CSX Transportation Inc. is suing Chicago South Shore & South Bend Railroad, also known as South Shore Freight, to recoup $2.87 million it says it lost in a collision last year.
CSX is accusing South Shore Freight of negligence and breach of contract, saying it caused a CSX train to be derailed, and that South Shore Freight has failed to pay out on its claim for damages it caused.
On April 8, 2012, a collision between two freight trains on CSX tracks near the U.S. 12 overpass in Gary injured two railroad employees.
The crash derailed several box cars, including some that remained standing on end where the collision had thrust them hours earlier.
According to CSX's suit, South Shore Freight failed to stop or slow a train it was operating, even after one or more of its cars derailed. As a result, CSX was unable to avoid a collision, causing its own cars to derail, the suit alleges.
The derailment caused damage to or destroyed CSX's equipment, locomotives and rail cars, and prompted CSX to pay for local clean-up and claims to its customers, according to the suit.
Its suit alleges that CSX filed a timely claim with South Shore Freight to recoup its damages, and that South Shore Freight has failed to pay it or assume responsibility for the collision.