Adams

These cases arise from the efforts of bondholders to enforce “gold clauses” in railroad bonds issued almost a century ago. A gold clause requires payment of the bond’s obligations in gold dollars valued at the time the obligation was undertaken. In 1933, Congress rendered such gold clauses unenforceable, 48 Stat. 112 , 113 (1933), but then permitted them again in 1977, 91 Stat. 1227 , 1229 (1977). The issues presented here are whether the 1977 legislation revived these ancient gold clauses, and whether various actions of the parties have created new, posL-1977 obligations payable in gold. Our answer to both questions is “no.”

The bondholders brought a class action to force the Burlington Northern Railroad Company (“Burlington Northern” or “Railroad”) to pay the interest and principal of its gold bonds, issued in 1896 and 1921, in gold coin. Class representative Guy Adams appeals the district court’s dismissal of the action under Fed.R.Civ.P. 12(b)(6) and 56. Because of the identity of issues in this case and Adams v. CSX Transportation, Inc., No. 94-35618, an appeal from the district court’s dismissal of a class action to enforce the gold clauses in CSX Transportation (“CSXT”)…