Opinion for the court filed by Circuit Judge HENDERSON. *
Appellants Charles Daniels and the Brotherhood of Locomotive Engineers and Trainmen (BLET) appeal the district court’s dismissal of their complaint against the Federal Railroad Administration (FRA), the Locomotive Engineer Review Board (LERB) and the Union Pacific Railroad Company (Union Pacific).
See Daniels v. Union Pac. R.R.,
I.
Pursuant to authority delegated by the Secretary of the United States Department of Transportation (Secretary) acting under The Rail Safety Improvement Act of 1988, Pub.L. No. 100-342 § 4, 102 Stat. 624 (1988) (recodified at 49 U.S.C. § 20135), in 1991 the FRA adopted a certification program for locomotive engineers.
2
See
Qualifications for Locomotive Engineers, 56 Fed.Reg. 28,228 (1991) (codified at 49 C.F.R. pt. 240). Although the FRA does not test or certify engineers itself, its regulations require each railroad to adopt training and certification programs that meet minimum requirements,
see, e.g.,
49 C.F.R. §§ 240.1, 240.101, and, regardless of differences among the individual rail
The FRA reviews the railroad’s decision to deny certifieation/recertification or to revoke a certification. See 49 C.F.R. § 240.401(a). The FRA “has delegated initial responsibility for adjudicating such disputes to the Locomotive Engineer Review Board.” Id. § 240.401(b). “If adversely affected by the Locomotive Engineer Review Board decision, either the petitioner before the Board or the railroad involved shall have a right to an administrative proceeding [before an FRA Administrative Hearing Officer].” Id. §§ 240.407(a), 240.409. The Administrative Hearing Officer (AHO) hearing is “a de novo hearing to find the relevant facts and determine the correct application of [49 C.F.R. Part 240] to those facts.” Id. § 240.409(c). “Any party aggrieved by the [AHO’s] decision may file an appeal [with the FRA Administrator].” Id. § 240.411(a). “The Administrator may remand, vacate, affirm, reverse, alter or modify the decision of the presiding officer and the Administrator’s decision constitutes final agency action except where the terms of the Administrator’s decision (for example, remanding a case to the presiding officer) show that the parties’ administrative remedies have not been exhausted.” Id. § 240.411(e).
Daniels was hired by Union Pacific in August 1998. On July 14, 1999, his “Class I certificate” to operate a locomotive became effective but two months later, on September 3, 1999, Union Pacific required Daniels to undergo additional evaluation. After receiving low scores on the re-evaluation, on September 8, 1999, Daniels was demoted from a Class I engineer to a Class III student engineer. Union Pacific did not provide Daniels with a hearing before or after his demotion. Following his demotion, Daniels was given approximately six months to requalify as a Class I engineer. As a student engineer Daniels completed several railroad trips but also failed several certification evaluations and Union Pacific eventually terminated him by letter on March 1, 2000. From 2003 to 2006, Union Pacific also demoted the six other Class I engineers represented by BLET to Class III student engineers without providing hearings. First Am. Compl. ¶ 3. Unlike Daniels, however, the other
Following his termination, Daniels petitioned for review by the LERB on August 2. 2000, asserting that Union Pacific demoted him from a Class I engineer without providing a hearing as required by 49 C.F.R. § 240.307 and improperly terminated him. On January 31, 2001, the LERB denied Daniel’s petition, finding “no merit” in Daniels’s argument because “the instant case involves the denial of certification, rather than the revocation of certification.” Review and Determinations Concerning Union Pacific Railroad Company’s Decision to Deny Mr. C.L. Daniels Locomotive Engineer Certification, FRA Docket No. EQAL 00-51, at 3 (Fed. R.R. Admin. Jan. 31, 2001) (second emphasis added). The LERB concluded that Daniels’s “rights in this case are properly governed by 49 C.F.R. § 240.219, which does not require a railroad to convene a hearing.” 3 Id.
Acting on behalf of Daniels, the BLET then requested an administrative hearing before the AHO on February 16, 2001. On April 19, 2006, the AHO dismissed BLET’s appeal with prejudice. 4 C.L. Daniels, Decision and Order of Dismissal, FRA Docket No. EQAL 00-51 (Fed. R.R. Admin. Apr. 19, 2006). Rather than appealing to the FRA Administrator, Daniels and the BLET filed a complaint in district court against Union Pacific, the FRA and the LERB. 5 The complaint is styled a “Bivens action” and, in Count I, alleges that Union Pacific deprived the engineers of their liberty and property interests without due process in violation of the Fifth Amendment. 6 First Am. Compl. ¶¶ 1, 73-77. Counts II and III allege that the FRA and the LERB violated the engineers’ right to procedural due process by repeatedly “acquiescing] and ratifying] and participating] in the actions of defendant Union Pacific” and “demonstrating] their clear bias in favor of [Union Pacific]” during the administrative hearings. Id. ¶¶ 82, 85.
