Source: https://supreme.justia.com/cases/federal/us/414/453/
Timestamp: 2020-02-20 11:23:33
Document Index: 53116402

Matched Legal Cases: ['§ 13', '§ 13', '§ 13', '§ 13', '§ 13', '§ 501', '§ 541', '§ 564', '§ 13', '§ 564', '§ 564', '§ 563']

Passenger Corp. v. Passengers Assn. :: 414 U.S. 453 (1974) :: Justia US Supreme Court Center
Justia › US Law › US Case Law › US Supreme Court › Volume 414 › Passenger Corp. v. Passengers Assn.
Before 1958, railroads desiring to discontinue uneconomic passenger routes were required to secure the permission of state regulatory commissions. In 1958, in an effort to reduce losses on passenger train operations, Congress enacted § 13a of the Interstate Commerce Act, 49 U.S.C. § 13a, which gave the railroads the option of bypassing state agencies and petitioning the Interstate Commerce Commission for permission to discontinue passenger trains. Under § 13a, after the railroad has filed a notice of discontinuance with the Commission, an aggrieved person may file a complaint. Either upon such complaint or on its own initiative, the Commission may institute an investigation of the proposed discontinuance. If the Commission does begin an investigation, it may delay the discontinuance for as long as four months. If it finds that the discontinuance is contrary to the public interest, the Commission may require the continuance of the route for a period of one year. Orders approving or disapproving proposed discontinuances are subject to judicial review. See, e.g., Southern R. Co. v. North Carolina, 376 U. S. 93 (1964). If, on the other hand, the Commission decides that the discontinuance is clearly permissible under § 13a of the Act, and decides not to conduct an investigation or decides to terminate an investigation already begun, an aggrieved person has no recourse to the courts to review the Commission's decision. New Jersey v. United States, 168 F. Supp. 32 (NJ 1958), aff'd, 359 U. S. 27 (1959); City of Chicago v. United States, 396 U. S. 162 (1969).
That this is a very real possibility is demonstrated by Amtrak's experience in Wood v. National Railroad Passenger Corp., 341 F. Supp. 908 (Conn.1972), where the court granted and then extended a temporary restraining order while it considered the merits of a challenge to a proposed discontinuance. The restraining order was dissolved when Amtrak prevailed on the merits.
Discontinuance procedures contained in 49 U.S.C. § 13 A. 45 U.S.C. § 501 et seq., authorized the creation of Amtrak to provide inter-city rail passage. With "the expectation that the rendering of such [rail] service along certain corridors [could] be made a profitable commercial undertaking," the Act established Amtrak as a private for-profit corporation. 45 U.S.C. § 541; H.R.Rep. No. 91-1580, p. 1 (1970). Amtrak has until January 1, 1975, to tender a contract to a railroad to release the latter of its entire responsibility for the provision of inter-city rail passenger service. 45 U.S.C. § 564(a). Unless a railroad has a contract with Amtrak to render the service, it may not discontinue inter-city passenger service prior to January 1, 1975,
Amtrak may eliminate service which is part of the "basic system" only by filing notice with the ICC in accordance with the pre-Act discontinuance procedures contained in 49 U; S.C. § 13 A. 45 U.S.C. § 564(b)(3). Rail service which is undertaken by Amtrak on its own initiative, but which is not part of the basic system, may be discontinued at any time. 45 U.S.C. § 564(b)(2). Excess lines, however, even though undertaken by Amtrak on its own initiative, become part of the basic system, and thus subject to the ICC discontinuance procedures if operated by Amtrak for a continuous period of two years. 45 U.S.C. § 563(a).