Angela Horton and Kevin Houser, Petitioners, v. The Kansas City Southern Railway Company, Respondent
No. 21-0769
Supreme Court of Texas
JUSTICE BUSBY, joined by Justice Devine, Justice Blacklock, and Justice Young, concurring.
The heart of this case should be decided as a straightforward question of statutory interpretation: when both chambers of the United States Congress passed and the President signed the Interstate Commerce Commission Termination Act (ICCTA) in 1995, did they actually delegate to the Surface Transportation Board (STB) exclusive jurisdiction over humped railroad crossings, preempting state common-law negligence suits concerning accidents at such crossings? I join the Court‘s opinion, which holds that the answer to this question is no.1
In addition to deciding this question of express preemption, precedent from the Supreme Court of the United States requires us to consider implied obstacle preemption. Under Hines v. Davidowitz and its progeny, we must analyze whether allowing the plaintiffs to bring their claim in court would stand as an “obstacle to the accomplishment and execution of the full purposes and objectives of Congress.” 312 U.S. 52, 67 (1941).
Although I agree with my colleagues that the claim before us presents no such
Justice Thomas has urged the Court to abandon its “purposes and objectives” approach to implied preemption in favor of a test that asks whether state law stands in “logical contradiction” to federal law. Merck Sharp & Dohme Corp. v. Albrecht, 587 U.S. 299, 319 (2019) (Thomas, J., concurring). This test, which draws on the research of Professor Caleb Nelson,2 commendably seeks to refocus the Court‘s preemption precedent on the original public meaning of the Supremacy Clause. In its lack of originalist provenance, empirical unworkability, encouragement of standardless judicial discretion, and constitutionally illegitimate aggregation of federal power, the Supreme Court‘s “purposes and objectives” preemption jurisprudence suffers from flaws akin to those that recently led the Court to repudiate the Lemon test. See Kennedy v. Bremerton Sch. Dist., 597 U.S. 507, 534 (2022) (overruling Lemon v. Kurtzman, 403 U.S. 602 (1971)).
Moreover, because ICCTA‘s preemption clause is coupled with a delegation of exclusive jurisdiction to the STB, administrative law principles should inform the proper preemption analysis. The presumption underlying the Supreme Court‘s implied obstacle preemption jurisprudence is exactly contrary to that underlying its recent federal administrative law jurisprudence—particularly the major questions doctrine and the principle that clear statutory direction is required to transfer core state power to a federal agency. Instead of the statutorily prescribed scope of an agency‘s powers giving rise to a presumption that Congress did not mean to delegate major questions outside that scope exclusively to the agency, implied obstacle preemption presumes that matters outside that scope are also withdrawn from other decisionmakers as necessary to fulfill Congress‘s “purposes and objectives.”
These two approaches to federalism, the separation of powers, and statutory interpretation are irreconcilable. Because this case painfully illustrates the failures of implied obstacle preemption‘s “ambitiou[s], abstract, and ahistorical”3 approach to what is one of the “most frequently used doctrine[s] of constitutional
I. ICCTA does not expressly preempt ordinary state common-law claims.
ICCTA provides that “[t]he jurisdiction of the [STB] . . . is exclusive” over (1) “transportation by rail carriers” and the “remedies provided by this part [of the Act] with respect to” matters including carriers’ rates, operating rules, routes, services, and facilities, and (2) “the construction, acquisition, operation, abandonment, or discontinuance of tracks or facilities.”
