Justia Transportation Law Opinion Summaries
Tri-National, Inc. v. Canal Ins. Co.
In 2007, while operating a truck, Yelder, an employee of Yelder-N-Son Trucking, collided with a Tri-National truck, causing extensive property damage. Tri-National filed a claim with its insurer, Harco, which paid $91,100 and retained a subrogation interest. Yelder was insured by Canal with an MCS-90 endorsement, mandated by the Motor Carrier Act of 1980, 94 Stat. 793. In 2010, Canal sought a declaratory judgment against the Yelder defendants and Harco. An Alabama court entered default judgment against the Yelder defendants only, stating Canal had no duty to defend or indemnify them under the Canal policy. The court made no declaration about whether the MCS-90 endorsement requires a tortfeasor’s insurer to compensate an injured party when the injured party has already been compensated by its own insurer. Tri-National then sued the Yelders in Missouri and obtained a $91,100 default judgment. Tri-National sought equitable garnishment against Canal, apparently on behalf of Harco. Canal removed the action to the federal district court, which granted Tri-National’s motion. The Eighth Circuit affirmed, holding that the MCS-90 does require such compensation. The circumstance of Tri-National carrying its own insurance did not absolve Canal of its obligations under the endorsement View "Tri-National, Inc. v. Canal Ins. Co." on Justia Law
Norfolk Southern Railway Company v. Goldthwaite
James H. Goldthwaite lived in his Birmingham house for approximately 45 years. The house was adjacent to or near property on which were actively used railroad tracks owned by Norfolk Southern. The record reflected that Norfolk Southern used one of the railroad tracks located near Goldthwaite's house as a staging or temporary storage area for coal trains, which consist of empty rail cars and cars loaded with coal. In October 2013, Goldthwaite filed a complaint against Norfolk Southern alleging that his "life, health, liberty and possessions" have been harmed by noise and "noxious fumes" from the diesel locomotives that were left running in coal trains that are temporarily stored near his house. Norfolk Southern had the case removed to the United States District Court on the ground that Goldthwaite's claims were completely preempted by the Interstate Commerce Commission Termination Act of 1995, and that the federal district court had federal question jurisdiction for the limited purpose of dismissing the action. In April 2014, the federal district court held that it lacked subject-matter jurisdiction over the action because Goldthwaite's state-law claims were not completely preempted by the ICCTA. Holding that removal of the action from state court was not proper, the federal district court remanded the case to the Jefferson Circuit Court. On remand, Norfolk Southern moved the circuit court to dismiss the action, arguing, among other things, that Goldthwaite's claims were preempted under the ICCTA because, it maintained, the nuisance action was an attempt to regulate transportation by rail carrier and actions related to the regulation and operation of rail carriers, pursuant to the ICCTA, were within the exclusive jurisdiction of the Surface Transportation Board. The Alabama Supreme Court agreed that Goldthwaite's claims were preempted by the ICCTA, the circuit court erred in denying Norfolk Southern's motion to dismiss. Therefore, the Court reversed the circuit court's order denying Norfolk Southern's motion to dismiss and rendered a judgment for Norfolk Southern, dismissing Goldthwaite's state court action. View "Norfolk Southern Railway Company v. Goldthwaite" on Justia Law
McMaster v. Eastern Armored Servs., Inc
McMaster worked for Eastern, an armored courier company, as a driver or guard. Her assignment changed daily. McMaster spent 51% of her total days working on vehicles rated heavier than 10,000 pounds, and 49% of her total days working on lighter vehicles. She was paid by the hour and frequently worked more than 40 hours per week. She was not paid overtime. After McMaster left Eastern, she filed a purported class action claiming that the Fair Labor Standards Act required Eastern to pay overtime wages , 29 U.S.C. 216(b). The dispute centered on the Act’s the Motor Carrier Act Exemption. According to McMaster, she fell within an exception to the exemption, enacted prior to her employment. The Corrections Act waives the exemption for motor carrier employees who, in whole or in part, drive vehicles weighing less than 10,000 pounds and states: “Section 7 of the Fair Labor Standards Act . . . appl[ies] to a covered employee notwithstanding section 13(b)(1) of that Act.” The district court held that McMaster was eligible for overtime for all hours she worked over 40 in a workweek. The Third Circuit affirmed. McMaster met the criteria of a “covered employee” and was entitled to overtime. View "McMaster v. Eastern Armored Servs., Inc" on Justia Law
Posted in:
Labor & Employment Law, Transportation Law
Airlines for Am. v. Transp. Sec. Admin
The TSA screens passengers and property moving by passenger aircraft, 49 U.S.C. 44901(a) and is authorized to impose a “uniform fee . . . on passengers . . . in air transportation and intrastate air transportation originating at airports in the United States.” Airlines collect the fees from passengers and remit the funds to TSA. In 2013, Congress reset the fee to “$5.60 per one-way trip in air transportation or intrastate air transportation that originates at an airport in the United States.” TSA implemented the amendment; a “one-way trip” means a continuous trip from one point to another with no stopover exceeding specified limits, so that a trip from New York to Los Angeles to San Francisco and back to New York, with stopovers exceeding four hours would be three one-way trips. Airlines challenged TSA’s rules, arguing that TSA lacked authority to impose fees in excess of $11.20 on roundtrip itineraries that involved multiple “one-way trips.” While the case was pending, Congress amended the statute, mooting that claim. The airlines also claimed that the statute precludes TSA from charging a fee on travel that begins abroad but includes a connecting flight within the U.S. The D.C. Circuit held that the airlines have standing but accepted TSA’s explanation that its construction of ambiguous text better aligns the imposition of the fee with those who benefit from the security services provided. View "Airlines for Am. v. Transp. Sec. Admin" on Justia Law
