North Judson Denies Wrongdoing in Rail Line Suit

Posted on November 1, 2016
Author Tyler Maffitt, WKVI

Officials with the Town of North Judson say they do not have a formal response at this time to claims by a former railroad operator that they violated contract, confidentiality, and the law.

The Chesapeake and Indiana Railroad Company filed suit on Friday against the town government alleging the community owes them more than $1-million in contract obligations.

According to the suit, the company says it is entitled to book value for improvements made to non-removable parts of the rail line if the town does not renew its contract with the business. Those improvements involve 30 miles of railroad traveling through Porter, LaPorte, and Starke counties. The Hoosier Valley Railroad Museum also uses the rail for tourism purposes.

Chesapeake and Indiana Railroad President Powell Felix says residents of North Judson should not have to carry the cost of the lawsuit, claiming town officials have demonstrated poor judgment.

According to North Judson Clerk-Treasurer Alicia Collins, the town has not received anything in writing indicating that a lawsuit will proceed. She also says the town denies any wrongdoing.

The Chesapeake and Indiana Railroad Company further alleges that during the town’s bid process to find a replacement railroad operator, the town government included the Hoosier Valley Railroad Museum in the discussions. The company alleges that proprietary secrets were shared – something they say is a violation of federal law.

Calls placed to North Judson Town Attorney Rachel Arndt have not been returned.