The text and context of
Throughout this case, respondent KCSR has emphasized the wrong question. The central issue Congress sought to address in ICCTA generally, and within
The answer to that question is no. Like generally applicable “state property laws and rules of civil procedure that” on their face “have nothing to do with railroad crossings,’ . . . state negligence law” typically has “effects . . . on rail operations [that] are merely incidental“; thus, ordinary negligence claims do not qualify as preempted “regulation of rail transportation.” Elam v. Kan. City S. Ry., 635 F.3d 796, 813 (5th Cir. 2011) (quoting Franks Inv. Co. v. Union Pac. R.R., 593 F.3d 404, 411 (5th Cir. 2010) (en banc)).5 Instead, “State law[s]” that provide remedies “with respect to regulation of rail transportation” are laws—generally positive laws—that are specifically directed toward managing
In addition, although this section gives the STB exclusive jurisdiction to regulate certain economic and operational aspeсts of rail transportation and provides remedies with respect to that regulation, it does not preempt “all other law” regarding those aspects of rail transportation—a phrase Congress used elsewhere to preempt laws that would limit the STB‘s exclusive authority to permit railroad mergers and acquisitions.8
This backdrop of multiple federal agencies with different zones of jurisdiction cоnfirms that the STB‘s professed expertise in the economic and non-safety operational regulation of railroads—namely “railroad rate, practice, and service issues and rail restructuring transactions, including mergers, line sales, line construction, and line abandonments”13—would not be implicated by suits under generally applicable tort law. The Federal Railroad Safety Act (FRSA) expressly recognizes as much, including savings clauses to clarify that state laws and causes of action relating to railroad safety are not preempted unless they are incompatible with federal rules on the subject.
Nothing about the claim at issue here, or common-law negligence claims in general, implicates the STB‘s expertise. Indeed, the STB has firmly declined to exercise jurisdiction over such cases, stating its view that common-law negligence claims involving rail crossing accidents are regulated by FRSA, not ICCTA.14 “[J]ust as established practice may shed light on the extent of power conveyed by general statutory language, so the want of assertion of power by those who presumably would be alert to exercise it, is equally significant in determining whether such power was actually conferred.” West Virginia v. EPA, 597 U.S. 697, 725 (2022) (quoting FTC v. Bunte Bros., Inc., 312 U.S. 349, 352 (1941) (Frankfurter, J.)).
Given the STB‘s view, holding that ICCTA preempts plaintiffs’ common-law negligence theory regarding the humped crossing would likely leave them without a forum to adjudicate that theory, effectively granting the railroad immunity from any negligence regarding the hump. “[U]nlike most administrative and legislative regulations,” state-law tort claims “necessarily perform an important remedial role.” Sprietsma v. Mercury Marine, 537 U.S. 51, 64 (2002). As the Supreme Court has observed, “[i]t is difficult to believe that Congress would, without comment, remove all means of judicial recourse for those injured by” conduct contrary to law. Silkwood v. Kerr-McGee Corp., 464 U.S. 238, 251 (1984). In addition, such a holding would be difficult to reconcile with the FRSA savings clauses as well as the U.S. Supreme Court‘s longstanding view that “[t]he care of grade crossings is peculiarly within the police power of the [S]tates.” Lehigh Valley R.R. Co. v. Bd. of Pub. Util. Commʼrs, 278 U.S. 24, 35 (1928).
For over half a century, our Court has adhered to the principle that “if a statute . . . deprives a person of a common law right, the statute will be strictly construed in the sense that it will not be extended beyond its plain meaning or applied to cases not clearly within its purview.” Satterfield v. Satterfield, 448 S.W.2d 456, 459 (Tex. 1969).15 The U.S. Supreme Court has adopted a similar presumption, holding that “[i]n order to abrogate a common-law principle, the statute must speak directly to the question addressed by the common law.” United States v. Texas, 507 U.S. 529, 534 (1993) (internal quotation marks omitted). In addition, “Congress should make its intention clear and manifest if it intends to pre-empt the historic powers of the States.” Will v. Mich. Dep‘t of State Police, 491 U.S. 58, 65 (1989) (internal quotation marks omitted). And courts “would not expect Congress to take... [the] extraordinary step” of “stripping state courts of jurisdiction to hear their own state claims” without a “clear statement.” Atl. Richfield Co. v. Christian, 140 S. Ct. 1335, 1351 (2020).
In sum, the words “regulation” and “remedies” in
II. Implied obstacle preemption is inconsistent with the Supremacy Clause.
In addition to express preemption, the U.S. Supreme Court has held that federal law impliedly preempts state law in two circumstances: (1) when a “pervasive” framework of regulation supports the inference that “Congress, acting within its proper authority, has determined [that a field] must be regulated by its exclusive governance,” and (2) when state law “conflict[s] with federal law,” either because compliance with both “is a physical impossibility” or state law “stands as an obstacle to the accomplishment and execution of the full purposes and objectives of Congress.” Arizona v. United States, 567 U.S. 387, 399 (2012) (internal quotation marks and citations omitted). KCSR contends that this last variety of preemption—implied obstacle preemption—also applies to plaintiffs’ humped-crossing negligence claim.16
A. The Supremacy Clause is a non obstante provision allowing federal laws to “repeal” contradictory state laws.
The Supremacy Clause provides that our federal Constitution, laws, and treaties “shall be the supreme Law of the Land; and the Judges in every State shall be bound thereby, any Thing in the Constitution or Laws of any State to the Contrary notwithstanding.”
