Legal Document

467 U.S. 622 104 S.Ct. 2610 81 L.Ed.2d 527 HAYFIELD NORTHERN RAILROAD COMPANY, INC. and Minnesotav.CHICAGO AND NORTH WESTERN TRANSPORTATION COMPANY. No. 82-1579. Supreme Court of the United States Argued Feb. 21, 1984. Decided June 12, Syllabus The Staggers Rail Act 1980 amendments to Interstate Commerce (Act) regulate process by which rail carriers may abandon unprofitable lines provide a mechanism for shippers obtain continued service purchasing or subsidizing their operation. Title 49 U.S.C. § 10905 governs procedures be followed when person seeks prevent an abandonment carrier's service. Appellee carrier filed application with Commission (ICC) seeking 44-mile line between town in Iowa Minnesota. Several Minnesota opposed 19.2-mile segment After Administrative Law Judge ruled that appellee was entitled entire line, offered subsidize operation segment. But were dissatisfied price as determined ICC after parties could not agree on terms, withdrew offer. then granted certificate line. In meantime, had contracted State various improve certain trackage this purpose use track from abandoned formed appellant (appellant), planning its authority under statute condemn Appellant thereafter suit state court obtained temporary restraining order preventing removing removed Federal District moved dissolve ground pre-empted condemnation statute. awarded summary judgment dissolved order, Appeals affirmed, holding because it constituted obstacle accomplishment congressional behind federal procedure. Held: Appellant's proposed is Act. Pp. 627-637. (a) underlying rationale represents continuation Congress' efforts accommodate conflicting interests railroads desire unburden themselves quickly are dependent upon Under prior law, negotiate offerors bad faith while waiting 6-month negotiating period elapse, thereby either extracting excessive prices desperate abandoning without agreeing purchase subsidy. To counteract such bad-faith negotiating, binds subsidy if offeror cannot come terms. On other hand, reduce costly delays associated shipper opposition abandonments, reduces required resolving negotiations over offers 6 months 110 days. contrast complicated structure Act, question simply straightforward State's power eminent domain. 627-631. (b) regulation railroad abandonments so pervasive make reasonable any inference Congress left no room action subject. has "unmistakably ordained" exercise traditional domain property; nothing expressly refers preemption respect disposition property. Nor there indication subject matter sort "permits conclusion" but governed law. As indicated ICC's own interpretation regulatory authority, considerable deference, issuing abandonment, general proposition, terminates jurisdiction merit appellee's argument properly viewed ordinary real property even remains jurisdiction. 632-634. (c) circumstances case would obstruct 10905's abbreviating during obligated furnish financially burdensome escape through abandonment. proceedings do interfere insofar they follow authorized relieved obligation service, indicates interest affording special protection point. allowing bring contravene Act's overall making industry more efficient productive. While shifting higher-value uses elsewhere, recognized opportunity costs one factor considered deciding whether authorize does frustrates scheme. Section designed allow force forgo favor subsidization purchase, regardless entailed inability shift assets uses. Alleviating burden alter economic reality continue incurred; merely shifts incidence those costs. light imposition solutions subordinate considerations, frustrate economically optimal assets. Moreover, law here valuation procedure relitigate lines. scheme frustrating bona fide negotiations, impose blanket prohibition all postabandonment 634-636. 693 F.2d 819 (CA8 1982), reversed remanded. Robert S. Abdalian, Rochester, Minn., appellants. Mark I. Levy, Washington, D.C., amicus curiae leave Court. Anne E. Keating, Chicago, Ill., appellee. Justice MARSHALL delivered opinion 1 1980, amended Act,1 regulates provides This poses amended, pre-empts statute2 used been pursuant amendments. Eighth Circuit held preempted 1982). We disagree. 