Dep’t of Transp. v. Ass’n of Am. Railroads
The National Railroad Passenger Corporation (Amtrak) has priority to use track systems owned by the freight railroads for passenger rail travel, at agreed rates or rates set by the Surface Transportation Board. In 2008, Congress gave Amtrak and the Federal Railroad Administration (FRA) joint authority to issue “metrics and standards” addressing performance and scheduling of passenger railroad services, 122 Stat. 4907, including Amtrak’s on-time performance and delays caused by host railroads. The Association of American Railroads sued. The District of Columbia Circuit accepted a separation of powers claim, reasoning that Amtrak is a private corporation and cannot constitutionally be granted regulatory power. The Supreme Court vacated. For purposes of determining the validity of the standards, Amtrak is a governmental entity. The D.C. Circuit relied on the statutory command that Amtrak “is not a department, agency, or instrumentality of the United States,” 49 U.S.C. 24301(a)(3), and “shall be operated and managed as a for profit corporation,” but independent inquiry reveals that the political branches control most of Amtrak’s stock and its Board of Directors, most of whom are appointed by the President. The political branches exercise substantial, statutorily mandated supervision over Amtrak’s priorities and operations: Amtrak is required to pursue broad public objectives; certain day-to-day operations are mandated by Congress; and Amtrak has been dependent on federal financial support during every year of its existence. Amtrak is not an autonomous private enterprise and, in jointly issuing the metrics and standards with the FRA, Amtrak acted as a governmental entity for separation of powers purposes. Treating Amtrak as governmental for these purposes is not an unbridled grant of authority to an unaccountable actor. On remand, the court may address any remaining issues respecting the lawfulness of the metrics and standards. View "Dep't of Transp. v. Ass'n of Am. Railroads" on Justia Law
Ala. Dep’t of Revenue v. CSX Transp., Inc.
Alabama imposes sales and use taxes on railroads purchasing or consuming diesel fuel, but exempts their competitors: trucking companies and companies that transport goods interstate through navigable waters. Motor carriers pay an alternative fuel-excise tax on diesel, but water carriers pay neither sales tax nor excise tax. CSX, an interstate rail carrier, alleged discrimination against a rail carrier under the Railroad Revitalization and Regulation Reform Act, 49 U.S.C. 11501(b)(4). The Supreme Court held that a tax “discriminates” when it treats “groups [that] are similarly situated” differently without sufficient justification. On remand, the Eleventh Circuit held that CSX could establish discrimination by showing that Alabama taxed rail carriers differently than their competitors, but rejected Alabama’s argument that the fuel-excise tax on motor carriers justified the sales tax on rail carriers. The Supreme Court reversed and remanded. CSX’s competitors are an appropriate comparison class; the class need not consist of “general commercial and industrial taxpayers.” The Act’s subsections (b)(1) to (b)(3), addressing property taxes, limits the comparison class to commercial and industrial property in the same assessment jurisdiction. Subsection (b)(4) contains no such limitation, so the comparison class is based on the claimed theory of discrimination. When a railroad alleges discrimination compared to transportation industry competitors, its competitors in that jurisdiction are the comparison class. The comparison class must consist of individuals similarly situated to the claimant. Discrimination in favor of competitors frustrates the Act’s purpose of restoring railways’ financial stability while fostering competition among all carriers. The Eleventh Circuit erred in refusing to consider Alabama’s proposed justification. An alternative, roughly equivalent tax is one possible justification. On remand, the court is to consider whether Alabama’s fuel-excise tax is the rough equivalent of sales tax on diesel fuel and whether any alternative rationales justify the water carrier exemption. View "Ala. Dep't of Revenue v. CSX Transp., Inc." on Justia Law
Posted in:
Tax Law, Transportation Law
Norfolk Southern Ry. Co. v. Perez
Kruse, a Norfok train conductor, was injured on the job in March, reported his injury, and took leave until August. Shortly after he returned to work, Kruse was suspended for 30 days without pay for exceeding speed limits. Kruse’s union appealed under the Railway Labor Act, 45 U.S.C. 153. Both the on-property investigation and the arbitration board concluded that Norfolk “was justified,” but reduced the suspension. While his grievance-related appeal was pending before the arbitration board, Kruse filed a Federal Railroad Safety Act (FRSA) complaint with the Department of Labor, claiming that his suspension was in retaliation for reporting his prior work-related injury. The ALJ ruled in favor of Kruse, denying Norfolk’s motion to dismiss based on FRSA, which prohibits a railroad carrier from retaliating against employees who report work-related injuries and potential safety violations, and provides that “[a]n employee may not seek protection under both this section and another provision of law for the same allegedly unlawful act of the railroad carrier,” 49 U.S.C. 20109(f). The Department of Labor’s Administrative Review Board affirmed and the Sixth Circuit denied review, reasoning that prior arbitration of a grievance under the RLA did not trigger the FRSA’s election-of-remedies provision. View "Norfolk Southern Ry. Co. v. Perez" on Justia Law
Union Pacific R.R. Co. v. Progress Rail Serv. Corp.
