709 F.3d 584
6th Cir.2013Background
- PCTC, now APU, entered a 1971 § 401 contract with Amtrak under the Rail Passenger Service Act to relieve PCTC of intercity rail service and to receive stock in Amtrak.
- APU paid $52 million (half of PCTC’s 1969 losses) and granted Amtrak use of tracks/facilities in exchange for stock; stock issuance occurred after the payment.
- In 1978, PCTC and Amtrak executed a settlement releasing all pre-1976 claims.
- Congress enacted the 1997 Amtrak Reform and Accountability Act; § 415(b) mandated Amtrak redeem all common stock before Oct. 1, 2002 at fair market value.
- APU filed 2008 suit asserting five constitutional and statutory claims, plus a private-right-of-action theory under § 415(b).
- District court dismissed five federal-law claims as barred or non-viable and did not separately address statute of limitations or the 1978 Settlement, which the court had found non-dispositive.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Amtrak can be sued for monetary damages for constitutional violations | APU asserts implied damages action via agency status | Amtrak cannot be sued for damages absent an express private right | Meyer bars implied damages against Amtrak |
| Whether § 415(b) creates an implied private right of action for stock redemption | § 415(b) creates a private remedy for shareholders | No private right of action implied by § 415(b) | Court declines to imply a private right of action |
| Whether § 415(b) creates a protectable property interest in redemption | Redemption for fair market value creates property interest and due process rights | No property interest without implied private remedy | § 415(b) creates a protected property interest; due process claim viable |
| Whether the remaining due process claim is time-barred or barred by the 1978 Settlement | Due process claim timely; asserted value remedy | Limitations and settlement terms may bar | Court leaves statute-of-limitations issue to district court on remand |
Key Cases Cited
- Lebron v. Nat’l Railroad Passenger Corp., 513 U.S. 374 (1995) (agency status treated as government for constitutional rights, limiting damages claims)
- FDIC v. Meyer, 510 U.S. 471 (1994) (no implied damages action against federal agencies even with sovereign-waiver; requires express action)
- Cort v. Ash, 422 U.S. 66 (1975) (factors for implying a private right of action from statute)
- Alexander v. Sandoval, 532 U.S. 275 (2001) (private rights of action must be created by Congress)
- Corr. Servs. Corp. v. Malesko, 534 U.S. 61 (2001) (limits extending Bivens to private corporations exercising federal authority)
- Logan v. Zimmerman Brush Co., 455 U.S. 422 (1982) (due process; property interests can arise beyond direct statutory rights)