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122143P.pdf 12/12/2013 Union Pacific Railroad Company v. U.S.Dept. of Homeland Security
U.S. Court of Appeals Case No: 12-2143
U.S. District Court for the District of Nebraska - Omaha
[PUBLISHED] [Riley, Author, with Melloy and Shepherd, Circuit Judges]
Civil case - Injunctions. In an appeal challenging the district court's
decision to set aside the Customs and Border Protection agency's
imposition of almost $38 million in fines against Union Pacific based on
the agency's seizure of illegal drugs secreted in trains brought across
the U.S.-Mexico border by two Mexican railroads, the district court did
not err in setting aside the fines as the agency lacked authority under
the Tariff Act - 19 U.S.C. Sec. 1584(a)(2) - to impose fines against Union
Pacific for drugs found on railcars it neither owned nor controlled;
however, the district court's injunctive order enjoining the agency from
penalizing Union Pacific "until such time as regulations permitting such
action are properly promulgated" must be set aside because the Tariff Act
does not authorize the agency to penalize Union Pacific for illegal drugs
found in cars it does not own or control and no regulation could be
"properly promulgated" to authorize such penalties; on remand, the
district court should only enjoin the agency from penalizing Union Pacific
for illegal drugs found on railroad cars it neither controls nor owns.