Justia Government & Administrative Law Opinion Summaries

The Kansas Corporation Commission (KCC) issued a show cause order alleging that Bartlett Grain Company solicited for-hire motor carriers who violated several motor carrier safety laws. Bartlett answered the show cause order, contesting the KCC's jurisdiction over it with respect to its hiring of third-party motor carriers. Upon reconsideration, the KCC found it had jurisdiction over Bartlett to proceed. On review, the district court affirmed. Bartlett appealed, and the KCC stayed the ongoing agency proceedings pending judicial review. The Supreme Court transferred the case to its court on its own motion. Before considering the merits of the jurisdictional issue, the Court first addressed the issue raised sua sponte by the Court, i.e., whether the agency's order finding it had jurisdiction over the substantive violations alleged in the show cause order was a final agency action subject to judicial review. The Court held that the action from which Bartlett appealed was a nonfinal agency action and, therefore, dismissed the appeal for lack of jurisdiction.

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.

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.

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.

Plaintiff, owner and operator of a flat-rate ground transportation service, filed a lawsuit seeking declaratory and injunctive relief, claiming that the Hillsborough County Public Transportation Commission's (Commission) regulations required him to obtain certificates and permits for his vehicles were preempted by 49 U.S.C. 14501, also known as the Transportation Equity Act for the 21st Century. Specifically, plaintiff contended that section 14501(a)(1)(C) preempted the Commission's regulation regarding his 15-passenger vehicle and section 14501(c)(1) preempted the Commission's regulation regarding his 7-passenger minivan. The court affirmed the district court's decision rejecting plaintiff's first argument and adopted that court's reasoning. The court also held that, because plaintiff transported property only as an ancillary service to the transportation of passengers he was not a "[m]otor carrier of property" under section 14501(c). Consequently, it followed that the provision and its subparts did not preempt the Commission's luxury service transportation rule. Accordingly, the district court correctly granted summary judgment to the Commission.

Appellants formerly maintained railroad tracks on a parcel of land in Stockton, California, that was contaminated by petroleum. The petroleum was spilled at a nearby industrial site and migrated onto the property via an underground french drain that appellants had installed in order to remove water from the roadbed. At issue was whether appellants were liable for the contamination of the property under the law of nuisance or under California's Polanco Redevelopment Act (Act), Cal. Health & Safety Code 33459 et seq. The court held that there was no evidence that appellants actively or knowingly caused or permitted the contamination as required for nuisance liability and liability under the Act's Water Code provision, Cal. Health & Safety Code 33459(h). The court also held that appellants were not "owners" of the property under the Act's Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), 42 U.S.C. 9607(a), provision when the contamination occurred. The court further held that, because the record established no genuine issue of material fact as to appellants' liability, appellants were entitled to summary judgment. Therefore, the court need not reach any of the damages issues on appeal or cross-appeal.

NMSA, a trade association representing marine terminal operators, petitioned for review of OSHA's vertical tandem lifts ("VTLs") Standard. At issue was whether OSHA failed to demonstrate that VTLs posed a significant risk of worker safety; whether two of the Standard's requirements were not technologically feasible; whether the Standard was not reasonably necessary or appropriate in light of the "safe work zone" requirement; whether OSHA's authority was limited to requiring, not prohibiting, workplace practices; and if the Standard was otherwise valid, whether the Occupational Safety and Health Act ("Act"), 29 U.S.C. 651-678, had made an unconstitutional delegation of legislative power to OSHA. The court denied NMSA's petition for review in large part, granted the petition in part, vacating and remanding only that portion of the VTL Standard providing for the inspection requirement for ship-to-shore VTLs and the total ban on platform container VTLs.

Plaintiffs' predecessors bought their Wisconsin land from the federal government in 1882-1884 and the railroad obtained an easement to cross the land by condemnation. The railroad abandoned the easement in 1980 by obtaining ICC permission and removing tracks. More than 20 years later, the county, wanting to construct a snowmobile trail, claimed that the land reverted to county ownership by virtue of a law enacted in 1852. The district court ruled in favor of the county. The Seventh Circuit reversed, first rejecting the county's claim that only the federal government had standing to challenge non-compliance with conditions of the 1852 law. When an easement is abandoned, rights ordinarily revert to the fee owner and, under the applicable laws, plaintiffs acquired any right-of-way a year and a day after the abandonment. The county was aware of the abandonment and considered buying the easement from the railroad at that time, but "waited a quarter of a century and then claimed a right to obtain the right of way for nothing."

Petitioners, 23 transportation vendors, commenced a CPLR article 78 proceeding to prevent the Department of Education ("DOE") from implementing allegedly illegal bid solicitations related to a school transportation contract. At issue was whether certain specifications in the bid solicitations of the DOE comported with the public bidding laws. The court held that the "Employee Protection Provisions" ("EPPs") contained in the solicitation were subject to heightened scrutiny and held that the DOE had not proven that the EPPs were designed to save the public money, encourage robust competition, or prevent favoritism. The court, however, applied the rational basis review to the remaining disputed bid specifications and held that the DOE's actions regarding pricing of school transportation and discounted payment arrangements were rational business judgments that lie within the DOE's discretion.

Plaintiffs, two national trade associations representing the private charter bus industry, challenged Senator Patty Murray's amendment to the Consolidated Appropriations Act of 2010, Pub. L. No. 111-117, 172, related to charter bus services, alleging that the amendment ensured that the Federal Transit Act, 49 U.S.C. 5323(d)(1) ("Charter Rule"), could not spend appropriated funds to enforce the Charter Rule to bar King County Metro ("KCM") from providing bus service to Seattle Mariners games in Fiscal Year 2010. At issue was whether Congress could constitutionally permit a federally-subsidized transit system to take the residents of Seattle out to the ball game. The court held that Congress could and that the amendment was not unconstitutional where it did not violate plaintiffs' First Amendment right to petition, Fifth Amendment right to equal protection, procedural due process rights under the Fifth Amendment, or separation of powers principles. Accordingly, the judgment of the district court was reversed.