BNSF Railway Co. v. California Department of Tax and Fee Administration, No. 16-17130 (9th Cir. 2018)Annotate this Case
The Ninth Circuit affirmed the district court's preliminary injunction preventing implementation of California Senate Bill 84, which requires railroads to collect fees from customers shipping certain hazardous materials and then to remit those fees to California. The district court held that the railroads were likely to succeed on the merits of their claims. The panel agreed and held that SB 84 was preempted under the Interstate Commerce Commission Termination Act because it had a direct effect on rail transportation, and it was not protected from preemption by the Hazardous Materials Transportation Uniform Safety Act because the fees authorized by SB 84 were not "fair." The panel also held that the district court did not abuse its discretion in evaluating irreparable harm, the balance of the equities, and the public interest.