Federal lawsuit may cost NS millions
A jury found Norfolk Southern liable last month for a 2010 breach in contract with Drummond Coal Co., meaning that the carrier could end up paying back the Alabama-based coal company millions in penalties.
The contract between the coal supplier and NS required that Drummond’s operations use the carrier to move a minimum amount of coal from a terminal in Charleston, S.C., to a number of power plants in the southeastern United States. When those levels were not met due in part to the closure of 13 plants because of federal Environmental Protection Agency regulations, NS collected penalties from Drummond to the tune of $35 million with another $40 million yet to be paid, Al.com reported.
After Drummond filed a suit against NS in 2016, the jury found in favor of Drummond, which has requested a refund of the $35 million in penalties levied against it, plus interest.
NS has asked for a new trial in the case.