# Amicus Curiae Brief — Pittsburgh & Lake Erie R. Co. v. Railway Labor Executives' Assn.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Amicus Curiae Brief
- **Published:** January 1, 1989
- **Citation:** 491 U.S. 490

## Text

,

Nos. 87-1589 and 87-1888

IN THE

Supreme Court of the United States

OCTOBER TERM, 1988

PITTSBURGH & LAKE ERIE RAILROAD,
. Petitioner,
RAILWAY LABOR EXECUTIVES’ ASSOCIATION and
INTERSTATE COMMERCE COMMISSION,
Respondents.

On Writs of Certiorari to the United States Court of Appeals
for the Third Circuit

BRIEF FOR CHICAGO & NORTH WESTERN
TRANSPORTATION COMPANY AND DAKOTA,
MINNESOTA & EASTERN RAILROAD CORPORATION
AS AMICI CURIAE IN SUPPORT OF PETITIONER

RORERT J. CORBER RALPH J. MOORE, JR.*
STEPTOE & JOHNSON D. EUGENIA LANGAN
1330 Connecticut Ave., N.W. SHEA & GARDNER
Washington, D.C. 20036 1800 Massachusetts Ave., N.W.
(202) 429-3000 Washington, D.C. 20036
Attorneys for Amicus Curiae (202) 828-2000
Dakota, Minnesota, & JAMES P. DALEY
Eastern Railroad StTuarT F. GASSNER
Corporation CuicaGo & NortH WESTERN

TRANSPORTATION COMPANY
One North Western Center
Chicago, Illinois 60606
(312) 559-6100

Attorneys for Amicus Curiae
Chicago & North Western
Transportation Company

January 19, 1989 * Counsel of Record

WILSON - EPES PRINTING Co., INC. - 789-0096 - WASHINGTON, D.C. 20001

TABLE OF CONTENTS

Page
_ § Ts... __, , a Eenneennne ii
INTEREST OF AMICI CURIAE ...................................-. 1
SUMMARY OF ARGUMENT .........00000000 6
REESE SES Save on ae ee OO 7
The Decision in P&LE II Allowed an Impermissible
Collateral Attack on an ICC Decision, In Violation
GES RIE SESS BEE, 7
ESRC ee Ne Oe 13

ii

TABLE OF AUTHORITIES

Cases: Page

Brotherhood of Loc. Eng. Vv. Boston & Maine
Corp., 788 F.2d 794 (1st Cir.), cert. denied,
AT9 U.S. 829 (1986) -.......----ccescccceesseecesenceeessnnnnes i)
Brotherhood of Loc. Eng. v. Chicago & N.W. Rv. *
914 F.2d 424 (8th Cir.) cert. denied, 375 U.S.
B19 (1963) .........--.--c-scceescenecsnnncennssscnsnnsssnnsnncnsnnsenss 11
Burlington Northern R.R. V. Brotherhood of Main-
tenance of Way Employes, 107 S. Ct. 1841

4. | Bees 12
Carey V. O'Donnell, 506 F.2d 107 (DC. ‘Cir. 1974),
cert. denied, 419 U.S. 1110 (1975) ...............--..-- 9

Chicago & N.W. Transp. Co. V. Railway Labor
Executives’ Ass’n, No. 88-C-0444 (N.D. Il.
Mar. 16, 1988), aff'd on other grounds, 855 F.2d
1277 (7th Cir.), cert. denied, 109 S. Ct. 493
(19GB) .........20..00--cc-cccescsassnnnsenssnsessnsessenssesssasseeannenes 9
Dakota, M. & E. R.R.—Acquisition & Operation
Exemption, 51 Fed. Reg. 32260 (Sept. 10,
1986) ......2----eececeeeeecceeecennennensnnsececcenneensensacsaneennennasess 4
Er Parte No. 392 (Sub-No. 1)—Class Exemption
For The Acquisition & Operation of Rail Lines
Under 49 U.S.C. 10901, 1 1.C.C.2d 810 (1986),
aff'd mem. sub nom. Illinois Commerce Comm'n
v. ICC, 817 F.2d 145 (D.C. Cir. 1987) ............-..- passim
FRVR Corp.—Exemption Acquisition & Opera-
tion—Certain Lines of Chicago & N.W. Transp.
Co.—Petition for Clarification, 1.C.C. Finance
Docket No. 31205 (served Jan. 29, 1988), aff’d
as clarified sub nom. Railway Labor Executives’
Ass'n Vv. ICC, 861 F.2d 1082 (8th Cir. 1988),
petition for rehearing Pending 0.0... 4,10
Kesinger Vv. Universal Airlines, 474 F.2d 1127

