Island Park, LLC v. CSX TransportationIsland Park, LLC v. CSX Transportation
Many appeals require this Court to chart the point at which state authority yields to federal power. In this case, that intersection is not merely theoretical. The question presented here is whether New York’s attempt to close a railroad crossing over a private road is pre-empted by the federal statutory scheme governing our nation’s railroads. We hold that it is not. Accordingly, we reverse the judgment of the United States District Court for the Northern District of New York (Kahn, /.).
FACTS
Plaintiff Island Park, LLC (“Island Park”) owns and operates a 400 acre nursery outside Albany, New York. 2 Railroad tracks owned by Defendant CSX Transportation, Inc. (“CSXT”) intersect Island Park’s property. The tracks are part of the “Hudson Line,” a heavily traveled, primarily passenger-based railroad line that runs between Albany and New York City. 3 The Hudson Line consists of two sets of parallel railroad tracks that are raised and bordered by steep embankments on both sides. Island Park possesses an easement to use a private rail crossing, referred to by the parties and the district court as “Abele’s Crossing,” and accessed through private unpaved roads. No automated warning system is connected to the crossing. Island Park stores tractors and cultivation equipment on one side of the tracks and uses the rail crossing to reach the fields on the other.
By way of background, in August 1981, the prior owners of the Island Park property, John Abele, Harry Abele and Francis Schmidt (hence the name “Abele’s Crossing”) brought an action in New York State Supreme Court, Rensselaer County, seeking an order enjoining Conrail from interfering with their use of the crossing. The parties reached a settlement in 1988 that required Conrail to restore the crossing, to pay the Abeles a sum of money, and to “cease and desist from interfering with said crossing of the plaintiffs and their predecessors and successors in interest from now until all time.” In June 1989, the state court reduced the stipulation to an order and directed Conrail to “restore the railroad crossing and maintain said crossing in the present and in the future at defendant’s sole expense.” Pursuant to that order, Conrail and/or Amtrak made improvements to the crossing, such as installing gates and warning signs, and paving the surface of the crossing. According to Island Park, the crossing has been used as a private farm crossing on a continuous basis from 1989 until the present.
Shortly after receipt of the closure order, Island Park commenced this action in federal district court seeking a permanent injunction enjoining the Railroad Defendants from enforcing or executing NYS-DOT’s order.
4
The complaint asserted the following claims: (1) the closure order was pre-empted by the Interstate Commerce Commission Termination Act (“ICCTA”) and the Federal Railroad Safety Act (“FRSA”); (2) the State Defendants deprived Island Park of its property interest without due process of law in violation of
The district court denied Island Park’s motion for summary judgment, but
sua sponte
granted it summary judgment on its pre-emption claim.
See Island Park, LLC v. CSX Transp., Inc.,
No. 1:06-CV-310,
DISCUSSION
A party is entitled to summary judgment only if “the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.”
I. Pre-emption
The Supremacy Clause, Article VI, cl. 2 of the United States Constitution, provides that the laws of the United States “shall be the supreme Law of the Land; ... any Thing in the Constitution or Laws of any state to the Contrary notwithstanding.” Thus, “state laws that ‘interfere with, or are contrary to,’ federal law” must be invalidated.
Hillsborough County, Fla. v. Automated Med. Labs., Inc.,
Pre-emption may be express or implied. “Express preemption arises when ‘a federal statute expressly directs that state law be ousted.’ ” Air
Transp. Ass’n of Am. v. Cuomo,
Two federal statutes—ICCTA and FRSA—potentially pre-empt NYSDOT’s rail crossing closure order. Island Park’s complaint alleges that the closure order was pre-empted by both. The district
A. The Interstate Commerce Commission Termination Act
Congress has exercised broad regulatory authority over rail transportation for 122 years. In 1887, the Interstate Commerce Act (“ICA”) created the Interstate Commerce Commission (“ICC”). The ICA was “among the most pervasive and comprehensive of federal regulatory schemes and has consequently presented recurring pre-emption questions from the time of its enactment.”