2 * January 30, 1981, (Commission) permission Oelwein, Iowa, Randolph, Minn. maintained imposed serious financial strain resources. (Shippers Group) passed Hayfield, (Hayfield segment). administrative judge Shippers Group, amendments, Hayfield See 10905(c).3 When mutually acceptable Commission, at request appropriate 10905(e). Dissatisfied Commission's determination, Group 10905(f)(2). Soon thereafter, appellee, ibid., relieving supply 3 During attempting issuance entered into contracts shippers. These involved improvements Iowa. intended fulfill these using 4 March 31, 1982, members Northern Railroad Co., Inc. (hereafter appellant). planned vested Minn.Stat. 227.27 (1982) abandoned. immediately At point, intervened defend appellant's 5 order. granting stay pending appeal, affirmed. (1982). also remanded calculation damages incurred delay. Following denial rehearing Appeals, we denied motion Appeals' mandate, 460 1018, 103 1267, 75 490 (1983), subsequently noted probable jurisdiction, 464 812, 64, 78 79 (1983). II Pre-emption doctrine stems Supremacy Clause Constitution4 invalidates contradicts interferes Congress. arises wide array contexts, laws plainly contradictory incompatibility discernible only inference.5 presents issue express pre-emption; face explicitly pre-empt Therefore, determine pre-emption otherwise indicated, must inquire deeply intention scope pertinent legislation. turn, then, dispute ascertain purpose. 7 Initially, did Commission. 4, 1887, ch. 104, 24 Stat. 379. ceded Transportation 1920, 91, 402(18)-(22), 41 477-478. Chicago & N.W. Co. v. Kalo Brick Tile 450 311, 319-320, 101 1124, 1131-1132, 67 258 (1981). prohibited portion first obtaining verifying future public convenience necessity permitted cessation 8 proved inadequate, however, lacked specific timetable certificate. Railroads consequently found enmeshed lengthy before unable promptly States, 582 1043, 1045-1046 (CA7), cert. denied, 439 1039, 99 641, 58 698 (1978); S.Rep. 94-499, p. (1975). enacted new legislation expeditious attentive others who might particular Revitalization Regulatory Reform 1976 (4-R Act), Pub.L. 94-210, 802, 90 127, originally codified 1a (1976 ed.) (subsequently recodified substantive change 10903 et seq.). 9 alleviate protracted 4-R provided schedule govern process. §§ 1a(3), (4) ed.). same time, afford opponents maintain allowed delayed up six responsible 1a(6)(a). It soon became clear, further reforms adequately address both need abbreviated method communities avoid dislocations caused abandonment.6 consequence, enacting 96-448, 402, 94 1941-1945, 10903-10906. 10 amendment most revision 10905. Entitled "Offers assistance discontinuance," shall publish Register findings require permit discontinuance "[w]ithin days following publication, offer pay line." 10905(c).7 If finds within 15 "a (including government authority)" meets prescribed standards, "shall postpone authorizing discontinuance." 10905(d). "fail amount terms party may, 30 made, establish conditions compensation . 60 days," 10905(e), decision binding parties, except withdraw his decision." withdrawn, "the Ibid. 11 service.8 elapse. By pursuing course, extract reaching agreement 678 665, 667 (CA7 part carriers, 10905(f)(2) event abbreviates offers. months; 402(c) reduced days.9 12 familiar statute, 1879, provides: 13 "Every foreign domestic corporation have acquire, condemnation, necessary roadways, spur side tracks, rights way, depot grounds, yards, grounds gravel pits, machine shops, warehouses, elevators, depots, station houses, structures convenient use, operation, enjoyment road, company, arrangements tracks roadbeds deem necessary." 222.27 III 14 rests two contentions: first, subject; and, second, pose purposes A. contention attempts narrow ambit decisions occupied field area improper how well comported policies involved. Cf. Pacific Gas Elec. Energy Resources Conservation Dev. Comm'n, 461 190, 203-204, 1713, 1721-1722, 752 repeatedly "federal commerce should deemed preemptive absence persuasive reasons—either nature regulated permits conclusion, unmistakably ordained." Florida Lime Avocado Growers, Paul, 373 132, 142, 83 1210, 1217, 248 (1963). case, abandoned; here—abandoned property—is regulation. all, normally 16 insists because, occurred, According elaborate procedural detail addition exclusive plenary "granted via forced sale authorization abandonment." Brief 21-22. claim reflects misunderstanding With exceptions irrelevant case,10 provisions relate requirements met will unless attaches brings mission end.11 17 proposition that, matter, strongly buttressed authority. effective exercised beyond reserved Questions title to, of, matters law." Abandonment Lines Discontinuance Service, 365 I.C.C. 249, 261 (1981); see Co.