PALESTINE, Texas — The city of Palestine and Anderson County, Texas, are asking a federal court to rehear their case attempting to uphold a 1954 agreement, with roots dating to 1872, which requires Union Pacific to maintain a set number of jobs in Palestine.
A July ruling by a three-member panel of the U.S. Appeals Court, Fifth Circuit, in New Orleans, voided the agreement, saying it was preempted by federal law.
The Palestine Herald-Press reports the attorney for the city and county filed a motion on Aug. 8 asking the court rehear the case with all judges present, rather than just the three-judge panel that ruled on July 22. Attorney James Allison argues in the brief that Congress did not intend an agreement entered decades before to be retroactively preempted.
UP went to court in 2019 seeking to void the employment provision [see “UP sues to end employment provision …,” Trains News Wire, Dec. 2, 2019] and, upon receiving a favorable court decision in February 2020, announced plans to close its car shop in the community, eliminating 57 jobs [see “UP moves forward with closure …,” News Wire, June 9, 2021].
But subsequent rulings by a Texas judge upheld the agreement and kept the shop open [see “Judge again blocks closure …,” News Wire, July 9, 2021], leading UP to ask the federal court whether the agreement was enforceable based on today’s law.
The July 22 ruling found that the mandate to stay in Palestine imposes “burdens” on UP including requiring it to maintain operations in Palestine when it could more efficiently operate elsewhere; routing cars thousands of miles out of the way for maintenance; and use of facilities in Palestine that are in need of $67 million to $93 million in improvements.
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