Union Pacific filed suit against Progress Rail, alleging that Progress Rail negligently reconditioned certain railcar axles, causing the axles to fail and two trains to derail. A jury returned a verdict for Progress Rail and Union Pacific appealed, arguing that the district court abused its discretion in excluding Union Pacific's metallurgical engineer's opinion and in admitting the opinion of Progress Rail's expert. Progress Rail filed a conditional cross-appeal. The court concluded that the district court did not abuse its discretion in excluding the engineer's opinion that the axle failures were caused by corrosion pits that Progress Rail failed to remove when it reconditioned the axles because the engineer could not say when the corrosion pits formed and could not trace the fatigue cracks that caused the axles to fail to specific corrosion pits. In this case, the district court properly exercised its gatekeeping function in excluding the engineer's ultimate opinion as unreliable. The court also concluded that Progress Rail laid an adequate foundation for Progress Rail's expert's opinions and the district court acted within its discretion when it overruled Union Pacific's objections. Accordingly, the court affirmed the judgment and dismissed the cross-appeal as moot. View "Union Pacific R.R. Co. v. Progress Rail Serv. Corp." on Justia Law
Posted in:
Civil Procedure, Transportation Law
Bay Colony R.R. Corp. v. Town of Yarmouth
The town of Yarmouth entered into a transportation contract with the Bay Colony Railroad Corporation whereby Bay Colony was to transport solid waste from the town’s waste transfer station to a facility in Rochester. The town later notified Bay Colony that it would terminate Bay Colony’s lease of certain rail lines, which meant that Bay Colony would no longer be able to transport the town’s waste by rail. A provision in the contract provided that, in the event the lease of the rail line was terminated, the town would permit Bay Colony to continue to transport the waste by “other modes of transportation.” Bay Colony notified the town that it would continue to transport waste by truck rather than rail. The town, however, began transporting its waste with the railroad operating company that was awarded the rail lease. A jury found that the town had committed a breach of the contract. The Supreme Judicial Court affirmed, holding (1) the town’s affirmative defense that it was barred by Mass. Gen. Laws ch. 160, 70A from allowing Bay Colony to transport its waste by truck failed as a matter of law; (2) a permit issued to the town by the Department of Environmental Protection did not render Bay Colony legally unable to perform the contract after it lost its rail lease; and (3) the contract remained in effect at the time of the town’s breach. View "Bay Colony R.R. Corp. v. Town of Yarmouth" on Justia Law
Posted in:
Contracts, Transportation Law
Vargas v. FMI, Inc.
Vargas and Villalobos were driving a tractor-trailer across the country. Villalobos was driving and Vargas was in the sleeper berth when the tractor-trailer rolled over, injuring Vargas. Vargas sued FMI (the motor carrier and trailer owner), Eves (the tractor owner), and Villalobos for negligence. The trial court granted summary judgment for FMI and Eves, concluding as a matter of law that neither was vicariously liable for Villalobos’s alleged negligence. The court of appeal reversed. Federal law requires motor carriers using leased vehicles to “have control of and be responsible for” such vehicles (49 U.S.C. 14102) in order to “protect the public from the tortious conduct of the often judgment-proof truck lessor operators.” Defendants did not establish as a matter of undisputed fact that the tractor’s owner is entitled to the protection of the “Graves Amendment,” 49 U.S.C. 30106(a), which shields owners of leased vehicles “engaged in the business or trade of renting or leasing motor vehicles” from vicarious liability for the alleged negligence of their lessee’s drivers. View "Vargas v. FMI, Inc." on Justia Law
Posted in:
Injury Law, Transportation Law