(6th Cir. 1973) ..................scs-cccseccocsecssnessnsssssnssseses 9

McLean Trucking Co. v. United States, 321 U.S.
(MOL!) eer 11
New York Dock Ry.—Control—Br ooklyn E..D.
Terminal, 360 I.C.C. 60 (1979), aff'd sub nom.
New York Dock Ry. v. United States, 609 F.2d

BB (2d Cir. 1979) ......2.....0cccsesccconcsceesccessessssssssesees 5

iii

TABLE OF AUTHORITIES—Continued

Pave
Oling v. Air Line Pilots Ass’n, 346 F.2d 270 (7th
Cir. 1965), cert. denied, 382 U.S. 926 (1965)... 9
Oregon Short Line R.R.—Abandonment, 360
Ee 5
Railroad Revenue Adequacy—1983 Determination,
I cs ccnessuscconnconocs 2
Railroad Revenue Adequacy—1984 Determination,
ES I... sanennserenaneosssssssonsesece 2
Railroad Revenue Adequacy—1985 Determination,
I csssanscnensounes 2
Railroad Revenue Adequacy—1986 Determination,
a 2
Railway Clerks v. Florida E.C. R. Co., 384 U.S.
a sesssesscnseacence 12
Railway Labor Executives’ Ass'n v. City of Gal-
veston, 849 F.2d 145 (5th Cir. 1988), petition
for certiorari pending, No. 88-517 ........................ 9
Railway Labor Evecutives’ Ass'n v. ICC, 784 F.2d
I. nncnnsccnccsoesoncors 11
Railway Labor Executives’ Ass'n v. Staten Is-
lana R.R., 792 F.2d 7 (2d Cir. 1986), cert. de-
SE UE RUBE D ..............-ccncececccccecccceese 9
Railway Labor Evecutives’ Ass'n. Vv. United
States, 811 F.2d 1327 (9th Cir. 1987) —.............. 11
Shore Line v. Transportation Union, 396 U.S. 142
EE TL 12
United Transp. Union v. Burlington N. R.R., 672
F. Supp. 1579 (D. Mont. 1987), appeal pend-
ES CUED GML .........sncccsecccsnsecssenscces 9
United Transp. Union v. Norfolk & W. Ry., 822
F.2d 11314 (D.C. Cir. 1987), cert. denied, 108
ESSE ET 9
Venner v. Michigan Cent. R.R. Co., 271 US. 127
a. scnensommeccnnscccncs 7,8, 10
Statutes:
Hobbs Administrative Orders Review Act:
Tee cceesees 5, 6, 7, 12

iv
TABLE OF AUTHORITIES—Continued

Interstate Commerce Act, 49 U.S.C. Subtitle IV:

RTD a nnncccccc cece se cceeeeccacencasesssncssccecevesssessessensnsesnens

4) aa

Railway Labor Act, 45 U.S.C. §§ 151-188 ................

IG ————————————————————EE
Miscellaneous:

Ee, Oe Se erncictnviieetinntenseitnnnianiniiiaation
53 Fed. Reg. 5981 (Feb. 29, 1988) .............................

IN THE

Supreme Court of the United States

OCTOBER TERM, 1988

Nos. 87-1589 and 87-1888

PITTSBURGH & LAKE ERIE RAILROAD,
Petitioner,
Vv.

