Norwich & Worcester R. Co. v. United States

408 F. Supp. 1398
CourtSpecial Court under the Regional Rail Reorganization Act
DecidedFebruary 12, 1976
Docket75-2, 75-3
StatusPublished
Cited by8 cases

This text of 408 F. Supp. 1398 (Norwich & Worcester R. Co. v. United States) is published on Counsel Stack Legal Research, covering Special Court under the Regional Rail Reorganization Act primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norwich & Worcester R. Co. v. United States, 408 F. Supp. 1398 (reglrailreorgct 1976).

Opinion

408 F.Supp. 1398 (1976)

NORWICH & WORCESTER RAILROAD COMPANY, Petitioner,
v.
UNITED STATES of America et al., Respondents.
Robert W. BLANCHETTE et al., Trustees of the Property of Penn Central Transportation Company, Debtor, Petitioners,
v.
UNITED STATES RAILWAY ASSOCIATION et al., Respondents.

Nos. 75-2, 75-3.

Special Court Regional Rail Reorganization Act

Argued January 30, 1976.
Decided February 12, 1976.

*1399 George F. Galland, Washington, D.C. (Robert W. Ginnane, and Galland, Kharasch, Calkins & Brown, Washington, D.C., of counsel), for petitioner Norwich & Worcester R. Co.

Brice M. Clagett, Washington, D.C. (Charles A. Horsky, Covington & Burling, Washington, D.C., and Paul R. Duke, Philadelphia, Pa., of counsel), for petitioner Penn Central Trustees.

William R. Perlik, Washington, D.C. (Louis R. Cohen, Stephen F. Black, William T. Lake, and Wilmer, Cutler & Pickering, Washington, D.C., of counsel), for United States Ry. Assn.

John Hart Ely, Gen. Counsel, James I. Singer, and Jerome E. Sharfman, U. S. Dept. of Transp., Washington, D.C., for the United States.

John G. Harkins, Jr., Laurence Z. Shiekman, and Pepper, Hamilton & Sheetz, Philadelphia, Pa., for Consolidated Rail Corp.

Nathaniel H. Goodrich, Washington, D.C., for National Railroad Passenger Corp.

Paul C. Warnke, James T. Stovall, III, and Clifford, Warnke, Glass, McIlwaine & Finney, Washington, D.C., for Southern R. Co.

John L. Rogers, Jr., Baltimore, Md., for Chesapeake and Ohio R. Co.

William H. Ewing, and Joseph J. Connolly, Philadelphia, Pa., for The Connecting Ry. Co. and John C. Kohl, Trustee of the Property of The Philadelphia, Baltimore and Washington R. Co.

Mark Willcox, Jr., and Herbert G. Schick, Philadelphia, Pa., for Trustee of the Property of The Michigan Central R. Co.

Jerome K. Walsh, New York City, for Trustee of the Properties of the Cleveland, Cincinnati, Chicago and St. Louis Railway Co. and Penndel Co.

Joseph J. Connolly, Philadelphia, Pa., for New York Connecting R. Co., Fort Wayne & Jackson R. Co. and Little Miami R. Co., as amici curiae.

Charles I. Thompson, Jr., Philadelphia, Pa., for The North Pennsylvania R. Co. and Philadelphia, Germantown and Norristown R. Co., as amici curiae.

Leon Leighton, New York City, for Minority Stockholders of Mahoning Coal Railroad, as amicus curiae.

Before FRIENDLY, Presiding Judge, and WISDOM and THOMSEN, Judges.

FRIENDLY, Presiding Judge:

The petitioners in these two actions request the Special Court to determine that certain property described in the petitions is not subject to compulsory conveyance under § 303(b) of the Regional Rail Reorganization Act of 1973 (RRRA) as amended. This opinion deals only with the question whether, in the light of the important amendments in Title VI of the Railroad Revitalization and Regulatory *1400 Reform Act of 1976, adopted February 5, 1976, the Special Court may hear these petitions before the conveyance rather than later. We will assume familiarity with the plan and structure of RRRA as amended — a course we intend to follow generally in the interests of expedition and of such brevity as is attainable.

The Norwich & Worcester Railroad Company (Norwich) owns a line of railroad between Groton, Conn., and Worcester, Mass. It was leased to a predecessor of the New York, New Haven & Hartford Railroad Company (New Haven) in 1869 for a term of 100 years. The lease was assumed by the New Haven and was later affirmed by its reorganization trustees. Inclusion of Norwich in the Penn Central system was required in Pennsylvania R. Co. — Merger — New York Central R. Co., 344 I.C.C. 25, 90 et seq. (1968), although the ICC noted that new arrangements would have to be made when the lease expired on February 1, 1969. No such arrangements were made, and Penn Central and subsequently its trustees have continued to operate the Norwich, without payment since the Penn Central bankruptcy save for a single quarterly installment at the beginning.

The Final System Plan (FSP), which became effective through lack of Congressional veto on November 9, 1975, recognized the Norwich to be "a special situation," Vol. I, p. 228. Conceding that the rail properties of the Norwich were not the rail properties of a railroad in reorganization or of a railroad leased or controlled by such a railroad, the FSP asserted that these were subject to designation under § 206(c)(1) and conveyance under § 303(b) because they were operated by a railroad in reorganization, the Penn Central. Noting that Norwich had challenged this reading of the Act and that this court would have the opportunity to settle the question "in proceedings under section 303 of the Act," the FSP offered the northern portion of Norwich to the Providence & Worcester Railroad (P&W) and made a designation of the southern portion to ConRail. All these were subject to qualifications. One, which has now become academic, was that if within 60 days of the effective date of FSP the Norwich should enter "into an arrangement with another railroad (presumably the Providence and Worcester) for the sale or operation of the designated properties," the designation to ConRail should not become effective and the Norwich and the other railroad should be left free to implement their agreement outside RRRA. A second, which has not happened as yet, is that ConRail should work out arrangements whereby P&W would operate the southern end of Norwich's line. Finally, none of the designations were to become effective if, within 60 days of the effective date of FSP, the Norwich presented to USRA "a sound plan to operate the line on and after conveyance date, which would maintain the same service coverage as the designations would provide." Norwich developed a plan and, without conceding jurisdiction, submitted it to USRA within the stipulated time. USRA has not yet determined whether the plan meets the requirements of FSP. We assume it will make such a determination before the certification date.

Norwich's position is that RRRA did not contemplate that a rail line should be subject to designation and conveyance simply because a railroad in reorganization continued to operate it after the termination of a lease five years before RRRA was enacted; if RRRA purports to do this, Norwich says it is unconstitutional. It asked us to declare that for one reason or the other its railroad is not subject to conveyance.[1]

The petition of the Penn Central Trustees, as originally filed on December 23, 1975, claimed that a large number of designations in FSP of properties to be conveyed went beyond what RRRA authorized or constitutionally could. However, in view of changes made by the *1401 1976 amendments and other developments, the Penn Central Trustees, in an amended petition which we gave leave to file, F.R.Civ.P. 15(a), have considerably restricted the transactions concerning which they seek pre-conveyance relief. These requests are now limited to (1) the designation of properties of two non-railroad subsidiaries, the interest of Manor Real Estate Company, a wholly-owned subsidiary, in the Buckeye Yard, see FSP Vol. I, pp. 229 and 262, and certain assets of Pennsylvania Truck Lines, Inc., another subsidiary, see FSP Vol. I, pp.

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Cite This Page — Counsel Stack

Bluebook (online)
408 F. Supp. 1398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norwich-worcester-r-co-v-united-states-reglrailreorgct-1976.