After filing the complaint in district court, Daniels appealed the AHO’s decision to the FRA Administrator, contending that the AHO had improperly failed to address whether Daniels was entitled to a hearing before he was demoted and that the AHO was “bias[ed] against him and ... the case ha[d] been irreparably tainted with error.” Appeal of C.L. Daniels, The Administrator’s Final Decision, FRA Docket No. EQAL 2000-51, at 5 (Fed. R.R. Admin. July 31, 2006) (Daniels Order). On July 31, 2006, the FRA Administrator held that Daniels had waived the issue of his right to a hearing by failing to raise it before the AHO; in addition, the Administrator found “no error of law ... and no evidence of bias” on the AHO’s part. 7 Id.
Meanwhile, in the district court proceedings, the defendants moved to dismiss the
II.
“We review the district court’s legal conclusions
de novo ...
[and] ‘accept as true the facts that [the plaintiffs] allege[] in [their] complaint’ in reviewing the district court’s disposition of the defendants’ motion to dismiss.”
Rasul v. Myers,
The district court held — as an alternative ground — that it lacked subject matter jurisdiction over the plaintiffs’ claims pursuant to the Hobbs Act.
9
As
Count II of the plaintiffs’ complaint alleges that “LERB and FRA have acquiesced in and ratified and participated in the actions of defendant Union Pacific to deprive plaintiff Daniels and other locomotive engineers ... of their rights under the Due Process Clause of the Fifth Amendment ... by allowing Union Pacific to revoke a Class I certificate without any hearing.” First Am. Compl. ¶¶ 82-83. Count III alleges that the LERB and the FRA “demonstrated their clear bias in favor of the defendant Union Pacific in violation of the Due Process clause of the Fifth Amendment.”
Id.
¶ 85. Because Counts II and III seek review of “final agency action[ ]” — namely, the denial of the plaintiffs’ petitions — the Hobbs Act would give exclusive jurisdiction over their claims to this Court. This does not mean, however, that we could have necessarily exercised jurisdiction over each plaintiffs claim if the petition for review had been filed with us because not every plaintiff, it appears,
Count I — brought against Union Pacific only — alleges that Union Pacific violated the Due Process Clause of the Fifth Amendment by failing to “provide a prior hearing or prompt post deprivation hearing to determine if there is the basis for revocation of a Class I certificate under federal regulations.”
Id.
¶ 74. Union Pacific “acts under color of federal law,”
id.
¶ 1, the plaintiffs maintain, and they seek injunctive relief to “require defendant Union Pacific to hold a prior or prompt post deprivation hearing,” “expunge any ... reference to the revocation of a license as to [any] other engineer when such revocation of a license occurred without a prior hearing,” “reinstate plaintiff Daniels as a locomotive engineer with the right to use his Class I certificate” and “[g]rant plaintiff Daniels his full back pay and benefits and other damages” — the precise relief sought from the FRA and the LERB in Counts II and III.
11
Id.
¶77. Notwithstanding their having named only Union Pacific in Count I, we construe Count I as a challenge to the actions of the FRA and the LERB as well for two reasons. First, the standards and procedures governing certification and the revocation of certifications are codified in federal regulations.
See
49 C.F.R. pt. 240. Union Pacific’s denial of a hearing is thus based on its interpretation of the FRA regulations, an interpretation the FRA has upheld.
See
Hensley Order 5 (“There is nothing in [49 C.F.R. § 240.307] which provides that a diminution in the quality of a license is to be considered to be a revocation under the regulation or to otherwise invoke its provisions.”). Accordingly, to obtain the relief sought, the plaintiffs must challenge the FRA’s
interpretation
of its regulations as well as Union Pacific’s
application
of the regulations. Otherwise, the plaintiffs are circumventing review of the FRA’s regulations in this Court (provided for by the Congress under the Hobbs Act) by instead indirectly — in Count I — seeking review of the regulations in district court.
See Bright v. Lehman,
Second, the plaintiffs maintain that their Class I certifications were effectively revoked when they were demoted from Class I to Class III. See First Am. Compl. ¶¶ 56, 62, 69, 74, 77; see also Appellants’ Br. 10, 12. Revocation is subject to a three-tiered level of administrative review, see supra p. 4, and thus a revocation challenge is ultimately aimed at the FRA, not at Union Pacific alone. Accordingly, we construe Count I as a challenge to the other two defendants’ actions as well and thus within the Hobbs Act’s jurisdictional reach. 12
Relying on the Supreme Court’s holding in
McNary v. Haitian Refugee Center, Inc.,
In
McNary,
the Court did not create an exception to the INA’s jurisdictional bar simply because the plaintiffs mounted a constitutional challenge — that is, the nature of the claim itself does not determine whether the jurisdictional bar applies. Instead, the availability of effective judicial review is the touchstone of the
McNary
exception. As the Court explained, “[w]ere we to hold otherwise and instead require respondents to avail themselves of the limited judicial review procedures set forth in § 210(e) of the INA,
meaningful judicial review of their statutory and constitutional claims would be foreclosed.”
