National R.R. Passenger Corp. v. City of New York
| Decision Date | 16 August 1989 |
| Docket Number | No. 1271,D,1271 |
| Parties | NATIONAL RAILROAD PASSENGER CORPORATION, Plaintiff-Appellant, v. The CITY OF NEW YORK, Defendant-Appellee. ocket 89-7271. |
| Court | U.S. Court of Appeals — Second Circuit |
Stephen C. Rogers, Washington, D.C. (Dennis M. Moore, Nat. R.R. Passenger Corp., Washington, D.C., James G. Greilsheimer, Janis Ettinger, Stroock & Stroock & Lavan, New York City, of counsel), for plaintiff-appellant.
Renee Modry, Asst. Corp. Counsel, City of New York, New York City (Peter L. Zimroth, Corp. Counsel of the City of New York, Joseph I. Lauer, Anne M. Schuman, Asst. Corp. Counsel, New York City, of counsel), for defendant-appellee.
Before MESKILL, PIERCE and MAHONEY, Circuit Judges.
This is an appeal from an order entered in the United States District Court for the Southern District of New York, Conner, J., granting summary judgment to defendant-appellee, the City of New York. The district court's decision is reported at 695 F.Supp. 1570 (S.D.N.Y.1988). Plaintiff-appellant National Railroad Passenger Corp. (Amtrak), a federally subsidized corporation, filed a complaint in the district court requesting a declaration that it is exempt from the payment to the City of money due under two contracts (or "certificates") dating from the early twentieth century between the City and Amtrak's predecessors in interest. Amtrak claimed this exemption under 45 U.S.C. Sec. 546b (1982).
The district court held that Congress intended to exempt Amtrak only from the payment of taxes, and that the exemption was intended to extend only as far as the federal government is exempted from the payment of taxes. Because the court concluded that the payments in question were not taxes from which the government would be exempt, it granted summary judgment to the City. Amtrak appeals from this decision.
We affirm.
In 1902, the Board of Rapid Transit Railroad Commissioners for the City of New York entered into an agreement with the Pennsylvania, New York and Long Island Railroad Co. (the Penn. Railroad) which granted the Penn. Railroad certain rights to use City property. This agreement (the 1902 certificate) allowed the Penn. Railroad "to construct and operate its railroad along the said routes and under lands, streets, avenues, waters, rivers, highways and public places in the City." In return for this privilege, the Penn. Railroad was to pay an annual "sum or rental" to the City. The amount of money due each year could be recalculated every twenty-five years. The City retained the right to use the railroad's tunnels for the placement of communication wires. The certificate described the agreement as a "franchise" and it has been amended several times. Amtrak is the successor in interest to the Penn. Railroad.
The second certificate was agreed to in 1907 by the Board of Rapid Transit Railroad Commissioners and the New York Connecting Railroad Co. (the NY Railroad). This certificate (the 1907 certificate) granted the NY Railroad the right to build and maintain tunnels and facilities under city streets and other publicly owned land. Similar to the terms of the 1902 certificate, the 1907 certificate specified that the NY Railroad would pay the City "certain sums or rentals," the amount of which was to be redetermined every twenty-five years. As did the 1902 certificate, this certificate described the nature of the transaction as the granting of a franchise to the railroad. The rights granted by the 1907 certificate were granted "in perpetuity," and the payments to be made by the NY Railroad were designated as "over and above all taxes lawfully levied upon the property of the [NY Railroad]." The City again reserved the right to use railroad tunnel space for the installation of communication lines. This certificate has also been amended. Amtrak is the successor in interest to the NY Railroad.
In 1981, Congress passed a law prohibiting federal Amtrak subsidies from being used to pay state or local taxes during fiscal year 1981-82. Department of Transportation and Related Agencies Appropriation Act, 1982, Pub.L. No. 97-102, tit. I, 95 Stat. 1442, 1451 (1981). In 1982, Congress enacted legislation granting Amtrak an exemption from "taxes or other fees" assessed by state or local authorities, retroactive to October 1, 1981. Supplemental Appropriations Act, 1982, Pub.L. No. 97-257, tit. I, ch. XII, 96 Stat. 818, 852-53 (codified at 45 U.S.C. Sec. 546b (1982)). It is this section, section 546b, that Amtrak alleges exempts it from having to make payments to the City under the 1902 and 1907 certificates.
