Erie-Lackawanna Railroad v. United States
Headline: Court grants temporary stay blocking enforcement of the ICC’s approval of a merger between the Pennsylvania and New York Central railroads, pausing the merger while expedited consolidated appeals and hearings proceed.
Holding:
- Pauses merger implementation pending expedited appeals and set court dates.
- Imposes a tight briefing schedule and consolidated oral argument on the appeals.
- Allows the agency to continue separate hearings despite the stay.
Summary
Background
A group of eight rival railroad companies, several New Jersey and Pennsylvania communities, and a Pennsylvania railroad stockholder asked the Court to pause an Interstate Commerce Commission order that authorized a merger of the Pennsylvania Railroad and the New York Central Railroad. A three-judge district court had previously upheld the Commission’s order. The applications for a stay were referred to the Court by the Justice assigned to the federal appeals court for the region, and many parties — including the Commission, the merging railroads, several States, and local governments — filed papers opposing the stay.
Reasoning
After considering the filings, the Court granted a stay of enforcement of the Commission’s merger order and allowed motions to speed the appeals. The stay is subject to an expedited timetable: those appealing must file notices, docket the case, and submit jurisdictional statements and briefs by November 30, 1966; responses are due December 30, 1966; replies by January 6, 1967; and oral argument is set for January 9, 1967. The appeals will be consolidated and given a total of four hours for argument, with up to four attorneys per side. The Court also denied the State of Connecticut’s request that a bond be required.
Real world impact
The order pauses implementation of the proposed railroad merger while the courts decide the appeals and imposes a fast schedule for briefing and argument. The Interstate Commerce Commission may still proceed with separate hearings already scheduled. This is a temporary, procedural ruling and the final outcome could change on appeal.
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