Fannin County v. United States

856 F.2d 120
CourtCourt of Appeals for the Eleventh Circuit
DecidedSeptember 9, 1988
DocketNos. 88-8076, 88-8234
StatusPublished
Cited by1 cases

This text of 856 F.2d 120 (Fannin County v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fannin County v. United States, 856 F.2d 120 (11th Cir. 1988).

Opinion

TUTTLE, Senior Circuit Judge:

This is a petition for review by the named petitioners seeking a review and vacation of a decision by the Interstate Commerce Commission, served January 8, 1988 which the Commission concedes is a final order, and of a decision served February 9, 1988, which the Commission con-' tends is not reviewable because it is not a final decision by the Commission.1

The decisions complained of deal with an effort by the intervening railway system, CSX Transportation, Inc., (CSXT) to abandon and remove the tracks from 8.1 miles of its present direct route from Atlanta, Georgia north to Blue Ridge, Georgia. The mileage at issue extends southward from the city limits of Blue Ridge. Petitioners concede that no traffic has passed over the targeted mileage for some six or seven years. This so-called de facto abandonment by the shipping public is the basis upon which CSXT successfully importuned the Interstate Commerce Commission (“ICC”) to authorize its formal abandonment.

I. APPEAL NO. 88-8076

A. Course of Proceedings

On August 29, 1987, CSXT filed a notice of exemption with the ICC seeking to abandon 8.1 miles of railroad track between Blue Ridge and White Path in Fannin and Gilmer Counties, Georgia, in which notice CSXT relied on the Commission’s exempt abandonment regulations at 49 C.F.R. § 1152.50 (1987).2 The notice of exemption was duly published in the Federal Register. Following several procedural moves by both petitioners as interested parties and CSXT as intervenor, the matter came on for a final decision by the Commission.

The petitioners filed verified and unverified documents supporting their position in opposing the abandonment. These dealt generally with the professed need of local businesses and governmental units for direct, rather than circuitous, routing from points north of Blue Ridge to most of the rest of the state of Georgia and the professed need for direct routing from the south of White Path, Georgia for moving freight to points north. They also strongly complained that removing the tracks and right-of-way would have a serious adverse [122]*122impact on the rural and community development. Petitioners also expressly attacked the validity of the exemption regulation as being ultra vires or beyond the powers of the Interstate Commerce Commission, because inconsistent with the federal laws establishing the national transportation policy.

Petitioners contended, in addition, that the notice of abandonment contained “false or misleading information” which, if true, would cause the exemption to be void ab initio, according to 49 C.F.R. § 1152.50(d)(3) supra. They also contended that should the regulation be held valid even under its provisions the Commission was obligated to consider certain requirements of 49 U.S.C. § 10903, entitled “Authorizing Abandonment and Discontinuance of Railroad Lines and Railroad Transportation.” This section provides:

(a) A rail carrier providing transportation subject to the jurisdiction of the Interstate Commerce Commission under subchapter (1) of Chapter 105 of this Title may (1) abandon any part of its railroad lines; or (2) discontinue the operation of all rail transportation over any part of its railroad lines; only if the Commission finds that the present or future public convenience and necessity require or permit the abandonment or discontinuance. In making the finding the Commission shall consider whether the abandonment or discontinuance will have a serious, adverse impact on rural and community development. (Emphasis added.)

They contend that the underscored language of § 10903 is such an integral part of the rail transportation policy that it must inform the Commission in every decision it makes in application of the exemption regulation.

Finally, petitioners contend that if the Commission actually considered the objections which they had filed its decision should be overruled because it was unsupported by substantial evidence, was arbitrary and capricious, an abuse of discretion, and not in accordance with law.

B. Discussion

(1) Because the validity of the regulation under which the Commission acted is essential to the validity of any decision based on such regulation, we consider this matter initially.

As noted above, section 10903 entitled “Authorizing Abandonment and Discontinuance of Railroad Lines and Rail Transportation” provides that the ICC may order the abandonment or discontinuance of such lines

only if the Commission finds that the present or future public convenience and necessity require or permit the abandonment or discontinuance. In making the finding, the Commission shall consider whether the abandonment or discontinuance will have a serious, adverse impact on rural and community development.

Nevertheless, as respondents and inter-venor point out, 49 U.S.C. § 10505(a), directs the Commission

to exempt [from the strictures of § 10903] a person, a class of persons, or a transaction or service when the Commission finds that the application of a provision of this subtitle—
(1) is not necessary to carry out the transportation policy of section 10101a of this title; and
(2) either (A) the transaction or service is of limited scope, or (B) the application of a provision of this subtitle is not needed to protect shippers from the abuse of market power.

Respondents and intervenor contend that this provision of the statute directs the Commission to order an abandonment or termination without consideration of any of the concerns mentioned in section 10903. The ICC need only find that the application of section 10903 “is not necessary to carry out the transportation policy of section 10101a” and that the service “is of limited scope.”

By arguing that the requirements of section 10903 be observed by the ICC in a case such as this, petitioners overlook the explicit terms of section 10505 which was enacted for the express purpose of permit[123]*123ting the ICC to by-pass the strictures of section 10903. If regulations validly adopted by the Commission appear to eliminate some of the protections to local communities and shippers afforded by section 10903 this is the responsibility of the legislative branch, which thus far has made it clear that the Commission may by rule exempt certain classes of transportation service without compliance with the stringent requirements of section 10903. We must therefore conclude that this regulation 1152.50 is not void as ultra vires.

The petitioners do not contend that the regulation is void for any other reason. They do not contend that the creation of the exemptions by the Commission under its rulemaking power is arbitrary or unsupported by essential findings. In Illinois Commerce Commission v. I.C.C.,

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Related

Fannin County, Georgia v. United States
856 F.2d 120 (Eleventh Circuit, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
856 F.2d 120, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fannin-county-v-united-states-ca11-1988.