Oregon Short Line Railroad v. Department of Revenue Oregon
Opinion
Lead Opinion
Fernandez, J.
Union Pacific Railroad Company, Oregon Short Line Railroad Company and Oregon-Washington Railroad and Navigation Company (collectively “the Railroads”), 1 brought a number of actions against the Department of Revenue of the State of Oregon and the State of Oregon (collectively “the State”) in which the Railroads sought declaratory and injunctive relief under § 306 of the Railroad Revitalization and Regulatory Reform Act (4-R Act). See 49 U.S.C. § 11501 . After years of litigation the State moved the district court to dismiss for lack of subject matter jurisdiction. The State argued that in light of the Supreme Court’s decision in Seminole Tribe v. Florida, 517 U.S. 44, 71-72 , 116 S.Ct. 1114, 1131 , 134 L.Ed.2d 252 (1996), it was immune under the Eleventh Amendment to the United States Constitution. The district court denied the motion and entered judgment against the State. The Railroads disputed the district court’s ruling that they must pay Oregon’s statutory interest rate, rather than the lower federal interest rate, on disputed taxes which had not previously been paid into escrow accounts. Both the State and the Railroads appealed. We affirm.