After the City sent Amtrak several bills in the 1980s for "railroad privilege[s]" and "railroad franchise[s]" under the certificates, and after Amtrak refused to pay these bills, Amtrak and the City entered into an agreement governing their future rights and obligations under the certificates. They agreed to litigate the issue whether Amtrak was exempt from making the contested payments to the City.
Subsequently, Amtrak filed suit in the Southern District of New York, requesting a declaration that section 546b exempts it from the payments specified by the 1902 and 1907 certificates and an injunction against the City's collection of these payments. The City never filed an answer to Amtrak's complaint, but it apparently made a motion for summary judgment at a pretrial conference held before Judge Conner. 1 Based on a joint statement of facts submitted by the City and Amtrak, Judge Conner granted the City's motion.
The district court first determined that the plain language of section 546b did not expressly include or exclude payments of the type required by the certificates. After reviewing the legislative history of section 546b, it concluded that Congress intended to exempt Amtrak from state and local taxation to the same extent that the United States is exempt from state taxation. 695 F.Supp. at 1573. Under the law of sovereign tax immunity, the district court held that the City could collect the payments at issue from Amtrak "if the payments (1) do not discriminate against federal functions; (2) are based on a fair approximation of Amtrak's use of City property; and (3) do not exceed the total cost to the City of the benefits supplied to Amtrak." Id. at 1575. Applying this test, the district court determined that the payments are not taxes from which Amtrak is exempt under section 546b. In addition, the court found that the payments were not "other fees" within the meaning of that section. Id. at 1577.
The court entered an order to this effect, from which Amtrak appeals.
Amtrak's appeal is taken from an "order" entered in the district court. In most circumstances, however, a separate document denominated a "judgment" must be entered, and an appeal should be taken from that document. See Fed.R.Civ.P. 58, Kanematsu-Gosho, Ltd. v. M/T Messiniaki Aigli, 805 F.2d 47, 48-49 (2d Cir.1986) (per curiam) (). However, where the parties have consented to the appeal of an order without the entry of a separate judgment, a court of appeals has jurisdiction to hear the appeal. See Bankers Trust Co. v. Mallis, 435 U.S. 381, 386, 98 S.Ct. 1117, 1120, 55 L.Ed.2d 357 (1978) (per curiam) (); RR Village Ass'n, Inc. v. Denver Sewer Corp., 826 F.2d 1197, 1201 (2d Cir.1987) (); Finn v. Prudential-Bache Sec., Inc., 821 F.2d 581, 585 (11th Cir.1987) (); see also Fennell v. TLB Kent Co., 865 F.2d 498, 499 n. 1 (2d Cir.1989) (); John Doe Corp. v. John Doe Agency, 850 F.2d 105, 107-08 (2d Cir.1988) (), cert. granted, --- U.S. ----, 109 S.Ct. 1116, 103 L.Ed.2d 179 (1989); United States v. Benevento, 836 F.2d 129, 130 n. 1 (2d Cir.1988) (per curiam) ().
In this case, the parties have clearly consented to the appeal, as one party brought the appeal and the other has not contested our jurisdiction. Furthermore, there are no issues remaining for resolution in the district court; Judge Conner's order was intended to be the final action in this case. We therefore have jurisdiction to hear this appeal.
Summary judgment is proper under Fed.R.Civ.P. 56(c) when "there is no genuine issue as to any material fact and ... the moving party is entitled to a judgment as a matter of law." Of course, the determination of which facts are material depends on the legal standards governing any particular issue. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 2510, 91 L.Ed.2d 202 (1986); Greater Buffalo Press, Inc. v. Federal Reserve Bank, 866 F.2d 38, 42 (2d Cir.), cert. denied, --- U.S. ----, 109 S.Ct. 3159, 104 L.Ed.2d 1022 (1989). All inferences must be drawn in favor of the party opposing the motion and only if "no reasonable trier of fact could find in favor of the nonmoving party" should summary judgment be granted. H.L. Hayden Co. v. Siemens Medical Sys., Inc., 879 F.2d 1005, 1011 (2d Cir.1989). In other words, only where the entire record would inevitably lead a rational trier of fact to find for the moving party is summary judgment warranted. See Anderson, 477 U.S. at 249-50, 106 S.Ct. at 2510-11; H.L. Hayden, 879 F.2d at 1012. Our review of a grant of summary judgment is de novo. Id. at 1011-12.
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