Legal Document

499 U.S. 117 111 S.Ct. 1156 113 L.Ed.2d 95 NORFOLK AND WESTERN RAILWAY COMPANY, et al., Petitioners,v.AMERICAN TRAIN DISPATCHERS ASSOCIATION al. CSX TRANSPORTATION, INC., Petitioner, v. BROTHERHOOD OF CARMEN Nos. 89-1027, 89-1028. Argued Dec. 3, 1990. Decided March 19, 1991. Syllabus Once the Interstate Commerce Commission (ICC) has approved a rail carrier consolidation under conditions set forth in Chapter of Act (Act), 49 U.S.C. § 11301 seq., such "is exempt from antitrust laws and all other law, including State municipal as necessary to let [it] carry out transaction . .," 11341(a). In these cases, ICC issued orders exempting parties railway mergers provisions collective-bargaining agreements. The Court Appeals reversed remanded, holding that 11341(a) does not authorize relieve party collectively bargained obligations impede implementation an transaction. Reasoning, inter alia, legislative history demonstrates congressional intent apply specific types positive common-law rules liability, those governing contracts, court declined decide whether section could operate override Railway Labor (RLA) formation, construction, enforcement agreements at issue. Held: exemption "from law" includes carrier's legal agreement when ICC-approved exemption's language, correctly interpreted by ICC, is clear, broad, unqualified, bespeaking unambiguous include any obstacle imposed law. That language neither admits distinction between enactments liability nor supports exclusion contractual obligations. Thus, effects superseding law—here, RLA—which makes contract binding. Cf. Schwabacher United States, 334 182, 194-195, 200-201, 68 958, 964-965, 967-968, 92 L.Ed. 1305. This determination sense Act's provisions, which were designed promote economy efficiency interstate transportation removing burdens excessive expenditure. Whereas 11343(a)(1) requires approve consolidations public interest, 11347 approval on satisfaction certain labor-protective conditions, guarantees once employee interests are accounted for approved, RLA—whose major disputes resolution process virtually interminable—will prevent efficiencies being achieved. Moreover, this reading will not, lower feared, lead bizarre results, since carriers but rather law Although it might be true 11341(a)'s scope limited 11347, breadth defined transaction, standard necessity issue because did pass them do challenge here. Pp. 127-134. 279 U.S.App.D.C. 239, 880 F.2d 562, remanded. KENNEDY, J., delivered opinion Court, REHNQUIST, C.J., WHITE, BLACKMUN, O'CONNOR, SCALIA, SOUTER, JJ., joined. STEVENS, filed dissenting opinion, MARSHALL, joined, post, p. ----. Jeffrey S. Berlin, Washington, D.C. petitioners. P. Minear, D.C., federal respondents supporting William G. Mahoney, private respondents. Justice KENNEDY Court. 1 authority conditions. seq. A ." These cases require us extends its agreement. We hold does. 2 * A. 3 "Prior 1920, competition was desideratum our railroad economy." St. Joe Paper Co. Atlantic Coast Line R. Co., 347 298, 315, 74 574, 584, 98 710 (1954). Following period Government ownership during World War I, however, "many railroads very weak condition their continued survival jeopardy." Id., S.Ct., 584. At time, Nation made commitment means promoting health industry. Beginning with Transportation ch. 91, 41 Stat. 456, "consolidation country, interest efficiency, became established national policy so intimately related maintenance adequate efficient system 'public interest' one cannot dissociated other." States Lowden, 308 225, 232, 60 248, 252, 84 208 (1939). See generally supra, U.S., 315-321, 583-587. 4 Act, recodified 1978 contains current statement policy. grants exclusive examine, condition, proposed within jurisdiction. 11343(a)(1). "approve authorize" transactions they "consistent interest." 11344(c). Among factors must consider making "the employees affected transaction." 11344(b)(1)(D).1 authorizing merger or consolidation, "may impose approves "exempt 5 When involves carriers, safeguard adversely employees. 