Taken as a whole, the Supremacy Clause says that courts must apply all valid rules of federal law. To the extent that applying state law would keep them from doing so, the Supremacy Clause requires courts to disregard the state rule and follow the federal one. But this is the extent of the preemption it requires. Under the Supremacy Clause, any obligation to disregard state law flows entirely from the obligation to follow federal law.
To put the same point slightly differently, the Supremacy Clause‘s rules of applicability and priority mean that courts are always bound to apply the federal portion of “in-state law.” But if it is possible for courts simultaneously to follow the state portion of “in-state law,” then the Supremacy Clause‘s demand that courts apply federal law does not prevent them from applying state law too. The constitutional test for preemption is thus the same as the traditional test for repeal: Can state and federal law stand together, or do they establish contradictory rules?18
As Professor Nelson notes, the final phrase of the Supremacy Clause—which operationalizes the superiority of federal law over state law when the two are contradictory—is a non obstante clause. Such clauses were “ubiquitous in the session
to acknowledge that a statute might contradict some other laws and to instruct courts not to apply the traditional presumption against implied repeals. When a statute contained a non obstante clause, courts did not have to struggle to harmonize the statute with prior laws; they could give the statute its natural meaning and let it displace whatever law it contradicted.20
The use of non obstante language in the Supremacy Clause—which only speaks explicitly to the obligations of state court judges—is important because it clarifies that the natural meaning of federal statutes would “take effect automatically within each state and form part of the same body of jurisprudence as state statutes,”21 thus becoming “in-state law.”22 Absent this clarifying provision, the Framers of our federal Constitution feared that state court judges, consistent with “prevailing conceptions of the law of nations,” would treat federal law as the law of a foreign sovereign and refuse to apply it.23 Nowhere was this fear more acute than in the foreign affairs context, as numerous sources from the founding era raised fears of state legislation displacing federally ratified treaties.24
Early American jurists—including Chief
The “repugnancy” or irreconcilability standard is also consistent with the original understanding of the Constitution as a document that transferred sovereign rights from the states to the federal government against the backdrop of the late eighteenth century law of nations. See Anthony J. Bellia, Jr. & Bradford R. Clark, The International Law Origins of American Federalism, 120 COLUM. L. REV. 835, 878 (2020); Anthony J. Bellia, Jr. & Bradford R. Clark, The Constitutional Law of Interpretation, 98 NOTRE DAME L. REV. 519, 536 (2022). Under these legal principles, an “instrument could alienate sovereign rights and powers in two ways. It could either transfer the right or power expressly, or grant one party an express right or power that by unavoidable implication divested the other party of a corresponding right. In both cases, the clear and express terms of the instrument were to be given their ordinary and customary meaning as of the time of adoption.” 98 NOTRE DAME L. REV. at 530-31.32 As Professors Bellia and
Clark
Justice Thomas has advocated the adoption of a “logical contradiction” test that is consistent with these understandings of the Supremacy Clause‘s text. As he has written, “[e]vidence from the founding suggests that, under the original meaning of the Supremacy Clause, federal law pre-empts state law only if the two are in logical contradiction.” Merck, 587 U.S. at 319 (Thomas, J., concurring).33
This approach is grounded in the Supremacy Clause‘s history as a non obstante clause of the type used by “[e]ighteenth-century legislatures . . . to specify the degree to which a new statute was meant to repeal older, potentially conflicting statutes in the same field.” PLIVA, Inc. v. Mensing, 564 U.S. 604, 621-22 (2011) (plurality op. of Thomas, J.). As discussed above, “a non-obstante provision in a new statute acknowledged that the statute might contradict prior law and instructed courts not to apply the general presumption against implied repeals.” Id. at 622 (internal citations omitted). Thus, “if we interpret the Supremacy Clause as the founding generation did, our task is straightforward. We must use the accepted methods of interpretation to ascertain whether the ordinary meaning of federal and state law ‘directly conflict.‘” Kansas v. Garcia, 589 U.S. 191, 214 (2020) (Thomas, J., concurring). “[P]re-emptive effect is to be given to congressionally enacted laws, not to judicially divined legislative purposes.” Arizona, 567 U.S. at 440 (Thomas, J., concurring in part and dissenting in part).34
B. Implied obstacle preemption is unmoored from constitutional and statutory text and damages federalism and the separation of powers.