Again relying on
McNary,
the plaintiffs argue that the district court has jurisdiction over their claims because otherwise “there is no possibility of ‘meaningful review1 of the challenged practice.” Reply Br. 10 (quoting
McNary,
For the foregoing reasons, we affirm the district court’s dismissal of the plaintiffs’ claims for lack of subject matter jurisdiction under the Hobbs Act.
So ordered.
Notes
Circuit Judge BROWN concurs in the opinion of the Court except as to footnotes 8, 9 and 13.
. The BLET “represents not only plaintiff Daniels but [the six] other engineers named [in the complaint] who have lost their Class I licenses without a hearing or other due process.” First Am. Compl. ¶ 5.
. The FRA's delegated authority is set forth in 49 C.F.R. § 1.49(m).
. The LERB correctly concluded that Union Pacific’s denial of Daniels’s recertification is governed by section 240.219. See 49 C.F.R. § 240.219 (governing denial of “certification or recertification”). Before Daniels attempted recertification, however, Union Pacific demoted Daniels from a certified engineer (Class I) to a Class III student engineer, an action the LERB ignored in its analysis.
. We note with dismay the fact that the AHO took more than five years to reach his decision.
. The defendants argue (and the district court agreed) that Daniels and the six other engineers failed to exhaust their administrative remedies because they filed their complaint before appealing the AHO’s decision to the FRA Administrator. See infra n. 9.
. The holding in
Bivens v. Six Unknown Named Agents of Federal Bureau of Narcotics,
. Of the six other engineers — all of whom were eventually recertified after being demot
. Count I consists of both the Bivens damages claim and a claim for injunctive relief. First Am. Compl. ¶ 77. The plaintiffs do not appeal the dismissal of the damages claim, see Appellants' Br. 2 n. 1, and therefore we need not address the defendants’ alternative "non-state actor” ground for dismissal. See Appellee Union Pacific's Br. 10-15.
. Although the district court also dismissed the complaint for failure to exhaust, we do
. "Final agency action” can occur at all intermediate steps of FRA review. See 49 C.F.R. § 240.411(f) (FRA Administrator’s decision constitutes "final agency action”); id. § 240.411(a) (AHO’s decision constitutes "final agency action” if no timely appeal of AHO’s decision); id. § 240.407(c) (LERB decision constitutes "final agency action” if no timely appeal of LERB decision).
. In Count II, the plaintiffs seek to require the FRA to “issue an order declaring the actions of defendant Union Pacific to be in violation of applicable and binding federal regulations,” "reinstate[] [Daniels] as a certified engineer with full back-pay and benefits” and "notify all affected members of plaintiff BLET that it will comply with their rights under federal regulations.” First Am. Compl. V 83. In Count III, the plaintiffs request the district court to "[d]eclare that defendant FRA has violated Daniels’ [sic] right to procedural Due Process” and to order the FRA to "submit a plan to ensure that the claim of plaintiff Daniels be decided in an impartial and neutral manner and to purge the administrative process of bias.” Id. ¶ 85.
. We have cautioned against adopting a narrow interpretation of another exclusive jurisdiction vesting statute:
[T]here are compelling policy reasons for holding that the jurisdiction of the Court of Appeals is exclusive. Appellate courts develop an expertise concerning the agencies assigned them for review. Exclusive jurisdiction promotes judicial economy and fairness to the litigants by taking advantage of that expertise. In addition, exclusive jurisdiction eliminates duplicative and potentially conflicting review, and the delay and expense incidental thereto.
TRAC,
. As noted supra pp. 941-42, we do not hold that we could in fact exercise jurisdiction over each plaintiff's claim because of finality questions. Instead, we limit our holding to affirming the district court’s dismissal for lack of subject matter jurisdiction. The plaintiffs also argue that we lack the power to grant the relief sought because "Union Pacific does not even suggest how the Court of Appeals could give prospective class-type relief against the carrier itself, or reinstate the licenses of the engineers or get the FRA or Union Pacific to award back pay.” Reply Br. 14. But the Hobbs Act grants the court of appeals "exclusive jurisdiction to enjoin, set aside, suspend (in whole or in part), or to determine the validity of ... all final actions described in [49 U.S.C. § 20114],” 28 U.S.C. § 2342(7), which includes the FRA's administration of the locomotive engineer certification program. See 49 U.S.C. §§ 20114, 20135; 49 C.F.R. § 1.49(m).
