Who would pay an engine that is wrecked and has to be scrapped due to damage beyond repair? For example on another thread CSX 677. which was wrecked in September of 2013, the railroad or the leasor?
Caldreamer
Who would pay you if you wrote off your motor car in a wreck? Or if you wrecked a rental car?
The railroad does need a specialist to complete a affidavit to confirm the cost of repair is beyond a replacement cost, and I would assume this is done by both sides.
Not long ago, a locomotive was serverly damged when being transported off a ship, in an article posted it was stated both sides had come to a different conclusions on the status of the locomotive being a partial or full write off. It took numerous court hearings and a judge to settle the matter.
In the situation mentioned above, the railroad which owned the trackage where the incident occurred would be liable, except if a detour was involved.
OK, I used the CSX 677 as an example. It was involved in a wreck and ha to be written off. If the engine is on lease does the leasor pay since they own the engine? If the engine is woned by the railroad then obviously they would just write it off and get scrap value for the engine.
caldreamer OK, I used the CSX 677 as an example. It was involved in a wreck and ha to be written off. If the engine is on lease does the leasor pay since they own the engine? If the engine is woned by the railroad then obviously they would just write it off and get scrap value for the engine. Caldreamer
No. Like a rent-a-car, the guy leasing the car pays for damage to the car. The railroad leasing the locomotive pays.
Railroad often use capital leases to "purchase" locomotives, kind of like leasing a automobile instead of buying. Typical terms are 15 or 16 years and can have a fixed or market-based buyout at the end. The RR is generally responsible for all maintenance, upkeep, repair and damage.
-Don (Random stuff, mostly about trains - what else? http://blerfblog.blogspot.com/)
Thank you, that answered my question.
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