Illinois Commerce Commission v. Interstate Commerce Commission

879 F.2d 917
Procedural entryThis page is a short order in Illinois Commerce Commission v. Interstate Commerce Commission. Read the opinion of the Court — 879 F.2d 917
Court of Appeals for the D.C. Circuit·Decided October 12, 1989·No. 87-1088·Published

Opinion

879 F.2d 917

279 U.S.App.D.C. 71, 58 USLW 2079

ILLINOIS COMMERCE COMMISSION, et al., Petitioners,
v.
INTERSTATE COMMERCE COMMISSION and United States of America,
Respondents,
Chicago and North Western Transportation Co., Illinois
Department of Transportation, National Association
of Regulatory Utility Commissioners,
Association of American
Railroads, Intervenors.

No. 87-1088.

United States Court of Appeals,
District of Columbia Circuit.

Argued May 31, 1988.
Decided July 18, 1989.
Rehearing and Rehearing En Banc Denied Oct. 12, 1989.

Gordon P. MacDougall, Washington, D.C., and James E. Weging, Illinois Special Asst. Atty. Gen., Chicago, Ill., with whom Walter J. Binder, Jr., Cary, Ill., was on the brief for petitioners.

Evelyn G. Kitay, Atty., I.C.C., with whom Robert S. Burk, Gen. Counsel, and Ellen D. Hanson, Associate Gen. Counsel, I.C.C., Washinton, D.C., were on the brief for respondent I.C.C.

James E. Weging, Chicago, Ill., entered an appearance for intervenor Illinois Department of Transportation.

Catherine G. O'Sullivan and Andrea Limmer, Attys., Dept. of Justice, Washington, D.C., entered appearances for respondent United States of America.

L. John Osborn, with whom Myles L. Tobin, Chicago, Ill., and Fritz R. Kahn, Washington, D.C., were on the brief for intervenor Chicago and North Western Transp. Co.

Paul Rodgers and Charles D. Gray, Washington, D.C., were on the brief for intervenor National Association of Regulatory Utility Commissioners.

J. Thomas Tidd and John B. Norton were on the brief for intervenor Association of American Railroads.

William J. Dwyer was on the brief for amicus curiae New York State Dept. of Transp., urging reversal.

Timothy R. Baker was on the brief for amicus curiae Montana Department of Public Service Regulation, Public Service Commission, urging reversal.

Merrell M. Peters, Asst. Atty. Gen., State of Iowa, was on the brief for amicus curiae State of Iowa, urging reversal.

Daniel D. Stier, Madison, Wis., entered an appearance for amicus curiae Wisconsin Office of Commissioner of Transportation.

Before ROBINSON, RUTH B. GINSBURG and SENTELLE, Circuit Judges.

Opinion for the Court filed by Circuit Judge SPOTTSWOOD W. ROBINSON, III.

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 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 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

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Illinois Commerce Commission v. Interstate Commerce Commission, 879 F.2d 917 (D.C. Cir. 1989).

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