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835 F.3d 548
6th Cir.
2016
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Background

  • Allied Erecting & Dismantling Co. seeks to evict Mahoning Valley Railroad from two sets of tracks on parcels flanking the Center Street Bridge in Youngstown, Ohio.
  • East-side tracks (the “LTV tracks”) are on land Allied claims to own; Mahoning held an easement and began parking railcars there, prompting Allied to sue in state court and the dispute to be referred to the Surface Transportation Board (STB).
  • West-side parcel (lot 62188) involves disputed ownership: parties agree Mahoning once owned it; Allied claims Mahoning sold it and Allied now owns the lot and tracks; state court was asked to resolve ownership.
  • The STB concluded the contested tracks were used by a common carrier and thus within federal jurisdiction under the Interstate Commerce Act; Allied argued the tracks were private (in-plant) and outside STB jurisdiction.
  • Allied also sought reopening based on a former Mahoning employee’s affidavit (Spiker) claiming the LTV tracks were built as in-plant tracks; the STB declined to reopen, finding the affidavit not new and Allied’s private-track argument untimely.
  • The Sixth Circuit upheld the STB: Allied’s late assertion that the tracks were private was properly rejected, and Mahoning’s present common-carrier use places the tracks within STB jurisdiction; the court remanded ownership issues concerning lot 62188 to state court.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether STB has jurisdiction over LTV tracks Allied: tracks are private (in-plant) so outside STB jurisdiction STB/Mahoning: Mahoning now provides common-carrier transportation over the tracks, so STB has jurisdiction Held: STB jurisdiction affirmed; Allied’s late private-track claim rejected and present common-carrier use controls
Whether STB should have reopened its prior decision based on Spiker affidavit Allied: affidavit shows tracks were built as private, warranting reconsideration STB: affidavit was available earlier and is not new evidence; late reopening improper Held: STB properly denied reconsideration as the affidavit was not new evidence
Characterization of tracks on lot 62188 (private vs. excepted/mainline) Allied: tracks became private when Mahoning sold lot 62188 STB: Allied conceded tracks are not private; Mahoning was using them to provide common-carrier service Held: STB jurisdiction stands; ownership of lot 62188 must be resolved by state court before further STB determination
Effect of unauthorized carrier operations on STB jurisdiction Allied: unauthorized use cannot convert private tracks into carrier tracks STB: statute covers "transportation by rail carrier" broadly; lack of STB authorization does not defeat jurisdiction Held: Court rejects Allied’s argument; unauthorized operations do not immunize tracks from STB jurisdiction if they meet statutory definition of common-carrier transportation

Key Cases Cited

  • Nicholson v. Interstate Commerce Comm'n, 711 F.2d 364 (D.C. Cir. 1983) (distinguishes mainline tracks from ancillary tracks and describes continuous through-train service)
  • Kieronski v. Wyandotte Terminal R.R. Co., 806 F.2d 107 (6th Cir. 1986) (in-plant tracks are not common-carrier tracks)
  • Port City Prop. v. Union Pacific R. Co., 518 F.3d 1186 (10th Cir. 2008) (discusses STB authority and management of excepted tracks under statutory scheme)
  • City of Riverview v. Surface Transp. Bd., 398 F.3d 434 (6th Cir. 2005) (standard of review for STB decisions)
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Case Details

Case Name: Allied Erecting & Dismantling Co. v. Surface Transportation Board
Court Name: Court of Appeals for the Sixth Circuit
Date Published: Aug 22, 2016
Citations: 835 F.3d 548; 2016 WL 4434502; 2016 FED App. 0252P; 2016 U.S. App. LEXIS 18262; 14-3094, 15-4020, 15-4021
Docket Number: 14-3094, 15-4020, 15-4021
Court Abbreviation: 6th Cir.
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    Allied Erecting & Dismantling Co. v. Surface Transportation Board, 835 F.3d 548