State of Indiana v. Norfolk Southern Railway Company

107 N.E.3d 468
Indiana Supreme Court·Decided September 24, 2018·No. Supreme Court Case 18S-IF-193·Published·Cited by 10 cases

Opinion

ATTORNEYS FOR APPELLANT: Curtis T. Hill, Jr., Attorney General of Indiana, Thomas M. Fisher, Solicitor General, Andrew A. Kobe, Larry D. Allen, Deputy Attorneys General, Indianapolis, Indiana

ATTORNEYS FOR APPELLEE: Raymond A. Atkins, Hanna M. Chouest, Sidley Austin LLP, Washington, DC, Bryan H. Babb, Bradley M. Dick, Bose McKinney & Evans LLP, Indianapolis, Indiana, John C. Duffey, Heather L. Emenhiser, Stuart & Branigin LLP, Lafayette, Indiana

ATTORNEYS FOR AMICUS CURIAE THE ASSOCIATION OF AMERICAN RAILROADS: Harold Abrahamson, Jonathan E. Halm, Abrahamson, Reed & Bilse, Munster, Indiana

ATTORNEYS FOR AMICI CURIAE FRANCIS P. MULVEY AND CHARLES D. NOTTINGHAM : Stephen J. Peters, David I. Rubin, Plunkett Cooney, P.C., Indianapolis, Indiana

ATTORNEYS FOR AMICI CURIAE INDIANA RAILROAD COMPANY ET AL.: Karl L. Mulvaney, Margaret M. Christensen, Nana Quay-Smith, Bingham Greenebaum Doll LLP, Indianapolis, Indiana

On Petition to Transfer from the Indiana Court of Appeals, No. 02A03-1607-IF-1524

Rush, Chief Justice.

*470 Indiana-The Crossroads of America 1 -is a railroad capital. Statewide, dozens of railroad companies run trains on more than four thousand miles of track. Roads intersect those tracks, creating 5,693 public railroad-highway grade crossings. That's one for every seventeen public-roadway miles-the highest concentration in the country. 2

To aid public travel, the State bars railroads from blocking those crossings for more than ten minutes, except in situations outside the railroads' control. Violations carry minimum $200 fines. After 23 citations, Norfolk Southern challenged the State's regulation as preempted by federal law.

This issue of first impression in Indiana raises two questions. Does the standard presumption against preemption apply in the railroad-crossing context? And to what extent has Congress kept the tracks clear from state regulation of rail transportation?

We hold that while the longstanding presumption against preemption applies here, Indiana's blocked-crossing statute is a remedy that directly regulates rail transportation and is thus expressly preempted by the Interstate Commerce Commission Termination Act.

Facts and Procedural History

Indiana's blocked-crossing statute bars railroads from blocking railroad-highway grade crossings 3 for more than ten minutes, except in circumstances outside the railroads' control. Ind. Code § 8-6-7.5 -1 (2018). Violations are Class C infractions and carry a minimum $200 fine. I.C. § 8-6-7.5-3(a).

Between December 2014 and December 2015, Norfolk Southern collected 23 blocked-crossing citations for violations near its Allen County trainyard. Norfolk Southern moved for summary judgment on the citations, arguing that the Interstate *471 Commerce Commission Termination Act ("ICCTA") and the Federal Railroad Safety Act ("FRSA") expressly preempt Indiana's blocked-crossing statute. It also designated evidence-undisputed by the State-that it faced a heavy compliance burden at grade crossings near the trainyard.

Based on that evidence, the trial court found that train-switching maneuvers, track congestion, and mechanical defects can all cause traffic blockages lasting more than ten minutes. It also found that, to shorten blockages, Norfolk Southern would have to run trains faster, run shorter trains, or "cut" trains into segments-an onerous process that requires more than ten minutes of reassembly and brake tests. The court then granted summary judgment for Norfolk Southern on all 23 citations, finding that both the ICCTA and the FRSA preempt the blocked-crossing statute.

The State appealed, arguing that neither federal act preempts Indiana's blocked-crossing statute, especially given the presumption against preemption. The Court of Appeals agreed, reversing the trial court because neither the ICCTA nor the FRSA explicitly list blocked-crossing statutes as preempted. State v. Norfolk S. Ry. , 84 N.E.3d 1230 , 1236, 1238 (Ind. Ct. App. 2017).

Norfolk Southern petitioned to transfer, which we granted, vacating the Court of Appeals opinion. Ind. Appellate Rule 58(A).

Standard of Review

Preemption here turns on whether federal law expressly preempts Indiana's blocked-crossing statute. See Kennedy Tank & Mfg. Co. v. Emmert Indus. Corp. , 67 N.E.3d 1025 , 1028 (Ind. 2017). We review that issue of law, and the trial court's grant of summary judgment, de novo. Id. ; Young v. Hood's Gardens, Inc. , 24 N.E.3d 421 , 423 (Ind. 2015).

Discussion and Decision

Congress can preempt state law expressly, with explicit preemptive text, or impliedly, "under the twin doctrines of field and conflict preemption." KS & E Sports v. Runnels , 72 N.E.3d 892 , 905 (Ind. 2017) ; see also Kennedy Tank , 67 N.E.3d at 1028 . Field preemption exists when Congress imposes "exclusive federal regulation of the area." Kennedy Tank , 67 N.E.3d at 1028 (quoting Basileh v. Alghusain , 912 N.E.2d 814 , 818 (Ind. 2009) ). And conflict preemption exists when compliance with both state and federal laws is "physically impossible" or when a state law does "major damage" to Congress's purpose. Id. at 1029.

Norfolk Southern argues only that Indiana's blocked-crossing statute is expressly preempted. The statute's current version says:

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State of Indiana v. Norfolk Southern Railway Company, 107 N.E.3d 468 (Ind. 2018).

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