RAILWAY LABOR EXECUTIVES’ ASSOCIATION and
INTERSTATE COMMERCE COMMISSION,
Respondents.

On Writs of Certiorari to the United States Court of Appeals
for the Third Circuit

BRIEF FOR CHICAGO & NORTH WESTERN
TRANSPORTATION COMPANY AND DAKOTA,
MINNESOTA & EASTERN RAILROAD CORPORATION
AS AMICI CURIAE IN SUPPORT OF PETITIONER

This amicus brief is being filed with the written con-
sent of the parties pursuant to Supreme Court Rule 36.2.

INTEREST OF AMICI CURIAE

Chicago & North Western Transportation Company
(“C&NW”) and Dakota, Minnesota & Eastern Railroad
Corporation (“DM&E”’) are the respondents in Railway

2

Labor Executives’ Ass’n v. Chicago & N.W. Transp. Co.,
petition for certiorari pending, No. 87-2049 (hereinafter
the “C&NW/DM&E case”), which is being held by this
Court pending its decision in Nos. 87-1589 and 87-
1888, the two Pittsburgh and Lake Erie Railroad
(“P&LE”) cases. The CQNW/DM&E case presents is-
sues that are presented by No. 87-1888 (“P&LE II”’).

The C@NW/DM@E case was the first of the pending
cases in which the Railway Labor Executives’ Associa-
tion (“RLEA’’), the respondent in the P&LE cases, and
its member unions have attempted to invoke the “status
quo” provisions of the Railway Labor Act (“RLA”), 45
U.S.C. § 151 et seqg., to enjoin sales of rail line under
§ 10901 of the Interstate Commerce Act (Subtitle IV of
49 U.S.C.) pending exhaustion of RLA major dispute
procedures over the effects of the sales on the sellers’
employees. The Interstate Commerce Commission has au-
thorized consummation of such sales on an expedited
basis, generally without imposing formal “labor protec-
tive conditions” to insulate employees from the effects of
the sales, pursuant to a class exemption order and regula-
tions promulgated under § 10505 of the Act. Ex Parte
No. 392 (Sub-No. 1)—Class Exemption For The Acqui-
sition & Operation of Rail Lines Under 49 U.S.C. 10901,
1 I.C.C.2d 810 (1986), codified at 49 C.F.R. §§ 1150.31-34,
aff'd mem. sub nom. Illinois Commerce Comm’n v. ICC,
817 F.2d 145 (D.C. Cir. 1987).

The C&NW, which like other Class I rail carriers has
had serious revenue adequacy problems for years,’ has

1 No Class I railroad has been “revenue adequate” for the past
severai years—none of them have generated sufficient revenues from
their rail operations to cover their costs and yield a reasonable re-
turn on investment. See Railroad Revenue Adequacy—1986 Deter-
mination, 3 I1.C.C.2d 966 (1987); Railroad Revenue Adequacy—
1985 Determination, 3 I1.C.C.2d 541 (1987); Railroad Revenue
Adequacy—1984 Determination, 1 I1.C.C.2d 615 (1986); Railroad
Revenue Adequacy—1983 Determination, 1 I.C.C.2d 734 (1984).

3

been obliged to abandon more than 5000 miles of its track
in the past decade alone. In Ex Parte No. 392, however,
the ICC attempted to alleviate the need for such aban-
donments, with ‘heir attendant loss of railroad jobs and
service, by facilitating an alternative means of disposing
of marginal or unprofitable lines: sales and other trans-
fers to newly-created short line or regional railroads that
typically have lower operating costs than the larger car-
riers.

