Southern Pacific Transportation Co. v. International Brotherhood of Locomotive Engineers

756 F. Supp. 1446, 136 L.R.R.M. (BNA) 2677, 1991 U.S. Dist. LEXIS 1710, 1991 WL 21474
CourtDistrict Court, D. Kansas
DecidedJanuary 11, 1991
DocketNos. 90-4178-R, 90-4186-R
StatusPublished
Cited by1 cases

This text of 756 F. Supp. 1446 (Southern Pacific Transportation Co. v. International Brotherhood of Locomotive Engineers) is published on Counsel Stack Legal Research, covering District Court, D. Kansas 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. International Brotherhood of Locomotive Engineers, 756 F. Supp. 1446, 136 L.R.R.M. (BNA) 2677, 1991 U.S. Dist. LEXIS 1710, 1991 WL 21474 (D. Kan. 1991).

Opinion

MEMORANDUM AND ORDER

ROGERS, District Judge.

This matter is presently before the court upon consideration of arguments contained in a brief filed by intervenor Interstate Commerce Commission (ICC) and the following motions filed by the railroads: (1) motion for stay pending appeal of order of October 25, 1990 (Doc. # 28); (2) motion to vacate, alter or amend judgment of October 25 (Doc. # 52); and (3) motion to amend order of November 13, 1990 (Doc. # 54). The railroads have requested oral argument on these motions, but the court deems it unnecessary. Having carefully reviewed the arguments of the parties, the court is now prepared to rule.

BACKGROUND

The court shall initially provide a very brief background. These cases arise out of a trackage rights agreement entered into by the railroads who are parties to this action. This agreement allowed the railroads to operate their trains between Kansas City and Chicago. The railroads sought and received an exemption from the ICC in order to allow them to begin operation over the new trackage immediately. SPCSL Corporation was provided with the initial use of the tracks. When SPCSL sought to implement operations under the trackage rights agreement, using a new terminal at Quincy, Illinois, the union parties threatened a strike. The railroads then filed Case No. 90-4178-R, seeking a declaratory judgment that the threatened strike by the union would be unlawful and an injunction against such a strike. The railroads subsequently moved for a preliminary injunction against the threatened strike. The union parties responded with the filing of Case No. 90-4186-S. In this action, the union sought a declaratory judgment that the implementation of the track-age rights agreement violated the Railway Labor Act (RLA).

After a hearing on October 18 and 19, this court entered an order on October 25, 1990 in which we: (1) consolidated these actions for all further proceedings; (2) denied the railroads’ motion for a preliminary injunction; and (3) enjoined the “SPCSL ... from establishing new rules and working conditions, including new terminals or extra boards, in connection with the track-age rights operation on the Kansas City to Chicago line until the major dispute procedures of the RLA have been exhausted.” The railroads immediately appealed this order.

On October 31, 1990, the railroads filed a “Notice of Intent to Implement” in this court. In this notice, the railroads advised the union and the court that the SPCSL intended to implement the trackage rights operation, but in a manner different than that originally planned. This prompted a motion for contempt and another threat to strike from the union. The railroads countered with another motion for preliminary injunction.

On November 5, 1990, the railroads filed the pending motion for stay pending appeal of the court’s order of October 25. The railroads argued, inter alia, that injunctive order was deficient and ineffective due to the court’s failure to address the bond requirement of Fed.R.Civ.P. 65(c) and the applicable standards for preliminary injunc-tive relief. The union subsequently responded with a motion to amend the court’s order of October 25 to consider the imposition of a bond pursuant to Rule 65(c).

On November 5, 6 and 7, 1990, the court held a hearing to consider the pending motions. During that hearing, the court allowed the ICC to intervene in this action. On November 13, 1990, the court entered an order which: (1) denied the union’s motion to hold SPCSL in contempt or to modify the October 25 order to prohibit such implementation; (2) partially granted the [1450]*1450union’s motion to amend the October 25 order by requiring a $25,000 bond; (3) granted the railroads’ motion for a preliminary injunction against a strike concerning implementation of the revised trackage rights operation; and (4) held in abeyance the railroads’ motion for a stay of the October 25 order pending appeal until the court considered the ICC’s brief and the parties’ responses. 752 F.Supp. 400. The court also clarified that its prior order was intended only to prohibit implementation of the trackage rights agreement as it required a new terminal or new extra board.

In the meantime, the ICC issued an administrative order on November 9, 1990 disposing of the union’s request that the ICC order SPCSL to negotiate with the union pursuant to the RLA prior to implementing the trackage rights agreement. The ICC rejected the union’s request and stated that 49 U.S.C. § 11347 provided:

the “exclusive mechanism” for resolving labor disputes arising out of implementation of rail transactions approved by the Commission or exempted by the Commission from the approval process. Brotherhood of Locomotive Engineers v. Boston and Maine Corp., 788 F.2d 794, cert. denied, 421 U.S. 975 [479 U.S. 829, 107 S.Ct. 111, 93 L.Ed.2d 59] (1975 [1986]); Brotherhood of Locomotive Engineers v. Chicago & North Western Ry., 314 F.2d 424 (8th Cir.1963), cert. denied, 375 U.S. 819 [84 S.Ct. 55, 11 L.Ed.2d 53] (1963). Both the provisions of 49 U.S.C. 11341 and 11347 protect this exclusivity. The former exempts transactions approved under 49 U.S.C. 11343 from the effect of other laws (including the RLA) to the extent necessary to carry out the transaction. The latter mandates the imposition of protective conditions which provide for implementing agreements that may supersede existing collective bargaining agreements as regards selection and assignment of forces issues. Neither party may invoke the RLA or self help procedure since doing so would prevent the transaction from going forward.

MOTION TO VACATE, ALTER OR AMEND JUDGMENT OF OCTOBER 25

The parties have disagreed on the Federal Rule of Civil Procedure applicable to this motion. The railroads argue that this motion should be considered under Fed.R.Civ.P. 59(e), while the union contends that the motion must be considered under Fed.R.Civ.P. 60(b).

The deadline for a Rule 59(e) motion is ten days from entry of a “judgment,” which is defined in Rule 54(a) as “any order from which an appeal lies.” The parties have reached differing conclusions as to whether the October 25 order was an ap-pealable order. The railroads assert that the court’s preliminary injunction order was not a final judgment because we failed to impose a bond requirement as required by Rule 65(c). The union contends that the order was enforceable and was a final judgment despite the absence of the bond.

The court agrees with the position of the railroads on this issue.

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756 F. Supp. 1446, 136 L.R.R.M. (BNA) 2677, 1991 U.S. Dist. LEXIS 1710, 1991 WL 21474, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-pacific-transportation-co-v-international-brotherhood-of-ksd-1991.