Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_19-cv-07230/USCOURTS-cand-4_19-cv-07230-7/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 28:1331 Fed. Question

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United States District Court

Northern District of California

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

BNSF RAILWAY COMPANY,

Plaintiff,

v.

ALAMEDA COUNTY, et al.,

Defendants.

Case No. 19-cv-07230-HSG 

ORDER ESTABLISHING ESCROW 

ACCOUNT AS SECURITY FOR 

PRELIMINARY INJUNCTION

On April 8, 2020, the Court entered an order (Dkt. No. 65) granting the motion for 

preliminary injunction filed by Plaintiff BNSF Railway Company (“BNSF”). The Court’s order 

states that the Defendant Counties, “their boards of supervisors, county auditors, tax collectors, 

agents, employees, and all those acting in concert or participating with them who receive actual 

notice of this order (the “Enjoined Parties”) are hereby ENJOINED through the pendency of this 

litigation until entry of a final judgment from levying or collecting ad valorem property taxes from 

Plaintiff on its unitary property based on a tax rate higher than the annual average tax rate of 

general property taxation calculated and reported for each county by the California State Board of 

Equalization under Cal. Rev. & Tax Code § 11403.” The Court’s order further provides that 

“[t]he Enjoined Parties are further enjoined through the pendency of this litigation until entry of a 

final judgment from taking any action to impose any interest or penalties, from taking any action 

to record or enforce a tax lien upon any property used or owned by Plaintiff, or from taking any 

other action authorized by state law for delinquent or unpaid taxes under California law” with 

respect to taxes in excess of the amounts described above. The Court’s order states that “Plaintiff 

will be required to post a bond under Federal Rule of Civil Procedure 65(c)” and directs the parties 

to “meet and confer and agree if possible by 5:00 p.m. Pacific Time on April 9, 2020 regarding the 

Case 4:19-cv-07230-HSG Document 69 Filed 04/10/20 Page 1 of 2
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United States District Court

Northern District of California

amount of the bond.” 

It is now further ordered that, for security under Rule 65(c): 

(1) BNSF shall establish an interest-bearing escrow account with U.S. Bank National 

Association, or another escrow agent agreed to by Defendants. 

(2) BNSF shall deposit the enjoined amount for the 2019-2020 tax year into the escrow 

account within thirty (30) days of the date on which this order is signed. 

(3) During the pendency of the Court’s injunction, BNSF shall deposit into the escrow 

account the enjoined amounts for the 2020-2021 tax year and any future tax years on or 

before the dates on which those amounts would be delinquent if paid as property taxes.

(4) The escrow agreement shall provide that no party may withdraw any amounts from the 

escrow account without a Court order or the written agreement of all parties to this 

lawsuit. 

(5) BNSF shall provide Defendants with regular statements of the amounts in the escrow 

account, including any accrued interest, and respond to reasonable requests for 

information concerning the escrow account. 

(6) Upon final judgment, the parties will seek a court order allocating the proceeds of the 

escrow account, including all interest accrued in the escrow account, to the prevailing 

party or parties, in accordance with its or their degree of success.

IT IS SO ORDERED.

Dated:

______________________________________

HAYWOOD S. GILLIAM, JR.

United States District Judge

4/10/2020

Case 4:19-cv-07230-HSG Document 69 Filed 04/10/20 Page 2 of 2