Such “freeranging speculation about what the purposes of the [law or] regulation must have been is not constitutionally proper in any case.” Williamson, 562 U.S. at 343 (Thomas, J., concurring in judgment) (cleaned up). This speculation undermines federalism by overreading the Supremacy Clause‘s command to give preemptive effect only to the “Laws of the United States,” and it erodes the separation of powers by empowering judges to act with “potentially boundless” discretion. Geier v. Am. Honda Motor Co., 529 U.S. 861, 908 (2000) (Stevens, J., dissenting).
Put simply, implied obstacle preemption is a doctrine of “freewheeling judicial inquiry”38 that invites courts—including state courts—to become federal legislators, “wander[ing] far from the . . . text” of the supposedly preempting federal law. Wyeth, 555 U.S. at 583 (Thomas, J., concurring in judgment).39 Not only is the “evidence courts employ to discern congressional intent” dubious, the entire exercise of courts trying to “tease out single purposes or aims of federal legislation and regulations” is fraught with unsubstantiated assumptions about lawmaking and is inherently inconsistent with the separation of powers. Catherine M. Sharkey, Against Freewheeling, Extratextual Obstacle Preemption: Is Justice Clarence Thomas the Lone Principled Federalist?, 5 N.Y.U. J.L. & LIBERTY 63, 91 (2010). By its very nature, this “judicial guesswork about broad federal policy objectives, legislative histоry, or generalized notions of congressional purposes that are not contained within the text of federal law”40
Moreover, the purposivist nature of implied obstacle preemption jurisprudence upsets the “delicate balance” of state versus federal power “mandated by the Constitution” by encouraging an overly preemptive reading of statutory text. Wyeth, 555 U.S. at 585 (Thomas, J., concurring in judgment). Empowering courts to “divine the broader purposes of the statute before [them] inevitably leads [them] to assume that Congress wanted to pursue those policies ‘at all costs‘—even when the text reflects a different balance.” Id. at 601 (Thomas, J., concurring in judgment) (citing Geier, 529 U.S. at 904 (Stevens, J., dissenting)); Nelson, Preemption, 86 VA. L. REV. at 279-80). “As this Court has repeatedly noted, it frustrates rather than effectuates legislative intent simplistically to assume that whatever furthers the statute‘s primary objective must be the law.” Wyeth, 555 U.S. at 601 (Thomas, J., concurring in judgment) (citing Norfolk So. R. Co. v. Sorrell, 549 U.S. 158, 171 (2007); Rodriguez v. United States, 480 U.S. 522, 526 (1987) (internal quotation marks omitted)). In doing so, courts distort the text of statutes and stray from the actual command of the Supremacy Clause, which gives priority to the “Laws of the United States,” not “agency musings, Government litigating positions,” or “the unenacted hopes and dreams” of executive branch agencies. Williamson, 562 U.S. at 341, 343 (Thomas, J., concurring in judgment).
On the other side of the coin, there is a notable lack of discussion in the jurisprudence regarding why the imaginative entеrprise of implied “purposes and objectives” preemption is even necessary. The search for unspoken purposes certainly seems out of place regarding statutes like ICCTA, in which Congress chose to speak directly to its “pre-emptive intent” with the “best evidence” available: an express preemption clause. Easterwood, 507 U.S. at 664. And the field, impossibility, and logical contradiction varieties of implied preemption amply guard federal law against state interference.42
Moreover, the current doctrine of implied obstacle preemption leaves many victims in its wake, indiscriminately preventing resort to claims, defenses, and enforcement actions provided by state and local law. The inconsistent application of obstacle preemption—which, as described above, is a near inevitability given its arbitrary and atextual nature—means that “[a]ll sides of the political spectrum have suffered as a result of the incoherence.
