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Louisiana court affirms New Orleans tank-car verdict; CSXT might appeal


Louisiana 4th Circuit Court of Appeals June 27 affirmed the $850 million punitive damages verdict against CSX Transportation in connection with the so-called "New Orleans Tank Car Case."

Arguing that the decision is "not consistent with either the facts of the case or the applicable law," CSXT plans to pursue all available remedies, including an appeal to the Louisiana Supreme Court.

The judgment stems from an investigation of a 1987 fire that started when a petroleum byproduct used to manufacture carpets ignited after leaking from a tank car parked by another railroad on CSXT-owned tracks in the Gentilly area of New Orleans. As a precautionary measure, authorities evacuated 1,000 residents while the fire burned itself out. No one died or was seriously injured, and there was no serious property damage, according to CSXT.