Cold Train Lawsuit

Cold Train Lawsuit. I’m Greg Martin with today’s Fruit Grower Report.

Citing damages incurred after having to shut down the Cold Train Express Intermodal Service in August of 2014 a lawsuit has been filed by Cold Train’s former President, Steven Lawson and the former Managing Member, Mike Lerner, against Burlington Northern Santa Fe to the tune of $41-million dollars. The cause of the shut down was a slowdown in BNSF’s service schedules because of increased rail congestion as a result of BNSF hauling larger volumes of oil and coal from the Northern Plains region. On Time Percentages dramatically dropped from an average of over 90% to less than 5% and cut service in half. The Cold Train was used to ship fresh produce from the Pacific Northwest to the Midwest with a 72-hour schedule making it very attractive and allowed the company to grow, adding more containers. The service grew as well serving nineteen states. Beginning in September of 2013 BNSF service began dropping off and despite voiced concerns, BNSF assured Cold Train everything would be fine. In April 2014, BNSF cancelled the 72-hour service dooming an impending sale of the company and service to other states. Lawson & Lerner claim BNSF intentionally interfered by preferring business from other customers over the Cold Train’s business effectively destroying the bulk of the Cold Train’s business.  They also claim BNSF’s motive was to devote its trains and its tracks to a more profitable type of product being shipped (i.e…oil and coal). More on this story as it unfolds.

That’s today’s Fruit Grower Report. I’m Greg Martin on the Ag Information Network of the West.