FEDERAL CASE AGAINST GRAFTON and UPTON RAILROAD SENT BACK TO STATE COURT

Grafton Upton RRLast night uptondaily linked to a story by the Grafton Villager ~ Grafton Wins Federal Court Case  ~ the headline was misleading and was changed by the Grafton Villager to ‘Federal Case Against Grafton & Upton Railroad Sent Back to State Court.

The Federal Court determined after hearing arguments on both jurisdictional questions and substantive merits of the case to grant the Town of Grafton’s motion and remanded the case back to the Worcester Superior Court for further disposition. Essentially sending both the Town of Grafton and the Grafton and Upton Railroad to battle the issues out at the State level.

Judge Timothy S. Hillman, who presided over the case, said in the decision on Friday, that the railroad “has a strong case” in the question of pre-emption. Judge Hillman also states “It is difficult to accept an argument that a statue provides jurisdiction in this Court under complete preemption while at the same time the plain language of that provision actually confers exclusive jurisdiction on the STB for these type of matters and does not create a coextensive federal cause of action analogous to the regulations at issue.” Regarding G&U argument that the Town’s Motion to Dismiss is merely a delay tactic in order to present its case before the STB Judge Hillman states “This Court takes no position on this argument and disregards the G&U’s allegations as nothing more than bald assertion.”

Doug Pizzi, spokesman for the railroad, said, “While the Grafton & Upton Railroad is disappointed that the federal court’s ruling postpones to another day a decision that is vitally important to both parties, the decision supports the Railroad’s position that it will ultimately prevail because it has satisfied the requirements for federal preemption of the town’s zoning by law. Not only did the Court find that the Railroad did in fact inform the town and the state fire marshal of its potential plans for a propane transloading facility more than a year before the town claimed it knew of those plans, but the court also noted that “during trial and through extensive briefs . . . the G&U satisfied the five-step ordinary preemption analysis” as set forth in the most recent federal court decision on this issue.

“Despite finding that the Railroad satisfied the elements of preemption, the court’s ruling will require that both the Town and the Railroad re-litigate these issues at substantial expense to both parties.  While the Railroad will consider all of its legal options, it remains committed to conducting all operations at the highest level of safety and to providing jobs and increased economic activity to the entire rail corridor,” Pizzi said.

When Diana Del Grosso, one of the 7 Upton Petitioners who have filed for a Declaratory Order with the STB, was asked about how this decision may relate to their petition “I am certainly pleased with the Judge’s decision in favor of Grafton’s arguments.  Grafton town officials should be commended on their commitment to protecting the residents.  I do not believe this decision will help our case, as these are two separate cases.  However, many of the arguments in their case are similar to ours, so I am very hopeful.”

GRAFTON MEMORANDUM AND ORDER 513

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