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Industry Sues Union Pacific Over Chlorine Shipment Liabilities

10:50 AM MDT | July 6, 2009 | Kara Sissell

ACC and The Chlorine Institute have filed a lawsuit against Union Pacific challenging the railroad’s rate card provision that requires shippers to solely bear liability for a chlorine spill, even if the accident was the carrier’s fault. The lawsuit is in response to a tariff rate change Union Pacific made in March. Industry says shippers at times do not have other options for shipping their product, and therefore do not have the bargaining power to reject this provision when negotiating a contract with the railroad. The lawsuit, filed June 29 in the...

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