“The Eighth Circuit’s decision correctly holds that the Surface Transportation Board lacked statutory authority to promulgate the Final Rule.”
—John Masslon, WLF Senior Litigation Counsel

WASHINGTON, DC— The U.S. Court of Appeals for the Eighth Circuit today vacated a rule issued by the Surface Transportation Board because it exceeded the Board’s statutory authority. This was welcome news for WLF, which filed an amicus brief supporting the petitioners.

WLF’s amicus brief explained that the Surface Transportation Board lacked statutory authority to issue a rule requiring railroads to arbitrate rate disputes. So instead of calling the Final Rule’s process arbitration, the Board called it Final Offer Rate Review. Case law is clear, however, that a litigant cannot avoid a statutory bar on certain activity by simply renaming that activity.

WLF’s brief also argued that the Final Rule was arbitrary and capricious. It incorporated the worst aspects of Major League Baseball’s salary-arbitration system and cast the best parts aside.

Celebrating its 47th year, WLF is America’s premier public-interest law firm and policy center advocating for free-market principles, limited government, individual liberty, and the rule of law.