Chi. & N.W. Transp. Co. v. Kalo Buck & Tile Co.,
ICCTA repealed much of the economic regulation previously conducted by the ICC and by state railroad regulators working in conjunction with the ICC. In so doing, Congress recognized that continuing state regulation — of intrastate rail rates, for example — would “risk the balkanization and subversion of the Federal scheme of minimal regulation for this intrinsically interstate form of transportation.”
Iowa, Chi. & E. R.R. Corp. v. Wash. County,
ICCTA’s jurisdictional provision also contains an express pre-emption clause— “the remedies provided under this part with respect to regulation of rail transportation are exclusive and preempt the remedies provided under Federal or State law.”
(A) a locomotive, car, vehicle, vessel, warehouse, wharf, pier, dock, yard,
property, facility, instrumentality, or equipment of any kind related to the movement of passengers or property, or both, by rail, regardless of ownership or an agreement concerning use; and (B) services related to that movement, including receipt, delivery, elevation, transfer in transit, refrigeration, icing, ventilation, storage, handling, and interchange of passengers and property.
The district court premised its pre-emption conclusion on its determination that a “rail crossing” falls within ICCTA’s definition of “transportation” by rail carriers.
The district court further noted that other courts have “long recognized Congress’s general intent to ensure the pervasive and comprehensive federal regulation of railroad operations, and the ICCTA’s broad preemptive effect.”
Id.
at *13. The court determined that the closure order was “not the type of predictable, generally applicable regulation that the [Second] Circuit envisioned withstanding the ICCTA’s preemption clause.”
Id.
(citing
Green Mountain,
In our view, the term rail “transportation” does not encompass the closure of this private rail crossing. Rail transportation does include “property ... related to the movement of passengers or property ... by rail,”
Here, the state wants to terminate the use of a private roadway that traverses railroad tracks. New York does not seek to impose its authority over the tracks themselves or over “rail carriers” that use the tracks. Rather, the result of the state regulation at issue here is the termination of Island Park’s use of the crossing. If we adopted a definition of rail transportation for pre-emption purposes that includes the movement of people and property
across
railroad tracks, then any entity—an automobile, bicycle or even a pedestrian passing over the crossing—would arguably be beyond the reach of state regulatory authority.
10
NYSDOT’s order closing the rail crossing does not “relate[] to” “the
To the extent there is an impact on rail transportation, it is confined to eliminating the risk of a collision between a train and one of Island Park’s vehicles or equipment attempting to cross the tracks. As the ALJ noted, the Hudson Line entertains significant rail traffic, often including high speed trains. Because of that traffic and the poor sight distance caused by the curvature and elevation of the tracks, the ALJ determined that it was dangerous for Island Park’s vehicles to cross the tracks. Instead of burdening rail transportation,
see N.Y. Susquehanna,
In a recent case from the Fifth Circuit, which noted “the paucity of precedent ... relating to ICCTA preemption
vel non
for railroad crossings,” the court held that ICCTA expressly pre-empted a property owner’s state-law action to enjoin a railroad from removing four private railroad crossings on its right of way.
Franks Inv. Co. v. Union Pac. R.R. Co.,
We think it important to emphasize that although ICCTA’s pre-emption language is unquestionably broad, it does not categorically sweep up all state regulation that touches upon railroads-interference with rail transportation must always be demonstrated. For example, in
Friberg v. Kansas City S. Ry. Co.,
the Fifth Circuit held that ICCTA pre-empted a Texas “Anti-Blocking Statute” that prohibited a railroad from allowing a standing train to block a crossing for more than five minutes.
Finally, Island Park argues that our decision in
Green Mountain
supports the district court’s decision. The district court took the view that the closure procedure constituted a lengthy administrative process, directed at a particular railroad crossing in which state officials were vested with broad discretion to determine the closure question.