11347. New York Dock Railway-Control-Brooklyn Eastern Dist. Terminal, 360 I.C.C. 60, 84-90, aff'd sub nom. 609 83 (CA2 1979), announced comprehensive procedures meet Section provides "rates pay, rules, working collective bargaining rights, privileges benefits applicable and/or existing shall preserved unless changed future agreements." I.C.C., 84. sets negotiation arbitration labor arising merger. 85. Under 4, merged consolidated plans operational change may cause dismissal displacement provide his union 90 days' written notice. Ibid. If agree terms 30 days, each submit dispute expedited "final, binding conclusive" neutral arbitrator. Finally, up six years income protection, well reimbursements moving costs losses sale home. id., 86-89 (§§ 5-9, 12). B 6 two before today involve separate 7 1. No. application NWS Enterprises, Inc., acquire control previously petitioners Norfolk Western Company (N & W) Southern (Southern). Corp.-Control-Norfolk W.R. 366 173 (1982). order approving control, noted possibility "further [of employees] arise additional coordinations occur." 230-231. 8 September 1986, reality. notified American Train Dispatchers' Association, representative N W employees, consolidate "power distribution" assignment locomotives particular trains facilities W-Southern operation. To effect move, informed would transfer work performed power distribution center Roanoke, Virginia, Atlanta, Georgia. implementing management supervisors receive increases wages addition relocation expenses wage protections guaranteed contended proposal involved subject mandatory (RLA), 44 577, amended, 45 151 also maintained required preserve employees' right representation RLA. 9 Pursuant procedures, negotiated concerning agreement, failed resolve differences. As result, invoked procedures. After hearing, committee ruled carriers' favor. Atlanta incident formed part "additional coordinations" predicted achieve "greater efficiencies." held had abrogate RLA implement transfer, transferred retain rights. 10 appealed Commission, affirmed divided vote. It explained "[i]t long been Commission's view [Railway Act] give way Commission-mandated conditions] unable changes authorized Commission." App. Pet. Cert. 33a. Accordingly, upheld committee's "compulsory, Article Dock, took precedence over asserted independently based 35a. merger, "immunized conflicting 11341(a)." Noting "[i]mposition jeopardize mandates inconsistent underlying purpose integrating function," decision provisions. 37a. 11 2. 89-1028, Corporation Chessie System, Seaboard Coastline Industries, Inc. Corp.-Control-Chessie 363 521 (1980). parent Chesapeake Ohio Baltimore Company; Railroad Company. acquisition, recognized occur further displacements." 589. 12 August respondent Brotherhood Carmen planned close Seaboard's heavy freight car repair shop Waycross, Georgia, Waycross Chessie's similar Raceland, Kentucky. result net decrease jobs shops. transfer. sticking point negotiations 1966 known "Orange Book." Orange Book provided employ covered maintain employee's remainder life. prevented Raceland. 13 broke down, both Dock. carrier. agreed prohibited determined, provision impeded ICC's original then work, found protected Book, only slightly impair acquisition. Both award Commission. 14 part. possessed rights reasoned, exception effectively I.C.C.2d 641, 650 (1988). thus permitting 15 3. unions District Columbia Circuit. considered together remanded 562 (1989). stated various grounds conclusion. First, read phrase "all obstacles," "no support statute" statute 244, F.2d, 567. Second, analyzed 407, 482, contained predecessor 11341(a), Congress "did intend, enacted immunity provision, contracts." U.S.App.D.C., 247, 570. "focused nearly exclusively intended eliminate—all enactments, common contract." often revisited without clear included contracts defer interpretation presumably determined belied contrary " 'unambiguously expressed Congress,' 567 (quoting Chevron U.S.A. Natural Resources Defense Council, 467 837, 843, 104 2778, 2781, 81 694 (1984)). 16 ruling agreements, "decline[d] address question" Carmen, 247-250, F. 2d, 570-573. protective exclusive, gives 250, 573. case issues. 