Transportation Division of the International Association of Sheet Metal, Air, Rail, and Transportation Workers v. Federal Railroad Administration, No. 19-71787 (9th Cir. 2021)Annotate this Case
In 2016, the FRA issued a Notice of Proposed Rulemaking (NPRM) proposing a national minimum requirement of two crew members for trains. In 2019, the FRA issued an order purporting to adopt a nationwide maximum one-person crew rule and to preempt "any state laws concerning that subject matter." Two Unions and three states petitioned for review of the Order under the Administrative Procedure Act (APA).
As a preliminary matter, the Ninth Circuit dismissed the Unions' petition because venue was not proper under 28 U.S.C. 2343. The panel explained that the Unions' principal officers were not in the Ninth Circuit. The panel concluded that it had jurisdiction over the States' petitions because they were sufficiently aggrieved to invoke jurisdiction under 28 U.S.C. 2344. On the merits, the panel held that the FRA's Order does not implicitly preempt state safety rules, that the FRA failed to comply with the APA's notice-and-comment provisions in issuing the Order, and that the order is arbitrary and capricious. The panel explained that the Order's basis for its action did not withstand scrutiny, and the FRA's contemporaneous explanation was lacking. In this case, the States met their burden of showing that the issuance of the Order violated the APA. Accordingly, the panel dismissed the petition for review but granted the States' petitions, vacating the Order.