CSX Transportation, Inc. v. Surface Transportation Board

75 F.3d 696, 316 U.S. App. D.C. 114
CourtCourt of Appeals for the D.C. Circuit
DecidedFebruary 16, 1996
DocketNo. 95-1162
StatusPublished
Cited by2 cases

This text of 75 F.3d 696 (CSX Transportation, Inc. v. Surface Transportation Board) 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
CSX Transportation, Inc. v. Surface Transportation Board, 75 F.3d 696, 316 U.S. App. D.C. 114 (D.C. Cir. 1996).

Opinion

ROGERS, Circuit Judge:

CSX Transportation, Inc. (“CSXT”)1 petitions for review of the decision of the Interstate Commerce Commission (“ICC”)2 that CSXT’s rerouting of all traffic from the Walker-Wilsonburg Line was “in anticipation of’ abandonment of that line, and hence employees who were adversely affected qualify for labor protection under the Oregon Short Line conditions.3 Because we conclude that the ICC’s decision was not arbitrary or capricious or contrary to law, we deny the petition.

I.

The Walker-Wilsonburg Line, a 61-mile stretch between Walker and Wilsonburg, [698]*698West Virginia (the “lower route”), contained nine tunnels that were too small to accommodate CSXT’s modem freight cars. No local traffic had originated or terminated on the line since at least 1983. On August 1, 1985, CSXT rerouted the last of the “overhead” (non-local) traffic between Cincinnati, Ohio, and Cumberland, Maryland remaining on that route to a more circuitous but less mountainous route between Deshler and Willard, Ohio (the “upper route”), which was able to accommodate the modern freight traffic. CSXT also abolished all train service positions on the lower route, and the affected employees, who are represented by intervenor United Transportation Union (“UTU”), exercised their rights under a collective bar-gaming agreement to take positions on other CSXT lines.

One year later, on August 29, 1986, CSXT petitioned the ICC for an exemption under 49 U.S.C. § 10505 from the prior-approval requirements of 49 U.S.C. § 10903 to abandon the line.4 CSXT pointed out that “no traffic has been originated or terminated on the line since prior to 1984.” CSXT also advised the ICC that it wished “promptly to apply” the rail components and other reusable materials from the lower route elsewhere on its system. CSXT estimated that the “net salvage value” of the track (excluding real estate, which CSXT wished to develop “for other than rail purposes”) was over two million dollars; it later revised its estimate to $5,154,670 (or $6,875,670 including the land).5 In approving the exemption, the ICC noted that the line was used principally for the movement of overhead traffic and no traffic had originated or terminated on the line for over two years.6 The ICC conditioned its approval on CSXT’s payment of the Oregon Short Line benefits to employees affected by the abandonment.7

In opposing a petition for reconsideration filed by the State of West Virginia, CSXT asserted that abandonment of the WalkerWilsonburg line “simply recognizes the existing actual total discontinuance of service on this line.” Describing the line as “entirely unused and redundant,” CSXT advised the ICC that there had been no revenue traffic generated on the line in the last three years and that it had advised the State of its plans to abandon the line prior to filing the petition for exemption.8 Thus, CSXT maintained, it had met the ICC’s exemption requirement that the line be out of service for two years. See Exemption of Out of Service Rail Lines, 2 I.C.C.2d 146 (1988), aff'd sub nom. Illinois Commerce Comm’n v. ICC, 848 F.2d 1246 (D.C.Cir.1988), cert. denied, 488 U.S. 1004, 109 S.Ct. 783, 102 L.Ed.2d 775 (1989); 49 [699]*699C.F.R. § 1152.50(b) (1994).9 CSXT also noted that those protesting abandonment as adverse to future development had “identified no shippers likely to use the line in the future, no commodities likely to move by rail, and ha[d] presented no reasons why the many commonly available alternatives to B & 0 service on this line ... would be inadequate____” Moreover, CSXT noted the absence of offers to purchase the line.10 The ICC granted reconsideration, but affirmed its earlier decision, again noting both that the line was used primarily for the movement of overhead traffic, and that CSXT had moved no local traffic on the line for at least three years.11 The ICC observed that “the B & 0 began rerouting the overhead traffic in August 1985, and it was that action that most directly led to filing the petition for exemption.” 12

Thereafter, certain UTU employees who had been dismissed or displaced as a result of the rerouting submitted a request for protective benefits to CSXT. When CSXT deified the request, the dispute was submitted to binding arbitration under Article I, § 11 of Oregon Short Line. In arbitration, the UTU employees maintained their entitlement to benefits under Article I, § 10 of the Oregon Short Line conditions on the ground that the rerouting had been done “in anticipation of’ the later abandonment of the lower route. Article I, § 10 provides that;

Should the railroad rearrange or adjust its forces in anticipation of a transaction with the purpose or effect of depriving an employee of benefits to which he otherwise would have become entitled under this appendix, this appendix will apply to such employee.

Oregon Short Line, 860 I.C.C. at 101.

Arbitrator Marx, citing the statement in the ICC’s conditional approval of the abandonment that the rerouting led most directly to the abandonment, found a causal connection between the rerouting and the abandonment and that the rerouting and the abandonment were “intertwined,” as in Black v. ICC, 814 F.2d 769, 772 (D.C.Cir.1987) (per curiam). In Black, the court reversed the ICC’s decision denying labor protection under 49 U.S.C. § 10903(b)(2), where a rerouting that eliminated an operation and the need for its crew preceded by three days the railroad’s petition for abandonment of that operation. The ICC had found no nexus between the two actions, reasoning instead that the rerouting was the sole source of any [700]*700impact on the employees. 814 F.2d at 771. The court concluded that the ICC had erred because “[t]he rerouting and the abandonment were not actions independent of each other; rather,, they were for all practical purposes made simultaneously and were interdependent.” Id. at 772. Following this reasoning, Arbitrator Marx ruled that the affected UTU employees were protected under the Oregon Short Line conditions.

CSXT appealed, and the ICC vacated Arbitrator Marx’s decision.13 The ICC concluded that Marx had misinterpreted its conditional approval of the abandonment by assuming that because there were no employees on the line at the time of the abandonment, the ICC must have intended to protect the employees affected by the rerouting; the ICC explained that it routinely applied the conditions to satisfy the statutory-mandate.

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75 F.3d 696, 316 U.S. App. D.C. 114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/csx-transportation-inc-v-surface-transportation-board-cadc-1996.