For example, broad applications of implied obstacle preemption have affected plaintiffs and defendants of all kinds—individuals, business entities, and government agencies alike, including: a recording аrtist denied the right to assert state-law right-of-publicity claims;43 a state agency stripped of its immunity defense;44 a municipality left unable to fully enforce an ordinance designed to remedy hazardous waste contamination;45 individuals denied a remedy for improper scoring of their broker qualification exams;46 a dismissed supervisory employee blocked from pursuing tortious interference claims against a union;47 an employer prevented from pursuing claims for breach of contract, fraud, unauthorized use of property, and unjust enrichment against a former employee who falsified his employment application;48 and ICU nurses deprived of claims under the Texas Whistleblower Act and employment discrimination laws.49 These cases illustrate that continuing to use current implied obstacle preemption precedents when we apply one of the “most frequently used doctrine[s] of constitutional law in practice”50 presents a substantial threat to our constitutional system of federalism and separation of powers.51
Done right, implied preemption requires neither a “penumbral” reading of federal law, in which state-court jurisdiction over state claims is defined by the atextual whims of judges or federal administrative agencies, nor artificially narrow constructions of federal law that allow for overzealous protection of state law at all costs. Instead, it calls for a straightforward analysis of statutory text, amendment history, and structure—including applicable interpretive presumptions and cleаr-statement rules—to determine whether state and
III. ICCTA obstacle preemption is inconsistent with the major questions doctrine.
Because ICCTA‘s preemption clause is coupled with a delegation of exclusive jurisdiction to the STB, the proper scope of implied ICCTA preemption should also be informed by relevant principles of administrative law. As explained above, the statutory interpretation question before us is not really about what state courts can do, but what Congress—which the federal Constitution vests only with specifically enumerated powers—has actually delegated exclusively to an executive branch agency: the STB. Thus, I turn next to precedent and scholarship concerning the nature and power of the federal administrative state, which sheds substantial light on whether Section 10501(b) impliedly preempts Texas common law.
Applying current federal precedent on implied obstacle preemption in the ICCTA context makes little sense given developments in the Supreme Court‘s federal administrative law jurisprudence. In recent years, the Court has shown greater reticence to find legislative delegations of authority over “major questions” or matters of core state power to executive branch agencies absent “clear congressional authorization.” West Virginia, 597 U.S. at 723 (citing Util. Air Regul. Grp. v. EPA, 573 U.S. 302, 324 (2014)). But implied obstacle preemption takеs the opposite view, concluding that any state-law obstacle to the “purposes and objectives” of Congress in passing a statute, including those Congress did not speak to at all, is preempted by the statute—no matter how “major” the displacement of state law.
In the case of ICCTA preemption, these conflicting positions come to a head. While federalism principles underlying the major questions doctrine counsel that Congress must “enact exceedingly clear language if it wishes to significantly alter the balance between federal and state power,”52 current implied obstacle preemption precedent eschews statutory text and clear statements in favor of “penumbras that wax and wane.”53
Here, KCSR asserts that the STB has exclusive jurisdiction to provide a remedy any time the application of state or other federal law would unreasonably burden or interfere with rail transportation. In other words, the STB has almost plenary authority over rail transportation under KCSR‘s view of Section 10501(b), meaning that any action taken under state or other federal law that unreasonably impacts a railroad‘s bottom line impliedly falls within the STB‘s exclusive jurisdiction and is preempted by ICCTA. Because KCSR frames ICCTA‘s preemptive scope at such a high level of generality, adopting its position would undermine the federalism and separation of powers values that inform the nondelegation doctrine and its corollary, the major questions doctrine.54
Supreme Court precedent indicates that whether an agency possesses exclusive power to regulate everything that unreasonably burdens or interferes with rail transportation qualifies as a major question, and relatedly as a question on which Congress must speak clearly if it wishes to displace core state power. Indeed, one of the earliest cases in which the Supreme Court applied what has come to be known as the major questions doctrine involved whether the STB‘s predecessor—the ICC—could set carriage prices for railroads. The Court observed that transferring such a “power of supreme delicacy and importance” to “any administrаtive body is not to be presumed or implied from any doubtful and uncertain language.” ICC v. Cincinnati, N.O. & T.P.R. Co., 167 U.S. 479, 505 (1897). If Congress “had intended to grant the power to establish rates, it would have said so in unmistakable terms.” Id. at 509. Because Congress “did not give [that] express power to the commission,” the Court concluded “it did not intend to secure the same result indirectly . . . .” Id. at 511.
