Pci Transportation, Inc. v. Fort Worth & Western Railroad Company

418 F.3d 535, 2005 U.S. App. LEXIS 15251, 2005 WL 1731748
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 26, 2005
Docket04-10965
StatusPublished
Cited by145 cases

This text of 418 F.3d 535 (Pci Transportation, Inc. v. Fort Worth & Western Railroad Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pci Transportation, Inc. v. Fort Worth & Western Railroad Company, 418 F.3d 535, 2005 U.S. App. LEXIS 15251, 2005 WL 1731748 (5th Cir. 2005).

Opinion

WIENER, Circuit Judge:

Appellant PCI Transportation, Inc. (“PCI”) appeals the district court’s orders denying (1) remand, and (2) a preliminary injunction. We affirm.

I. FACTS AND PROCEEDINGS

PCI receives and distributes rail cargo in Fort Worth, Texas, via a distribution warehouse serviced by a spur that comes off of railroad lines of the Union Pacific Railroad (“Union Pacific”) and the Burlington Santa Fe Railroad (“BNSF”). Ap-pellee Fort Worth & Western Railroad Co. (“FWWR”) is a short-line railroad that operates passenger and freight trains within Texas. FWWR operates a switching yard that, via PCI’s spur, links its warehouse to the Union Pacific and BNSF railroads. Under various agreements, Union Pacific and BNSF deliver railcars to FWWR’s switching yard, after which FWWR switches and delivers these cars to customers of Union Pacific and BNSF, such as PCI, for unloading. After the railcars are unloaded, FWWR returns the empty cars to the main railroads’ lines. BNSF and Union Pacific compensate FWWR for its switching services, but the railroads also charge FWWR for the time that it retains the railcars at its switching yard. In turn, FWWR collects demur-rage 1 fees from end-use customers such as PCI.

In August 2001, after a dispute had arisen concerning demurrage charges imposed on PCI by FWWR, these parties entered into a contract (the “contract”) aimed at avoiding further conflict, a goal that the contract has obviously failed to attain. The entire contract is a one page letter, and is self-styled with two different *538 names — “Confidential Demurrage Contractual Agreement” and “Confidential Contractual Agreement for Free Time.” The language of the contract provides that (1) PCI will have four demurrage-free days, and (2) FWWR is committed to providing PCI with a minimum of one “switch” daily, seven days per week. The contract also establishes the demurrage rate applicable after free time expires. (The contract was never placed in evidence before the district court, but following oral argument on appeal, it was submitted to us under seal.) PCI alleges that, since the execution of the contract and in conformity with common industry practice, FWWR has delivered cars to PCI on a first-in, first-out (“FIFO”) basis.

In February 2004, more than two years after execution of the contract, a new dispute arose between PCI and FWWR concerning demurrage charges for the month of June 2003. PCI contends that FWWR had engaged in several practices that resulted in improper demurrage fees being charged to PCI, to wit: (1) FWWR varied from its practice of delivering cars to PCI on a FIFO basis, with the result that FWWR held cars intended for PCI’s customers for longer than four days; (2) at times, FWWR had delivered rail cars on PCI’s spur backwards, making it impossible for PCI to unload those cars and requiring FWWR to move the cars out, reverse them, then bring them back in again with the next group of cars; (3) FWWR provided PCI with a delivery schedule the effect of which virtually guaranteed that some of the cars would be held in the FWWR yard for more than four days, thereby unnecessarily incurring demur-rage costs.

PCI filed suit in state court alleging that FWWR had breached the contract. PCI also claimed intentional interference with contractual relations and requested a TRO, a “temporary injunction,” and a permanent injunction restraining FWWR for a period of ten years from (1) “providing purported notice of cancellation of any agreements between PCI and FWWR”; (2) “refusing to deliver less than ten (10) PCI-bound railroad cars with cargo per day to PCI on its spur, to the extent such cars are available”; (3) “delivering ears to PCI’s spur on any basis other than on the basis of delivery of those PCI-bound cars which have been in FWWR’s possession the most number of days”; and (4) “imposing or attempting to impose any demurrage charges upon PCI, or in the alternative, imposing or attempting to impose any de-murrage charges upon PCI when timely delivery of PCI’s cars on a first-in, first-out basis would have resulted in no demur-rage charges, and in those situations where no demurrage charges would accrue but for FWWR’s service failures”. The state court granted PCI’s request for a TRO.

FWWR then removed the case to federal court, asserting that PCI’s state law claims were completely preempted by the Interstate Commerce Commission Termination Act of 1995 (“ICCTA”). 2 The ICC-TA overhauled the Interstate Commerce Act (“ICA”), including the elimination of the Interstate Commerce Commission and replacing it with the Surface Transportation Board (“STB”). PCI filed a motion for remand, arguing that the suit was outside the ambit of the ICCTA. The district court denied PCI’s motion, concluding that removal was proper under the doctrine of complete preemption.

PCI filed a request for a temporary injunction and hearing in the district court, seeking essentially the same relief that it had sought in state court. This was PCI’s *539 second motion for injunctive relief. Its first motion was denied for procedural reasons. The district court denied PCI’s motion without a hearing, holding that, as a result of PCI’s failure to proffer into evidence the contract on which it based its claims for relief, it had not demonstrated, prima facie, that the district court, as distinguished from the STB, had jurisdiction to entertain PCI’s requested injunctive relief. The district court also held that PCI failed to demonstrate that it would suffer irreparable injury absent an injunction. PCI appeals the district court’s denial of its remand motion, denial of its motion for a preliminary injunction, and refusal to hold a hearing on the motion for a preliminary injunction.

II. ANALYSIS

A. Appeal of the Remand Order

An order denying a motion to remand is not appealable as a final decision within the meaning of 28 U.S.C. § 1291; standing alone, such a ruling cannot be appealed unless certified by the district court under 28 U.S.C. § 1292(b). 3 PCI nevertheless contends that we have jurisdiction to consider its appeal of the remand order, citing the Ninth Circuit’s decision in O’Halloran v. University of Washington. 4 , The court in O’Halloran held that an appeal from an order denying a motion to remand is reviewable prior to final judgment when joined with an interlocutory appeal from an order granting or denying an injunction. 5

Several other circuits have held the same, either expressly or implicitly. 6 We have not previously addressed the question whether the denial of a remand order becomes reviewable when it is coupled with an interlocutory appeal of an injunction order under 28 U.S.C.

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418 F.3d 535, 2005 U.S. App. LEXIS 15251, 2005 WL 1731748, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pci-transportation-inc-v-fort-worth-western-railroad-company-ca5-2005.