Wisconsin Central Limited v. Tienergy, LLC

Allied contracted to ship railroad ties with Wisconsin Central’s parent company, Canadian National, providing that demurrage would begin to accrue after two days of unloading time. Rail carriers are statutorily required to impose demurrage charges when rail cars are detained beyond the time the tariff allows for loading or unloading. Wisconsin Central also entered into an agreement with TiEnergy, which would receive the ties at its Wisconsin facility; grind them for sale to Xcel, which would burn them to generate power; and provide Allied with proof that the ties had been incinerated in an environmentally safe manner. Allied listed TiEnergy as the consignee on all bills of lading. After receiving the ties, TiEnergy unloaded, ground, and sold them. Approximately 100 rail cars used to ship the ties remained on the sidetrack beyond the two-day unloading period. Canadian National billed TiEnergy for demurrage. TiEnergy said that it had not agreed to be identified as the consignee and could not be held responsible. Wisconsin Central sued TiEnergy, seeking to recover approximately $100,000 in demurrage. TiEnergy sought indemnification or contribution from Allied. The district court granted Wisconsin Central and Allied summary judgment. The Seventh Circuit affirmed. The only conclusion a juror could reasonably draw from the undisputed facts is that TiEnergy had both control of and an interest in the ties. View "Wisconsin Central Limited v. Tienergy, LLC" on Justia Law