State of Michigan Department of Transportation v. Interstate Commerce Commission

698 F.2d 277
Court of Appeals for the Sixth Circuit·Decided January 21, 1983·No. No. 81-3354·Published·Cited by 1 cases

Opinion

PHILLIPS, Senior Circuit Judge.

This case is before the court on a petition to review a decision of the Interstate Commerce Commission finding that the public convenience and necessity permit abandonment of a railroad car ferry route across Lake Michigan, operated by the Chesapeake & Ohio Railway Co. (C & 0). The decision of the Commission is Docket No. AB-18 (Sub. No. 36)F, dated September 9, 1981.

Reference is made to the decisions of the Commission and its Administrative Law Judge for a detailed recitation of pertinent facts.

We conclude that the decision of the Commission is supported by substantial evidence. Accordingly, we dismiss the petition and intervening petitions to review.

I

In 1975, C & 0 applied to the Commission for authority, pursuant to 49 U.S.C. § 10903, to abandon all three of its car ferry service routes across Lake Michigan. The ferries carried rail cars, passengers (mainly tourists) and the passengers’ automobiles. The Commission prepared an extensive environmental impact statement and conducted hearings on the application. Many of the parties entered into a stipulated agreement narrowing the application to the route between Ludington, Michigan, and Milwaukee, Wisconsin. In a decision announced February 20, 1980, Docket No. AB-18 (Sub. No. 21), the Commission held that the public convenience and necessity warranted abandonment of that route. Petitions to review were filed in this court under the style of City of Milwaukee v. Interstate Commerce Commission, Nos. 80-3019 and 80-3085.

This court found the petitions in that proceeding to be without merit and on June 28, 1981, affirmed the decision of the Commission in an unpublished order noted in 663 F.2d 1070 (6th Cir.1981). The unpublished order of this court in that case is made an appendix to this opinion.

II

The present case involves the reapplication of C & O to abandon its Lake Michigan car ferry route between Ludington, Michigan, and Manitowoc, Wisconsin, and 3.56 miles of rail yard, terminal tract and associated structures used in the ferry operation. This route originally was included in the 1975 application but later was excluded from that application by stipulation of the parties. (See appendix hereto.)

The Administrative Law Judge rendered a comprehensive opinion granting the abandonment. The AU found that C & O suffered substantial losses in recent years on the Ludington-Manitowoc route and that there would be adequate alternate means of transportation for both the passengers and [279]*279freight shippers using the ferry route. The ALJ determined that the burden of the ferry service on interstate commerce outweighed the benefits of the line to local communities.

On administrative appeal, the Commission agreed with the decision of its Administrative Law Judge. The Commission found that C & 0 lost over $400,000 on the route during 1979-80 plus an additional loss of over $200,000 in “opportunity cost.”1 The Commission further found that the continued operation of the ferry route would be a substantial burden on C & O and on interstate commerce, and that the loss of revenue in jobs, tourists and related industries would not be significant because the availability of other ferries that would continue to serve Manitowoc and Ludington.

The Commission denied a motion to stay its decision pending review. On December 11, 1981, a panel of this court composed of Judges Weick, Martin and Jones denied the motion of the petitioner and intervening petitioners to stay the decision of the Commission pending review by this court. The ferry service has been abandoned since January 11, 1982.

Ill

The petitioners and intervening petitioners assert that the decision was rendered by an unlawfully constituted Interstate Commerce Commission. 49 U.S.C. § 10301 provides that the Commission is to be composed of eleven members appointed by the President, by and with the advice and consent of the Senate, and that no more than six members may be appointed from the same political party. Because of vacancies, the Commission consisted of only four members — three Republicans and one Democrat — when its decision was rendered in the present case. This objection of petitioners is without merit. 49 U.S.C. § 10301 expressly provides that: “A vacancy in the membership of the Commission does not impair the rights of the remaining members to exercise all the powers of the Commission.” Under this statute vacancies did not affect the right of the remaining members to render a decision in the present case. Assure Competitive Transportation, Inc. v. United States, 629 F.2d 467, 472-75 (7th Cir.1980), cert. denied, 449 U.S. 1124, 101 S.Ct. 941, 67 L.Ed.2d 110 (1981).

IV

Intervening petitioners contend that the Commission had no authority to permit abandonment of the line under 49 U.S.C. § 10903(a) and that the only way the Commission could allow abandonment would be to proceed under 49 U.S.C. § 10908. The intervening petitioners rely upon a Michigan statute, enacted in 1883.2 They assert that the Commission lacked jurisdiction under 49 U.S.C. § 10903(a) to authorize abandonment of the car ferry route and that the exclusive procedure was prescribed by § 10908. They aver that the Commission’s assertion of jurisdiction denied them the equal protection of the law.

We conclude that this contention is completely without merit. The Commission has jurisdiction under 49 U.S.C. § 10903 to authorize a rail carrier to “abandon any part of its railroad lines.” The Commission correctly held that it had jurisdiction to authorize C & O to abandon the car ferry route involved in this proceeding. Section [280]*28010908(a)(2) allows carriers to discontinue car ferry service notwithstanding the fact that a proposed abandonment of service “is subject to the law of a State ...” Petitioner Michigan Department of Transportation does not allege State jurisdiction. In any event “[Sjtate efforts to regulate commerce must fall when they conflict with or interfere with federal authority over the same activity.” Chicago & Northwestern Transportation Co. v. Kalo Brick & Tile Co., 450 U.S. 311, 319, 101 S.Ct. 1124, 1131, 67 L.Ed.2d 258 (1981). The Commission has “exclusive and plenary” authority to regulate abandonment of service. Chicago & Northwestern Transportation Co. v. KALO, supra, 450 U.S. at 321, 101 S.Ct. at 1132; City of Chicago v. United States,

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State of Michigan Department of Transportation v. Interstate Commerce Commission, 698 F.2d 277 (6th Cir. 1983).

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