CSX wants paid for damaged rail cars

CHARLESTON – A transportation company is suing over claims it has not been paid for damage caused when its rail cars derailed on a West Virginia track under construction.

CSX Transportation filed a lawsuit Nov. 10 in the Charleston Division of the Southern District of West Virginia against TrakSpec Railroad Corp., citing breach of contract.

According to the complaint, in 1994, CSX Transportation leased railroad track in West Virginia to an affiliate of Patriot Coal Corporation, Sales Company, pursuant to a lease agreement between CSX and Arch Coal Sales Company Inc.

The complaint states that in 2008, Patriot contracted TrakSpec to perform track inspections and maintain the track, but on Dec. 4, 2009, rail cars owned by CSX derailed on the track, causing $636,438 in damage to the rail cars.

According to the lawsuit, the derailment was due to TrakSpec removing anchors from the track in anticipation of replacing the existing rail at the point of derailment, which was scheduled to be completed prior to the day of the incident.

CSX says that on March 1, 2011, it entered into a tolling agreement with TrakSpec, Catenary Coal Company, and its affiliates, including Patriot and TC Sales, which stated that the statute of limitations or any similar limitations period relating to claims arising out of the derailment were to be tolled.

The lawsuit states that Patriot and certain affiliates filed for bankruptcy July 9, 2012, and CSX timely filed proofs of claim for damages from the derailment. CSX says it entered into a settlement agreement with the debtors April 11, resolving the claim against TC Sales, allowing $85,000 against the debtors’ bankruptcy estate, and transferring to CSX all their claims against TrakSpec, but CSX says it has not received any distribution from the bankruptcy estate. TrakSpec is accused of breach of contract, negligence and negligence per se.

CSX Transportation seeks $636,438 in compensatory and consequential damages, interest, court costs and attorney fees. It is represented by attorney Brian C. Root of in Pittsburgh.

Charleston Division of the Southern District of West Virginia case number: 3:14-CV-27813