17 denied petitions rehearing, certiorari, we granted 26, 494 1055, 110 1522, 108 762 (1990).2 now reverse. II Title provides: 18 ". carrier, corporation, person participating exempted hold, maintain, property, exercise franchises acquired through 19 narrow question 20 By terms, applies predicates, here, them. For purposes decision, assume, deciding, properly 11344(b)(1) consistent requirements meaning assumptions, agreement.3 21 always, begin ask spoken us. "If end matter; court, agency, unambiguously Congress." Chevron, 842-843, 2781. contested law," unqualified. admit drew, analysis history, liability. Nor Appeals' conclusion intend clause 22 itself, indicates no limitation. circumstance coverage laws" detract breadth. There canon statutory construction which, first impression, seem dictate different result. principle ejusdem generis, general term follows one, should understood reference subjects akin enumeration. Arcadia Power 498 73, 84-85, 415, ----, 112 374 (1990). whole context dictates Here, there several reasons statutes. "[r]epeals implication regulatory strongly disfavored," Philadelphia Nat. Bank, 321, 350, 1715, 1734, 915 (1963), have make otherwise "includ[es]" (but to) "State law." shows refers more than antitrust. Also, fact entails laws," reinforces conclusion, inherent theword "all," laws. short, 11341 what says: 23 broad enough govern contract. "The obligation 'the binds perform agreement.' Home Building Loan Assn. Blaisdell, 290 398, 429, 54 231, 237, 78 413 (1934) Sturges Crowninshield, (4 Wheat.) 122, 197, 529 (1819)). depends regime effectiveness enforcement. 24 "Laws subsist time place contract, where performed, enter into form it, fully if expressly referred incorporated terms. embraces alike affect discharge." Farmers Merchants Bank Monroe Federal Reserve Richmond, 262 649, 660, 43 651, 655, 67 1157 (1923). 25 force apart acknowledges character. obligations, suspending 26 1305 (1948), construed immediate precursor 5(11) 1940, 722, 7, 908-909,4 Schwabacher, minority stockholders complained diminished value shares corporate charter "deprived [them] Michigan 188, 962. charged passing upon capital liabilities assumed discharged company, just reasonable relieved "restraints, limitations, prohibitions Federal, State, municipal," 198, 966. duty "to see protected," emphasized were, "as matter accorded recognition plan reasonable." 201, 968. for, allow state liquidation basis [for valuation] designates service." 200, Relying survive interest. 967-968. Because disclaimed jurisdiction settle shareholders' complaints, ensure reasonable. 202, 27 Just RLA, case. governs labor-management efforts maintain" 152 refrain except accordance §§ Seventh, 156. "extends grievances Slocum Delaware, L. 339 242, 70 579, 94 795 (1950). "legal agreements," Detroit T. Union, 396 142, 156, 294, 302, 325 (1969), that, superseded abrogation Locomotive Engineers, 482 270, 287, 107 2360, 2370, 96 222 (1987) (STEVENS, concurring judgment); Engineers Boston Maine Corp., 788 794, 801 (CA1 1986); Missouri Pacific 782 107, (CA8 Burlington Northern, Supervisors Assn., 503 58, 62-63 (CA7 1974); Bundy Penn Central 455 277, 279-280 (CA6 1972); Nemitz 436 841, 845 (CA6), aff'd, 404 37, 185, 198 (1971); Chicago N. W. 314 424 1963); Texas O. Trainmen, 307 151, 161-162 (CA5 1962); Executives Guilford Transp. 667 F.Supp. 29, 35 (Me.1987), 843 1383 1988). 28 Our supersedes via "economy removal expenditure." 292 522, 534-535, 819, 825, 1402 (1934). Recognizing "result wholesale dismissals extensive transfers, involving expense employees" loss seniority rights," 233, (1939), imposes number labor-protecting accommodates greatest extent possible. 11344(b)(1)(D), 11347; (1979). enforceable difficult, impossible, achieve. delay operations sought defeated. See, e.g., Northern Maintenance Way Employes, 481 444, 1841, 1850, 381 (resolution "virtually endless"); 149, (1969) (dispute "an almost interminable process"); Clerks Florida East 384 238, 246, 86 1420, 1424, 501 (1966) (RLA "purposely drawn out"). avoid 29 case, substantive remedial respecting command confirms agency administration expert field mergers. affirm deference face ambiguous statute, correct one. results. reiterate approval, necessity, today. be, remand Appeals, n. 2, supra. "[t]he [in ] 2376 judgment). express matters, 31 judgment reversed, proceedings opinion. 