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ARTICLE · 16 MAY 2013

Update: Liability For Rail Shipments Of TIH Commodities

McMillan LLP
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Some rail carriers have imposed indemnification and liability obligations on shippers for the carriage of Toxic-by-Inhalation Hazardous commodities.

CanadaTransport

Some rail carriers have imposed indemnification and liability obligations on shippers for the carriage of Toxic-by-Inhalation Hazardous commodities (TIH). A complaint before the Canadian Transportation Agency (CTA) seeks to address the reasonableness of such efforts in respect of a Canadian Pacific Railway (CP) tariff. Recently, the United States Surface Transportation Board (STB) issued a decision in response to a petition from Union Pacific Railroad (UP) in regard to the issue. In the petition, UP requested that the STB review its tariff provisions, which require shippers of TIH commodities to indemnify UP against any and all liabilities except those caused through UP's own negligence or fault.

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