KCSR‘s view of Section 10501(b) would similarly vest the STB with a “breathtaking amount of authority.” Ala. Ass‘n of Realtors, 594 U.S. at 764. “It is hard to see what [“remedies“] this interpretation would place outside the [STB‘s] reach, and [KCSR] has identified no limit in [Section 10501(b)] beyond the requirement” that the state-law claim have the effect of regulating or interfering with rail transportation. Id. at 764-65.
KCSR‘s attempt to downplay that vague and far-reaching standard by arguing that ICCTA only preempts “unreasonabl[e] interfere[nce] with its operations” fares no better than the CDC‘s argument that its authority under the Public Health Service Act55 was limited to actions that were “necessary” to curb the spread of COVID-19. Id. at 765.56 The Supreme Court rejected the CDC‘s reading of a statute that would vest it with authority to “mandate free grocery delivery to the homes of the sick or vulnerable,” “[r]equire manufacturers to provide free computers to enable people to work from home,” or “[o]rder telecommunications companies to provide free high-speed Internet service to facilitate remote work.” Id. Similarly, we should reject KCSR‘s reading of a statute that would, for example, grant the STB exclusive jurisdiction to adjudicate contractual disputes between railroads аnd their energy suppliers, resolve labor disputes between railroads and their employees, or regulate the securities issued by railroads.57
There is no doubt that a railroad with no fuel, no workers, or no access to capital markets would be facing “unreasonable interference with its operations” and vast impacts on its bottom line. But no one seriously contends that the STB actually could—or would—attempt to govern any of these things, lest it upset separate statutory schemes.58 And rightfully so, as neither the STB‘s expertise nor its statutory mandate actually implicates any of these potential legal disputes, even though they are related to a railroad‘s “operations” and its financial health.
The same is true of routine, common-law negligence disputes of the type at issue here. KCSR concedes that several types of negligence claims—such as failure to sound a whistle, keep a lookout, apply brakes, or maintain a yield sign—would not be preempted. This concession highlights that there is no coherent limiting principle to KCSR‘s view of implied ICCTA preemption, as the impact of these claims on railroad operations is not different in kind from the plaintiffs’ humped-crossing negligence claim, and we have only KCSR‘s unsupported assertion that they differ in degree.
KCSR‘s position also meets two of the three major questions doctrine “triggers” that Justice Gorsuch identified in his West Virginia concurrence. 597 U.S. at 743-44. KCSR‘s reading of Section
And it would do so in a manner that “intrude[s] into an area that is the particular domain of state law“: the care of grade crossings. West Virginia, 597 U.S. at 744 (Gorsuch, J., concurring); see Lehigh Valley R.R., 278 U.S. at 35. The STB‘s assertion of exclusive jurisdiction over ordinary common-law claims, such as the one at issue here, would not amount to an “everyday exercise of federal power,” as it would dramatically displace the role of state courts and state common law in an area they have traditionally governed and that falls squarely within their function and expertise. Nat‘l Fed‘n of Indep. Bus. v. Occupational Safety & Health Admin., 595 U.S. 109, 117 (2022) (quoting In re MCP No. 165, 20 F.4th 264, 272 (6th Cir. 2021) (Sutton, C.J., dissenting from denial of initial hearing en banc)); see also Ala. Ass‘n of Realtors, 594 U.S. at 764 (holding CDC‘s eviction moratorium “intrude[d] into an area that is the particular domain of state law: the landlord-tenant relationship“).
KCSR‘s assertions to the contrary conflict with the longstanding—and constitutionally protected—norm that “the States, not the Federal Government, are the traditional source of authority over safety, health, and public welfare. In the context of a vast attempt to assume these police powers by the Federal Government, Congress must speak unequivocally.” In re MCP No. 165, 20 F.4th at 273 (Sutton, C.J., dissenting from initial hearing en banc). For these reasons, KCSR‘s position would yield a significant expansion in the powers of the federal administrative state with severe consequences for federalism and the separation of powers.
