Riffin v. Surface Transportation Board
Opinion of the Court
JUDGMENT
This petition for review was considered on the record from the Surface Transportation Board (STB) and on the briefs filed by the parties. See Fed. R.App. P. 34(a)(2); D.C.Cir. R. 34(j). The Court has afforded the issues full consideration and has determined that they do not warrant a published opinion. See D.C.Cir. R. 36(d). It is
ORDERED and ADJUDGED that the petition for review be denied.
A rail carrier must obtain permission from the STB to abandon a rail line by filing a formal application pursuant to 49 U.S.C. § 10903. When a carrier has applied to abandon a rail line, an interested person may file an “Offer of Financial Assistance” (OFA) pursuant to 49 U.S.C. § 10904 to acquire the line through a forced sale in order to provide continued rail service. See 49 U.S.C. § 10904(c). If the person who files the OFA is “financially responsible,” the abandonment proceedings will be postponed until the parties reach an agreement on the sale of the line or the STB establishes the conditions and amount of compensation. See 49 U.S.C. § 10904(d). The STB may, however, exempt a line from the OFA provisions under certain circumstances. See 49 U.S.C. § 10502(a).
Several years ago, Conrail ceased to operate a rail line on a parcel of land and sold it to NJ Transit (NJT) for use in a light rail system. Conrail did not properly apply to the STB to abandon traditional rail service at the time of the sale. When Conrail did apply to abandon, petitioner Riffin filed an OFA to purchase the parcel. The STB, however, determined that the parcel was exempt from the OFA provisions. It further held that, even if the parcel were not exempt, Riffin was not a “financially responsible” party. Riffin petitions for review of the STB’s decision.
Riffin’s primary challenge to the STB’s exemption determination is that the Board departed from its precedent and applied the wrong standard in granting the exemption. This argument is foreclosed by our recent decision in Kessler v. Surface
Riffin also challenges the STB’s determination that he was not a “financially responsible” party as required by 49 U.S.C. § 10904. The STB’s determination was based on the fact that Riffin filed for bankruptcy shortly before the STB issued its decision. Under those circumstances, there was nothing unreasonable about the STB’s determination that Riffin was not “financially responsible” within the meaning of the statute.
The Clerk is directed to withhold the issuance of the mandate herein until seven days after the disposition of any timely petition for rehearing. See Fed. R.App. P. 41(b); D.C.Cir. R. 41(a)(1).
Reference
- Full Case Name
- James RIFFIN v. SURFACE TRANSPORTATION BOARD and United States of America, Consolidated Rail Corporation, Intervenors
- Cited By
- 2 cases
- Status
- Published