MD Mall Assocs. v. CSX Transp., Inc

The mall is bounded by a railroad track and drainage ditches owned by CSX. Houses beyond the track are higher than the track, which is higher than the mall. CSX’s predecessor installed a berm, straddling the property line, to prevent storm water from flowing onto the mall property. In 2010 storm water breached the berm. Runoff and debris from CSX’s property flowed down the slope and overwhelmed a private storm water inlet in the mall parking lot. CSX assured mall representatives that it planned a ditch to resolve the problem, but, instead, began constructing a spillway on the mall side of the berm to direct storm water into the mall’s drainage inlet. The mall manager discovered and immediately halted the work. The mall claimed negligence and continuing trespass. During discovery, the mall learned that CSX had refurbished the relevant portion of the track and argued that the modifications led to the discharge onto its property and that the discharge was evidence that CSX had violated, 49 C.F.R. 213.33, enacted under the Federal Railroad Safety Act. The district court granted CSX summary judgment, holding that the claims were blocked by the FRSA preemption provision. The Third Circuit vacated, noting the “constrained scope” of FRSA preemption.

MD Mall Assocs. v. CSX Transp., Inc