Southern Pacific Transportation Co. v. Corporation Commission

730 P.2d 448, 105 N.M. 145
CourtNew Mexico Supreme Court
DecidedDecember 11, 1986
DocketNo. 16135
StatusPublished

This text of 730 P.2d 448 (Southern Pacific Transportation Co. v. Corporation Commission) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southern Pacific Transportation Co. v. Corporation Commission, 730 P.2d 448, 105 N.M. 145 (N.M. 1986).

Opinion

OPINION

WALTERS, Justice.

In this removal proceeding Petitioners, the Railroads, challenge Respondent Commission’s Rules 2 and 3. Rule 2 requires the use of a manned caboose on certain trains, including “through” freights exceeding 2000 feet in length, and the challenged portions of Rule 3 require certain methods of reporting railroad accidents. In support of the rules, which followed two public hearings before the Commission regarding train accidents and derailments in New Mexico and elsewhere, the United Transportation Union (UTU) has intervened.

Although the parties raised ten issues in their briefs, we are convinced after thorough research and analysis of the questions presented and the considerations applicable to this matter, that only one procedural matter and one constitutional issue need be discussed with regard to the Commission's Rule 2. We discuss, additionally, Railroads’ attacks upon Rule 3 made solely upon the ground of federal preemption. We conclude that Railroads’ challenge to Rule 2 must be upheld; that its attack on Rule 3 is sustained in part and overruled in part.

I. Jurisdiction to Review Rules & Regulations on Removal

At the outset, the Commission urges that its adoption of rules of general application and prospective effect is a purely legislative function and that, under N.M. Const, art. XI, Section 7, only the Commission may petition for removal, and then, only for the purpose of enforcing its rules. Other parties, it says, may seek removal only if the Commission has entered an order arising out of its quasi-judicial function which determine the rights of individual parties. It refers to State Corporation Commission v. Mountain States Tel. & Tel. Co., 58 N.M. 260, 270 P.2d 685 (1954).

The latter proposition was disposed of by our earlier order denying Commission’s Motion to Dismiss for lack of jurisdiction. At that time we decided, in effect, that whether the Commission regulates by rule or by order, the validity of its exercise of regulating power is reviewable by this Court. On the issue of removability, the Commission did file, concurrently with Railroads’ petition, its own separate petition for removal for purposes of enforcement. If the contention of the Commission on this portion of its initial argument had any merit, it was waived. We therefore consider those issues raised on removal which we think dispositive of the proceeding.

II. Authority of the Commission to Promulgate Rules 2 and 3

The Commission, opposing Railroads’ contention that the Commission is without authority to promulgate Rules 2 and 3, urges us to recognize its “broad and plenary power,” at the same time prefacing its argument with the acknowledgement that “the Commission is a constitutionally created institution that derives its powers from the New Mexico Constitution itself.” (Respondent’s Answer Brief.)

Within the latter phrase, we believe, lies the key to the entire matter. We are supplied by the parties and intervenor with an almost overwhelming number of state and federal case citations, and an abundance of scholarly argument regarding the police power of a state to enact safety legislation even though it impinges to some degree on interstate commerce.1 Against that authority, we are urged to evaluate and balance, with the great deference due to state safety measures, any burden such exercise of local police power would place upon interstate commerce, Brotherhood of Locomotive Firemen & Enginemen v. Chicago, Rock Island & Pacific Railroad Co., 393 U.S. 129, 89 S.Ct. 323, 21 L.Ed.2d 289 (1968), and to determine whether the regulations overcome the fatal weaknesses, if interstate commerce is affected, of slight, problematical, or illusory safety interests. Bibb v. Navajo Freight Lines, Inc., 359 U.S. 520, 79 S.Ct. 962, 3 L.Ed.2d 1003 (1959).

