Hilton v. South Carolina Public Railways Commission

1991-12-16
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Headline: Federal workplace law lets railroad employees sue state-owned railroads in state court, as Court reaffirmed FELA's reach and reversed South Carolina courts' dismissal.

Holding:

Real World Impact:
  • Allows state railroad employees to sue their state employer under FELA in state courts.
  • May force states to reexamine worker compensation laws that exclude railroad workers.
  • Reopens state-court access for damages claims against state-owned rail carriers.
Topics: workplace injuries, state-owned railroads, sovereign immunity, federal workplace law

Summary

Background

Kenneth Hilton was an employee of the South Carolina Public Railways Commission, a state agency created in 1969 that operates as a common carrier in interstate commerce and employs about 300 people. Hilton says he was injured while working and that the state agency’s negligence caused the accident. He first sued under the Federal Employers' Liability Act (FELA) in federal court, dismissed that case after a prior decision raised immunity concerns, and then refiled in South Carolina state court. The state trial court dismissed his complaint and the South Carolina Supreme Court affirmed, citing a state decision that read later Supreme Court cases to limit an older ruling, Parden.

Reasoning

The question before the Justices was whether FELA creates a cause of action against a state-owned railroad that can be enforced in state court. The Court held that it does and reaffirmed the statutory-construction holding in Parden. The majority stressed stare decisis and relied on long-standing reliance interests, including that many States exclude railroad workers from state workers' compensation because they assumed FELA protection. The opinion explained that Eleventh Amendment rules that limit federal suits do not bar state-court actions and that the clear-statement rule did not outweigh the reliance concerns in this instance.

Real world impact

The decision allows employees of state-owned railroads to pursue money-damage claims under FELA in state courts. States that exclude railroad workers from state workers' compensation may need to reassess those laws. The Supreme Court reversed the South Carolina decision and remanded the case for further proceedings consistent with the opinion.

Dissents or concurrances

Justice Blackmun concurred in the judgment. Justice O'Connor, joined by Justice Scalia, dissented, arguing the Court should require an unmistakably clear congressional statement before allowing damages suits against States; Justice Thomas did not participate.

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