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Supreme Court Asked to Weigh In on Major Rail Access Antitrust Case

By  |  December 4, 2024

Freight rail leader CSX Corporation has turned to the U.S. Supreme Court in an effort to revive a lawsuit accusing competitor Norfolk Southern of unfairly restricting its access to a key East Coast terminal, a move the company claims has resulted in significant financial losses. According to Reuters, CSX filed its petition on Monday, arguing that the lower courts erred in dismissing its claims on the grounds of being filed too late under antitrust law.

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    The legal battle centers on Norfolk International Terminals in Virginia, a critical hub where large container ships transfer cargo onto trains and trucks. While Norfolk Southern owns tracks at the terminal, CSX does not, requiring it to pay access fees. CSX alleges that Norfolk Southern, in collaboration with Norfolk & Portsmouth Belt Line Railroad Co., imposed excessive charges that have stifled its ability to compete and secure lucrative contracts with ocean shipping companies.

    In its Supreme Court petition, CSX contends that the Richmond-based 4th U.S. Circuit Court of Appeals wrongly applied the four-year statute of limitations under U.S. antitrust law. The company argues that the “continuing-violation doctrine” should apply in its case because the alleged harm persists daily as long as the access fees remain in place.

    Read more: US Supreme Court Declines to Hear States’ Appeal in Google Antitrust Case

    CSX has called on the high court to provide clarity on this doctrine, stating that a decision could resolve inconsistencies in how courts handle claims involving ongoing violations. “Clarity is needed to avoid wasteful litigation, misunderstandings about lawsuit deadlines, inconsistent outcomes, and forum shopping,” CSX stated in its filing, as reported by Reuters.

    The Supreme Court has discretion over whether to take up the case. If it declines, the lower court ruling that dismissed CSX’s lawsuit will stand.

    In a statement on Tuesday, Jacksonville, Florida-based CSX reiterated its commitment to achieving competitive access to the Norfolk terminal for its customers. Norfolk Southern, based in Atlanta, declined to comment on the case.

    The appeals court decision in August upheld a district court’s ruling that CSX’s claims were time-barred. The court reasoned that Norfolk Southern’s rail charges did not constitute new harm within the legal timeframe for filing an antitrust lawsuit.

    Source: Reuters