The U.S. Supreme Court ducked a major ruling on whether Amtrak, the government-owned passenger rail company, wields too much clout in setting regulations that private freight carriers also must follow. The court, on a 9-0 vote, threw out a lower court ruling against the government by finding that Amtrak is a government entity, not a private company. But the court, in an opinion by Justice Anthony Kennedy, also said that further litigation is required to determine if there are constitutional problems with Amtrak’s unique status within the regulatory framework. Among the potential questions raised by Kennedy is whether there are due process problems because a government-owned, nominally for-profit entity has regulatory authority over the industry in which it participates. Kennedy wrote that the ruling by the U.S. Court of Appeals for the District of Columbia Circuit was based on the “flawed premise” that Amtrak was a private entity. The case was brought by the Association of American Railroads, which had challenged a federal law that gives Amtrak a key role in setting standards for railroads, including for on-time performance. Freight carriers own the tracks that Amtrak uses. They object to Amtrak’s role because they can then be forced to pay damages if Amtrak trains fail to meet performance targets. Under the 1970 arrangement with private rail companies that led to Amtrak’s creation, Amtrak trains get top priority on the tracks. In return, private railroads no longer had to provide passenger service. The railroad law allows Amtrak and the U.S. Federal Railroad Administration to work jointly on the regulations. The railroad association challenged regulations finalized by the government in 2010 that freight carriers contend set unrealistic performance targets. Association members include BNSF Railway Company and CSX Transportation Inc. The case is Department of Transportation v. Association of American Railroads, U.S. Supreme Court, No. 13-1080. (Reuters)