807 F. Supp. 2d 624
S.D. Tex.2011Background
- Harris County filed a condemnation action seeking a perpetual railroad crossing easement across Union Pacific's right-of-way in Harris County, Texas.
- A special commissioners' damages award totaled $10,444 to Union Pacific after a hearing on October 18, 2010.
- Union Pacific objected to the award and argued that ICCTA preempts the proceedings, requiring a STB declaratory order before condemnation.
- Union Pacific removed the case to federal court on November 4, 2010, after timely objections were filed.
- Harris County moved to remand, contending removal was improper or untimely and that preemption did not apply; Union Pacific opposed remand and sought STB factual questions reference.
- The court analyzed timeliness under 28 U.S.C. § 1446(b) and whether ICCTA preempts the condemnation, concluding preemption applies and remand is denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of removal | Harris County argues removal occurred after the 30-day window. | Union Pacific contends removability began when objections to the award were filed on November 3, 2010. | Removal timely; period began November 3, 2010. |
| Is the condemnation preempted by ICCTA | Condemnation is a state process not preempted by ICCTA; state remedies may apply. | ICCTA grants exclusive jurisdiction to the STB over rail transportation and preempts state condemnation actions. | Condemnation is preempted under ICCTA; federal question preemption applies. |
Key Cases Cited
- Franks Inv. Co., LLC v. Union Pac. R.R. Co., 593 F.3d 404 (5th Cir.2010) (two-tier preemption: categorically preempted vs. preempted as applied)
- Barrois v. New Orleans & Gulf Coast Ry. Co., 533 F.3d 321 (5th Cir.2008) (as-applied preemption; preemption not automatic in all crossing disputes)
- Fort Bend County v. Burlington N. & Santa Fe Ry. Co., 237 S.W.3d 355 (Tex.App.-Houston [14th Dist.] 2007) (condemnation crossing involving interference with rail operations; preemption considered)
- City of Sachse v. Kansas City S. Ry. Co., 564 F. Supp. 2d 649 (E.D. Tex.2008) (condemnation proceedings may be removable prior to damages award)
- Upshur County v. Rich, 135 U.S. 467 (1890) (functional test for judicial vs. administrative character of proceedings)