Justia Transportation Law Opinion Summaries

The Railroad Revitalization and Regulatory Reform Act prevents states and their subdivisions from imposing discriminatory taxes against railroads. 49 U.S.C. 11501. In 2008, the drainage district, a subdivision of Illinois, changed its method for calculating assessments. All other owners are assessed on a per-acre formula, but railroad, pipeline, and utility land were to be assessed on the basis of "benefit," apparently based on the difference in value between land within the district and land outside the levees; annual crop rentals being paid; and agricultural production of lands within the district. Two rail carriers brought suit under a section of the Act, which prevents imposition of "another tax that discriminates against a rail carrier." The district court held that the assessment was prohibited by the Act, but concluded that it was powerless to enjoin the tax. The Seventh Circuit reversed, holding that the court has authority to enjoin the tax, but, under principles of comity, should eliminate only the discriminatory aspects, not the entire scheme. The assessment is a tax that, raises general revenues; its ultimate use is for the whole district. It imposes a proportionately heavier tax on railroading than other activities. View "Kansas City S. Ry. v. Koeller" on Justia Law

The railroad owns a 2.8-mile right-of-way that it has leased to the Chicago Transit Authority for almost 50 years. When the lease became too costly, the CTA sought to condemn a perpetual easement. The district court enjoined the condemnation as preempted by the Interstate Commerce Commission Termination Act, 49 U.S.C. 10501(b). The Seventh Circuit affirmed. The railroad and its right-of-way fall under the Act; the proposed state condemnation would be a regulation of railroad transportation preempted by the Act. The court employed an "as applied" analysis and concluded that the condemnation would prevent or unreasonably interfere with rail transportation by changing the relationship between the parties. Under the proposed easement, the CTA's rights would not be subject to termination for any reason. The railroad would lose property rights to reclaim the property if the CTA ceases passenger transportation operations on the Right of Way or violates any term of the lease and to oust the CTA from the Right of Way if the CTA fails to meet its lease obligations. View "Union Pacific R.R. Co. v. Chicago Transit Auth." on Justia Law

The New York City Transit Authority (NYCTA) appealed from an order of the district court enjoining the enforcement of an NYCTA policy requiring third parties to obtain the consent of those contesting notices of violations before NYCTA's Transit Adjudication Bureau in order to observe such hearings. At issue was whether the public had a right to access these proceedings. The court held that the First Amendment guaranteed the public a presumptive right of access to the NYCTA's adjudicatory proceedings and that the NYCTA had not overcome that presumption. View "New York Civil Liberties Union v. New York City Transit Authority" on Justia Law

This case stemmed from the transportation excise tax that National Airlines (National) owed the government. Plaintiff appealed the district court's summary judgment determination that, pursuant to 26 U.S.C. 6672, he was personally liable for the excise taxes that National collected from its passengers but failed to pay over to the United States during his tenure as National's CEO. The court affirmed the judgment of the district court and held that the district court properly found that plaintiff was a "responsible person" and that his failure to pay taxes was willful as defined by this circuit's precedents. View "Conway v. United States" on Justia Law

Plaintiff found a $20 parking citation on his windshield and initiated a class action, claiming that the inclusion of personal information, such as his driver's license number, address, and weight, violated the Driver's Privacy Protection Act, 18 U.S.C. 2721, which generally makes it unlawful to disclose personal information contained in a motor vehicle record. The district court dismissed and the Seventh Circuit affirmed. While the citation did amount to a "disclosure," the Act includes an exception for service of process. View "Senne v. Village of Palatine, IL" on Justia Law

Plaintiff found a $20 parking citation on his windshield and initiated a class action, claiming that the inclusion of personal information, such as his driver's license number, address, and weight, violated the Driver's Privacy Protection Act, 18 U.S.C. 2721, which generally makes it unlawful to disclose personal information contained in a motor vehicle record. The district court dismissed and the Seventh Circuit affirmed. While the citation did amount to a "disclosure," the Act includes an exception for service of process.

