Consolidated Rail Corp. v. Reading Co.

654 F. Supp. 1318
CourtSpecial Court under the Regional Rail Reorganization Act
DecidedJanuary 27, 1987
DocketCiv. A. Nos. 82-29, 84-9 and 85-2
StatusPublished
Cited by8 cases

This text of 654 F. Supp. 1318 (Consolidated Rail Corp. v. Reading 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. Reading Co., 654 F. Supp. 1318 (reglrailreorgct 1987).

Opinion

654 F.Supp. 1318 (1987)

CONSOLIDATED RAIL CORPORATION, Plaintiff,
and
United States of America and United States Railway Association, Intervenors,
v.
READING COMPANY; Carl Scholing, on behalf of himself, and all others similarly situated; and Woodrow W. Schwambach, on behalf of himself and all others similarly situated, Defendants.
CONSOLIDATED RAIL CORPORATION, United States Railway Association, and United States of America, Plaintiffs,
v.
ERIE LACKAWANNA, INC., Floyd Patrick, et al., Defendants.
Francis PUISHIS, Executor of the Estate of Anthony J. Puishis, Phillip Angello and John C. Henning, Plaintiffs,
v.
NATIONAL RAILROAD PASSENGER CORPORATION and Consolidated Rail Corporation, Defendants.

Civ. A. Nos. 82-29, 84-9 and 85-2.

Special Court, Regional Rail Reorganization Act.

January 27, 1987.

*1319 *1320 Laurence Z. Shiekman, M. Duncan Grant, Patricia H. Burrall, Mary Beth Clark, Pepper, Hamilton & Scheetz, Philadelphia, Pa., Bruce B. Wilson, Donald A. Brinkworth, Philadelphia, Pa., for Consolidated Rail Corp.

Christopher M. Klein, John C. Morland, Washington, D.C., for National R.R. Passenger Corp.

Richard K. Willard, Asst. Atty. Gen., Michael F. Hertz, Alan E. Kleinburd, U.S. Dept. of Justice, Washington, D.C., and Frazer C. Hilder, U.S. Ry. Ass'n, Washington, D.C., for U.S. and U.S. Ry. Ass'n.

Harry G. Silleck, Jr., Howard W. Goldstein, James Niss, Adrian von Hassel, Mudge, Rose, Guthrie, Alexander & Ferdon, New York City, for Erie Lackawanna, Inc.

Howard H. Lewis, Timothy I. McCann, Sprecher, Felix, Visco, Hutchinson & Young, Philadelphia, Pa., for Reading Co.

Alan L. Krumholz, Pearlman, Krumholz, Horn & Shechtman, Jersey City, N.J., for Floyd Patrick, et al.

Joseph F. Rice, James H. Rion, Jr., Blatt & Fales, Barnwell, S.C., Richard H. Middleton, Middleton & Anderson, Savannah, Ga., for Carl Scholing and Woodrow W. Schwambach.

Robert J.F. Brobyn, Raymond P. Forceno, Brobyn & Forceno, Philadelphia, Pa., for Francis Puishis, et al.

Before GASCH, Presiding Judge, and BRYANT and WEINER, Judges.

MEMORANDUM

BRYANT, Judge:

I. Introduction

These actions are brought pursuant to the Regional Rail Reorganization Act of 1973 ("Rail Act" or "3R Act"), 45 U.S.C. § 701 et seq., as amended by the Northeast Rail Service Act of 1981 ("NRSA"), 45 U.S.C. § 1101 et seq. All the cases stem from personal injury suits commenced by various longtime railroad employees, or their representatives, in federal and state courts under the Federal Employer's Liability Act ("FELA"), 45 U.S.C. § 51 et seq., in which damages are sought for injuries or death allegedly sustained as a result of *1321 exposure to asbestos while employed by the bankrupt railroads which transferred the bulk of their rail properties to Conrail and others pursuant to section 303(b) of the Rail Act.

In each of the cases in this court plaintiffs seek a declaratory judgment, pursuant to 28 U.S.C. § 2201, on the same issue, i.e., the effect of the Rail Act upon the aforementioned FELA claims. More specifically, the issue is whether § 709(b) of the Act furnishes grounds for recovery of damages against Conrail and/or Amtrak, or instead, erects a permanent barrier against recovery from them, either under the Act or any other authority.

The cases were previously consolidated for the purpose of hearing motions and are now before the court on cross-motions for summary judgment. The procedural backgrounds of the cases differ, and it is helpful to examine the routes which have brought them to their current common ground.

II. Procedural Background

A. Conrail, et al. v. Reading Co., et al., C.A. No. 82-29

This action was brought by Conrail in December 1982 against the Reading Co. ("Reading") and two former Reading employees. Reading, whose rail properties were conveyed to Conrail in 1976, was discharged in bankruptcy in 1980. Both individual defendants, Woodrow W. Schwambach, who was subsequently employed by Conrail, and Carl Scholing, who was not hired by Conrail, are among several who have filed FELA actions against Conrail and Reading in the United States District Court for the Eastern District of Pennsylvania, for asbestos-related injuries allegedly sustained while they were employed by Reading. On April 13, 1984 this court granted the motions of the United States and the United States Railway Association ("USRA") for leave to intervene as plaintiffs. All parties have moved for summary judgment.

B. Conrail, et al. v. Erie Lackawanna, Inc., et al., C.A. No. 84-9

In October 1984 Conrail commenced this suit against Erie Lackawanna ("Erie") and nine former railroad employees. The individual defendants had worked for either Erie, Lehigh Valley Railroad Co. ("Lehigh Valley") or Penn Central Transportation Co., ("Penn Central") prior to being employed by Conrail. Erie, Lehigh Valley and Penn Central conveyed their rail properties to Conrail in 1976 and their reorganization plans have since been consummated. Thereafter, the nine individual defendants in this case filed FELA suits against Conrail in New Jersey state courts in which they assert that Conrail is liable, as a successor corporation to the bankrupt railroads, for injuries that stemmed from their employment with Conrail's predecessors. On November 28, 1984 this court granted the United States and the USRA leave to intervene as plaintiffs. The parties have moved for summary judgment.

C. Puishis, et al. v. Amtrak and Conrail, C.A. No. 85-2

Three individuals brought this action in January 1985 against Conrail and Amtrak. One plaintiff had worked for Penn Central and seeks relief from Conrail; another had worked for Erie and Conrail and is seeking relief against Conrail; a third plaintiff had worked for Penn Central and seeks relief from Amtrak. Plaintiffs here seek a declaratory judgment that, pursuant to provisions of the Rail Act, Conrail and Amtrak are obligated to assume, process, and pay the claims for asbestos-related injuries arising from plaintiffs' employment with Conrail's and Amtrak's predecessors. On June 13, 1985 this court granted Erie's motion to intervene as a defendant. All parties have now moved for summary judgment.

On March 18, 1985 this court entered an order which stayed trial of the FELA actions pending in other courts.

III. Liability Under Section 709(b) of the Rail Act

All three cases turn on the current applicability and the effect of § 709(b) of the *1322 Rail Act, as amended, 45 U.S.C. § 797h(b), and § 211(h)(1) of the Act, 45 U.S.C. § 721(h)(1).[1]

Section 709(b) states:

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Cite This Page — Counsel Stack

Bluebook (online)
654 F. Supp. 1318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consolidated-rail-corp-v-reading-co-reglrailreorgct-1987.