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Rail News: Short Lines & Regionals
Reading & Northern lawsuit can proceed, judge rules
Reading & Northern Railroad may proceed with its lawsuit against the SEDA-COG Joint Rail Authority (JRA), a Pennsylvania judge ruled earlier this month.
Northcumberland County President Judge Charles Saylor overruled objections to the lawsuit from the JRA, North Shore Railroad Co. and Carload Express Inc., R&N officials said in a press release.
In June 2015, R&N sued the JRA, alleging the authority illegally competes with the railroad and other for-profit businesses. R&N also alleged that the JRA failed to follow the legal requirements for competitive bidding as specified under the Pennsylvania Municipalities Authorities Act.
The railroad claims that since 1983, when JRA awarded a contract to the North Shore Railroad, the authority has not offered its operations for bid. R&N claims that, during those 30 years, the authority failed to return money to the taxpayers.
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