Justia Transportation Law Opinion Summaries
Articles Posted in Utilities Law
Mendocino Railway v. Meyer
Mendocino Railway, a California railroad corporation, sought to acquire a 20-acre parcel in Willits, California owned by John Meyer through eminent domain. The property is adjacent to Mendocino Railway’s tracks and was intended for the construction and maintenance of rail facilities supporting ongoing and future freight and passenger operations. The company argued that, as a common carrier public utility under relevant statutes, it had the authority to exercise eminent domain for public use. The evidence at trial included testimony about the history of rail service on the line, Mendocino Railway’s acquisition and operations, including passenger excursions and more limited commuter and freight services, and the necessity of the property for expanding its rail facilities.The Mendocino County Superior Court conducted a bench trial and found that Mendocino Railway failed to qualify as a public utility entitled to exercise eminent domain. The court reasoned that the railway’s primary activity was excursion service, which does not confer public utility status, and was unconvinced by the evidence of passenger and freight services. The court further concluded that, even if Mendocino Railway had public utility status, it did not meet the statutory requirements for eminent domain, finding the primary purpose of the proposed taking to be for private business activities rather than public use. The court also found insufficient evidence regarding the project’s impacts on neighboring residents and questioned the credibility and timing of Mendocino Railway’s site plans.On appeal, the California Court of Appeal, First Appellate District, Division One, reversed the trial court’s judgment. The appellate court held that Mendocino Railway met its burden of proving it was a common carrier public utility under California law, and that it satisfied the statutory requirements for eminent domain: public interest and necessity, proper planning for public good and least private injury, and necessity of the property for the project. The court remanded the case for further proceedings regarding compensation to Meyer. View "Mendocino Railway v. Meyer" on Justia Law
City and County of San Francisco v. Public Utilities Commission
The City and County of San Francisco and the San Francisco County Transportation Authority challenged a decision by the Public Utilities Commission (PUC) to issue a phase I driverless autonomous vehicle (AV) deployment permit to Waymo, LLC for fared passenger service in San Francisco and parts of San Mateo County. The petitioners argued that the PUC failed to follow the law and disregarded significant public safety issues. However, the record showed that the PUC considered and responded to the safety concerns raised by the petitioners, noting that few incidents involved Waymo driverless AVs, each was minor, and none involved injuries.The PUC had previously issued a decision establishing a pilot program for the regulation of AV passenger carriers, which included both drivered and driverless AVs. The petitioners participated in these proceedings but did not challenge the decision at that time. Waymo submitted an advice letter in December 2022 seeking a phase I driverless AV deployment permit, which was protested by the San Francisco entities. The PUC's Consumer Protection and Enforcement Division circulated a draft resolution authorizing Waymo's permit, and after considering comments and holding meetings, the PUC issued a final resolution in August 2023, authorizing Waymo to provide fared driverless AV service.The California Court of Appeal reviewed the case and found that the PUC acted within its authority and did not abuse its discretion. The court noted that the PUC's decision was supported by substantial evidence, including data showing that Waymo driverless AVs had not been involved in any collisions resulting in injuries. The court also upheld the PUC's use of the advice letter process, as it was authorized by the PUC's prior decision. The court denied the relief requested by the petitioners, affirming the PUC's decision to issue the phase I driverless AV deployment permit to Waymo. View "City and County of San Francisco v. Public Utilities Commission" on Justia Law
SOUTHERN CALIFORNIA EDISON COMPANY V. ORANGE COUNTY TRANSPORTATION AUTHORITY
The United States Court of Appeals for the Ninth Circuit affirmed the district court’s summary judgment for the Orange County Transportation Authority (OCTA) in a case brought by two utilities, Southern California Edison Company and Southern California Gas Company. The utilities claimed they were entitled to compensation under the Takings Clause or under state law for having to relocate their equipment from public streets to allow for the construction of a streetcar line.The court held that the utilities did not have a property interest under California law in maintaining their facilities at their specific locations in the face of OCTA’s efforts to construct a streetcar line. The California Supreme Court recognized in a previous case that a public utility accepts franchise rights in public streets subject to an implied obligation to relocate its facilities therein at its own expense when necessary to make way for a proper governmental use of the streets.The court rejected the utilities’ argument that constructing rail lines is per se a proprietary activity, not a governmental one. California common law has traditionally required utilities to bear relocation costs when governments construct subways, and there is no reason why above-ground rail lines should be treated differently.Finally, the court rejected the utilities’ supplemental state-law claim that California Public Utilities Code section 40162 places the costs of relocation on OCTA. That provision says nothing about imposing the costs of relocation on OCTA. Thus, section 40162 does not apply to OCTA’s project.
