Patriot Rail Responds to Sierra Railroad Litigation

May 02, 2014, 13:31 ET from Patriot Rail Company LLC

JACKSONVILLE, Fla., May 2, 2014 /PRNewswire/ -- Patriot Rail Company LLC, a leading operator of short line and regional freight railroads, today announced that a California federal jury returned verdicts directing Patriot Rail to pay damages to Sierra Railroad Co. as a result of the alleged violation of a nondisclosure agreement by its predecessor company, Patriot Rail Corp. ("old Patriot"), over six years ago.

Sierra Railroad claimed that old Patriot won a contract to manage the rail service of a business park that Sierra had previously served after misusing Sierra's confidential information in their bid. Sierra also accused old Patriot of engaging in practices that undervalued Sierra Rail in an attempt to then buy its remaining assets at a cheaper price.

While final judgment is still pending in the case, the jury returned verdicts of approximately $38.5 million related to compensatory and punitive damages.  During litigation, the court ruled that, despite Patriot Rail Company LLC being a successor company to old Patriot, Patriot Rail Company LLC ("new Patriot") would nevertheless be subject to punitive damages.  The company believes the verdicts were legally flawed on a number of grounds, and will evaluate and fully pursue all appropriate avenues of appeal and legal redress once the judgment is final. 

John E. Fenton, President and CEO of Patriot Rail Company LLC, notes, "The recent jury verdicts against Patriot Rail do not reflect on the current ownership of new Patriot, its management principles or business practices. Patriot Rail will continue to provide outstanding services to its customers and devote its energies to day to day safe and efficient rail operations."

Patriot Rail Company LLC (Patriot Rail) is a leading operator of 500 miles of short line railroads and railcar repair facilities in 14 states across the U.S servicing a diversified customer base including the chemical, mineral, forest products, timber, paper, manufacturing, grain and foodstuffs industries.

For more information, visit Patriot Rail Company LLC online at


Patriot Rail Company LLC
Maureen A. Donnelly
Assistant Vice President, Communications
(904) 423-2543

SOURCE Patriot Rail Company LLC