32 ordered. 33 whom MARSHALL joins, dissenting. 34 construes source 407 1920 (1920 Act). 482. Its wording 908-909, again 1978, 1434. is, claim either amendments modified way. therefore appropriate consideration text Act. Before First War, industry prime target enforcement.1 adopted new favored railroads. embodied wouldobviously frustrated chosen explicitly provided, part: 36 foregoing hereby, operation 'antitrust laws,' restraints far enable anything pursuant section." 37 background absolutely primary focus Sensibly, wrote using cover forbid consummation properties owner. Not word hint valid contracts. 38 Given present plight Nation's railroads, wise to, albeit greater than, bankruptcy trustee's rejection debtor's executory contracts.2 Through nothing short tour de force, can find 11341, predecessors. Obviously, useful ability disavow disadvantageous long-term leases obsolete facilities, employment high salaried executives whose services longer needed, costly job security shrinking force. ranging done much clearer 39 Court's rests "plain meaning" (1948). Neither sufficient. statute. 40 With generis canon, I believe normal reader assume encompasses laws, prohibit consummating mergers, more. ante, 128. suggestion whenever criminal tort measure impedes restriction virtue contain contracts.3 Rather, examination show, restrictive prohibitory laws." H.R.Conf.Rep. 650, 66th Cong., 2d Sess., 64 (1920) (emphasis added). speculates reason simply rule repeals favored, citing (1963). industry's argument even though entirely silent exemption. cited Phila- delphia sheds light creating naturally statutes large carriers.4 42 Of importance, remarkable assumption 'all law' encompass created contract.5 Ante, 129-130. Even bear reading, flatly laws' restraints, State. given respect always paid enforceability contracts—a evidenced Constitution itself6—there powerful presumption against finding implied alleviate legitimate concern about Had convey message finds surely said contract.7 my reliance misplaced. owners percent outstanding preferred stock Pere Marquette brought suit aside corporation Corporation. market plaintiffs' ranged, times, $87 $99 per share, received exchange realized $90 $111 same dates. applied class, Plaintiffs contended, amounted $172.50 share "liquidation" Charter event dissolution, shareholders entitled full payment par plus accrued unpaid dividends. question. too insignificant validity entire left later litigation. On appeal sustaining order, foreclosed assert shares. Whatever winding-up determine continuing enterprise. essence passage: "Since clearly contemplates step enterprise, dissenters windingup irrelevant, insofar reflected values equivalent. service. 46 47 "We alleged requisite Any are, 48 extinguish whatever But remand, claims connection final "just fair "complete structure merger," 195, 965, fairly renounce limit achievable III tension codified labor-protection latter less protective" Rail Passenger Service 1337, 565. One Secretary essentially described 120-121. notes, 'under agreements.' (citation omitted). expected 50 2376, (1987), self-executing becomes effective approval. explicit announcement applicable." (footnote purport modify terminate entered 1980 1982 mention transfers personnel after entered.8 51 subscribe late-blooming 71-year-old roving power—exercisable consummated—to "prevent achieved." 133. represent "better" choice actually cf. West Virginia University Hospitals, Casey, 83, 100-101, 1138, 1148, --- ---- (1991) accurate disposition 52 respectfully dissent. "In proceeding least class following: "(A) adequacy public. "(B) including, failing include, area "(C) total fixed charges "(D) "(E) adverse among region." 9, 1989, petition requested until addressing issues open resolution. stating rehearing "deferred pending release remand." 