSP 367.

The FSP at I 286 and the December 1, 1976 Official Errata Supplement at 26 made the following statement concerning trackage rights:

In some of the projects, one railroad is offered "overhead rights" over a rail line operated principally by another railroad, and in others a railroad is offered "unrestricted trackage rights." "Overhead trackage rights" permit the railroad to operate trains over a particular line of railroad but not to serve shippers, sidings, or team tracks located along that line of railroad. "Unrestricted trackage rights" include the right to serve shippers, sidings and team tracks located along the line of a railroad as well as the right to operate trains over the line.

P&LE timely accepted the designation. United States Railway Association (USRA) certified to this Court the conveyance by the Penn Central Trustees to ConRail and the grant of trackage rights to P&LE. Pursuant to our conveyance order, the Penn Central Trustees, on March 31, 1976, executed an "operating rights grant" to P&LE giving the latter "overhead trackage rights including the right to use dock facilities presently used by Penn Central and in addition such other facilities as may be determined by mutual agreement of Pittsburgh and Lake Erie Railroad and Consolidated Railroad Corporation" in the Ashtabula Harbor Branch. On the same date ConRail and P&LE executed an implementing agreement, Article VII of which provided:

The trackage rights herein granted are for bridge rights and User shall not perform any local freight service whatever at any intermediate point located on the Joint Trackage except, however, that User shall have rights to (a) connect and interchange with the Norfolk & Western Railway through use of existing and/or future tracks connected with the Joint *1015 Trackage in the vicinity of M.P. 1.1 of the Youngstown Branch at Ashtabula, Ohio, (b) use, in common with Owner, Owner's Carson Yard between M.P. 4.6 and M.P. 5.9 of the Youngstown Branch for the purpose of picking up and setting off cars exclusively in User's service, and (c) leave and enter the Joint Trackage in the vicinity of M.P. 57.6 for the purpose of operating locomotives, cars and trains over Owner's railroad to Sharon and Shenango, Pa., in accordance with the terms of a separate agreement between the parties covering such operation. In the exercise of said rights User shall be subject to such operating conditions as may reasonably be directed by the Owner without prejudice or partiality to either party.
User shall not use any part of the Joint Trackage, except as provided hereinabove, for the purpose of switching or storage of cars, except that nothing contained herein shall, upon approval of Owner, preclude the emergency use by User of such auxiliary tracks as may be designated by Owner for such purpose.

The present controversy arose when P&LE issued a new freight tariff on March 17, 1978, for shipments of ex-lake iron ore in carloads, applicable from "railroad and privately owned docks at Ashtabula Harbor, Ohio" to inland points in Maryland, Ohio and Pennsylvania. A protesting telegram from ConRail elicited a somewhat uninformative answer from P&LE that it believed the tariff to be authorized by the FSP, the trackage rights agreement and the order of conveyance. Some three months later, on July 31, 1978, P&LE filed with the Interstate Commerce Commission a petition, Ex parte No. 293 (Sub-No. 4), now F.D.No. 28825, seeking a declaration that (1) P&LE has the right to serve Pinney Dock, (2) assuming P&LE has such a right to serve Pinney Dock, the intra-terminal switching charge imposed by ConRail does not apply to P&LE traffic between Pinney Dock and the ConRail-owned trackage rights route, and (3) even if the switching charge is applicable, it is unjust and unreasonable. Paragraph 19 of the petition states:

19. P&LE asserts that the designation in the Final System Plan, together with the Special Court's order of conveyance and the Agreement dated March 31, 1976, granted to P&LE the right to handle traffic destined to or originated at all dock facilities, including Pinney Dock, at Ashtabula Harbor.

In this action ConRail seeks a declaratory judgment that the FSP designations, the trackage rights agreement which it executed implementing those designations, and the conveyance order granted P&LE only the right to provide overhead service between the ConRail-owned docks at Ashtabula Harbor, Ohio, and inland points, and that P&LE's attempt to provide service to Pinney Dock, an industry located along the trackage rights route, is inconsistent with the FSP, the certifications by USRA to this Court, and this Court's Order of Conveyance.

ConRail having moved for a stay of the ICC proceedings initiated by P&LE, we set the motion for argument on September 20, 1978. In opposing the stay, P&LE relied principally on the fact that § 209(g) of the Rail Act, quoted in the margin,[1] authorizes us only to enjoin court proceedings; it argued also that a stay would be inappropriate under such familiar decisions as Myers v.

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Bluebook (online)
459 F. Supp. 1013, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consolidated-rail-corp-v-pittsburgh-ler-co-reglrailreorgct-1978.