The Electronic Privacy Information Center (EPIC) and two individuals petitioned for review of a decision by the Transportation Security Administration (TSA) to screen airline passengers by using advanced imaging technology (AIT) instead of magnetometers. EPIC argued that the use of AIT violated various federal statutes and the Fourth Amendment and, in any event, should have been the subject of notice-and-comment rulemaking before being adopted. The court granted the petition for review with respect to claims that the TSA had not justified its failure to initiate notice-and-comment rulemaking before announcing it would use AIT scanners for primary screening at airports. None of the exceptions urged by the TSA justified its failure to give notice of and receive comment upon such a rule, which was legislative and not merely interpretive, procedural, or a general statement of policy. The court denied the petition with respect to EPIC's statutory arguments and their claim under the Fourth Amendment, except their claim under the Religious Freedom Restoration Act, 42 U.S.C. 2000bb et seq., which the court dismissed for lack of standing. Finally, due to the obvious need for the TSA to continue its airport security operations without interruption, the court remanded the rule to the TSA but did not vacate it. View "Electronic Privacy Info. Center, et al. v. Dept. of Homeland Security, et al." on Justia Law

Federal Insurance Company (FIC) sued for damage to property destroyed during the inland leg of international intermodal carriage where FIC was the subrogee of the shipper which contracted with an ocean carrier, APL Co. Ptc. Ltd. (APL), to ship goods from Singapore to Alabama. The district court ruled that a covenant not to sue in the through bill of lading required FIC to sue the carrier, APL, rather than the subcontractor. At issue was what legal regime applied to the shipment's inland leg under the through bill of lading and whether the applicable legal regime prohibited the covenant not to sue. The court held that the district court did not err by enforcing the covenant not to sue and granting summary judgment to the subcontractor where the requirements that FIC sue APL directly was valid under the Hague Rules and the Carriage of Goods by Sea Act (COGSA), 46 U.S.C. 30701. View "Fed. Ins. Co. v. Union Pacific Railroad Co." on Justia Law

A semi-truck jackknifed while making a delivery for a federally licensed carrier and struck a vehicle, killing its driver. The estate brought a wrongful death action in Illinois state court against the driver, his wife (titular owner of the truck), and the company. The suit settled with entry of a $2 million consent judgment against the company, the driver, and his wife. The estate agreed that payment by the company's carrier of the $1 million policy limit would satisfy part of the judgment; the remainder would come from the driver's policy for "Non-trucking/bobtail liability" that covers driving cabs without trailers outside the service of the federally licensed carriers under whose authority drivers operate. That carrier declined coverage, citing a policy exclusion for vehicles "while in the business of anyone to whom ... rented," and obtained summary judgment in federal district court. The Seventh Circuit affirmed, citing 49 C.F.R. 376.2(d)(2), which defines "owner" as including someone like the driver, "who, without title, has the right to exclusive use of equipment" and reasoned that the driver, as agent for his wife, leased the truck to the company, even though the company was unaware that the wife held title. View "Clarendon Nat'l Ins. v. Medina" on Justia Law

Southwest Airlines Co. and 18 other airlines alleged that the TSA's determination of their year 2000 costs was arbitrary and capricious for purposes of the Administrative Procedures Act, 5 U.S.C. 500 et seq. At issue was whether the TSA should have relied on the Simat, Helliesen & Eichner, Inc. report (SH&E report) commissioned by the TSA or, at least, should have more fully explained why it rejected the conclusions of the Campbell Aviation Consultants report (Campbell report) submitted by the airlines. The court held that the TSA's determination was not arbitrary or capricious when the TSA chose the SH&E report with good reason where it sent a letter to each airline stating that it had thoroughly reviewed the Campbell report and concluded that the report was insufficient due to its limited data and broad, simplistic methodologies and the letter also explained SH&E's more extensive methodology. The court also discussed and disposed of the three other arguments the airlines raised. Accordingly, the court denied the airlines' petitions for review. View "Southwest Airlines Co. v. Transp. Sec. Admin." on Justia Law