Griffioen v. Cedar Rapids & Iowa City Railway Co.

977 F. Supp. 2d 903, 2013 WL 5274387, 2013 U.S. Dist. LEXIS 135958
CourtDistrict Court, N.D. Iowa
DecidedSeptember 18, 2013
DocketNo. C13-0066 EJM
StatusPublished
Cited by2 cases

This text of 977 F. Supp. 2d 903 (Griffioen v. Cedar Rapids & Iowa City Railway Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Griffioen v. Cedar Rapids & Iowa City Railway Co., 977 F. Supp. 2d 903, 2013 WL 5274387, 2013 U.S. Dist. LEXIS 135958 (N.D. Iowa 2013).

Opinion

OPINION AND ORDER

EDWARD J. McMANUS, District Judge.

This matter is before the court on:

[905]*9051. Plaintiffs’ resisted Motion to Remand, filed July 30, 2013;

2. Defendant Union Pacific Corporation’s resisted Motion to Dismiss for Lack of Personal Jurisdiction under Fed.R.Civ. Pro. 12(b)(2), filed August 14, 2013, and

3. Defendants’ Union Pacific Railway Company and Union Pacific Corporation (collectively “Union Pacific”) resisted Motion for Judgment on the Pleadings under Fed.R.Civ.Pro. 12(c), also filed August 14, 2013;

Briefing concluded September 14, 2013. Motion to remand denied. Motion to dismiss for lack of personal jurisdiction denied as moot. Motion for judgment on the pleadings granted; case transferred, complaint dismissed.

In June 2008, the Cedar Rapids area sustained unprecedented flooding when the Cedar River crested to its highest level in history. Plaintiffs are five area landowners adversely affected by the flood. Plaintiffs’ claims are that the defendant railroads placed joined railcars loaded with rock ballast upon tracks on various bridges in the area in anticipation of the flood to prevent the washing away of those tracks by the rising flood waters. This caused in some cases the underlying bridges to collapse, and other pled adverse effects, thereby exacerbating the effects of the flood. Union Pacific and the other railroads seek to have this dispute resolved by the Surface Transportation Board.

MOTION TO REMAND

Plaintiffs, who pled only state law causes of action in state court, assert that the Federal Railway Safety Act (FRSA) 49 U.S.C. § 20106 does not preempt state law claims and does not create federal question jurisdiction. Defendants maintain that a different federal statute, the Interstate Commerce Commission Termination Act of 1995, (ICCTA), 49 U.S.C. §§ 10501(b), 10102, does preempt the field, and vests “exclusive” jurisdiction over “transportation by rail carriers”, including the operation of railroad “bridges” and “tracks”, with the Surface Transportation Board (STB.)

The ICCTA mandates that “the remedies provided under this part with respect to rail transportation are exclusive and preempt the remedies provided under Federal or State law.” 49 U.S.C. § 10501(b). The cases are many and clear that the ICCTA preempts the field of interstate railroad regulation, and grants complete and exclusive jurisdiction over disputes of this type to the STB. Kurns v. Railroad Friction Products Corp., — U.S. -, 132 S.Ct. 1261, 1269, — L.Ed.2d - (2012) (tort claim for damages is a form of state regulation); City of Lincoln v. STB, 414 F.3d 858, 860-61 (8th Cir.2005).

Plaintiffs claim that the ICCTA does not apply here and does not preempt because it regulates only economic operations, citing Emerson v. Kansas City Southern Ry. Co., 503 F.3d 1126 (10th Cir.2007) and Franks Inv. Co. LLC v. Union Pacific R. Co., 593 F.3d 404 (5th Cir.2010). But in Emerson, the railroad was accused of improperly disposing of waste, and in Franks Inv. Co., the railroad was accused of refusing to provide access to a neighboring land owner, both not core railroad operational activities. Here, the parking of loaded cars on tracks to prevent them from washing away was a core operational activity, with ramifications on the continued operations of the network, governed by the ICCTA. Pere Marquette Hotel Partners, LLC v. U.S., No. 09-5921, 2010 WL 925297 (E.D.La.2010); In re Katrina Canal Breaches Consolidated Litigation, 2009 WL 224072 (E.D.La.2009).

[906]*906Finally, the plaintiff argues that the ICCTA does not preempt because it provides no federal remedy, citing Fayard v. Northeast Vehicle Services, LLC, 533 F.3d 42 (1st Cir.2008). However Fayard on page 47 expressly stated that a remedy by a federal administrative agency, not just by a court, would meet this requirement.

Where a federal statutory scheme is so expansive that it shows congressional intent that federal law should completely occupy the ground, removal is proper, even if there is no diversity jurisdiction and no federal question cause of action. “Congress may so completely pre-empt a particular area that any civil complaint raising this select group of claims is necessarily federal in character.” Metropolitan Life Ins. Co. v. Taylor, 481 U.S. 58 at 63-64, 107 S.Ct. 1542, 95 L.Ed.2d 55 (1987); also Bates v. Missouri & Northern Arkansas R. Co., Inc., 548 F.3d 634, 636 (8th Cir.2008.)

As stated by the Eighth Circuit in Chapman v. Lab One, 390 F.3d 620, 625 (8th Cir.2004), complete preemption exists “where the preemptive force of a federal statute is so extraordinary that it not only provides a federal defense to a state common-law claim, but also converts any state-law cause of action into a federal claim from its inception.” Chapman, 390 F.3d at 629. Similarly, according to the Supreme Court in Beneficial Nat. Bank v. Anderson, 539 U.S. 1, 123 S.Ct. 2058, 156 L.Ed.2d 1 (2003):

When the federal statute completely pre-empts the state-law cause of action, a claim which comes within the scope of that cause of action, even if pleaded in terms of state law, is in reality based on federal law. This claim is then removable under 28 U.S.C. section 1441(b).

Since the ICCTA completely preempts plaintiffs’ claims, this Court may exercise supplemental jurisdiction over plaintiffs’ remaining claims. The Supreme Court “has long adhered to principles of pendent and ancillary jurisdiction by which the federal courts’ original jurisdiction over federal questions carries with it jurisdiction over state law claims that ‘derive from a common nucleus of operative fact,’ such that ‘the relationship between [the federal] claim and the state claim permits the conclusion that the entire action before the court comprises but one constitutional case.’ ” City of Chicago v. Int’l Coll. of Surgeons, 522 U.S. 156, 164-65, 118 S.Ct. 523, 139 L.Ed.2d 525 (1997) (quoting United Mine Workers v. Gibbs, 383 U.S. 715, 725, 86 S.Ct. 1130, 16 L.Ed.2d 218 (1966)).

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977 F. Supp. 2d 903, 2013 WL 5274387, 2013 U.S. Dist. LEXIS 135958, Counsel Stack Legal Research, https://law.counselstack.com/opinion/griffioen-v-cedar-rapids-iowa-city-railway-co-iand-2013.