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Montreal, Maine & Atlantic, fuel company ordered to pay for clean up costs
No insurance company in the world is quick to hand over any money, especially millions! I bet they will be waiting until the very end report from Transport Canada has been released before one penny, (nickel now) will be handed over. I also bet by then, that the MM&A will no longer to exist as a company.
It was not Irving’s oil until delivered. That is, the purchase is effective upon it’s delivery, not before.
I’m puzzled as to why the Canadian government has excluded Irving (the intended consignee) from sharing financial responsiblity for the oil clean up.
Under commercial terms of sale, perhaps Irving had purchased the crude on a “delivered” basis. On the surface, I would agree with you that this absolves Irving of any responsiblity for clean up costs.
Under normal railroad liability / claim procedures however, neither of the shippers mentioned should be held liable for clean up costs either, unless the investigation indicates they contributed to the derailment in some manner.
The Canadian government’s primary intent here, seems to be finding deep pockets with the ability to shoulder the clean up expenses. In that situation, there probably are no pockets “deeper”, than those of the Irvings.
“CURT WARFEL from GEORGIA said:
I’m puzzled as to why the Canadian government has excluded Irving (the intended consignee) from sharing financial responsiblity for the oil clean up.”
Explain exactly how Irving Oil was involved in the spill? Guess what? It wasn’t because the oil never made it to the consignee. If anybody beyond the railroad is responsible, it would be the shipper loading the tanks. If you want to hold Irving Oil responsible, then it would make perfect sense to hold the end users responsible as well because that is where the product will ultimately end up, at the consumer.
This all seems excessively punitive to the railroad. Let the railroad get up and running if demands such as these are going to be mandated.
The bad guy here looks like its going to be the government with its gleeful concern of the environment.
Who is railway’s insurance company and how well insured?
Who is railway’s insurance company and how well insured?
Who is railway’s insurance company and how well insured?
Who is railway’s insurance company and how well insured?
The financial impact on short line railroad industry?
With respect Mr. Warfel, it is the Government de Quebec that made the order not the Government of Canada. Where is the insurance company hinding? Ed said he had insurance, but then again Ed could not stop talking.
as of today in the Hamilton spectator, it commented that the mma will almost for sure go under and stop all operations for good, their insurance company still has not come forward.
also to Jeffery, irving oil is a huge government tax and election contributor to the Canadian government,
do not expect any blame on their part.
Jeffery:
If you read my entire comment, you will note that I reference normal railroad liability and claim procedures which would ordinarily relieve the shipper(s) of any responsibility for clean up at a derailment site. Since the railroad had possession of the oil and was responsible for operating the train and maintaining the track, they normally will bear sole responsiblity for any derailment related clean up and environmental remediation. I don’t believe Irving OR either of the shippers has a legal responsiblity to pay for the clean up. (And I will again add the qualifier that this is pending the results of the investigation.)
My point was, if the provincial government (comment noted here Mr. Warner and thank you for the correction) was simply looking for “someone” to pay for the clean up and believed the MMA (or their insurance company) would be unable to pay for it, why not turn to both the shippers and the consignee (Irving)?
If US law applies and it might as the origin I believe was in North Dakota both the shipper and consignee can be ordered to pay for the cost of cleanup of the spilled oil. Legal liability for the destruction is another matter and probably only MM&A and their insurance will have liability.
While I do not believe it to be the case here, a consignee could be held liable if they provided the vehicles used for transport, and those proved to be deficient (not crash-worthy) or to have contributed to the accident.