Association of American Railroads v. United States Department of Transportation
721 F.3d 666
D.C. Cir.2013Background
- Section 207 of PRIIA directs Amtrak and FRA to jointly develop metrics and standards for intercity rail; if disagreement, either may petition to appoint an arbitrator for binding arbitration; metrics are to be incorporated into Operating Agreements where practicable.
- Amtrak is a quasi-private corporation created by Congress to operate passenger service, with a board including political appointees but with substantial government involvement.
- AAR sued alleging §207 unconstitutionally delegates regulatory power to a private entity and violates due process by Amtrak’s involvement in rulemaking.
- The district court rejected AAR’s challenges; AAR appealed for reversal.
- Court holds §207 unconstitutional as a delegation to Amtrak, a private entity, with extensive government involvement not eliminating constitutional concerns.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is §207 an unconstitutional delegation to a private entity | AAR argues Amtrak’s private status violates Carter Coal precedent | Government contends framework maintains adequate government oversight | Yes; unconstitutional delegation to a private entity |
| Is Amtrak a private corporation for delegation purposes | Lebron does not render Amtrak a private actor for all purposes | Lebron treats Amtrak as government for First Amendment purposes; not conclusive here | Amtrak is private for purposes of §207 delegation |
| Does arbitration provision cure the delegation problem | Arbitration would not remove private control over content | Arbitrator could be neutral; statute otherwise permits arbitration | No; arbitration provision does not cure unconstitutional delegation |
Key Cases Cited
- Carter v. Carter Coal Co., 298 U.S. 238 (1936) (invalid delegation to private actors; public power concerns)
- Currin v. Wallace, 306 U.S. 1 (1939) (private-party involvement as aid with agency discretion)
- Sunshine Anthracite Coal Co. v. Adkins, 310 U.S. 381 (1940) (private role as advisory/ministerial; agency retains discretion)
- Lebron v. National Railroad Passenger Corp., 513 U.S. 374 (1995) (Amtrak status varies by constitutional provision; not dispositive here)
- Whitman v. American Trucking Ass’ns, 531 U.S. 457 (2001) (limitations on combining independent features in delegation)
- Free Enterprise Fund v. PCAOB, 130 S. Ct. 3138 (2010) (novel regulatory structure may render delegation unconstitutional)
- NARUC v. FCC, 737 F.2d 1095 (D.C. Cir. 1984) (private delegation concerns; advisory roles with public bodies)
- Totten v. Bombardier Corp., 380 F.3d 488 (D.C. Cir. 2004) (Amtrak not automatically governmental; context matters)