Tuesday, April 13, 2010

 

BNSF is suing BC Rail ... !!!

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Lawsuit of the week   
Business in Vancouver -  April 8, 2010

[There's an old Irish quotation: "Don't get angry. Get even." How about a late billing  for alleged services 1990 - 2007?]

BNSF was one of the disillusioned bidders who had reason to believe that the 2003 BC Rail auction was rigged.

Quote: BNSF, found the report  unsatisfactory on many counts - one of the most obvious: Charles River Associates [hired by the Campbell government to assess the fairness] didn't bother to interview the bidding companies involved! Also BNSF recorded that the Gordon Campbell forces did not reveal to bidders a major term of consideration.

That last fact was spotted by the Alberta/B.C. company Ferroequus which refused even to bid because, it appears, it believed it was being misled about government requirements (in order to get lots of bidders who could be said to have "failed" in the bidding?).                                         

Rail operator seeks switching charges

U.S.-based BNSF Railway Co. has sued Teck Metals Ltd., 6317057 Canada Ltd. and Canadian National Railway Co. for switching charges it claims it is owed related to the movement of zinc and lead concentrates and railcars to Vancouver Wharves through various track interchanges.

According to the statement of claim filed in B.C. Supreme Court on February 10, since November 1, 2007, CN has been billing and continues to bill switching charges to BNSF for the Vancouver Wharves switching services and the CN switching services – the movement of concentrates and railcars between the terminal facility and BC Rail/CN Rail interchange and between the terminal facility and the CN/BNSF interchange – and BNSF has paid those switching charges, and in turn, billed Teck Metals. In turn, Teck Metals has reimbursed BNSF for those switching charges.

It is alleged that BC Rail [huh?] was receiving payment from Vancouver Wharves for the Vancouver Wharves switching services and was also invoicing and receiving payment from BNSF for the same Vancouver Wharves switching services.

It was further alleged that the transport agreement between BNSF and Teck Metals would pay or otherwise be liable for any and all switching charges incurred and paid by BNSF for the Vancouver Wharves switching services and the CN switching services.

In August 2008, BNSF invoiced Teck Metals for the switching charges paid by BNSF to CN ($3,822,311) for the period of April 1, 2005, to September 30, 2007. In July 2009, BNSF invoiced Teck Metals for the switching charges paid by BNSF to BC Rail ($1,181,366) for the period of January 1, 2004, to March 31, 2005. Teck neglected or refused to pay the invoices.

BNSF is seeking an accounting of all switching charges it paid to BC Rail from July 1, 1990, to September 30, 2007, an accounting of switching charges it paid to CN during the same period as well as orders for payment by Teck Metals and CN to BNSF of all monies found due.

BNSF is also seeking $1,181,366 for switching services provided between January 1, 2004, and March 31, 2005; and $3,822,311 for switching services provided between April 1, 2005, and September 30, 2007, against Teck Metals.

A statement of defence had not been filed by press time.

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