In re Qwest Corp.

918 N.W.2d 578
CourtCourt of Appeals of Minnesota
DecidedSeptember 24, 2018
DocketA18-0207
StatusPublished

This text of 918 N.W.2d 578 (In re Qwest Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Qwest Corp., 918 N.W.2d 578 (Mich. Ct. App. 2018).

Opinion

SCHELLHAS, Judge

In this certiorari appeal, relator-railroad challenges a decision made by respondent Minnesota Public Utilities Commission allowing respondent-utility to proceed with a crossing application submitted to relator *581under Minn. Stat. § 237.045. Because we reject relator's constitutional challenges to section 237.045 and conclude that the statute applies to respondent-utility's crossing application, we affirm the commission's decision.

FACTS

In May 2014, respondent Qwest Corporation d/b/a CenturyLink QC (CenturyLink) submitted an application to relator BNSF Railway Company (BNSF) to lay underground line that would run for 206 feet roughly parallel to BNSF's tracks in St. Louis Park (the proposed line). The proposed line would provide telecommunications services to a radio station, replacing an older line that had malfunctioned. In the interim, CenturyLink had installed a temporary, above-ground line to service the radio station, but that cable had been cut on several occasions, requiring emergency repairs. In response to CenturyLink's application, BNSF provided a proposed "wire crossing agreement" that included a "license fee" of $27,000. Thereafter, the parties unsuccessfully attempted to negotiate a mutually agreeable fee.

In December 2015, CenturyLink filed a request with the Minnesota Department of Commerce (MnDOC) under Minn. Stat. § 237.04 (2016) for a determination of the just and reasonable compensation it should pay BNSF for the proposed line. BNSF objected to the request, and MnDOC initiated contested-case proceedings in March 2016. Then, following the legislature's adoption of a new statute, Minn. Stat. § 237.045, CenturyLink rescinded its request to MnDOC and moved to dismiss the contested-case proceedings. Over BNSF's objection, MnDOC adopted the recommendation of the administrative-law judge (ALJ) to grant the motion to dismiss.

In June 2017, CenturyLink submitted a new application to BNSF under section 237.045. BNSF objected to the application, asserting that the new statute does not apply to the proposed line, that the statute is unconstitutional because it permits an uncompensated taking, and that the statute is preempted by 49 U.S.C. § 10501. CenturyLink then filed a petition for resolution of the dispute with respondent Minnesota Public Utilities Commission (MPUC). Following a public-comment period, the MPUC issued an order concluding that section 237.045 applies to the proposed line and declining to address BNSF's constitutional issues. BNSF sought reconsideration, which the MPUC denied.

BNSF appeals.

ISSUES

I. Does Minn. Stat. § 237.045 violate the takings clause?

II. Is Minn. Stat. § 237.045 preempted by 49 U.S.C. § 10501 ?

III. Does Minn. Stat. § 237.045 apply to CenturyLink's proposed paralleling?

ANALYSIS

The MPUC's decision under Minn. Stat. § 237.045 is appealable under the Minnesota Administrative Procedure Act (MAPA) and Minn. Stat. § 216B.27 (2016). Minn. Stat. § 237.045, subd. 8. Under MAPA's standard of review, this court may reverse or modify an agency's decision if, among other grounds, it is "in violation of constitutional provisions" or "affected by other error of law." Minn. Stat. § 14.69(a), (d) (2016). On appeal, BNSF argues that Minn. Stat. § 237.045 permits an unconstitutional taking without just compensation; that the statute is preempted by 49 U.S.C. § 10501 ; and that the MPUC erred by determining that the *582statute applies to CenturyLink's proposed line.

We begin with an overview of the history and structure of Minn. Stat. §§ 237.04, .045. In Minnesota, utilities are authorized to exercise the power of eminent domain, allowing them to lay pipes, cables, or other lines in railroad rights of way, upon "making just compensation therefor" and subject "to the right of the railway company to use its right-of-way and lands for railway purposes." Minn. Stat. §§ 117.025, subd. 10, 222.36 (2016). Since 1998 for crossings and 2001 for parallelings, utilities have had an administrative avenue-under Minn. Stat. § 237.04 -to challenge fees sought by railroads. See Minn. Stat. § 237.04(b) (establishing administrative review process for crossing fees); 1997 Minn. Laws ch. 123, § 1, at 831 (adopting subpart b of the statute); 2001 Minn. Laws 1st Spec. Sess. ch. 8, art. 2, § 61, at 2006 (amending subpart b to govern parallelings).1

Under section 237.04, which remains in effect, MnDOC may, upon the request of a utility, determine the just and reasonable charge, based on diminution in land value, that a railroad may charge for a crossing or paralleling of a railroad right-of-way by a cable or line. Minn. Stat. § 237.04(b).

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Bluebook (online)
918 N.W.2d 578, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-qwest-corp-minnctapp-2018.