Franks Inv. Co., LLC v. Union Pacific R. Co.

534 F.3d 443, 2008 U.S. App. LEXIS 14282, 2008 WL 2612060
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 3, 2008
Docket08-30236
StatusPublished
Cited by10 cases

This text of 534 F.3d 443 (Franks Inv. Co., LLC v. Union Pacific R. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Franks Inv. Co., LLC v. Union Pacific R. Co., 534 F.3d 443, 2008 U.S. App. LEXIS 14282, 2008 WL 2612060 (5th Cir. 2008).

Opinion

534 F.3d 443 (2008)

FRANKS INVESTMENT COMPANY, LLC, Plaintiff-Appellant,
v.
UNION PACIFIC RAILROAD CO., Defendant-Appellee.

No. 08-30236.

United States Court of Appeals, Fifth Circuit.

July 3, 2008.

Scott C. Sinclair (argued), Sinclair Law Firm, John M. Madison, Jr., Wiener, Weiss & Madison, Shreveport, LA, for Plaintiff-Appellant.

William H. Howard, III (argued), Alissa Jean Allison, Paul Lee Peyronnin (argued), Kathlyn G. Perez, Baker, Donelson, Bearman, *444 Caldwell & Berkowitz, New Orleans, LA, for Defendant-Appellee.

Before JONES, Chief Judge, and BARKSDALE and STEWART, Circuit Judges.

RHESA HAWKINS BARKSDALE, Circuit Judge:

Franks Investment Company, L.L.C., filed a Louisiana possessory action against Union Pacific Railroad Company, seeking to enjoin its removal of four railroad crossings on its right-of-way at Franks' property. After a bench trial, the district court concluded that Franks' claim was expressly preempted by the Interstate Commerce Commission Termination Act (ICCTA), 49 U.S.C. § 701 et. seq. For this expedited appeal, primarily at issue is whether, under the ICCTA, railroad crossings fit within the purview of "transportation by rail carriers", so that Franks' state-law possessory action is expressly preempted by the ICCTA. AFFIRMED.

I.

Franks owns approximately 1,000 acres in Caddo Parish, Louisiana. The property is bounded on the east by the Union Pacific right-of-way, on the north and south by public roads, and on the west by a bayou. Union Pacific owns and operates a main line track, providing freight rail service between Shreveport and Alexandria, Louisiana; that track runs for two miles between the Franks property and Louisiana Highway 1.

Prior to December 2007, four private railroad crossings existed along this two-mile stretch of tracks, providing access from the property to Highway 1. At least three additional points of ingress/egress exist to the north and south of the property, which do not use railroad crossings.

Union Pacific is solely responsible for the maintenance of its right-of-way, including the four crossings. In 2005, Union Pacific advised Franks that it intended to remove the four crossings. Franks objected, advising Union Pacific of its belief that it owned the right to use the crossings. In December 2007, Union Pacific destroyed and closed two of the four crossings.

Franks filed this action in January 2008 in state court, claiming it possessed a real right in the four crossings under Louisiana Code of Civil Procedure Article 3655. It sought, therefore, an injunction to compel the reinstallation of the two destroyed crossings and to prevent the other two from being closed.

Union Pacific removed the action to federal court on diversity grounds. Pursuant to Federal Rule of Civil Procedure 65(a)(2), the district court consolidated the hearing on the preliminary-injunction motion with a bench trial for the possessory action.

Following a two-day trial, the district court rendered oral reasons for judgment on 25 February 2008. The court held Franks' state-law action was expressly preempted by the ICCTA. Accordingly, it did not rule on Franks' state-law claim. Judgment dismissing Franks' action was entered on 29 February 2008.

II.

While the appeal was pending, Franks moved in this court for an injunction requiring Union Pacific to restore the two removed crossings; a motions panel denied that motion. It granted, however, Franks' motion to expedite this appeal. Franks contends: its possessory action is not preempted by the ICCTA; and the *445 district court erred in failing to enjoin Union Pacific from removing the four crossings. For present purposes, preemption vel non is the only issue that must be addressed.

We review de novo whether a state statute or common-law action is preempted by federal law. Friberg v. Kan. City S. Ry. Co., 267 F.3d 439, 442 (5th Cir.2001) (citing Meredith v. La. Fed'n of Teachers, 209 F.3d 398, 404 (5th Cir.2000)). Any factual findings made for purposes of determining ICCTA preemption, however, are reviewed only for clear error. Fla. E. Coast Ry. Co. v. City of W. Palm Beach, 266 F.3d 1324, 1328 (11th Cir.2001).

A.

It is axiomatic that, under the Supremacy Clause, state laws that "interfere with, or are contrary to the laws of congress, made in pursuance of the constitution" are invalid. Gibbons v. Ogden, 22 U.S. (9 Wheat.) 1, 210, 6 L.Ed. 23 (1824) (Marshall, C.J.); U.S. CONST. art. VI, cl. 2. Pursuant to this principle, federal law may preempt state law in three well-established ways; preemption being "express", "field", or "conflict". Friberg, 267 F.3d at 442.

Express preemption occurs where Congress clearly and explicitly evinces its intent to preempt state law. Id. Field preemption occurs where "state law intrudes in an area that Congress has reserved for federal jurisdiction". Id. Conflict preemption occurs where the enforcement of state law cannot be achieved without running afoul of federal law. Id.

On becoming effective in 1996, and consistent with its name, the ICCTA "abolish[ed] the Interstate Commerce Commission and creat[ed] the Surface Transportation Board ... to perform many of the regulatory functions formerly performed by the Commission". Id. As noted, the district court concluded Franks' possessory action is expressly preempted by the ICCTA.

It goes without saying that our preemption analysis begins with the language of the ICCTA's preemption clause. CSX Transp., Inc. v. Easterwood, 507 U.S. 658, 664, 113 S.Ct. 1732, 123 L.Ed.2d 387 (1993) ("If the statute contains an express preemption clause, the task of statutory construction must in the first instance focus on the plain wording of the clause, which necessarily contains the best evidence of Congress' pre-emptive intent."). Section 10501(b) of the ICCTA provides:

(b) The jurisdiction of the [Surface Transportation] Board over—
(1) transportation by rail carriers, and the remedies provided in this part with respect to rates, classifications, rules (including car service, interchange, and other operating rules), practices, routes, services, and facilities of such carriers; and
(2) the construction, acquisition, operation, abandonment, or discontinuance of spur, industrial, team, switching, or side tracks, or facilities, even if the tracks are located, or intended to be located, entirely in one State,
is exclusive. Except as otherwise provided in this part, the remedies provided under this part with respect to regulation of rail transportation are exclusive and preempt the remedies provided under Federal or State law.

49 U.S.C. § 10501(b) (emphasis added).

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534 F.3d 443, 2008 U.S. App. LEXIS 14282, 2008 WL 2612060, Counsel Stack Legal Research, https://law.counselstack.com/opinion/franks-inv-co-llc-v-union-pacific-r-co-ca5-2008.