In Ex Parte No. 392, the ICC exercised its exemption
authority under § 10505 of the Act to relieve sales to new
entrants into the industry from detailed prior review
requirements under § 10901, substituting an expedited
“method * * * to acquire Commission approval” under
which these sales may be consummated upon seven days’
notice to the Commission. 1 LC.C.2d at 811, 820.2 The
ICC also declined RLEA’s request that labor protective
conditions be imposed on these transactions. The Com-
mission determined that as a general matter such protec-
tion is not warranted. Sales of these lines to new car-
riers ordinarily preserve jobs for rail employees that
would otherwise ultimately be lost in abandonments, and
thus constitute the best protection available in most cases;
and the cost of labor protection conditions would “dis-
courage acquisitions and operations that should be en-
couraged.” Id. at 814-15. However, the ICC recognized
that in “an extraordinary case” labor protection might
be warranted and consistent with the public interest in
encouraging line sales, and thus the ICC reserved juris-
diction to resolve disputes over labor protection in par-
ticular cases on petitions under § 10505(d) of the ICA
for revocation of the class exemption. Jd. at 815. RLEA

* The ICC has since extended the preconsummation notice period
for certain large-scale § 10901 transactions to 35 days. 53 Fed. Reg.
5981 (Feb. 29, 1988).

’ The ICC has said that it will impose labor protection under
Ex Parte No. 392 in “situations in which there was misuse of the

4

appealed to the United States Court of Appeals for the
District of Columbia Circuit, which affirmed per curiam
“for the reasons set forth in the decision of the Commis-
sion.” Illinois Commerce Comm’n v. ICC, supra. RLEA
did not seek certiorari.

In August 1986, C@NW and DM&E obtained ICC au-
thority under Ex Parte No. 392 for the sale to DM&E
of C&NW’s line between Winona, Minnesota and Rapid
City, South Dakota. Dakota, M. & E. R.R.—Acquisition
& Operation Exemption, 51 Fed. Reg. 32260 (Sept. 10,
1986). That line had previously been the subject of aban-
donment proceedings before the ICC, and at the time of
the sale was in part inoperable due to debilitation of the
track. Indeed, only some 169 C&NW employees were de-
ployed along the line—most of whom DME, a newly-
formed carrier, offered to employ.

Nonetheless, RLEA’s member unions opposed the sale
when announced in July 1986, and they served notices on
C&NW, ostensibly under § 6 of the RLA, demanding that
C&NW agree to provide, and to require any line purchaser
such as DM&E to provide, the labor protection that the
ICC had declined to grant in Ex Parte No. 392.1 RLEA

Commission’s rules or precedent, or where existing contracts speci-
fied that line sales were subject to procedural or substantive pro-
tection * * * [or] where labor can demonstrate injury that was
unique, disproportionate to the gains achieved for the local trans-
port system, and which can be compensated without causing ter-
mination of the transaction or substantially undoing the benefits
of the Commission’s existing policy [encouraging sales of marginal
line to new operations} for other communities or locales.” FRVR
Corp.—Exemption Acquisition & Operation—Certain Lines of Chi-
cago & N.W. Transp. Co.—Petition for Clarification, 1L.C.C. Finance
Docket No. 31205, (served Jan. 29, 1988) (Appendix, Petition for
Cerviorari, No. 87-1888, at 109a, 113a-1l4a), aff'd as clarified on
other grounds sub nom. Railway Labor Executives’ Ass'n vy. ICC,
861 F.2d 1082 (@th Cir. 1988), petition for rehearing pending.

* The union notices sought so-called New York Dock and Oregon
Short Line Ill protections, the conditions that the ICC typically

5

then brought suit on August 19, 1986 against C&NW
and DM&E in the United States District Court for the
District of Minnesota, claiming that C&NW was obliged
to exhaust RLA “major dispute” procedures with respect
to the effect of the sales on employees, and that the Act’s
“status quo” requirements for major disputes prohibited
consummation of the sale in the meantime.

On August 27, 1986, the district court denied RLEA’s
motion for a preliminary injunction against the sale,
stating that the relief sought would pui the court “at
loggerheads” with the decision of the ICC. (Appendix
to Petition for Certiorari, No. 87-2049, at 9a-10a). The
sale was thereafter consummated on September 4, 1986.
RLEA continued to claim that the consummation of the
sale and the effects on employees violated the RLA status
quo requirements and sought injunctive relief and back
pay with respect to the alleged violation.

