Manufacturers Railway Co. v. STB, et al.

Manufacturers obtained authorization from the Board to discontinue service over its entire system but the Board did not apply its entire-system exception. Instead, the Board required Manufacturers to pay dismissal allowances to its dismissed employees. The court concluded that the Board did not reasonably explain and justify the departure from its longstanding entire-system exception. Therefore, the court found that the Board's decision was arbitrary and capricious under the Administrative Procedures Act, 5 U.S.C. 500 et seq. Accordingly, the court granted the petition for review, vacated the Board's decision, and remanded for further proceedings. View "Manufacturers Railway Co. v. STB, et al." on Justia Law