—Abandonment—in Waukesha, Jefferson Dane, Counties, WI, Docket AB-1 (Sub-No. 144) (May 5, 1983) (set forth App. Joint Supplemental Memorandum Appellant-Intervenor A-1, A-5); Common Carrier Status Agencies Instrumentalities, Political Subdivisions, 363 135 (1980) ("When fully abandoned, longer [a] transfer our jurisdiction" (footnote omitted)), aff'd sub nom. Simmons ICC, 225 U.S.App.D.C. 84, 697 326 (1982); Modern Handcraft, Inc.—Abandonment Jackson County, Mo., 969, 972 position, deference since construction agency charged statute's enforcement. See, e.g., Bureau Alcohol, Tobacco Firearms Labor Relations Authority, 89, 97, 439, 444, 195 B 18 second support finding applied manner proposes, objectives Hines Davidowitz, 312 52, 67, 61 399, 404, 85 L.Ed. 581 (1941) (preemption "stands execution full Congress"). More specifically, maintains institute potentially against lines, benefits 110-day time limit established lost.12 19 unpersuaded. expedited abbreviate Nothing point ends.13 20 Act: true elsewhere. existence taken account Maine Dept. 587 541, 543-544 (CA1 1978). What overlooks Offerors willing, lifted carrier. alleviating 21 Finally, lines.14 Although seem unfair "second bite apple" participated in, withdrawn from, 10905, That badfaith supra, 630-631, covering property.15 IV 22 hold Accordingly, reverse remand consistent opinion. 23 ordered. infra, 631 (quoting text law). Many similar statutes. Appellants n. (citing statutes 33 States). appealed appeal whereupon petition review Appeals. unsuccessfully permitting review. 819, 820 Const., Art. VI, cl. ("This Constitution, Laws made Pursuance thereof supreme Land ., Thing Constitution Contrary notwithstanding"); Gibbons Ogden, Wheat. 1, 211, (1824). Compare McDermott Wisconsin, 228 115, 431, 57 754 (1913) (invalidating directly regulations), Motor Coach Employees Lockridge, 403 274, 91 1909, 29 473 (1971) (holding wrongful discharge brought precluded pervasiveness area). generally L. Tribe, American Constitutional 376-391 (1978). Policy 1979: Hearings S.1946 Senate Committee Commerce, Science, Transportation, 96th Cong., 1st Sess. (1979); Deregulation H.R.4570 Subcommittee House Foreign Sess S.796 Surface Sess., pts. (1979). enable potential feasibility mandates applying current data, including estimate annual minimum needed keep 10905(b). 96-470, pp. 39-41 (1979) ("The bill accomplish major objectives: significantly reducing spent processing [abandonment] cases improving can subsidized"); H.R.Conf.Rep. 96-1430, 125 (1980), U.S.Code Cong. Admin.News 3978, 4157 (§ "assist sincerely interested protecting legal calculated tediously extend process"). 1a(6)(a) 10905(c)-(f). 10906: "If properties suitable purposes, sold, leased, exchanged, disposed include disposal than 180 date offered, purposes." 10905(f)(4) (no purchaser "may discontinue end year consummation sale, nor whom purchased, fifth sale"). mean period, free undo very For example, relocation essential adequate almost certainly invalidate subsequent barring transfer. re Boston Corp., 596 2, 5-7 1979); Texas Pac. R. San Martine Rock Culberson, Texas, 666, 678-679 (1980). problem absent bar. day lost, proceedings, once commenced, take years." F.2d, 822-823 (citation omitted). Conference Report explained, central aims "protec[t] process." (emphasis added). accepted concluded "would circumvent determination value." 823. litigate value appropriately analyzed res judicata rather pre-emption. participates proceeding obtains unfavorable valuation, preclusive effect proceedings. Utah Constr. Mining 384 394, 422, 86 1545, 1560, 642 (1966) (administrative determinations usually "[w]hen acting judicial capacity resolves disputed issues fact litigate"). 60-day fix subsidy, 10905(f)(1)(A), deprive "adequate litigate" judicata. intimate position inasmuch now us. Similarly, open could, scheme, lower arrived

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