Del Grosso v. Surface Transportation Board

898 F.3d 139
CourtCourt of Appeals for the First Circuit
DecidedAugust 6, 2018
Docket17-1794P
StatusPublished
Cited by1 cases

This text of 898 F.3d 139 (Del Grosso v. Surface Transportation Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Del Grosso v. Surface Transportation Board, 898 F.3d 139 (1st Cir. 2018).

Opinion

THOMPSON, Circuit Judge.

Preface

This dispute-back here a second time 1 -takes us once again into the arcane world of the Interstate Commerce Commission Termination Act ("ICCTA"). The combatants are the same. On one side of the controversy are petitioners Diana Del Grosso, Ray Smith, Joseph Hatch, Cheryl Hatch, Kathleen Kelley, Andrew Wilklund, and Richard Kosiba (collectively "petitioners"). On the other side are respondents Surface Transportation Board ("STB") and the United States, as well as intervenor Grafton & Upton Railroad Company ("G&U"). 2 Petitioners believe the STB went off track by concluding that certain activities at a G&U facility involving wood pellets-vacuuming, screening, repelletizing, bagging, palletizing, and shrink-wrapping (more on those later)-qualify as "transportation by rail carrier" and so fall within the STB's exclusive jurisdiction. 3 Respondents and intervenor take the exact opposite position, unsurprisingly. Disagreeing with petitioners and agreeing with respondents and intervenor, we deny the petition for review.

ICCTA

We begin by cluing the reader in on the key aspects of the ICCTA.

Passed in 1995 to terminate the Interstate Commerce Commission, the ICCTA gives the STB-an independent federal agency-exclusive jurisdiction over "transportation by rail carrier ... in the United States between a place in ... a State and a place in the same or another State as part of the interstate rail network." See 49 U.S.C. § 10501 (a)(1), (a)(2)(A), and (b) ; see also Del Grosso I , 804 F.3d at 113-14. Federal regulation of *142 railroads is "pervasive and comprehensive." Chi. & N.W. Transp. Co. v. Kalo Brick & Tile Co. , 450 U.S. 311 , 318, 101 S.Ct. 1124 , 67 L.Ed.2d 258 (1981). But it does have its limits-for instance, the STB's jurisdiction does not extend to purely intrastate rail networks.

The ICCTA defines "transportation" broadly to encompass both the facilities and equipment "related to the movement of passengers or property, or both, by rail" as well as "services related to that movement." 49 U.S.C. § 10102 (9)(A) and (B). Examples of "services related to that movement ... include[ ] receipt, delivery, elevation, transfer in transit, refrigeration, icing, ventilation, storage, handling, and interchange of passengers and property." Id. § 10102(9)(B) ; see also Del Grosso I , 804 F.3d at 117-18. Of course, the use of the word "include" indicates the list is illustrative rather than comprehensive. See United States v. Cianci , 378 F.3d 71 , 79 (1st Cir. 2004) ; see also Include , Black's Law Dictionary 880 (10th ed. 2014).

But-and it's a big but-while the definition of transportation is "expansive," it most certainly "does not encompass everything touching on railroads." Del Grosso I , 804 F.3d at 118 (quoting Emerson v. Kan. City S. Ry. Co. , 503 F.3d 1126 , 1129 (10th Cir. 2007) ). So, for example, " 'manufacturing and commercial transactions that occur on property owned by a railroad that are not part of or integral to the provision of rail service are not embraced within the term "transportation." ' " Id. (quoting New Eng. Transrail, LLC, d/b/a Wilmington & Woburn Terminal Ry.-Constr., Acquisition & Operation Exemption-in Wilmington & Woburn, MA , STB Finance Docket No. 34797, 2007 WL 1989841 , at *6 (S.T.B. June 29, 2007) (" New Eng. Transrail " ) ). Ultimately, though, whether an activity amounts to transportation "is a case-by-case, fact-specific determination." Padgett v. Surface Transp. Bd. , 804 F.3d 103 , 108 (1st Cir. 2015) (quoting Tex. Cent. Bus. Lines Corp. v. City of Midlothian , 669 F.3d 525 , 530 (5th Cir. 2012) ).

If the STB has jurisdiction, the next question usually is whether that jurisdiction preempts state and local regulation, given the facts of the case. See Del Grosso I , 804 F.3d at 113-14 ; Padgett , 804 F.3d at 107-08 . But making our job easier, petitioners-as the STB notes, without contradiction-did not and do not dispute that if the challenged activities come within the STB's jurisdiction, then the ICCTA would preempt the application of various local ordinances to those activities.

Against this legal landscape, we turn to the particulars of petitioners' case. In so doing, we borrow generously from our earlier opinion.

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898 F.3d 139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/del-grosso-v-surface-transportation-board-ca1-2018.