Fort Worth & Denver Railway Co. v. Goldschmidt

518 F. Supp. 121, 1981 U.S. Dist. LEXIS 18511
CourtDistrict Court, N.D. Texas
DecidedJune 23, 1981
DocketCiv. A. CA 4-80-258-E
StatusPublished
Cited by4 cases

This text of 518 F. Supp. 121 (Fort Worth & Denver Railway Co. v. Goldschmidt) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fort Worth & Denver Railway Co. v. Goldschmidt, 518 F. Supp. 121, 1981 U.S. Dist. LEXIS 18511 (N.D. Tex. 1981).

Opinion

MEMORANDUM AND ORDER

MAHON, District Judge.

There is pending before the Court motions for summary judgment filed by the plaintiffs, defendants, and intervenor. On December 17, 1980, a hearing on these motions was held before the Court. After careful consideration of the motions, briefs, and oral arguments, the Court makes the following ruling.

I. Background

Plaintiffs, twenty-five railroads, and the Association of American Railroads (“AAR”), seek to set aside the revised Freight Car Safety Standards issued by Administrator of the Federal Railroad Administration (“FRA”), pursuant to his authority under the Federal Railroad Safety Act of 1970. 45 U.S.C. § 421 et seq. (hereinafter “FRSA”). 1 These revised regulations, promulgated in December of 1979, embody the agency’s substantive safety standards for railroad freight cars, and impose a standard of strict liability on the nation’s railroads for any freight car found not in compliance with the regulations. 49 C.F.R. § 215 et seq. 2

Plaintiffs have stated several objections to the revised regulations all of which are raised principally to contest the adoption of a strict liability standard. Plaintiffs’ objections are as follows: (1) Congress could not constitutionally delegate (if in fact it did) to the FRA the power to choose the standard of legal liability, (2) the FRA lacks statutory authority to impose strict liability, (3) the FRA’s strict liability regulation does not further the statutory purpose of promoting safety, (4) the FRA’s penalty schedule is unlawful because it was published in violation of the notice requirements of FRSA and the Administrative Procedure Act (“APA”) and (5) the FRA’s penalty schedule is substantively defective because it is irrational, unsupported and inadequately explained in violation of the APA.

The defendants and intervenor challenged plaintiff’s objections and claim that the revised regulations and penalty schedule are substantively lawful and that both have been lawfully adopted.

II. Discussion

Plaintiff’s objections can be grouped into two categories; those that challenge the regulations and those that challenge the penalty schedule. Part A of this section will discuss those objections that related to the regulations and Part B will discuss those objections that related to the penalty schedule.

A. Plaintiff’s Objections to the Revised Regulations

If the Court finds that the FRSA does not authorize the FRA to promulgate regu *124 lations imposing strict liability, then it would be unnecessary to consider plaintiff’s remaining objections to the regulations and penalty schedule. Thus, the Court will first decide whether Congress, through the FRSA, had delegated to the FRA the power to adopt strict liability regulations.

1. The Scope of Power Delegated to the FRA

It is a well-established axiom that an agency can only act within the scope of power that was delegated to it by the agency’s enabling statute. Federal Power Commission v. Louisiana Power & Light Co., 406 U.S. 621, 92 S.Ct. 1827, 32 L.Ed.2d 369 (1972); NLRB v. Wyman —Gordon Co., 394 U.S. 759, 89 S.Ct. 1426, 22 L.Ed.2d 709 (1969); Urie v. Thompson, 337 U.S. 163, 69 S.Ct. 1018, 93 L.Ed. 1282 (1949). Thus, if Congress when enacting the FRSA, had not intended to grant the FRA the authority to adopt regulations that impose strict liability, such action on the part of the agency would be unlawful.

To determine the scope of power delegated by Congress under the FRSA the Court must construe that part of the statute that defines that conduct which is to be deemed unlawful. That critical part of the FRSA is found in § 209(a). 45 U.S.C. § 438(a). Section 209(a) states:

It shall be unlawful for a railroad to disobey, disregard, or fail to adhere to any rule, regulation, order, or standard prescribed by the Secretary under this title.

Thus, the precise question facing the Court is whether the sequence of terms, “disobey, disregard, or fail to adhere,” grants to the FRA the power to adopt regulations that impose a standard of strict liability.

irt interpreting a statute, the overriding consideration is to give the statute a construction that is consistent with “the purpose Congress sought to serve.” Chapham v. Houston Welfare Rights Organization, 441 U.S. 600, 608, 99 S.Ct. 1905, 1911, 60 L.Ed.2d 508 (1979). See also United States v. National Broiler Marketing Ass'n., 550 F.2d 1380 (5th Cir. 1977) aff'd, 436 U.S. 816, 98 S.Ct. 2122, 56 L.Ed.2d 728 (1978); T. & S.F. Railway Co. v. United States, 617 F.2d 485 (7th Cir. 1980). The purpose of the FRSA is stated in the preamble of the statute:

The Congress declares that the purpose of this Act is to promote safety in all areas of railroad operations and to reduce railroad related accidents, and to reduce deaths and injuries to persons, and to reduce damage to property caused by accidents involving any carrier of hazardous materials. 45 U.S.C. § 421.

Thus, the interpretation that this Court finally gives to the statute must conform with the statute’s stated purpose. 3

a. Plain Meaning

The starting point in the construction of a statute is the words that Congress had chosen to express its will. The plain meaning of those words is controlling and there is no need for the Court to invoke aids to construction, unless the plain meaning of those words, in the context of the statute, is ambiguous or the plain meaning is contrary to the clearly expressed legislative intent. Consumer Product Safety Commission v. GTE Sylvania, Inc., 447 U.S. 102, 108, 100 S.Ct. 2051, 2056, 64 L.Ed.2d 766 (1980); Aaron v. SEC, 446 U.S. 680, 690, 100 S.Ct. 1945, 1952, 64 L.Ed.2d 611 (1980); Ernst & Ernst v. Hochfelder, 425 U.S. 185, 201, 96 S.Ct. 1375, 1384, 47 L.Ed.2d 668 (1976). 4 If *125 the plain meaning of the phrase “disregard, disobey or fail to adhere” authorizes the adoption of regulations that impose strict liability on the railroads, and if one of the exceptions does not apply, this Court must not further question that result.

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518 F. Supp. 121, 1981 U.S. Dist. LEXIS 18511, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fort-worth-denver-railway-co-v-goldschmidt-txnd-1981.