R.J. Corman Railroad v. Palmore

999 F.2d 149
CourtCourt of Appeals for the Sixth Circuit
DecidedJuly 16, 1993
DocketNo. 92-5552
StatusPublished
Cited by2 cases

This text of 999 F.2d 149 (R.J. Corman Railroad v. Palmore) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
R.J. Corman Railroad v. Palmore, 999 F.2d 149 (6th Cir. 1993).

Opinion

SUHRHEINRICH, Circuit Judge.

Plaintiffs R.J. Corman Railroad Company/Memphis Line and R.J. Corman Railroad Company challenge the district court’s holding that Ky.Rev.Stat. § 337.285 is not preempted by federal legislation governing railroads. For the following reasons, we REVERSE.

’ I.

Plaintiffs, two sister corporations, engage in interstate rail transportation of freight between Kentucky and Tennessee, as well as transportation of goods within Kentucky in connection with CSX Transportation, an interstate railroad.. There is no collective bargaining agreement between plaintiffs and their employees.

In 1989, the Kentucky Labor Cabinet (“Cabinet”) received complaints from' plaintiffs’ employees that plaintiffs were not paying wages of time and a half'for hours worked beyond forty hours per week, as required by Ky.Rev.Stat. § 337.285.1 In response to these complaints, the Cabinet commenced state administrative proceedings, seeking approximately $40,000 in unpaid overtime wages.

[151]*151Plaintiffs brought' suit in district court against Carol Palmore, the Kentucky Secretary of Labor, and the Cabinet, arguing that the Kentucky statute is preempted as, to interstate railroads by the comprehensive federal legislation governing interstate railroads. On cross-motions for summary judgment, the district court found that the Kentucky statute was not preempted.

II.

A.

The United States Constitution provides that “[t]his Constitution, and the Laws of the United States which shall be made in Pursuance thereof ... shall be the supreme Law of the Land....” U.S. Const. art. VI, cl. 2. Thus, “[wjhere a state statute conflicts with or frustrates federal law, the former must give way.” CSX Transp., Inc. v. Easterwood, — U.S.-, ——, 113 S.Ct. 1732, 1737, 123 L.Ed.2d 387 (1993). In deciding whether federal law preempts a state law, the intent of Congress is paramount. Id.; Cipollone v. Liggett Group, Inc., — U.S. -,--, 112 S.Ct. 2608, 2617, 120 L.Ed.2d 407 (1992). Where a federal statute contains no express statement regarding preemption, the intent to preempt state law may be inferred if an actual conflict exists between the federal and state law or “if federal law so thoroughly occupies a legislative field ‘ “as to make reasonable the inference that Congress left no room for the States to supplement it.” ’ ” Cipollone, — U.S. at -, 112 S.Ct. at 2617 (quoting Fidelity Fed. Sav. & Loan Ass’n v. De la Cuesta, 458 U.S. 141, 153, 102 S.Ct. 3014, 3022, 73 L.Ed.2d 664 (1982) (quoting Rice v. Santa Fe Elevator Corp., 331 U.S. 218, 230, 67 S.Ct. 1146, 1152, 91 L.Ed. 1447 (1947))). Accord Gade v. National Solid Wastes Mgmt. Ass’n, — U.S. -, --, 112 S.Ct. 2374, 2383, 120 L.Ed.2d 73 (1992). Here, plaintiffs contend that the intent of Congress to preempt state overtime regulation of interstate railroads is shown by the comprehensive scheme of federal law governing interstate railroads.2

Viewed as “a state within a state,” California v. Taylor, 353 U.S. 553, 565, 77 S.Ct. 1037, 1044, 1 L.Ed.2d 1034 (1957) (citation omitted), the railroad industry has been “subject to comprehensive federal regulation for nearly a century.” United Transp. Union v. Long Island R.R. Co., 455 U.S. 678, 687, 102 S.Ct. 1349, 1355, 71 L.Ed.2d 547 (1982). Indeed, “[pjerhaps no industry has a longer history of pervasive federal regulation than, the railroad industry.” Consolidated Rail Corp. v. Metro-North Commuter R.R., 638 F.Supp. 350, 357 (Regional Rail Reorg. Ct.1986).

The earliest federal legislation regarding' interstate railroads is the Pacific Railroad Act of 1862, ch. 120, 12 Stat. 489, which granted rights of way through public lands so that a transcontinental rail system could be established. See United Transp., 455 U.S. at 687 n. 13, 102 S.Ct. at 1355 n. 13; Ames v. Kansas ex rel. Johnston, 111 U.S. 449, 450, 4 S.Ct. 437, 437, 28 L.Ed. 482 (1884). In 1887, Congress enacted the Interstate Commerce Act of Feb. 4, 1887, 24 Stat. 379, which established the Interstate Commerce Commission (ICC) to comprehensively regulate rail shipping in interstate commerce. See United States v. Pennsylvania R., 323 U.S. 612, 618-19, 618 n. 5, 65 S.Ct. 471, 474-75, 474 n. 5, 89 L.Ed. 499 (1945). Congress then enacted the Arbitration Act of 1888' as a means of smoothing railroad labor relations in order to avoid strikes which would seriously disrupt the stream of interstate commerce by rail. See International Ass’n of Machinists v. Street, 367 U.S. 740, 756 n. 11, 81 S.Ct. 1784, 1793 n. 11, 6 L.Ed.2d 1141 (1961) (discussing history of federal railroad labor regulations).

In the twentieth century, Congress continued to exercise its power in the area of railroad labor matters. In 1907, Congress enacted the Hours of Service Act (HSA), 45 U.S.C. §§ 61-64b to promote safety by limiting the hours various types of railroad employees could work consecutively. See Chicago & Alton R.R. v. United States, 247 U.S. 197, 199, 38 S.Ct. 442, 443, 62 L.Ed. 1066 [152]*152(1918); Atchison, Topeko & Santa Fe Ry. v. United States, 244 U.S. 336, 342-43, 37 S.Ct. 635, 637, 61 L.Ed. 1175 (1917). In 1916, Congress enacted the Adamson Act, 45 U.S.C. §§ 65-66, in response to threatened strikes by the railroad unions due to the railroads’ refusal to adopt an eight-hour day or pay time and a half for overtime. See Wilson v. New, 243 U.S. 332, 340-45, 37 S.Ct. 298, 298-300, 61 L.Ed. 755 (1917); Burke v. Monumental Division, No. 52, Brotherhood of Locomotive Engineers, 273 F. 707, 709 (D.Md.1919). The Adamson Act mandates that eight hours constitute the standard workday of railroad employees, but leaves “employers and employees free as to the subject of wages to govern their relations by their own agreements....” Wilson, 243 U.S. at 345-46, 37 S.Ct. at 300-01.3 In 1926, Congress enacted the Railway Labor Act (RLA), 45 U.S.C. §§ 151-188, which imposes a duty on rail carriers and their employees to reach “agreements concerning rates of pay, rules, and working conditions,” RLA, 45 U.S.C.

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Corman Railroad Company Memphis Line v. Palmore
999 F.2d 149 (Sixth Circuit, 1993)

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