As the dissent in the court of appeals correctly pointed out, the importance of this issue is especially apparent in Texas. 666 S.W.3d 1, 19 (Tex. App.—Dallas 2021) (Carlyle, J., dissenting). According to preliminary data provided by the FRA, Texas led the country in highway-rail grade crossing collisions in 2023—with 246 of the country‘s 2,190 collisions happening in our state.60 We also had the most injuries of any state (76 out of 761 nationally), and reported the second-largest number of fatalities (16 out of 248 nationally).61 Texas also has the most miles of freight railroad in the United States, with rail transportation directly impacting almost 18,000 jobs in the state and 0.5 percent of our state‘s
In sum, the “sheer scope” of the STB‘s jurisdiction under KCSR‘s position invokes the major questions doctrine, as it would vest the STB with a “breathtaking amount of authority,” Ala. Ass‘n of Realtors, 594 U.S. at 764, to assert exclusive jurisdiction over anything that could be viewed as unreasonably burdening rail transportation. As the Supreme Court has held, such sweeping administrative power requires clear congressional authorization. West Virginia, 597 U.S. at 723.
Turning to the doctrine‘s second step (its clear-statement requirement), ICCTA expressly grants the STB exclusive jurisdiction only over transрortation by rail carriers, remedies with respect to specified carrier actions, and uses of railroad facilities. See
IV. ICCTA obstacle preemption is inconsistently applied and unworkable in practice.
Finally, ICCTA obstacle preemption analysis is fundamentally broken and unworkable, as the deep split among lower courts makes clear. Rather than asking judges to evaluate structural relationships between state and federal law, obstacle preemption asks judges to do nothing short of reading legislators’ minds. That enterprise is foreign to the judicial role, which requires us to read text in context—not tea leaves, tarot cards, or the unspoken thoughts, feelings, and trepidations of individual legislators.
Arguments for ICCTA obstacle preemption of state common-law clаims often turn on technical, fact-intensive disputes that require courts to decide when the aggregate effects of state tort suits generate an “unreasonable” burden on rail transportation. This approach gives courts almost boundless judicial discretion while placing a thumb on the scale in favor of preemption, as it enables railroads to argue that almost anything has some “effect” on their profits. See Hall v. United States, 371 F.3d 969, 977 (7th Cir. 2004) (Easterbrook, J., dissenting) (“Effects are ubiquitous. A koala‘s choice among tasty eucalyptus leaves in Australia could change the weather in Alaska.“). In addition, some circuits finding ICCTA obstacle preemption rely on the same sort of speculation about hypothetical future consequences that the Supreme Court has rejected in the FDA preemption context.63
This complexity and inconsistency also exists within circuits. Compare, e.g., Adrian & Blissfield R.R. Co. v. Village of Blissfield, 550 F.3d 533, 541-42 (6th Cir. 2008) (holding Michigan statute requiring railroads to construct, or compensate municipalities for construction of, sidewalks across railway crossings was not impliedly preempted by ICCTA), with CSX Transp., Inc. v. City of Sebree, 924 F.3d 276, 283-84 (6th Cir. 2019) (holding municipal ordinance requiring railroad to obtain city council approval before changing grade at any crossing was impliedly preempted because it was not “settled and definite enough to avoid open-ended delays” and forced railroad to use certain maintenance methods to correct fouled ballast). Under the plain text of ICCTA, there is no discernible difference between these forms of “regulation,” and it is hard to see how requiring a railroad to build sidewalks at crossings is not in “logical contradiction” to ICCTA‘s statutory scheme while requiring it to use certain maintenance methods at crossings is. In a legal regime this chaotic, nobody wins.
