B.C.D. 15-10

EMPLOYER STATUS DETERMINATION

MVC Transportation, LLC (MVCT)

May 7, 2015

This is a determination of the Railroad Retirement Board concerning the 

continuing status of MVC Transportation, LLC (MVCT) as an employer

under the Railroad Retirement Act (45 U.S.C. §231 et seq.) and the Railroad

Unemployment Insurance Act (45 U.S.C. §351 et seq.) (collectively, the

“Acts”).

MVCT (B.A. # 9019) has been an employer under the Railroad Retirement

Act and Railroad Unemployment Insurance Act since April 21, 2004, the 

date from which MCVT was found to have STB approval to acquire and

operate a 15 mile line oftrack in Alleghany County, Pennsylvania.

The coverage file indicates that MVCT sought to acquire the McKees Rocks

Yard property and rail lines on April 21, 2004 from P&LE Properties, Inc.

All common carrier railroad operations on the railroad facilities were to be

provided by CSX Transportation, Inc. (B.A. No. 1524), a covered employer

under the Railroad Retirement and Railroad Unemployment Insurance Acts.

MCVT did not plan to have any paid employees.

According to the information provided by Mr. Richard Wilson, MVCT’s

former counsel, MVCT never operated as a rail carrier. Subsequent to the

Board’s determination in B.C.D. 04-46, MVC became involved in a dispute

with Proline Railroad Track Co. (Proline) which challenged MVC’s

acquisition oftrack in the McKees Rocks Yard. MVC responded by filing a

petition for a declaratory order with the STB in the hope that the STB would

rule that MVC had the right to the track. Proline then filed a petition asking

the STB to revoke MVC’s previous exemption to operate the track. The

STB declined MVC’s petition for a declaratory order and denied Proline’s

petition to revoke MVC’s exemption to operate the track. The STB decided

that the Pennsylvania court was the proper forum to resolve the ownership of

the track dispute (see STB Finance Docket No.34462, decided October 20, 

2004).

The Allegheny Court of Common Pleas sitting in Allegheny, Pennsylvania,

approved a settlement finding Proline was the owner of the rail line and that

through the settlement agreement, Proline had the right to sell operation of

the McKees Rocks Yard to a separate entity, Atlantic Track and Turnout

BA # 9019
Company. The Court ruled that MVCT had all of its claims to the McKees

Rocks Yard extinguished. Mr. Richard Wilson also reported that the

principal owner ofMVCT died shortly after the court case was finalized.

Section 202.11 (20 CFR 202.11) ofthe Board’s regulations states that:

The employer status of any company or person shall terminate

whenever such company or person loses any of the characteristics

essential to the existence of an employer status.

Information in our coverage files indicates that MVCT was formed with the

intent to operate approximately 15 miles of rail lines located in Allegheny

County, Pennsylvania, from P&LE Properties, Inc. (P&LE). See STB

Finance Docket No. 34462, decided April 21, 2004. A subsequent Court

decision nullified the acquisition and MVCT never performed any railroad

operations nor owned any line of track. The evidence of record indicates

MVCT does not own any track upon which to perform railroad operations in

the future. MVCT has not functioned as a rail carrier and does not possesses

the characteristics of a railroad carrier employer.

The Board therefore finds that effective September 19, 2006, the date that

the Pennsylvania court approved the settlement giving right to Proline to sell

the track to Atlantic, MVCT ceased being a covered employer under the

Railroad Retirement and Railroad Unemployment Insurance Acts.

FOR THE BOARD

Martha P. Rico 

Secretary to the Board