RAILWAYS, LAWYERS, JACKSON & THE LAW
Under the agreement which provides them with use of government-owned grain cars at no charge (except when used for service other than western grain) the railways are required to maintain them, for which they are compensated in the revenue cap on grain rates. The fairness of the charges was questioned, among others, by the Rail Car Coalition, a farmer group that tried to gain control of the cars in 2002. It claimed that the work could be done by contractors for a fraction of what the railways were collecting. A later costing review confirmed that between 1995 and 2007 the allowance indeed did exceed actual costs by several times. For example in 2007-08 the railways were entitled to add $105 million in their costs for car maintenance with actual expenses of $33 million. Rates were adjusted down star ting with the 2007-08 crop year from $4,379 per car per year to $1,371, but the railways were not asked to return any previous
overage either to shippers who paid the freight or to the government as owner of the cars. Three legal class actions were attempted in Saskatchewan and Alberta on behalf of farmers for recovery of the portion of grain rail
costs represented by excess charges for car maintenance. The lead client in the first in 2008 was Gordon Wallace of Unity. The second in November 2009 named Alberta farmer Boyd Bianchi and the third was in 2010 by Tom Jackson of Killam. The Bianchi suit was later
expanded to include one farmer from each western province. Counsel in all cases was the (Tony) Merchant Law Group. It is a leading Canadian firm of percentage lawyers, which at any given time has over a hundred cases on the go, including numerous Indian claims.
Merchant would have received a substantial part of any settlement but is not liable for counterclaims.
None of the suits got as far as being certified as a class action. Defendants in such cases are not required to file statements of defense before certification. All three actions were dismissed on summary judgment with court costs to be negotiated. The Alberta court eventually
awarded costs of $423,023 to the railways and against Jackson personally.
The order has been appealed.
Actions by percentage lawyers attracted vigorous defense by the legal legionnaires of the railways. But no company with any concern for its public image would press a half-million claim against a farmer who was just trying to test the waters. The railways are out to make a brutal, ruining example of Jackson to discourage anyone else who might get ideas.
What a way to run a railroad.
We will pay... if we say... the obvious.
Under the agreement which provides them with use of government-owned grain cars at no charge (except when used for service other than western grain) the railways are required to maintain them, for which they are compensated in the revenue cap on grain rates. The fairness of the charges was questioned, among others, by the Rail Car Coalition, a farmer group that tried to gain control of the cars in 2002. It claimed that the work could be done by contractors for a fraction of what the railways were collecting. A later costing review confirmed that between 1995 and 2007 the allowance indeed did exceed actual costs by several times. For example in 2007-08 the railways were entitled to add $105 million in their costs for car maintenance with actual expenses of $33 million. Rates were adjusted down star ting with the 2007-08 crop year from $4,379 per car per year to $1,371, but the railways were not asked to return any previous
overage either to shippers who paid the freight or to the government as owner of the cars. Three legal class actions were attempted in Saskatchewan and Alberta on behalf of farmers for recovery of the portion of grain rail
costs represented by excess charges for car maintenance. The lead client in the first in 2008 was Gordon Wallace of Unity. The second in November 2009 named Alberta farmer Boyd Bianchi and the third was in 2010 by Tom Jackson of Killam. The Bianchi suit was later
expanded to include one farmer from each western province. Counsel in all cases was the (Tony) Merchant Law Group. It is a leading Canadian firm of percentage lawyers, which at any given time has over a hundred cases on the go, including numerous Indian claims.
Merchant would have received a substantial part of any settlement but is not liable for counterclaims.
None of the suits got as far as being certified as a class action. Defendants in such cases are not required to file statements of defense before certification. All three actions were dismissed on summary judgment with court costs to be negotiated. The Alberta court eventually
awarded costs of $423,023 to the railways and against Jackson personally.
The order has been appealed.
Actions by percentage lawyers attracted vigorous defense by the legal legionnaires of the railways. But no company with any concern for its public image would press a half-million claim against a farmer who was just trying to test the waters. The railways are out to make a brutal, ruining example of Jackson to discourage anyone else who might get ideas.
What a way to run a railroad.
We will pay... if we say... the obvious.
Comment