V. Plaintiffs’ claims against KCSR are not impliedly preempted by ICCTA.
Because implied obstacle preemption of any state law that unreasonably burdens
Allowing plaintiffs’ claims to proceed in state court does not contradict ICCTA‘s statutory scheme, which centralizes and simplifies the economic and operational regulation of railroads without intruding on state regulation of railroad safety allowed by FRSA. By proceeding with their state-court suit, plaintiffs are not seeking to prevent KCSR from engaging in conduct that federal law expressly protects. See Wyeth, 555 U.S. at 590 (Thomas, J., concurring in judgment). And as noted above, neither the STB—which has no expertise in railroad safety—nor any other federal agency has promulgated standards governing humped crossings. Instead, FRSA‘s savings clauses and a century of jurisprudence demonstrate that railroad safety is governed by a regime of cooperative federalism, not top-down federal uniformity as with the economic regulation of railroads (particularly mergers and acquisitions). Moreover, as the dissenting justice in the court of appeals pointed out, Congress expressly delegated relevant duties to the states in 2015, requiring them to develop state-specific safety plans for highway-rail grade crossings.68
By using the logical contradiction test to review the textual details of federal and state law regulating railroad crossings, as well as KCSR‘s legal obligations to both sets of sovereigns, a factually intensive ICCTA obstacle preemption inquiry could be avoided. But regardless of which implied preemption test is used, KCSR‘s implied preemption argument is wholly unsatisfying. KCSR maintains that if this cоmmon-law negligence suit is allowed, it will face inconsistent legal liabilities in various courtrooms around the state—and the costs of this legal uncertainty, anticipatory compliance measures, and possibly a few unfavorable verdicts in future cases will aggregate into a substantial sum. Perhaps. But even if the STB decided at some point to regulate humped crossings under the jurisdiction KCSR asserts it has (despite not doing so in the last 28 years), it is difficult to see how giving the five-member STB exclusive jurisdiction over thousands of routine, fact-intensive claims of common-law negligence at rail crossings would make the legal picture any more consistent for KCSR or, for that matter, any cheaper.
In short, because there is no textual evidence of a “direct conflict” or a “logical contradiction” between KCSR‘s obligations under state and federal law, as well as ample evidence that Congress had no desire to establish such a conflict, ICCTA does not impliedly preempt plaintiffs’ humped-crossing negligence claim according to the original public meaning of the Supremacy Clause.
CONCLUSION
In Federalist 51, James Madison laid out the nature and purpose of our federal constitutional structure:
In the compound republic of America, the power surrendered by the people is first divided between two distinct governments, and then the portion allotted to each subdivided among distinct and separate departments. Hence a double security arises to the rights of the peoрle. The different governments will control each other, at the same time that each will be controlled by itself.69
Commenting on this passage, Justice Antonin Scalia observed that “[t]hose who seek to protect individual liberty ignore threats to this constitutional structure at their peril.”70
The current doctrine of implied obstacle preemption presents such a peril because it allows courts to seize power for themselves (and often for federal executive branch agencies), undercutting the norm that Congress must speak clearly when it seeks to delegate powers to other branches or displace the traditional police powers of the States. Just as Congress “cannot give the Judiciary uncut marble with instructions to chip away all that does not resemble David,” Percoco v. United States, 598 U.S. 319, 337 (2023) (Gorsuch, J., concurring in judgment), the Judiciary cannot glue new pieces of marble onto Congress‘s David whenever it thinks Congress‘s aesthetic “purposes and objectives” would be advanced. “[T]hat is not a path the Constitution tolerates.” Id. (Gorsuch, J., concurring in judgment). Although recent decades’ debates about federal structural constitutionalism have been most vigorous in other arenas,71 the Supremacy Clause and implied preemption doctrine implicate the very same questions about the Framers’ choice to diffuse power across the federal government and the states and among the different branches, lest a concentration of those powers undermine the people‘s liberty.
Because preemption issues are so frequently litigated, implied obstacle preemption‘s distorted application of the Supremacy Clause is perhaps one of the most damaging constitutional doctrines of modern times. It has undermined the “double security” the Framers sought to guarantee Americans, replacing it with judicial arbitrariness, confusion, and the substantive loss of rights. It is unmoored from the original public meaning of the Constitution, and it is in irreconcilable tension with the Supreme Court‘s administrative law jurisprudence protecting federalism and the separation of powers through the major questions doctrine. I urge the Supreme Court to reexamine its implied obstacle preemption jurisprudence and adopt an approach consistent with the original public meaning of the Supremacy Clause.
OPINION FILED: June 28, 2024
J. Brett Busby
Justice
