Opinion ID: 6938526
Heading Depth: 2
Heading Rank: 2

Heading: Adams v. CSX Transportation, Inc.

Text: We review de novo the district court’s Fed.R.Civ.P. 12(b)(6) dismissal of Adams’ suit against CSXT. Stone v. Travelers Corp., 58 F.3d 434, 436-37 (9th Cir.1995). Adams’ claim against CSXT fails for the same reasons as his suit against the Railroad. There was only one issuance of Hocking Valley bonds, at the time of their sale in 1899. These original debt obligations continued, and were assumed in their entirety, by CSXT. The original Hocking Valley Indenture specified that in the event of a merger the successor corporation would assume the same obligation as the original obligor. No new debt was created, and the only relevant “obligation” for purposes of the 1977 Amendment was that which arose upon the issuance of the Hocking Valley bonds in 1899. The 1933 Act bars the enforcement of the gold clauses in the CSXT bonds. We thus affirm the district court’s dismissal of Adams’ claim for failure to state a claim.