Opinion ID: 2982880
Heading Depth: 2
Heading Rank: 2

Heading: The Trackage Rights Agreement

Text: Since the mid-1970s, Huron Valley Steel (HVS), also known as Trenton Steel Storage and Processing (Trenton Steel Storage), has owned and operated a steel-processing facility on a contiguous, 85-acre parcel of land in Trenton. In 1993, Conrail attempted to exercise its rights under the 1897 Agreement to build its own crossing over GTW’s track to deliver freight to HVS. Specifically, Conrail informed GTW that it would “cross the GTW tracks to access existing or new industry on [Conrail’s] Detroit-Toledo corridor.” Although HVS had its own private track, known as the “private industry track,” Conrail needed to cross a portion of GTW’s tracks to gain access to the HVS track. Conrail initially proposed building its own specialty track over GTW’s lines to effectuate the crossing. GTW rejected these requests as beyond the scope of Conrail’s rights under the 1897 Agreement and a dispute ensued. GTW and Conrail agreed to arbitrate the issue whether the 1897 Agreement permitted Conrail’s proposed crossing of the GTW track. Further, GTW and Conrail agreed in June 1994 that should Conrail prevail in the arbitration, GTW would allow Conrail to use its existing track rather than have Conrail install its own crossing diamond, a type of special track, to access the “premises” (1994 Arbitration Agreement or 1994 Agreement). Specifically, the agreement provided: In the event the arbitrators decide that Conrail may cross GTW to serve Trenton Steel Warehouse, GTW will permit Conrail immediate access to Trenton Steel Warehouse. GTW agrees that Conrail will effect the crossing and access to Trenton Steel Warehouse by operating over GTW trackage to the extent necessary to cross from Conrail’s right-of-way to the premises of Trenton Steel Warehouse in an operationally practicable and efficient way that is consonant with Conrail’s desire to provide rail service. . . . 3 No. 13–2269, Consolidated Rail Corp. v. Grand Trunk W. R.R. Co. The 1994 Agreement defined “Trenton Steel Warehouse” as “the facility of Trenton Steel Processing and Storage, d/b/a Huron Valley Steel Corporation (and its successors and assigns) (“Trenton Steel Warehouse”), located in the Trenton Commercial Industrial Park.” On January 21, 1996, the arbitrators found in favor of Conrail. After negotiations over the specific language of the agreement, GTW and Conrail executed the Trackage Rights Agreement (TRA) on May 1, 1996. As explained by David Wilson, former GTW Vice President of Operations, a trackage rights agreement is usually an agreement that allows one railroad to traverse over the track of another railroad from a “Point A” to “Point B.” The TRA granted “Conrail the right to operate its trains, locomotives, cars, and equipment” over designated sections of GTW’s track in the Trenton area (Trackage Rights). The section of track designated for Conrail’s use was named the “Trackage.” The TRA further specified that the “Trackage Rights” are “for the sole purpose of serving Trenton Steel Warehouse or its successor.” However, the TRA does not define “Trenton Steel Warehouse.”