Judge Rules R&N Suit Can Proceed

A Pennsylvania judge has ruled that a lawsuit filed by Reading, Blue Mountain & Northern against the SEDA-COG Joint Rail authority may proceed.

R&N contends in the suit that the Authority did not follow state competitive bidding laws when it awarded a contract to North Shore Railroad.

PennsylvaniaAmong other allegations, the R&N said in its suit that the Authority has since 1983 awarded contracts to North Shore without taking competitive bids.

“Reading & Northern Railroad is extremely pleased that Judge [Charles] Saylor ruled that we can proceed with our lawsuit against the Joint Rail Authority. We intend to vigorously pursue this legal action in order to prove that corruption and cronyism is at the heart of how JRA has operated for more than 20 years. Reading & Northern is delighted that we now have the opportunity to pull back the curtain on this rogue operation,” said RBMN President Wayne Michel in a statement.

The lawsuit is being heard in Northumberland County. In his ruling, Judge Saylor turned aside argument by the Authority and Carload Express that the suit be dismissed.

The judge thus cleared the way for R&N to seek to show that the Authority did not follow proper competitive bid procedures and went out of its way to keep the R&N out of the bidding process because of the railroad’s “well-known support of privatization.”

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