On January 7, 1987, the district court granted motions
by C&NW and DM&E for summary judgment, holding
that the relief sought by the unions could not be granted
because it would constitute an impermissible collateral
attack on the ICC’s authorization of the sale: A “deci-
sion favorable to plaintiff would put this Court directly
at odds with the regulatory scheme established by Ea
Parte 392,” where the ICC had indicated “that it is the
final authority in determining whether to impose labor
protection in the sale of lines to the new carriers. * * *
Because the relief that plaintiff is seeking is so at odds
with the ICC order in the present case, the only recourse
it has is to the Court of Appeals, which has * * * exclu-
sive authority to modify or rescind Ex Parte 392” under
the Hobbs Administrative Orders Review Act, 28 U.S.C.

imposes on rail mergers and abandonments, respectively. See New
York Dock Ry.—Control—Brooklyn E.D. Terminal, 360 LC.C. 60
(1979), aff'd sub nom. New York Dock Ry. v. United States, 609
F.2d 83 (2d Cir. 1979); Oregon Short Line R.R.—Abandonment,
360 L.C.C. 91 (1979).

6

§ 2342(5). (Appendix to Petition for Certiorari, No. 87-
2049, at 6a-7a.)

On appeal, the Eighth Circuit affirmed on the alterna-
tive ground that “the provisions of the ICA governing
labor protective agreements supersede the mandatory bar-
gaining requirements of the RLA,” without reaching the
collateral attack issue. (/d. at 4a).

In P&LE II, the Third Circuit rejected both the col-
lateral attack theory on which the district court decided
the CENW/DM&E case and the supersession theory on
which the Eighth Circuit affirmed that case. Since RLEA’s
petition for certiorari in the CQONW/DM&E case is be-
ing held by this Court pending a decision of the P&LE
cases, the parties here have a direct interest in the out-
come of those cases, particularly P&LE Il. We believe
that the supersession issue was correctly decided by the
Eighth Circuit in C@NW/DM&E. We anticipate, how-
ever, that that issue will be fully developed in the briefs
to be filed by P&LE and by other amici, as it was dis-
cussed at length by the Third Circuit in P&LE IJ. But
we are concerned that the collateral attack issue may re-
ceive less emphasis in other briefs than it deserves, par-
ticularly since the discussion of the issue in P&LE II
was cursory. (Appendix, Petition for Certiorari, No. 87-
1888 |‘“Pet. App.”|] at 36a-43a). Hence, we believe that
we can best assist the Court in this amicus brief by
limiting our argument to the collateral attack issue.

SUMMARY OF ARGUMENT

The Hobbs Administrative Orders Review Act gives
the courts of appeals “exclusive jurisdiction” to “enjoin,
set aside, [or] suspend ‘in whole or in part)” any order
or decision of the ICC. 28 U.S.C. § 234215). The Third
Circuit in P&LE I] nonetheless held that the district
‘ court had jurisdiction to enjoin consummation of a line
sale expressly determined by the ICC to be in the public

7

interest and thereby to give the unions an opportunity to
demand labor protections that the ICC expressly found
to be contrary to the public interest. Permitting such a
collateral attack on an ICC order flouts the plain and
unambiguous language of the Hobbs Act, and is squarely
contrary to controlling precedent in this Court.

