Demurrage

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7^th Circuit Court of Appeals  

Case Name: Wisconsin Central Limited v. TiEnergy, LLC

Case No.: 17-2343

Officials: EASTERBROOK and BARRETT, Circuit Judges, and STADTMUELLER, District Judge.

Focus: Demurrage

Demurrage is a charge that rail carriers are statutorily required to impose when rail cars are detained beyond the time the tariff allows for loading or unloading. It serves two functions: it secures the rail carrier compensation for the use of the car, and it serves the public’s interest in making the cars available to transport other property. The sooner a car is back in service, the sooner it is available to move the property of others.

This case involves demurrage that accrued when rail cars belonging to Wisconsin Central were detained at TiEnergy’s facility after delivering a load of railroad ties. Wisconsin Central sued TiEnergy to recover the charges, asserting that TiEnergy was liable for them as consignee of the goods. TiEnergy argued that it had not agreed to be the consignee; it maintained that Allied, the company that shipped the ties, should foot the bill. The district court held TiEnergy responsible, and we affirm its judgment.

Affirmed

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.