We have no quarrel with the principles advanced by both the proponents and opponents of the rules in question, but the crucial distinction between state rules and regulations upheld as non-invasive of the protections to interstate commerce is obscured in the arguments. In all of the cases cited, the exercise of regulatory power has been through statutes enacted by state legislatures, or by rule or regulation of a commission to which the state legislative power to regulate has been delegated by the legislature. In that sense have the decisions of the Supreme Court discussed the validity or invalidity of “state legislation” or “state regulation.” Although none of the cited cases recite the language of the state document or statute which granted the regulation-making power to the body which exercised that authority, it is clear either that none of them were constrained by such language as appears in our constitution, or if they were, the basic scope of the regulating body’s authority was never raised. That question is squarely before us here.

Article XI, Section 7 of the New Mexico Constitution grants, in abbreviated and pertinent part, the following authority to the State Corporation Commission:

The commission shall * * * have power and be charged with the duty to make and enforce reasonable and just rules requiring the supplying of cars and equipment for the use of shippers and passengers, and to require all intrastate railways * * * to provide such reasonable safety appliances * * * as may be necessary and proper for the safety of its employees and the public, and as are now or may be required by the federal laws, rules and regulations governing interstate commerce.

Thus the empowering language itself limits the application of any safety appliance requirements of the Commission to intrastate railways. The Commission was not granted the broad powers which state legislatures might exercise, as affects interstate commerce, if the balancing analysis were to permit the conclusion that the local regulation only incidentally burdens interstate commerce.

The Commission’s argument, although proclaiming its interest in mandating sufficient cars and equipment (to include cabooses), focuses principally and primarily upon the safety features of its requirement for cabooses. This is probably so because the Constitution has made the “cars and equipment” oversight applicable when necessary “for the use of shippers and passengers” and not otherwise. The Commission must, therefore, rest its justification for the rule upon the “safety appliance” clause. But only one paragraph of Commission’s 45-page answer brief addresses the decisive words: “intrastate railways.” In a single sentence it asserts, without reference to any authority, that “[t]he Commission interprets the word to mean ‘railroad operations within New Mexico.’ ” That it would rely upon such an interpretation makes patent its awareness that its regulatory power is not as pervasive as the legislature’s might be if we were here dealing with a statute—to which the precedents cited would surely apply—rather than with a regulation formulated by a body whose powers have been strictly limited by the provisions of the constitutional grant.

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Related

SC Hwy. Dept. v. Barnwell Bros.
303 U.S. 177 (Supreme Court, 1938)
Bibb v. Navajo Freight Lines, Inc.
359 U.S. 520 (Supreme Court, 1959)
Pike v. Bruce Church, Inc.
397 U.S. 137 (Supreme Court, 1970)
Raymond Motor Transportation, Inc. v. Rice
434 U.S. 429 (Supreme Court, 1978)
Kassel v. Consolidated Freightways Corp. of Del.
450 U.S. 662 (Supreme Court, 1981)
Sporhase v. Nebraska Ex Rel. Douglas
458 U.S. 941 (Supreme Court, 1982)
American Trucking Associations, Inc. v. Larson
683 F.2d 787 (Third Circuit, 1982)
Southern Pacific Co. v. Arizona Ex Rel. Sullivan
325 U.S. 761 (Supreme Court, 1945)
State Corporation Com'n v. Mountain States Tel. & Tel. Co.
270 P.2d 685 (New Mexico Supreme Court, 1954)
Norfolk & Western Railway Co. v. Pennsylvania Public Utility Commission
413 A.2d 1037 (Supreme Court of Pennsylvania, 1980)
State Corp. Commission v. Atchison, T. & S. F. Ry. Co.
255 P. 394 (New Mexico Supreme Court, 1927)
San Juan Coal & Coke Co. v. Santa Fe, S. J. & N. Ry. Co.
2 P.2d 305 (New Mexico Supreme Court, 1931)
Seward v. Denver & Rio Grande Railroad
131 P. 980 (New Mexico Supreme Court, 1913)
American Airlines, Inc. v. Battle
23 S.E.2d 796 (Supreme Court of Virginia, 1943)
Yohn v. United States
280 F. 511 (Second Circuit, 1922)

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Bluebook (online)
730 P.2d 448, 105 N.M. 145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-pacific-transportation-co-v-corporation-commission-nm-1986.