ARGUMENT

The Decision in P&LE II Allowed an Impermissible
Collateral Attack on an ICC Decision, in
Violation of the Hobbs Act

Reversal of the decision in P&LE II is required by the
Hobbs Act, without regard to the merits of issues as to
the proper accommodation of the RLA and the Inter-
state Commeivce Act. Under the Hobbs Act, courts of
appeals have “exclusive jurisdiction” to “enjoin, set aside,
suspend (in whole or in part), or * * * determine the
validity” of any order or decision of the Interstate Com-
merce Commission. 28 U.S.C. § 2342(5) (emphasis
added) ; see also 28 U.S.C. § 2321(a). In Venner v. Mich-
igan Cent. R.R. Co., 271 U.S. 127 (1926), this Court
held that a predecessor provision pre*luded relief in a
collateral proceeding that in effect would nullify such an
order, because such relief is allowable only on direct re-
view of the Commission decision. ‘While the amended
bill does not expressly pray that the order be annulled or
set aside, it does * * * pray that the defendant company
be enjoined from doing what the order specifically au-
thorizes, which is equivalent to asking that the order be
adjudged invalid and set aside.” 271 U.S. at 130.

Here, under its Ex Parte No. 392 procedures, the ICC
authorized the P&LE sale effective September 26, 1987.
The district court nevertheless enjoined consummation of
the sale for an indefinite period extending far beyond
that date to give the unions leverage to demand that
P&LE accept the labor protection conditions that the

8

ICC had refused to impose. The Third Circuit affirmed
that injunction, even though it recognized that the delay
“could effectively kill the proposed transaction” and that
this “could well be contrary to the strong congressional
policy in favor of rehabilitating the railroad industry.”
(Pet. App. at 39a). In short, the court below allowed the
district court to enjoin P&LE from doing what the ICC
“specifically authorized * * *,” contrary to the square
holding of Venner that such relief is impermissible ex-
cept on direct review of an ICC order. The Third Cir-
cuit sought to distinguish Venner on the ground that the
injunction sought in that case “truly would have blocked
the approved transaction as violative of state law, as op-
posed to merely delaying the transaction pending the ex-
haustion of bargaining’; and because that case, “at bot-
tom, was a federal preemption case * * *.” (Pet. App.
at 38a-39a n.27). But the ICC authorized consummation
of the P&LE sale without delay under the Ex Parte No.
392 procedure that was expressly intended to allow ex-
pedited consummation, without regard to “the exhaus-
tion of bargaining”; and the sole ground relied upon by
this Court in Venner was the improper collateral attack
upon the ICC decision, not what the case might be
thought to be “at bottom.”

The Third Circuit relied primarily on the fact that the
ICC’s authorization of the sale was permissive rather
than mandatory. (Pet. App. at 37a-38a). That distinc-
tion is flatly contrary to Venner and is fundamentally
wrong in principle. In Venner, this Court expressly held
that the fact that “the order is not mandatory but per-
missive makes no difference in this regard.” 271 U.S. at
131 (emphasis added). This Court was clearly correct,
because by enjoining what the ICC has authorized, the
district court’s order “enjoin{s], set{[s] aside,” and “sus-
pend[s]” the ICC’s order, precisely what the Hobbs Act
allows only on direct review by a court of appeals. Ac-

9

cordingly, the Second Circuit has explicitly rejected the
permissive-mandatory distinction.® Other courts of ap-
peals have repeatedly dismissed as collateral attacks
cases involving RLA claims for relief that would have
interfered with consummation of transactions authorized,
but not required, by the Interstate Commerce Commis-
sion,® and by the Civil Aeronautics Board when it had
jurisdiction over airline transactions like that of the ICC
over railroad transactions.‘

The Third Circuit also suggested it is significant
that, under § 10901, the ICC need find only that the pub-
lie interest “permits” a line sale and not that the public
interest requires that the transaction proceed or that a
delay in consummation would harm the public interest.

5 Railway Labor Executives’ Ass'n v. Staten Island R.R., 792
F.2d 7, 12 (2d Cir. 1986), cert. denied, 479 U.S. 1054 (1987).

° E.g., United Transp. Union v. Norfolk & W. Ry., 822 F.2d 1114,
1120-1121 (D.C. Cir. 1987), cert. denied, 108 S. Ct. 700 (1988);
Brotherhood of Loc. Eng. v. Boston & Maine Corp., 788 F.2d 794,
799-802 (1st Cir. 1986), cert. denied, 479 U.S. 829 (1987).