See
In
Green Mountain,
a railroad sought to build trans-loading facilities on its property in Vermont. The State argued that this type of facility was subject to a state environmental land use statute mandating pre-construction permits.
See
states and towns may exercise traditional police powers over the development of railroad property, at least to the extent that the regulations protect public health and safety, are settled and defined, can be obeyed with reasonable certainty, entail no extended or open-ended delays, and can be approved (or rejected) without the exercise of discretion on subjective questions.
Id.
We further noted that “[e]lectrical, plumbing and fire codes, direct environ
Although
B. The Federal Railroad Safety Act
Our holding that ICCTA does not preempt the state closure order is further supported by another federal statute— FRSA — that pertains to railroad safety and expressly addresses the issue of railroad crossings.
See
In 1970, Congress enacted FRSA to “promote safety in every area of railroad operations and to reduce railroad-related accidents and incidents.”
Several circuits that have examined the interplay between ICCTA and FRSA have concluded that the federal statutory scheme places principal federal regulatory authority for rail safety with the Federal Railroad Administration (“FRA”), not the STB. We agree. Thus, FRSA provides the appropriate basis for analyzing whether a state law, regulation or order affecting rail safety is pre-empted by federal law.
See, e.g., Boston & Me. Corp. v. Surface Transp. Bd.,
In
Tyrrell,
the Sixth Circuit reversed a district court decision concluding that ICCTA pre-empted an Ohio track clearance regulation that the plaintiff used as a basis for his negligence per se claim under the Federal Employers’ Liability Act (“FELA”).
The Sixth Circuit recognized that “the STB must adhere to federal policies encouraging ‘safe and suitable working conditions in the railroad industry,’ ” but concluded that “ICCTA and its legislative history contain no evidence that Congress intended for the STB to supplant the FRA’s authority over rail safety.”
Id.
at 523 (quoting
Based on the federal railway statutes, the STB and FRA’s jurisdictional management, and the resulting regulatorysystems, Congress vested the FRA with primary authority over national rail safety policy and assigned the STB the duty to encourage “safe and suitable working conditions” for railway employees through its assessment of individual railway proposals subject to its authority. As statutory “repeals by implication are disfavored” and there is no positive repugnancy between FRSA and the ICCTA’s jurisdictional provisions, this statutory construction properly reflects Congress’s purpose.
Id. Accordingly, the Tyrrell court held that FRSA “provides the applicable standard for assessing federal preemption” of the state rail safety law. Id. at 524.
Similarly, in
Iowa, Chi. & E. R.R.,
the Eighth Circuit rejected a railroad’s argument that an Iowa statute requiring it to pay for the replacement of four bridges (two carrying the rail line over a highway and two carrying the highway over the rail line) was pre-empted by ICCTA. The railroad argued that the state statute was an “expressly preempted economic regulation,” and, to the extent it pertained to rail bridges over the highway, it impermissibly regulated rail “facilities.”
In the present case, it is abundantly clear that the closure order sufficiently implicates rail safety concerns such that FRSA and not ICCTA is the principal governing statute in determining whether state authority is pre-empted. As noted earlier, FRSA allows states to impose rail safety requirements as long as they are not inconsistent with federal mandates. Island Park points to no federal rail safety regulation that covers rail crossing closures. Accordingly, the state closure order is not pre-empted by FRSA.
II. Island Park’s Alternate Grounds for Affirmance
As alternate grounds for affirming the district court, Island Park argues that the State Defendants deprived it of its property interest in the crossing without due process of law and that the closure order effectuated a “taking” of its property without just compensation. Specifically, as to
A. Due Process
Island Park’s due process argument erroneously conflates two distinct state law procedures—the condemnation proceedings set forth in EDPL and the rail crossing alteration/closure proceedings in
To the extent Island Park’s argument can be viewed as a challenge to the constitutional adequacy of the procedures set forth in
B. Takings
We have previously held that a takings claim is not ripe if “a remedy potentially' is available under the state constitution’s provision.”
