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CSX Transportation Inc. has filed a petition asking that a lawsuit filed by a Hyndman family as a result of a train derailment nearly two years ago remain in the U.S. District Court and not be returned to the Bedford County Court of Common Pleas.
The unusual battle over jurisdiction came about when attorneys for CSX in May transferred the lawsuit filed by the Robert Scaife family from the Bedford County Court to the U.S. District Court in Johnstown.
CSX wanted federal oversight of the case and cited "diversity" as the reason.
The railroad is incorporated in Virginia and headquartered in Jacksonville, Fla.
Federal Courts are empowered to hear cases involving parties from different states even though they are filed in a county court.
Members of the Scaife family include Robert, his wife, Diane, and Robert III.
A CSX train derailed in the borough on Aug. 2, 2017, resulting in an explosion, a fire and the release of fumes from materials that the train was carrying, including propane, molten sulfur, asphalt and phosphoric acid.
More than 1,000 residents within a mile radius of the derailment were evacuated.
There have been at least three lawsuits filed as a result of the accident.
Each member of the Scaife family in a lawsuit, filed in March by attorneys Bryan S. Neiderhiser and Russell J. Bopp of Indiana, claimed injuries due to the fumes they allegedly inhaled.
For instance the lawsuit, according to legal documents, states Robert Scaife suffered chemical burns to his throat, esophagus and respiratory system -- possible permanent injuries.
He is seeking payment for medical expenses and possible loss of earning capacity.
The lawsuit claims Diane Scaife suffered from "acute sinusitis" and damage to her nasal passage and throat while Robert III seeks damages for sinusitis and ensuing throat problems
The family seeks punitive damages as well.
The initial lawsuit was filed in the Bedford County Court of Common Pleas.
CSX then transferred the lawsuit to the federal court.
The family filed a petition to have the case returned to Bedford County and placed in an arbitration program set aside to resolve cases in which money damages may be less than $25,000.
CSX, in a petition filed May 28, asked the federal court to not return the lawsuit to Bedford County, contending the requested damages in the case will exceed $75,000.
The attorney for the railroad, Edwin B. Palmer of Pittsburgh, pointed out that while the plaintiffs want the case assigned to a board of arbitrators designed for lawsuits where damages could be less than $25,000, the attorneys for the Scaifes have not capped their damage request at the $25,000 mark.
Plaintiffs, the railroad stated, could seek damages in excess of the $25,000 mark after going through the arbitration process.
The railroad concluded even a "conservative calculation" of possible punitive damages at question in the Scaife case results in a sum greater than $75,000, a figure that would support federal jurisdiction.
While no date has been set for a hearing on the question, U.S. District Judge Kim R. Gibson has scheduled a status conference with the attorneys to be held July 26.