Several district courts have so held in Ex Parte No. 392 cases: in
addition to the district court’s holding in the C@0NW/DM@&E case,
see, e.g., Chicago & N.W. Transp. Co. v. Railway Labor Executives’
Ass'n, No. 88-C-0444 (N.D. Ill. Mar. 16, 1988), aff'd on other
grounds, 855 F.2d 1277 (7th Cir.), cert. denied, 109 S. Ct. 493
(1988) ; United Transp. Union vy. Burlington N. R.R., 672 F. Supp.
1579 (D. Mont. 1987), appeal pending, No. 87-4386 (9th Cir.).

7E.g., Carey Vv. O'Donnell, 506 F.2d 107, 110 (D.C. Cir. 1974),
cert. denied, 419 U.S. 1110 (1975); Kesinger v. Universal Airlines,
474 F.2d 1127, 1131-1132 (6th Cir. 1973); Oling v. Air Line Pilots
Ass'n, 346 F.2d 270, 275-278 (7th Cir. 1965), cert. denied, 382 U.S.
926 (1965).

The only court of appeals decision to the contrary of which we
are aware, apart from the Third Circuit decision in P&LE I], is the
Fifth Circuit’s decision in Railway Labor Executives’ Ass'n v. City
of Galveston, 849 F.2d 145 (5th Cir. 1988), petition for certiorari
pending, No. 88-517, which followed the Third Circuit without ad-
ditional elaboration.

10

(Pet. App. at 37a). However, the collateral attack bar
does not depend upon whether an injunctive order con-
flicts with the public interest as found by an administra-
tive agency, but upon whether the defendant company
would be “enjoined from doing” what the administrative
agency has authorized. Venner, 271 U.S. at 130. In any
event, in rejecting RLEA’s petition to stay the P&LE
line sale under the Ex Parte No. 392 procedures, the ICC
found both that the “public interest does not support a
grant of a stay” and that “it is in the public interest to
allow the class exemption [authorizing the sale] to take
effect * * *.” (Pet. App. at 103a).°

Finally, RLEA has contended that the prohibition on
coliateral attacks should be ignored in cases like this be-
cause the ICC does not enforce the RLA as such. But
that misses the point entirely. The essence of the col-
lateral attack doctrine under Venner is that plaintiffs
cannot avoid the jurisdictional constraints on review of
ICC orders merely by couching their prayers for relief
under another theory. Moreover, in determining the
public interest, the ICC is required to take into account
the interests of employees implicit in the policies of the

* More generally, the ICC has concluded that line sales authorized
under Ex Parte No. 392 procedures are “overwhelmingly beneficial,”
leading to “the revitalization of the marginal railroad sectors—-a
restructuring * * * in the interest of carriers, labor, and the ship-
ping public.” FRVR Corp., supra (Pet. App. at 109a, llla, 118a).
The ICC, further, has expressly concluded that line sales under
Ex Parte No. 392, however beneficial they may be, are unlikely to
go forward if the seller is forced to pay costly employee protection,
and that the employees’ best protection lies in the preservation of
jobs encouraged by such sales. Ex Parte No. 392, supra, 1 1.C.C.2d
at 814-15: FRVR Corp., supra (Pet. App. at 110a, llla). Thus,
there can hardly be any question that the unions’ “efforts to enjoin
the sale ~ * * constitute, in effect, an effort to overturn an admin-
istrative determination that a delay or collapse of the sale and the
imposition of labor protection would harm the public interest.”
P&LE I] | Pet. App. at 37a-38a).

