Consolidated Rail Corporation v. Surface Transportation Board, Commonwealth of Pennsylvania, Intervenors

93 F.3d 793, 320 U.S. App. D.C. 130, 1996 U.S. App. LEXIS 20884
CourtCourt of Appeals for the D.C. Circuit
DecidedAugust 20, 1996
Docket19-5105
StatusPublished
Cited by21 cases

This text of 93 F.3d 793 (Consolidated Rail Corporation v. Surface Transportation Board, Commonwealth of Pennsylvania, Intervenors) 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
Consolidated Rail Corporation v. Surface Transportation Board, Commonwealth of Pennsylvania, Intervenors, 93 F.3d 793, 320 U.S. App. D.C. 130, 1996 U.S. App. LEXIS 20884 (D.C. Cir. 1996).

Opinion

Opinion for the court filed by Circuit Judge BUCKLEY.

BUCKLEY, Circuit Judge:

Consolidated Rail Corporation (“Conrail”) petitions for review of a series of Interstate Commerce Commission (“ICC” or “Commission”) orders reopening an earlier decision that authorized Conrail to abandon a line connecting two Pennsylvania communities and directing the railroad to sell the line to a group of municipalities. The ICC’s orders are defended on appeal by the Surface Transportation Board (“STB”), which has assumed the Commission’s functions pursuant to the ICC Termination Act of 1995. Because Conrail had satisfied the formal requirements for an abandonment under existing ICC precedent, thereby depriving the ICC of jurisdiction over the line, and because there is no basis for concluding that the abandonment was authorized as a result of mistake, fraud, or ministerial error, we grant the petition and vacate the orders.

I. BACKGROUND

A. Regulatory Background

On January 1, 1996, many functions of the ICC, including authority over abandonment proceedings, were transferred to the STB in the Department of Transportation. ICC Termination Act of 1995, Pub.L. No. 104-88, § 201, 109 Stat. 803, 932-34 (1995). In its savings provision, the ICC Termination Act provides that

[t]his Act shall not affect suits commenced before the date of the enactment of this Act.... In all such suits, proceeding shall be had, appeals taken, and judgments rendered in the same manner and with the same effect as if this Act had not been enacted.

§ 204(c)(1), 109 Stat. at 942. See also H.R. Conf. Rep. No. 422, 104th Cong., 1st Sess. 236-37 (1995); In re Olympia Holding Corp., 88 F.3d 952, 961 n. 23 (11th Cir.1996). Accordingly, for purposes of this appeal, we treat the provisions of the Interstate Commerce Act as they existed prior to the enactment of the ICC Termination Act.

During the times relevant to this appeal, the ICC had, pursuant to the Interstate Commerce Act, exclusive jurisdiction over the construction and operation of virtually all the nation’s rail lines. A rail carrier could not be relieved of its legal obligation to provide rail service over a particular line until it had first obtained ICC permission to discontinue or “abandon” service. See 49 U.S.C. § 10903(a) (1994). When the carrier had abandoned the line and the ICC had issued an “abandonment certificate,” the Commission was generally deemed to have been relieved of its jurisdiction over the line, see Preseault v. ICC, 494 U.S. 1, 5 n. 3, 110 S.Ct. 914, 919 n. 3, 108 L.Ed.2d 1 (1990); and the owner was free to “remove the track and dispose of the land,” Illinois Commerce Comm’n v. ICC, 787 F.2d 616, 620 n. 1 (D.C.Cir.1986).

The ICC had authority over abandonments since 1920. For most of this period, Congress set no time limit for abandonment proceedings. See Hayfield N. R.R. Co. v. Chicago & N.W. Transp. Co., 467 U.S. 622, 628, 104 S.Ct. 2610, 2614, 81 L.Ed.2d 527 (1984). Commentators observed that the Commission “acted as a judicial brake upon possible abandonments.” See Stephen R. Wild, A History of Railroad Abandonments, 23 Transp. L.J. 1, 5 (1995). “Railroads consequently found themselves enmeshed in lengthy proceedings” while awaiting issuance of an abandonment certificate and were thus prevented from “unburden[ing] themselves promptly of unprofitable lines.” Hayfield, 467 U.S. at 628, 104 S.Ct. at 2614.

In 1976 and 1980, Congress adopted amendments to the Act to facilitate line abandonments by establishing deadlines for processing abandonment applications. See Railroad Revitalization and Regulatory Reform Act of 1976 (“4-R Act”), Pub.L. No. 94- *795 210, § 802, 90 Stat. 31, 127, originally codified at 49 U.S.C. § la (1976) (subsequently recodified without substantive change at 49 U.S.C. § 10903 et seq. (1994)); Staggers Rail Act of 1980, Pub.L. No. 96-148, § 402, 94 Stat. 1895, 1941-1945, codified at 49 U.S.C. §§ 10903-10906 (1994). As the Supreme Court explained, these amendments were intended to “alleviate the costly delays imposed upon railroads by protracted proceedings before the Commission.” Hayfield, 467 U.S. at 629, 104 S.Ct. at 2615; see also Simmons v. ICC, 775 F.2d 854, 857 (7th' Cir.1985) (amendments evinced “the congressional desire to see abandonment proceedings expedited”).

The 4-R Act and the Staggers Rail Act created the following guidelines for abandonment proceedings: The Commission determined, within specified time limits following the filing of an application to abandon any part of a railroad line, whether the public convenience and necessity permitted the proposed abandonment. See generally 49 U.S.C. §§ 10903, 10904. Upon finding that the public convenience and necessity permitted such an abandonment, the Commission was required, “concurrently with the service of the decision upon the parties, [to] publish the finding in the Federal Register.” Id. § 10905(c). Within ten days following such publication,

any person may offer to pay the carrier a subsidy or offer to purchase the line. Such offer shall be filed concurrently with the Commission. If the offer to subsidize or purchase the line is less than the carrier’s estimate [of the subsidy or minimum purchase price required to keep the line in operation], the offer shall explain the basis of the disparity, and the manner in which the offer of subsidy or purchase is calculated.

Id. If such an offer of financial assistance (“OFA”) was made, the ICC, within fifteen days of the publication, determined whether the offeror was financially responsible and the offer satisfied certain financial criteria. If the ICC so found, it postponed the issuance of the abandonment certificate to allow the parties to negotiate the amount of the purchase price or subsidy. Id. at § 10905(d). The parties had 30 days to reach agreement on their own. If they failed to do so, either party could request that the ICC, within 60 days, establish the conditions and amount of compensation. Id. at § 10905(e) and (f)(1)(A) &(B).

B. Facthal Background

In June 1994, Conrail requested the ICC’s authorization to abandon a rail line between Corry and Meadville, Pennsylvania (“Mead-ville line” or “line”), where it had estimated losses of $640,000 in 1993.

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93 F.3d 793, 320 U.S. App. D.C. 130, 1996 U.S. App. LEXIS 20884, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consolidated-rail-corporation-v-surface-transportation-board-commonwealth-cadc-1996.