M.M. Winter v. Interstate Commerce Commission and United States of America

851 F.2d 1056, 128 L.R.R.M. (BNA) 3041, 1988 U.S. App. LEXIS 9431, 1988 WL 71336
CourtCourt of Appeals for the Eighth Circuit
DecidedJuly 12, 1988
Docket88-1250
StatusPublished
Cited by26 cases

This text of 851 F.2d 1056 (M.M. Winter v. Interstate Commerce Commission and United States of America) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M.M. Winter v. Interstate Commerce Commission and United States of America, 851 F.2d 1056, 128 L.R.R.M. (BNA) 3041, 1988 U.S. App. LEXIS 9431, 1988 WL 71336 (8th Cir. 1988).

Opinions

WOLLMAN, Circuit Judge.

M.M. Winter, General Chairman of the United Transportation Union (UTU), filed this petition for judicial review of an Interstate Commerce Commission (Commission) decision denying his petition1 to reject Wi-nona Bridge Railway Company’s (Winona Bridge) exemption from the regulatory requirements of the Interstate Commerce Act, 49 U.S.C. § 11343(a)(6),2 with respect to Winona Bridge’s acquisition of trackage rights over Burlington Northern Railroad Company’s (BN) line.3 See Winona Bridge Railway Company — Trackage Rights— Burlington Northern Railroad Company, (the January 7 Decision), Finance Docket No. 31163 (Jan. 7, 1988), petitions to reopen filed, January 19 and 27,1988. After the Commission moved to dismiss Winter’s petition for lack of a reviewable order, we granted Winter’s request for a temporary stay of the January 7 Decision and ordered expedited briefing on all issues concerning the stay, the pending motion to dismiss, and the underlying merits of the action. Because we conclude that the January 7 Decision is not a final order, we dismiss the appeal and vacate the stay. We also decline to invoke our authority under the All Writs Act, 28 U.S.C. § 1651 to issue a writ compelling the Commission to reject the exemption.

[1058]*1058I. BACKGROUND

Winona Bridge, a wholly-owned subsidiary of BN, owns a railroad bridge across the Mississippi River between Winona, Minnesota, and E. Winona, Wisconsin. The 1.07 mile-long bridge has been out of service since September 1985. On November 16, 1987, Winona Bridge and BN entered into an agreement in which BN granted Winona Bridge trackage rights4 over BN’s Northern line between Winona Junction, Wisconsin, and Seattle, Washington, a distance of approximately 1,860 miles. BN entered into this agreement in an effort to compete with trucking companies that provide low-cost services for long-distance transportation. Originally, BN had planned to implement “Expeditor service” employing one engineer and one conductor on its Northern line from St. Paul, Minnesota, to Seattle, Washington. Because BN’s negotiations with the UTU for reduced crew size were unsuccessful, BN decided to use its subsidiary, Winona Bridge, to operate over the Northern line with two-man crews. In the planned transaction, Winona Bridge would hire new employees not subject to BN’s labor agreements. BN informed its employees that if the unions would agree to reduced crew size, Winona Bridge would not begin operations. BN granted Winona Bridge the right to pick up and set out traffic at BN’s intermodal hub centers in St. Paul, Spokane, and Seattle, which will enable BN to compete with motor carriers for trailer-on-flat-car and container-on-flat-car traffic.

Under the Interstate Commerce Act, the Commission must regulate all trackage rights agreements. See 49 U.S.C. § 11343(a)(6). More recently, however, in light of the severe financial crisis facing the nation’s rail industry, Congress realized that extensive regulation was prohibiting railroads from becoming economically viable. In 1980, Congress enacted the Staggers Act, which directs the Commission to exempt from regulation all transactions that it finds do not require regulation to carry out the national transportation policy and are either of limited scope or involve situations in which regulation is not needed to protect shippers from the abuse of market power. See 49 U.S.C. § 10505(a);5 see also Winter v. ICC, 828 F.2d 1320, 1321 (8th Cir.1987). Through the Staggers Act, Congress intended to liberalize the regulatory framework that the Interstate Commerce Act imposed on the railroad industry. Congress hoped that an improved regulatory climate would “increase the rail industry’s productivity and enhance financial returns sufficiently to encourage an infusion of private capital into the industry” to prevent the collapse of the nation’s rail industry. Simmons v. ICC, 697 F.2d 326, 328 (D.C.Cir.1982). The Commission was charged with responsibility for actively pursuing exemptions for transportation and services that would allow competition and would minimize the need for regula[1059]*1059tory control over the rail industry. American Trucking Ass’ns, Inc. v. ICC, 656 F.2d 1115, 1119 (5th Cir.1981); see also H.R. Rep. No. 1035, 96 Cong., 2d Sess. 60, reprinted in 1980 U.S.Code Cong. & Admin. News 3978, 4005.

Following this congressional mandate, the Commission determined that certain trackage rights agreements between rail carriers, as a class, should be exempt from regulation. Railroad Consolidation Procedures — Trackage Rights Exemption, Ex Parte No. 282 (Sub-No. 9), 1 I.C.C.2d 270 (1985), aff'd sub nom. Illinois Commerce Commission v. ICC, 819 F.2d 311 (D.C.Cir. 1987). The Commission concluded:

[Tjrackage rights based on written agreements and not filed as responsive applications to rail consolidation proceedings should be exempted from regulation. Transactions that permit only bridge rights will maintain the competitive balance among carriers, preserve shippers’ existing transportation choices, give shippers access to alternative routes with shorter, faster, or otherwise improved routing and increase the operational efficiency of the participating carriers. Improving operating efficiencies will help ensure the continued development of sound rail transportation systems, foster sound economic conditions, encourage efficient management, and promote energy conservation.

Id. at 275-76; see also 49 C.F.R. § 1180.2(d)(7) (1987).

The trackage rights class exemption allows a transaction between two rail carriers to be consummated seven days after the railroad files a notice with the Commission. 49 C.F.R. § 1180.4(g)(1). If the notice contains false or misleading information, the Commission may summarily revoke it. Id. at § 1180.4(g)(1)(h). The Commission must publish a summary of the transaction in the Federal Register within twenty days of filing. Id. at § 1180.4(g)(2)(h). The procedural mechanism for other interested parties to challenge exempt trackage rights agreements is a petition to revoke under 49 U.S.C. § 10505(d). Id. The filing of such a petition does not stay the effectiveness of an exemption. Rather, the Commission will review carrier actions after the fact to correct abuses of market power. American Trucking Ass’ns, Inc. v. ICC, 656 F.2d at 1120 (quoting H.R.Rep. No. 1430, 96 Cong., 2d Sess. 105, reprinted in

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851 F.2d 1056, 128 L.R.R.M. (BNA) 3041, 1988 U.S. App. LEXIS 9431, 1988 WL 71336, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mm-winter-v-interstate-commerce-commission-and-united-states-of-america-ca8-1988.