Some legal positives

[grassfarmer]

Tom may not be happy with the courts decision in his case but there have been a couple of important decisions made lately that I find encouraging.

The Supreme court of Canada ruling that they will hear Jessica Ernst's case:

http://www.thetyee.ca/News/2015/04/30/Ernst-Heads-to-Supreme-Court/

And Diana Daunheimer getting Bellatrix's demand for court expenses in case of her losing the case paid up front getting quashed at AB Court of Queens Bench.

http://www.ernstversusencana.ca/ian-jessop-interviews-diana-daunheimer-on-nasty-attempt-by-bellatrix-angle-energy-to-kill-her-frac-lawsuit-by-demanding-33000-security-of-costs-to-pay-the-companys-legal-fees-upfront

Bravo ladies, thanks for your tireless fighting in these crucial cases.

[sumdumguy]

The court system does definitely have its flaws. For instance who scrutinizes the supposed court costs and legal fees of more than $400,000? What were your fees Tom?

[TOM4CWB]

SDG,
Jackson v CNCP Class Action costs were to come out of payments had we succeeded. CNCP say they spent almost $2M.
After CNCP on almost the same facts... went all the way to SCC against the CTA on this same rail car maintenance overpayment issue... AND LOST.

It really does look like CNCP are so sore about the revenue cap on grain... because they got cut back on rail car maintenance overpayment entitlements paid for almost 2 decades!

[bucket]

More importantly who allowed them to overcharge for decades?

No one looks at the cause and effect.

Someone allowed them to overcharge without doing their job and auditing the bills. CTA perhaps. But there hasn't been an actual cost review for decades. Just rubber stamped increases.

It's still going on today. A railcar not being used shouldn't need much maintenance. And judging by the ag coalition report there is a few cars not making turns.

[farmaholic]

Do these cars make it into the U.S. to do unrelated Canadian work? If they take grain or what ever down and bring something back so be it, but if they're put to work in the U.S. for only U.S. purposes....? Does anyone know?

[TOM4CWB]

Farmaholic,

When in the US the railcars earn revenue... this revenue has been used to upgrade the rail cars to haul more weight and fix them up.

http://umanitoba.ca/faculties/management/ti/media/docs/Frederickson.pdf

HOPPER CARS: HISTORY
• In the early 1970’s, the Federal Government became involved in grain hopper car ownership and over a span of 20 years purchased 13,500 cars.
• Transport Canada assumed responsibility for the cars in 1996 from the Grain Transportation Agency.
• After considering selling the fleet, the Federal Government made a decision to retain ownership of its grain hopper cars in 2006.
• New operating agreements with CN and CP Rail were completed in 2007 in order in outline the manner in which the hopper cars are to be administered.
• Government of Canada grain cars are provided to the railways at no cost for grain movements from Western Canada to Western Canadian ports for export.
HOPPER CAR AGREEMENTS: RESPONSIBILITIES
The operating agreements meet several key commitments made to grain producers and taxpayers
Railway Responsibility:
• Ensure there is sufficient capacity in the hopper car fleet to move grain and replace the capacity lost by retired cars.
• Refurbish the fleet to ensure that the hopper cars remain in good operating condition throughout their service life.
• When the cars are used for purposes other than regulated grain movements, pay an alternate use fee to the federal government (taxpayer benefit of about $15 million per year.)
• Pay the federal government for damaged and destroyed cars.
3
HOPPER CAR AGREEMENTS: RESPONSIBILITIES CONT’D
Refurbishment of Hopper Cars:
• As part of the Operating Agreements negotiated in 2007, CN and CP agreed to refurbish the Government of Canada Hopper Car Fleet.
• As a result of this refurbishment program the useful life of the Hopper Cars was extended from 40 to 50 years.
• The next group of Hopper Cars to reach the end of their useful service life will be in 2026 and 2027.
• The remaining hopper cars will be retired from 2032-34, with all cars retired by 2036.

[wmoebis]

When lids are froze down and elevators use pry bars and excessive force to open and end up breaking them. Lots of lids are made of plastic and at -40 they split when they are just flipped open and let slam onto the car, metal ones are pried open and bend. Then next elevator bad orders because lid leaks or is broken.
Ports/elevators wreck bottoms from being wreckless, over tightening or rails jump off and bend. Then the next elevator bad orders because they leak.
Why should the RR or farmers pay for the damages caused by elevators and ports? Running gear and normal wear and tear I can see. RR don't open or close tops or bottoms but that is where most if not all the bad orders come from.

If our truck tarps or hopper bottoms need repaired because we were abusive do we charge the elevators?

[TOM4CWB]

It is the railways responsibility to supply grain hopper cars that work
Elevators want to load cars... Not reject them and lose capacity and terminal mis-shipment problems
If this was a significant problem we can count on the railroad folks to scream bloody murder.

[wmoebis]

I've herd from grain co's that as high as 10% are bad order. The majority of the time it is either bad lids or bad hoppers. The RR don't open or close tops or bottoms or even see them. They have to be reported by grain co's and that doesn't happen until the next elevator goes to load them.

Or do you think the RR check every car top and bottom everytime they move them?

[TOM4CWB]

I understood the terminal was required to report problems with cars. A simple video system can easily monitor problems... Railways have crews to repair the cars as this is in their responsibilities as they provide the equipment to the elevator from whatever source that they have determined best.