MONTREAL—Canadian Pacific Railway has welcomed a court ruling limiting its liability from lawsuits triggered by the transporting of dangerous goods, which could help the company in legal action related to the deadly Lac-Mégantic disaster.
The Federal Court of Appeal ruled last month that a tariff demanded by CP from shipping companies regarding the movement of toxic or poisonous inhalants such as liquefied and compressed gas is reasonable and legal.
CP’s tariff states the company cannot be held liable for any claims, including death or environmental damage, caused during the transportation of hazardous, toxic inhalants, unless it is found to be solely negligent or guilty of wilful misconduct.
The ruling means CP is justified in demanding shippers indemnify the company if a derailment occurs after it hands off trains to another railroad to continue hauling toxic goods to their final destination.
“CP applauds the court of appeal ruling in this case and the finding CP’s tariff was both legal and not unreasonable,” Jeremy Berry, a spokesman for the railroad, said in an email.
“The court unanimously recognized that different commodities present different level of risks and that railways have a legitimate interest in limiting exposure transporting certain kinds of goods under tariff.”
