A study released Thursday by the Government Accountability Office shows that commuter rail lines bear most of the liability for accidents that occur on tracks they share with freight railroads.
The report was requested by four Members of Congress: James L. Oberstar (Minn.), Chairman of the House Committee on Transportation and Infrastructure; John W. Olver (Mass.), Chairman of the House Appropriations Subcommittee on Transportation, Housing and Urban Development, and Related Agencies; and James P. McGovern (Mass.) and Kathy Castor (Fla.), both members of the House Rules Committee. The report is titled, -Commuter Rail: Many Factors Influence Liability and Indemnity Provisions, and Options Exist to Facilitate Negotiations- (GAO-09-282).
According to GAO, one-third of commuter rail indemnity agreements that GAO examined require public commuter rail authorities to accept all responsibility for accidents regardless of fault, including accidents resulting from the gross negligence or reckless or willful misconduct on the part of another railroad, and another one-third of the agreements are silent on the matter. The report also noted that several courts of law and the Surface Transportation Board have held that this practice is contrary to the public interest. Further, GAO stated that, since most commuter rail lines receive some sort of government subsidy, the indemnity agreement could make taxpayers liable for the damages.
-The report confirms that the unequal bargaining powers of local, public transit authorities and multinational, private freight rail companies in part influence liability negotiations, and often result in commuter railroads assuming most of the financial risks for serving the public,- said Oberstar. -In fact, some of these agreements make no exception for cases of gross negligence or willful misconduct. This is an unacceptable practice.-
Olver said, -This report will serve as a useful tool for decision makers across the country grappling with this issue. We have to thoroughly understand the factors influencing these negotiations, as well as the universe of options available, to ensure that agreements move passengers and goods in a safe, efficient way.-
-I'm pleased that the GAO report acknowledges the absence of a national, industry-wide standard for freight rail liability,- McGovern said. -As we work to expand both freight rail and commuter rail, we must ensure that taxpayers are protected. I look forward to working with Chairman Oberstar in the coming months on this important issue.-
-This GAO report is a necessary and thorough examination of liability and indemnity in the area of commuter rail,- Castor said. -The report details this complex and often confusing area for policy makers and the public.-
Oberstar commended GAO for the report and pledged to use the information regarding commuter rail indemnity agreements as the Committee further examines the issue.
Read the full report at http://transportation.house.gov/.