Villager Pond, Inc. v. Town of Darien,
Under the New York State Constitution, “[p]rivate property shall not be taken for public use without just compensation.”
CONCLUSION
New York State’s closure of this private rail crossing does not burden railroad operations and therefore does not fall within the definition of rail “transportation” on the ground that it is “property ... related to the movement of passengers or property ... by rail.”
Accordingly, the judgment of the district court is REVERSED and the case is REMANDED to the district court (1) so that it may enter summary judgment in favor of defendants CSX Transportation Inc., Consolidated Rail Corporation and Amtrak, and defendants Madison and Cottrell on Island Park’s pre-emption claim, and (2) for further proceedings on Island Park’s fourth claim.
Notes
. The following undisputed facts derive from the parties’ statements of material facts.
.Defendant Consolidated Rail Corporation ("Conrail”) owned the Hudson Line prior to CSXT’s acquisition of Conrail’s interest. Defendant National Railroad Passenger Service Corporation ("Amtrak”) maintains portions of the Hudson Line. CSXT, Conrail and Amtrak will collectively be referred to as the “Railroad Defendants.”
. The complaint also named the following "State Defendants": Thomas J. Madison Jr., in his capacity as Commissioner of NYSDOT and Dennison P. Cottrell, in his capacity as Director of the Passenger and Freight Safely Division of NYSDOT.
. The court also partially granted the summary judgment motions' of the Railroad Defendants and the State Defendants dismissing Island Park’s second and third claims (due process and takings).
. Although Island Park cross-appealed, its appeal must be dismissed because it does not seek to modify the district court judgment. The judgment granted Island Park a permanent injunction, which was all the relief it requested. "[N]o cross-appeal was necessary to bring these contentions before us if they can be considered otherwise. They would simply be alternative grounds on which the judgment below could be supported.”
Doro v. Sheet Metal Workers’ Int’l Ass’n,
. It is well established that we review a district court’s grant of summary judgment
de novo. See A & J Produce Corp. v. Bronx Overall Econ. Dev. Corp.,
.
The jurisdiction of the Board over—
(1) transportation by rail carriers, and the remedies provided in this part with respect to rates, classifications, rules (including car service, interchange, and other operating rules), practices, routes, services, and facilities of such carriers; and
(2) the construction, acquisition, operation, abandonment, or discontinuance of spur, industrial, team, switching, or side tracks, or facilities, even if the tracks are located, or intended to be located, entirely in one State, is exclusive. Except as otherwise provided in this part, the remedies provided under this part with respect to regulation of rail transportation are exclusive and preempt the remedies provided under Federal or State law.
. We agree, however, with the district court that a rail crossing is not a rail "facility” under
. Such an expansive definition might even call into question state public safety laws that prohibit trespassing on railroad property.
See, e.g.,
. We emphasize that this appeal does not require us to decide whether state regulation of rail crossings, as a general matter, is preempted under ICCTA. Because the limited state action in this case does not burden or interfere with rail transportation, it is not preempted.
See N.Y. Susquehanna,
. Island Park cites numerous cases where state regulation was pre-empted. However, each involved some form of interference with rail operations.
See, e.g., Buffalo S. R.R. Inc. v. Vill. of Croton-On-Hudson,
. The Administrator of the Federal Railroad Administration "shall carry out ... (1) duties and powers related to railroad safety vested in the Secretary [of Transportation].”
. The court found "unpersuasive” the railroad's argument that the bridges were being replaced for reasons of "highway improvement,” and not "rail safety.”
Id.
at 560. The court stated that "[t]he reasons for replacing the bridges as stated in the stipulated record clearly include a safety component.”
Id.
The court further concluded that if the railroad was "arguing that ‘rail safety’ for purposes of FRSA preemption does not include the highway safety risks created at rail crossings, that cramped reading of the FRSA is inconsistent with
.
. As of the filing of this opinion, that matter remains pending before the Appellate Division, Third Department.