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Proposed Federal Guidelines Will Make Railroads Less Safe
Regulatory Agency Doing End-Run Around U.S. Congress

Wednesday, January 31, 2007 (Washington, DC)—A representative of the nation’s well-heeled railroad industry appeared before a House subcommittee on Wednesday seeking additional corporate favors that will prove detrimental to the public.

Richard F. Timmons of the American Short Line and Regional Railroad Association recommended to members of the House Committee on Transportation & Infrastructure Railroads Subcommittee that railroads receive special federal protection from lawsuits stemming from accidents that involve the release of hazardous materials. Timmons said the special legislation should limit the railroad’s liability in such instances by imposing caps on potential damages.

“This is another attempt by the big corporations to escape accountability for negligence,’’ said Jon Haber, CEO of the American Association for Justice, formerly the Association of Trial Lawyers of America. “This proposal would eliminate a key incentive for railroad companies to keep the railroads safe.’’

Timmons appearance came during a hearing regarding the reauthorization of the Federal Railroad Safety Act (FRSA). Also testifying was Sharon L. Van Dyck, an attorney with the Minneapolis, Minnesota, law firm Schwebel, Goetz & Sieben, representing the American Association for Justice, who said lawmakers need to clarify FRSA to make sure it doesn’t interfere with state efforts involving rail safety.

Federal rules prohibit states from adopting tough safety standards regulating the operations of railroads within their borders, Van Dyck told the panel, resulting in a dangerous situation that requires the immediate attention of Congress.

Preemption is the principle that a federal law can supersede or supplant any inconsistent state law or regulation. When preemption occurs, state law on a given subject is invalidated and the federal law substituted in its place. As currently construed, railroads need only meet minimal safety standards set by the federal government. States are powerless to adopt stronger measures that often address unique safety situations.

In recent years, Van Dyck told the panel, the purpose of FRSA has been “perverted by courts who apply the doctrine of preemption to deprive Americans grievously injured in railroad accidents of any remedy, even when it is undisputed that the cause of the accident was the railroad’s failure to live up to those minimum federal standards.

“Now is the time for Congress to step in and let the courts know that they have misinterpreted Congress’ clear intent: that the purpose of the FRSA was and is to set uniform minimum safety standards, and that an expansive application of preemption to deprive accident victims access to state remedies is a misapplication of the law,’’ she said.

Van Dyck cited Mehl v. Canadian Pacific Railway, 417 F. Supp. 2d 1104 (D.N.D. 2006), a case stemming from a derailment in Minot, North Dakota, on January 18, 2002, where seven damaged cars released more than 200,000 gallons of deadly anhydrous ammonia. The gas formed a dense cloud of toxic fumes that engulfed the town and its residents. One man died that night and hundreds of others sustained life-altering injuries.

Recently, the Federal District Court in North Dakota dismissed all claims filed against Canadian Pacific on the basis of federal preemption

“It is inconceivable that Congress would enact a statute for the purpose of improving railroad safety that instead strips persons injured by a railroad’s failure to adhere to federal standards of any remedy in a court of law,’’ Van Dyck said. “Nothing in the language of the statute indicates any intent to preempt state common law causes of action, and for over 20 years, the courts did not find such a preemptive intent.’’

An amendment to FRSA is needed to clarify the preemption clause, making it clear that any uniform standards established by the FRA pursuant to the FRSA are minimum standards. The FRSA does not preempt an otherwise viable state claim alleging a railroad’s failure to meet those standards.


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