Nebraska Public Service Commission v. Chicago & North Western Transportation Co.

225 N.W.2d 401, 193 Neb. 59, 1975 Neb. LEXIS 921
Nebraska Supreme Court·Decided January 30, 1975·No. No. 39448·Published·Cited by 6 cases

Opinion

White, C. J.

On October 5, 1973, the Nebraska Public Service Commission enacted and promulgated its Rules and Regulations Nos. 31 and 32 setting up emergency powers in the Commission and standards relating thereto, which regulated the distribution of railroad grain cars by railroads to shippers in Nebraska. The question involved in this case is the constitutionality of these two rules and regulations under the supremacy and commerce clauses of the federal Constitution (Art. IV, § 2, and Art. I, § 8; of the Constitution of the United States). We hold that the state’s power to regulate this aspect of interstate commerce has been preempted by the Congress through the Interstate Commerce Act, Title 49 U. S. C., section 1 (1) through (17), and accordingly Rules 31 and 32 are an unconstitutional exercise of state power.

Rule 31 provides as follows: “Whenever the Commission (Nebraska Public Service Commission) is of the opinion that shortage of equipment, congestion of traffic or other emergency requiring immediate action exists, the Commission shall have and is hereby given authority either upon complaint or upon its own motion without complaint, at once, .if it so orders, without answer or other formal pleading by the interested carriers or carrier and without notice, hearing or making or filing of a report as the Commission may determine (A) to suspend the1 operation" of any or all Commission rules, regulations, or practices' then established with respect to car service for such time as may be determined by the Commission (B) to make such just and reasonable order with respect to car service during such emergency that will promote the service in the interest of the public and commerce of' the people.’’

The Interstate Commerce Act, Title 49 U. S. C., section 1(15), states: “Powers of Commission in case of emer[62] gency. Whenever the Commission is of opinion that shortage of equipment, congestion of traffic, or other emergency requiring immediate action exists in any section of the country, the Commission shall have, and it is given, authority, either upon complaint ©r upon its own initiative without complaint, at once, if it so orders, without answer or other formal pleading by the interested carrier or carriers, and with or without notice, hearing, or the making or filing of a report, according as the Commission may determine: (a) to suspend the operation of any or all rules, regulations, or practices then established with respect to car service for such time as may be determined by the Commission; (b) to make such, just and reasonable directions with respect to car service without regard to the ownership as between carriers of locomotives, cars, and other vehicles, during such emergency as in its opinion will best promote the service in the interest of the public and the commerce of the people, upon such terms of compensation as between the carriers as they may agree upon, or, in the event of their disagreement, as the Commission may after subsequent hearing find to be just and reasonable;

More precisely, the question presented is whether Congress has “preempted” the area of regulation of the distribution of railroad grain cars to shippers in the State of Nebraska. At the outset we point out it is well-settled law that all federal regulations done in pursuance of one of Congress’ delegated powers are capable of preempting any state legislation or regulation on the same subject. The commerce clause of the Constitution of the United States delegates to Congress the power to regulate interstate commerce; this power is plenary in nature and has been held to embrace matters which are intrastate in nature but which affect interstate commerce. The Minnesota Rate Cases, 230 U. S. 352, 33 S. Ct. 729, 57 L. Ed. 1511 (1913); Gibbons v. Ogden, 9 Wheat. 1, 22 U. S. 1, 6 L. Ed. 23 (1824). As to the extent [63] of federal preemption, the determination does not await any actual operational conflict in the area of operations and actual frustration is not a criterion of preemption. The extent of federal preemption is determined by an inquiry into the congressional intent underlying the federal law. Atchison, Topeka & Santa Fe Ry. Co. v. Railroad Commission, 283 U. S. 380, 51 S. Ct. 553, 75 L. Ed. 1128 (1931); Napier v. Atlantic Coast Line R. R. Co., 272 U. S. 605, 44 S. Ct. 207, 71 L. Ed. 432 (1926); Savage v. Jones, 225 U. S. 501, 32 S, Ct. 715, 56 L. Ed. 1182 (1912). In Savage v. Jones, supra, the general principle is stated: “For when the question is whether a Federal act overrides a state law, the entire scheme of the statute must of course be considered and that which needs must be implied is of no less force than that which is expressed. If the purpose of the act cannot otherwise be accomplished — if its operation within its chosen field else must be frustrated and its provisions be refused their natural effect — the state law must yield to the regulation of Congress within the sphere of its delegated powers.”

The fact that the power delegated to the ICC has not been exerted is without legal significance. The fact that the ICC has not seen fit to exercise its authority to the full extent conferred has no bearing upon the construction of the act delegating the power. The question is whether the federal act was intended to occupy the field. Napier v. Atlantic Coast Line R. R. Co., supra; (Opinion by Brandéis, J.). See, also, Frontier Airlines Inc. v. Nebraska Department of Aeronautics, 175 Neb. 501, 122 N. W. 2d 476 (1963).

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Nebraska Public Service Commission v. Chicago & North Western Transportation Co., 225 N.W.2d 401, 193 Neb. 59, 1975 Neb. LEXIS 921 (Neb. 1975).

225 N.W.2d 401 (Nebraska Public Service Commission v. Chicago & North Western Transportation Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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