View "SOUTHERN CALIFORNIA EDISON COMPANY V. ORANGE COUNTY TRANSPORTATION AUTHORITY" on Justia Law
Larson v. Pleasant Grove City
The Supreme Court affirmed in part and reversed in part the judgment of the district court concluding that Pleasant Grover (City) had the power to enact a three-tiered "transportation utility fee" (TUF) but reversed the court's ruling that the TUF was actually a tax, holding that remand was required.The subject TUF charged local property owners a monthly fee corresponding to the "intensity" with which they used City roads, as determined by a study of user demand on the City's roadways, and the generated funds were to be used to repair and maintain city roadways only. At issue was whether the City had the authority to enact the TUF and whether the City properly characterized the TUF as a fee or if it was in fact a tax requiring the City to follow specific enactment procedures. The district court held that the TUF was actually a tax based on its purpose. The Supreme Court reversed in part, holding (1) the City acted within its discretion in enacting the TUF; but (2) the purpose of the TUF was characteristic of a fee because it was a specific charge for a specific purpose. View "Larson v. Pleasant Grove City" on Justia Law
George E. Warren LLC v. Colonial Pipeline Co
Warren tenders gasoline products to Colonial (a common carrier) for shipment on Colonial’s pipeline from Texas to New Jersey, where Warren has a gasoline-blending operation. The rates and conditions for the transportation services are specified in tariffs approved by the Federal Energy Regulation Commission (FERC). The tariff recognizes that the gasoline batches Colonial transports for Warren are fungible and allows Colonial to comingle gasoline from many shippers during transport. Colonial must deliver gasoline of the same volume and grade as the gasoline that was entrusted to it, with the same characteristics that influence the gasoline’s combustion performance (octane rating and distillation value), and its environmental impact, such as volatility. The tariff does not state whether “on specification” gasoline includes any “blend margin.” In 2016, FERC determined that the regulation of in-pipeline blending was outside its jurisdiction. Colonial continued giving Warren gasoline that complies with the relevant tariff but Warren claims that Colonial’s in-line blending of the gasoline with butane diminishes Warren’s ability to blend cheaper blendstocks into the gasoline. Warren regularly blends cheaper gasoline with more expensive gasoline to increase the amount of on-specification gasoline that it can sell,Warren sued for loss of profits (Carmack Amendment 49 U.S.C. 1590), conversion, unjust enrichment, and tortious interference. The Third Circuit affirmed the summary judgment rejection of the claims. Warren’s request seeks an enlargement of its rights under the FERC-approved tariff and violates the filed-rate doctrine’s nondiscrimination principle. View "George E. Warren LLC v. Colonial Pipeline Co" on Justia Law
SRC Holdings, LLC v. Public Service Commission of W. Va.
The Supreme Court affirmed the order of the Public Service Commission of West Virginia (PSC) approving the application of one of Ambassador Limousine and Taxi Service (Ambassador) to transfer the common motor carrier certificate held by Classic Limousine Service, Inc. (Classic) to Ambassador, holding that there was no error.SRC Holdings, LLC, doing business as Williams Transport (Williams), appealed the PSC's order approving Ambassador's application to transfer its common motor carrier certificate to Ambassador, arguing that Classic's motor carrier certificate was nontransferable and that Ambassador's proposed use of the certificate would create new competition in the same territory that Williams serviced. The Supreme Court affirmed, holding that the PSC's reasoning in reaching its decision was legally sound and supported by the evidence. View "SRC Holdings, LLC v. Public Service Commission of W. Va." on Justia Law
City and County of San Francisco v. Uber Technologies, Inc.
Uber is a “transportation networking company” (TNC) regulated by the California Public Utility Commission (CPUC). All TNCs must submit annual reports to the CPUC, containing specified data, and file an annual accessibility plan. After receiving numerous complaints from the San Francisco Municipal Transportation Agency regarding illegal parking, traffic congestion, and safety hazards caused by TNC vehicles, the city attorney opened an investigation into possible violations of state and municipal law by TNCs, including Uber. The city attorney issued the administrative subpoenas to Uber, including a request for: Annual Reports filed by Uber with CPUC, 2013-2017 and all of the raw data supporting those reports on providing accessible vehicles, driver violations/suspensions, number of drivers completing training courses, updates on accessibility plans, report on hours/miles logged by drivers, and providing service by zip code. Uber refused to comply, arguing that the CPUC had primary jurisdiction. The court of appeal affirmed a trial court order that Uber produce the reports. It was within the city attorney’s investigative powers to issue the administrative subpoenas. Public Utilities Code section 1759 did not deprive the trial court of jurisdiction and the primary jurisdiction doctrine did not apply to postpone enforcement of the administrative subpoenas. View "City and County of San Francisco v. Uber Technologies, Inc." on Justia Law