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MISSOURI PACIFIC RAILROAD CO. v. ESCANABA AND LAKE SUPERIOR RAILROAD CO.

No. 89-1749.

897 F.2d 210 (1990)

MISSOURI PACIFIC RAILROAD COMPANY; and Union Pacific Railroad Company, Plaintiffs-Appellees, v. ESCANABA AND LAKE SUPERIOR RAILROAD COMPANY, Defendant-Appellant.

United States Court of Appeals, Sixth Circuit.

Decided February 26, 1990.

Attorney(s) appearing for the Case

William E. Rohn, Richard A. Kay, Mark S. Allard, Varnum, Riddering, Schmidt & Howlett, Grand Rapids, Mich., James D. Benak, Gen. Atty. (argued), Missouri Pacific R. Co., Omaha, Neb., for plaintiffs-appellees.

Robert L. Bach (argued), Saint Paul, Minn., for defendant-appellant.

Before MILBURN and NORRIS, Circuit Judges; and CONTIE, Senior Circuit Judge.

MILBURN, Circuit Judge.

This appeal presents the question of whether a smaller, Class III railroad holds "interline freight revenue" for larger, Class I railroads in trust, or as an unsecured business debt. We have held that interline freight revenue is held in trust, see Chase v. Committee of Interline R.Rs. (In re Ann Arbor R.R. Co.), 623 F.2d 480, 483 (6th Cir.1980), but in rendering that decision, we did not consider...

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