Phillips Co. v. Southern Pacific Rail Corp.

902 F. Supp. 1310, 1995 U.S. Dist. LEXIS 14949, 1995 WL 603473
CourtDistrict Court, D. Colorado
DecidedOctober 2, 1995
DocketCiv. A. 93-Z-1461
StatusPublished
Cited by6 cases

This text of 902 F. Supp. 1310 (Phillips Co. v. Southern Pacific Rail Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phillips Co. v. Southern Pacific Rail Corp., 902 F. Supp. 1310, 1995 U.S. Dist. LEXIS 14949, 1995 WL 603473 (D. Colo. 1995).

Opinion

ORDER GRANTING SUMMARY JUDGMENT

WEINSHIENK, District Judge.

This case arises through plaintiff’s claim against defendant The Denver and Rio Grande Western Railroad Company, Inc. (“D & RGW’) under 48 U.S.C. § 912 (“Section 912”) to ownership of a portion of D & RGWs railroad right-of-way as a result of an alleged abandonment. Plaintiff alleges that the abandonment occurred prior to October 4, 1988. The date of any abandonment is of importance because the provision of Section 912 under which plaintiff claims was amended effective October 4, 1988 by the passage of 16 U.S.C. 1248(c).

In August, 1993, D & RGW moved to dismiss plaintiffs complaint on the basis that the alleged abandonment could not have occurred without authorization by the Interstate Commerce Commission (“ICC”) under 49 U.S.C. § 10903(a) (“Section 10903”), which D & RGW asserted had not been granted. Plaintiff has never asserted that the ICC authorized abandonment under Section 10903.

The Court referred that motion to United States Magistrate Judge Abram, who recommended that the ease be dismissed. Rather than accepting that recommendation, the Court followed the suggestion of plaintiff and referred the issue of whether abandonment had occurred prior to October 4, 1988, to the ICC by Order dated January 4, 1994, pursuant to 28 U.S.C. § 1336(b). The Court referred this matter to the ICC because there was case law concerning railroad abandonment, particularly Allard Cattle Co. v. Colorado & S.R. Co., 33 Colo.App. 39, 516 P.2d 123 (1973), aff'd, 187 Colo. 1, 530 P.2d 503 (1974), in which the ICC was not mentioned.

Thereafter, the Phillips Company filed a document captioned Application for Abandonment with the ICC. After both procedural and substantive objections by the D & RGW to processing of the filing as an abandonment application, the ICC issued an Order on August 22, 1994, ordering that the Phillips Company’s ICC filing be handled as a declaratory order matter, rather than as an adverse abandonment matter.

In response to the Court’s referral, on April 4, 1995 the ICC issued a decision (the “ICC Decision”, Finance Docket No. 32518). A copy of the ICC Decision is attached. Based on the ICC Decision, defendants 1 moved for judgment on the pleadings. The Court treated the motion as a motion for summary judgment and has considered the parties’ briefs, as well as oral argument presented on September 20, 1995.

As the referring Court under 28 U.S.C. § 1336(b), this District Court has jurisdiction to review the ICC’s decision (which is a Final Order of the ICC) under both 28 U.S.C. § 1336(b) and 28 U.S.C. § 1398(b).

The ICC has determined the issue of abandonment by stating clearly, “D & RG cannot be found to have abandoned the line under 43 U.S.C. 912 and 16 U.S.C. 1248(c). That is so because the commission has never exercised its authority at 49 U.S.C. 10903 to permit the abandonment.” (ICC Decision, p. 4.) The ICC has written a very detañed decision drawing a bright line. The bright line is that abandonment under Section 912 could occur only after ICC approval of abandonment un *1312 der Section 10903. The ICC noted that Section 10903 and 16 U.S.C. § 1247(d), “reflect a Congressional policy of regulating the termination of service and the dismantling of right of way, a policy that would be jeopardized under Phillips’ theory that de facto abandonment enables a court to authorize transfer of the line under 43 U.S.C. 912.” (ICC Decision, p. 6.) The decision goes on to say that “Phillips’ theory would in effect create a system of dual jurisdiction over abandonments for large segments of the nation’s rail system under which anyone with a reversionary interest in railroad right of way could circumvent our jurisdiction by obtaining an abandonment ruling in a state or federal court. Indeed, under Phillips’ theory, railroads could terminate their service obligation without our consent simply by ceasing service and getting a court to declare that the property reverted because service had been abandoned de facto.” Id.

Extensive case law prescribes that when a court reviews an agency’s construction of a statute within the jurisdiction of that agency, it has to look first of all as to whether Congress had directly spoken to the precise issue. If the intent of Congress is clear, the court can look no further, for the court as well as the agency must give effect to the unambiguous intent of Congress. However, if the court determines that Congress has not addressed directly the precise question at issue, then the court does not impose its own construction of the statute. Rather, if the statute is silent or ambiguous with respect to the specific issue, the sole question for the court is whether the agency’s answer is based on a permissible construction of the statute. Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc., 467 U.S. 837, 842-43, 104 S.Ct. 2778, 2781-82, 81 L.Ed.2d 694 (1984). The Tenth Circuit in Rubio-Rubio v. Immigration and Naturalization Service, recognized the heavy burden to show that an administrative agency reached “an impermissible construction.” 23 F.3d 273, 276 (10th Cir.1994).

The ICC has decided that the railroad property could not have been transferred to plaintiff under Section 912 before the ICC authorized abandonment of the line under Section 10903. Section 10903 is a statute within the jurisdiction of the ICC. Congress has not directly spoken to the interplay of Section 912 and Section 10903. This case is apparently one of first impression as to the interplay between the reversion provisions of 43 U.S.C. § 912

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Cite This Page — Counsel Stack

Bluebook (online)
902 F. Supp. 1310, 1995 U.S. Dist. LEXIS 14949, 1995 WL 603473, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phillips-co-v-southern-pacific-rail-corp-cod-1995.