In Re Consolidated Freightways Corporation, Debtor, Norfolk Southern Railway Company v. Consolidated Freightways Corporation Consolidated Freightways Corporation of Delaware

443 F.3d 1160 In re CONSOLIDATED FREIGHTWAYS CORPORATION, Debtor, Norfolk Southern Railway Company, Appellant, v. Consolidated Freightways Corporation; Consolidated Freightways Corporation of Delaware, Appellees. No. 04-55717. United States Court of Appeals, Ninth Circuit. Argued and Submitted December 7, 2005. Filed April 10, 2006. Paul D. Keenan and Jonathan F. Ball, Janssen Keenan & Ciardi P.C., Philadelphia, PA, for the plaintiff-appellant. Robert A. Klyman and Kimberly A. Posin, Latham & Watkins LLP, Los Angeles, CA, for the defendants-appellees. Appeal from the United States District Court for the Central District of California; John F. Walter, District Judge, Presiding. D.C. No. CV-03-00962-JFW. Before PREGERSON, NOONAN, and THOMAS, Circuit Judges. THOMAS, Circuit Judge. 1 In this appeal we consider whether, as a matter of federal common law, to recognize the interline trust doctrine and apply it in a federal bankruptcy proceeding. We decline to recognize the doctrine, and affirm the judgment of the district court. 2 * Before filing a voluntary petition in bankruptcy in 2002, Consolidated Freightways Corporation ("Consolidated Freightways"), an interstate motor…