54a. January 1990, reopened it. May 21, months decision. 715 adhered held, foreclose resort remedies modification "at [its] authority" 754. "reflects consistency overall scheme dealing CBA modifications Commission-approved consolidations." 722. arbitration. December petitioned review raises three issues: (1) authorizes RLA; (2) compel arbitrate agreements; (3) effected taking violation Due Process Compensation Clauses Fifth Amendment. 23, motions dismiss moot. They argued alternative ground offered material dispute. Union reassert mootness brief merits. Brief Respondent Unions 18. disagree. predicated correctness definitive order. Agency compliance mandate moot court's Cornelius NAACP Legal Educational Fund, 473 788, 791, 1, 105 3439, 3443, 87 (1985); Schweiker Gray Panthers, 453 34, 42, 12, 101 2633, 2639, 69 460 (1981); Maher Roe, 432 464, 468-469, 97 2379-2380, 53 484 (1977). addition, controversy parties. disagree 1940 provided: "[A]ny corporations, officers persons, hereby municipal, any, recodification change. H.R.Rep. 95-1395, pp. 158-160 (1978), U.S.Code Cong. Admin. News 3009. 299, Trans-Missouri Freight 166 290, 540, 1007 (1897); Joint Traffic 171 505, 25, 259 (1898); Securities 193 436, 679 (1904); Terminal Louis, 224 383, 507, 56 810 (1912); 226 61, 53, 57 124 Arctic Nav. 228 87, 443, 742 (1913). 365 Bankruptcy Code, 365, allows trustee reject unexpired subsequent court. Collective-bargaining rejected 1113 met. Judge D.H. Ginsburg, writing noted: sustain position empowers [collective-bargaining (CBA) ]. most important, Nowhere say ever, iterations initial enactment 'contracts,' CBAs. how 'other law,' done, mean obstacles.' Dispatchers, J.A. 207. None Supreme decisions, discussed below, suggests prior 1983 DRGW, much. Gulf, Mobile R.R. Abandonment, 282 311, 335 (1952) ('None decisions [Supreme Court] relates [sic] some carrying authorized.')." All implicit arose framework 28, 314-315, 548-549; 343, 374-376, 459, 476-477 (plurality opinions); 105, 448, 449; Keogh Northwestern 260 161-162, 47, 49, 183 (1922); Transfer 288 469, 474-475, 446, 77 899 (1933); Warehouse Pennsylvania 297 500, 513-515, 546, 551-552, 80 827 (1936); Borden 197-206, 187-192, 181 (1939); Socony-Vacuum Oil 310 150, 226-228, 811, 846-847, 1129 (1940); Georgia 324 439, 456-457, 65 716, 725-726, 89 1051 (1945); Alkali Export 196, 205-206, 1120, 1126, 1554 Allen Bradley Electrical Workers, 797, 809-810, 1533, 1540, 1939 356 514, 520, 545 (1958); Radio Corp. America, 358 334, 79 457, 354 (1959); California FPC, 369 82 901, (1962); Silver Stock Exchange, 373 341, 1246, 389 regulations exemptions taken Maryland Milk Producers 362 458, 847, (1960), Clayton agricultural cooperatives formation associations; engage conduct violate Pan Airways, 371 296, 476, relieving airlines Civil Aeronautics Board violations, violations stemming activity governed scheme. Again Ginsburg's observation pertinent: "Moreover, insertion obstacles' naught, facilitate solemn undertaking, bond indenture bank loan, entering consent creditors. Ohio, 331-35 (declaring itself power, abandonment context, 'contractual rent'). think likely grant potential destabilize industry; confident, itself. Never, here justification unlikely Act." 244-245, 567-568. "No Law impairing Obligation Contracts. Const., Art. 10, cl. reviewing Ginsburg concluded: "From confident focused exclusively, hearings debates Association Flight Attendants Delta Air Lines, 879 906, 917 (D.C.Cir.1989). Indeed, Commissioner Clark, who presented idea House Senate Committees above, suggest, course days hundred pages, third parties." coordination generate significant cost reductions improved economic efficiency. 521, 556 "These savings spring common-point projects, mechanical engineering department coordinations, locomotive utilization improvements, internal rerouting efficiencies. Each projects separately below." discussion followed, discuss expand production Kentucky cars member line buying independent manufacturer. applicants show derive benefit plan. facility closing works

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