Association of American Railroads v. DOT

The DC Circuit previously ruled that the Due Process Clause does not allow Amtrak to use an arbitration process to impose its preferred metrics and standards on its competitors, notwithstanding their opposition and that of the Federal Railroad Administration. In this case, the court held that severing the arbitration provision in Section 207(d) of the 2008 Passenger Rail Investment and Improvement Act was the proper remedy. The court reasoned that, without an arbitrator's stamp of approval, Amtrak could not unilaterally impose its metrics and standards on objecting freight railroads; no rule would go into effect without the approval and permission of a neutral federal agency; and that brought the process of formulating metrics and standards back into the constitutional fold. View "Association of American Railroads v. DOT" on Justia Law