11

RLA, 49 U.S.C. §10101a(12), and the ICC has the
power, where appropriate, to “leave the resolution of
[a labor protection] dispute to the Railway Labor Act
machinery.” Brotherhood of Loc. Eng. v. Chicago &
N.W. Ry., 314 F.2d 424, 432 (8th Cir.), cert. denied, 375
U.S. 819 (1963). Its determinations in that regard are
subject to direct review under the Hobbs Act.°

What this Court said with respect to the overlap of
the Interstate Commerce Act and the Sherman Act in
McLean Trucking Co. v. United States, 321 U.S. 67
(1944), is instructive here:

(*

* * Congress has vested expert administrative
bodies such as the Interstate Commerce Commission
with broad discretion and has charged them with
the duty to execute stated and specific statutory pol-
icies. That delegation does not necessarily include
either the duty or the authority to execute numerous
other laws. Thus, here, the Commission has no
power to enforce the Sherman Act as such * * *.
The Commission’s task is to enforce the Interstate
Commerce Act and other legislation which deals spe-
cifically with transportation facilities and problems.
That legislation constitutes the immediate frame of
reference within which the Commission operates;
and the policies expressed in it must be the basic
determinants of its action.

“But in executing those policies the Commission
may be faced with overlapping and at times incon-
sistent policies embodied in other legislation enacted
at different times and with different problems in

* That review is meaningful, as the Ninth Circuit has demon-
strated in remanding § 10901 line sale cases to the ICC for further
consideration of the labor protection issue on two recent occasions.
Railway Labor Executives’ Ass'n. Vv. United States, 811 F.2d 1327,
1329-30 (9th Cir. 1987); Railway Labor Executives’ Ass'n v. ICC,
784 F.2d 959, 973 (9th Cir. 1986).

12

view. When this is true, it cannot, without more,
ignore the latter. The precise adjustments which it
must make, however, will vary from instance to in-
stance depending on the extent to which Congress
indicates a desire to have those policies leavened or
implemented in the enforcement of the various spe-
cific provisions of the legislation with which the
Commission is primarily and directly concerned.”
Id. at 79-80.

Similarly here, it is up to the ICC to determine the
precise adjustments the public interest requires in light
of the policies of the RLA, and the ICC’s determinations
in that regard are reviewable exclusively by a court of
appeals under the Hobbs Act. 28 U.S.C. § 2342/5). The
district court accordingly lacked power to grant the re-
quested relief.

In short, RLEA seeks in this collateral proceeding to
block a line sale for the “long and drawn” period it
takes to exhaust RLA major dispute procedures,’ al-
though the ICC has determined that expeditious con-
summation of the sale is in the public interest and that
a stay is not. It seeks to block the sale in order to se-
cure labor protection, although the ICC has found such
protection presumptively contrary to the public interest.
And it seeks authority to engage in strikes to block the
transaction entirely. The requested relief is not merely
a collateral attack on the ICC’s determinations; it is a
frontal assault. It should not be permitted.

10 This Court, for good reason, has characterized RLA major
dispute procedures as “long and drawn out,” Railway Clerks v.
Florida E.C. R. Co., 384 U.S. 238, 246 (1966), as “almost inter-
minable,” Shore Line v. Transportation Union, 396 U.S. 142, 149
(1969), and as “virtually endless,” Burlington Northern R.R. v.
Brotherhood of Maintenance of Way Employes, 107 S. Ct. 1841,
1850 (1987).

13

CONCLUSION

For the foregoing reasons, and for reasons stated in
the brief of the petitioner, the decision in P&LE II
should be reversed.

Respectfully submitted,

RORERT J. CORBER RALPH J. Moore, JR.*
STEPTOE & JOHNSON D. EUGENIA LANGAN
1330 Connecticut Ave., N.W. SHEA & GARDNER
Washington, D.C. 20036 1800 Massachusetts Ave., N.W.
(202) 429-3000 Washington, D.C. 20036
Attorneys for Amicus Curiae (202) 828-2000
Dakota, Minnesota, & JAMES P. DALEY
Eastern Railroad STuaRT F. GASSNER
Corporation Cuicaco & NoRTH WESTERN

TRANSPORTATION COMPANY
One North Western Center
Chicago, Illinois 60606
(312) 559-6100

Attorneys for Amicus Curiae
Chicago & North Western
Transportation Company

January 19, 1989 * Counsel of Record

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Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385012_1432%3A19. Public record. Not legal advice.
