Railway Labor Executives' Association v. Interstate Commerce Commission, Northwestern Pacific Railroad Co., Intervenor-Respondent

After unsuccessfully attempting to abandon the Eel River railroad line (“line”), Northwestern Pacific Railroad Company sold its interests in the line to Eureka Southern Railroad Company and Northwestern Pacific Acquiring Corporation. The Railway Labor Executives’ Association (“RLEA”) appeals the refusal of the Interstate Commerce Commission (“ICC”) to condition its approval of the sale on either the vendor or the acquirers paying financial protections for those presently employed on the line (“labor protections”).

When a railroad is abandoned, the relevant statute mandates that the ICC impose labor protections on the abandoning railroad company. However, when, as here, a non-carrier acquires a line, whether labor protections are imposed is a matter for the ICC’s discretion. RLEA argues that the ICC must treat a line acquisition by a non-carrier as a two-step transaction of abandonment — thus mandating labor protections — followed by acquisition. RLEA further argues that the structure of the acquisition transaction transforms the acquirer into an existing carrier and thus subject to mandatory labor protections under another section of the statute. In the alternative, RLEA claims…