Illinois Commerce Commission v. Interstate Commerce Commission

879 F.2d 917, 279 U.S. App. D.C. 71, 1989 U.S. App. LEXIS 10237
Court of Appeals for the D.C. Circuit·Decided July 18, 1989·No. No. 87-1088·Published·Cited by 2 cases

Opinion

SPOTTSWOOD W. ROBINSON, III, Circuit Judge:

The Interstate Commerce Act confers upon the Interstate Commerce Commission power to regulate abandonments of railroad lines,1 but excepts from this grant abandonments of spur tracks located entirely within a single state.2 At issue here is a Commission decision and order holding that the Act preempts all authority of a state agency over abandonment of spur tracks lying wholly within the state’s borders.3 We reverse.

I. Background

Chicago and North Western Transportation Company (C & NW), an interstate rail carrier, decided to abandon a 570-foot strip of track located in the Village of Cary, McHenry County, Illinois. C & NW petitioned the Commission for an exemption from compliance with the Act’s provisions [73] governing abandonments of railroad lines.4 After public notice5 and comment,6 the Commission ruled that the trackage was a line of railroad rather than a spur because it was “used as part of the actual transportation movement to and from [the shipper],” and on that account was subject to the agency’s jurisdiction.7 The Commission granted the requested exemption,8 and denied applications for reconsideration and a stay.9

The Illinois Commerce Commission and others petitioned the United States Court of Appeals for the Seventh Circuit for review of the Commission’s decision to grant the exemption,10 and there they succeeded in overturning it.11 While acknowledging that the Commission’s conclusion as to whether trackage is spur or line of railroad is entitled to “the greatest deference” because of the agency’s expertise,12 the court declared that the matter was “a ‘mixed question of law and fact to be determined judicially rather than administratively.’ ” 13 After reviewing the record in light of applicable judicial precedents, the court vacated the Commission’s finding that the trackage was a line of railroad on the ground that it was “insufficiently supported by reasoned analysis.” 14 The court observed that

[e]ven accepting the ICC’s contention that the use of the track controls, however, we have not been persuaded that the Cary Spur is used as a line of railroad. This case is readily distinguishable from cases finding track to be a line of railroad.15

Remanding the case for reconsideration, the court noted that the Commission had not addressed “the division of responsibility between the Illinois Commerce Commission and the ICC” in its analysis of whether the trackage was a line of railroad or a spur.16

On remand, the Commission reversed its original stance and held unanimously the trackage was a spur and thus was not subject to its abandonment jurisdiction.17 It further held, however, with two commis[74] sioners dissenting, that abandonment of the Cary spur was also outside the domain of state regulatory authority.18 The Commission took the large body of Supreme Court precedent19 as assuming, “apparently without argument on the point,” residual state jurisdiction over spur abandonments; 20 as allowing state authority to be preempted when there was an “overriding Federal interest in protecting interstate commerce from State-imposed burdens;”21 and as producing “curious results.”22 Then, combining the Act’s definition of “railroad” — which includes “spur track ‘used or necessary for transportation’ ”23 — with the Act’s “broad preemption of all economic regulation of trackage used for the conduct of interstate commerce,” the Commission concluded that intrastate spurs fall within its general jurisdiction and outside only its abandonment authority,24 and that state power to regulate local spurs over which traffic moves in interstate commerce was preempted.25 The Commission felt that the legislative history of the Act supported this interpretation,26 and that the Staggers Rail Act of 198027 removed any lingering doubt on that score.28 The Commission reasoned that the Illinois Commerce Commission derives its power to regulate intrastate rail transportation from the Interstate Commerce Act and that the Staggers Rail Act directs state commissions to apply federal standards, with the result that the state agency does not have authority to regulate spur abandonments when the Commission lacks jurisdiction to do so.29

Petitioners now seek review in this court. The parties accept the Commission’s ruling that the trackage in question is a spur. We turn, then, to the parts of the Commission’s decision in which the authority of petitioner Illinois Commerce Commission to regulate the abandonment of the spur was held to have been preempted.

II. The Standard of Review

The Commission argues here that “the statute is silent or ambiguous with respect to this issue,” that “the Commission’s interpretation is reasonable,” and accordingly that “the Commission’s interpretation should be upheld.”30

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Illinois Commerce Commission v. Interstate Commerce Commission, 879 F.2d 917, 279 U.S. App. D.C. 71, 1989 U.S. App. LEXIS 10237 (D.C. Cir. 1989).

879 F.2d 917 (Illinois Commerce Commission v. Interstate Commerce Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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