Daniels v. Union Pacific Railroad

530 F.3d 936, 382 U.S. App. D.C. 23, 184 L.R.R.M. (BNA) 2582, 2008 U.S. App. LEXIS 13801, 2008 WL 2583006
CourtCourt of Appeals for the D.C. Circuit
DecidedJuly 1, 2008
Docket07-5114
StatusPublished
Cited by26 cases

This text of 530 F.3d 936 (Daniels v. Union Pacific Railroad) 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
Daniels v. Union Pacific Railroad, 530 F.3d 936, 382 U.S. App. D.C. 23, 184 L.R.R.M. (BNA) 2582, 2008 U.S. App. LEXIS 13801, 2008 WL 2583006 (D.C. Cir. 2008).

Opinion

Opinion for the court filed by Circuit Judge HENDERSON. *

KAREN LeCRAFT HENDERSON, Circuit Judge:

Appellants Charles Daniels and the Brotherhood of Locomotive Engineers and Trainmen (BLET) appeal the district court’s dismissal of their complaint against the Federal Railroad Administration (FRA), the Locomotive Engineer Review Board (LERB) and the Union Pacific Railroad Company (Union Pacific). See Daniels v. Union Pac. R.R., 480 F.Supp.2d 191 (D.D.C.2007). Daniels and the BLET allege that the defendants violated the Due Process Clause of the Fifth Amendment by demoting Daniels and six other locomotive engineers from Class I locomotive engineers to Class III student engineers without a hearing. 1 The district court dismissed the claims for failure to exhaust administrative remedies and, alternatively, for lack of subject matter jurisdiction. For the reasons that follow, we affirm the dismissal for lack of subject matter jurisdiction.

I.

Pursuant to authority delegated by the Secretary of the United States Department of Transportation (Secretary) acting under The Rail Safety Improvement Act of 1988, Pub.L. No. 100-342 § 4, 102 Stat. 624 (1988) (recodified at 49 U.S.C. § 20135), in 1991 the FRA adopted a certification program for locomotive engineers. 2 See Qualifications for Locomotive Engineers, 56 Fed.Reg. 28,228 (1991) (codified at 49 C.F.R. pt. 240). Although the FRA does not test or certify engineers itself, its regulations require each railroad to adopt training and certification programs that meet minimum requirements, see, e.g., 49 C.F.R. §§ 240.1, 240.101, and, regardless of differences among the individual rail *938 roads’ programs, all railroads must “employ standard methods for identifying qualified locomotive engineers and monitoring their performance,” 56 Fed.Reg. at 28,228, including procedures governing certification and revocation of certificates, see, e.g., 49 C.F.R. §§ 240.211, 240.219, 240.117, 240.307. For example, before certifying (or recertifying) a locomotive engineer, a railroad must “determine that the person has demonstrated ... the skills to safely operate locomotives or locomotives and trains, including the proper application of the railroad’s rules and practices for the safe operation of locomotives or trains, in the most demanding class or type of service that the person will be permitted to perform.” Id. § 240.211(a). If a prospective engineer is denied certification (or recertification in the case of a certified engineer), the “railroad shall notify [the] candidate for certification or recertification of information known to the railroad that forms the basis for denying the person certification and provide the person a reasonable opportunity to explain or rebut that adverse information in writing prior to denying certification.” Id. § 240.219(a). Once certified, an engineer must undergo periodic retesting and “[a] certified engineer who has demonstrated a failure to comply ... with railroad rules and practices for the safe operation of trains shall have his or her certification revoked.” Id. § 240.117(c)(1). Before revoking an engineer’s certification, the railroad must “provide notice of the reason for the suspension, the pending revocation, and an opportunity for a hearing before a presiding officer other than the investigating officer.” Id. § 240.307(b).

The FRA reviews the railroad’s decision to deny certifieation/recertification or to revoke a certification. See 49 C.F.R. § 240.401(a). The FRA “has delegated initial responsibility for adjudicating such disputes to the Locomotive Engineer Review Board.” Id. § 240.401(b). “If adversely affected by the Locomotive Engineer Review Board decision, either the petitioner before the Board or the railroad involved shall have a right to an administrative proceeding [before an FRA Administrative Hearing Officer].” Id. §§ 240.407(a), 240.409. The Administrative Hearing Officer (AHO) hearing is “a de novo hearing to find the relevant facts and determine the correct application of [49 C.F.R. Part 240] to those facts.” Id. § 240.409(c). “Any party aggrieved by the [AHO’s] decision may file an appeal [with the FRA Administrator].” Id. § 240.411(a). “The Administrator may remand, vacate, affirm, reverse, alter or modify the decision of the presiding officer and the Administrator’s decision constitutes final agency action except where the terms of the Administrator’s decision (for example, remanding a case to the presiding officer) show that the parties’ administrative remedies have not been exhausted.” Id. § 240.411(e).

Daniels was hired by Union Pacific in August 1998. On July 14, 1999, his “Class I certificate” to operate a locomotive became effective but two months later, on September 3, 1999, Union Pacific required Daniels to undergo additional evaluation. After receiving low scores on the re-evaluation, on September 8, 1999, Daniels was demoted from a Class I engineer to a Class III student engineer. Union Pacific did not provide Daniels with a hearing before or after his demotion. Following his demotion, Daniels was given approximately six months to requalify as a Class I engineer. As a student engineer Daniels completed several railroad trips but also failed several certification evaluations and Union Pacific eventually terminated him by letter on March 1, 2000. From 2003 to 2006, Union Pacific also demoted the six other Class I engineers represented by BLET to Class III student engineers without providing hearings. First Am. Compl. ¶ 3. Unlike Daniels, however, the other *939 engineers were recertified and recovered their Class I certificates.

Following his termination, Daniels petitioned for review by the LERB on August 2. 2000, asserting that Union Pacific demoted him from a Class I engineer without providing a hearing as required by 49 C.F.R. § 240.307 and improperly terminated him. On January 31, 2001, the LERB denied Daniel’s petition, finding “no merit” in Daniels’s argument because “the instant case involves the denial of certification, rather than the revocation of certification.” Review and Determinations Concerning Union Pacific Railroad Company’s Decision to Deny Mr. C.L. Daniels Locomotive Engineer Certification, FRA Docket No. EQAL 00-51, at 3 (Fed. R.R. Admin. Jan. 31, 2001) (second emphasis added). The LERB concluded that Daniels’s “rights in this case are properly governed by 49 C.F.R. § 240.219

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Bluebook (online)
530 F.3d 936, 382 U.S. App. D.C. 23, 184 L.R.R.M. (BNA) 2582, 2008 U.S. App. LEXIS 13801, 2008 WL 2583006, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daniels-v-union-pacific-railroad-cadc-2008.