§ 160A-326. Limitations on rail transportation liability. - North Carolina Statutes

§ 160A‑326.  Limitations on rail transportationliability.

(a)        As used in this section:

(1)        "Claim" means a claim, action, suit, or requestfor damages, whether compensatory, punitive, or otherwise, made by any personor entity against:

a.         The City, a railroad, or an operating rights railroad; or

b.         An officer, director, trustee, employee, parent, subsidiary,or affiliated corporation as defined in G.S. 105‑130.6, or agent of: theCity, a railroad, or an operating rights railroad.

(2)        "Operating rights railroad" means a railroadcorporation or railroad company that, prior to January 1, 2001, was grantedoperating rights by a State‑Owned Railroad Company or operated over theproperty of a State‑Owned Railroad Company under a claim of right over oradjacent to facilities used by or on behalf of the City.

(3)        "Passenger rail services" means the transportationof rail passengers by or on behalf of the City and all services performed by arailroad pursuant to a contract with the City in connection with the transportationof rail passengers, including, but not limited to, the operation of trains; theuse of right‑of‑way, trackage, public or private roadway and railcrossings, equipment, or station areas or appurtenant facilities; the design,construction, reconstruction, operation, or maintenance of rail‑relatedequipment, tracks, and any appurtenant facilities; or the provision of accessrights over or adjacent to lines owned by the City or a railroad, or otherwiseoccupied by the City or a railroad, pursuant to charter grant, fee‑simpledeed, lease, easement, license, trackage rights, or other form of ownership orauthorized use.

(4)        "Railroad" means a railroad corporation orrailroad company, including a State‑Owned Railroad Company as defined inG.S. 124‑11, that has entered into any contracts or operating agreementsof any kind with the City concerning passenger rail services.

(b)        Contracts Allocating Financial Responsibility Authorized. –The City may contract with any railroad to allocate financial responsibilityfor passenger rail services claims, including, but not limited to, theexecution of indemnity agreements, notwithstanding any other statutory, commonlaw, public policy, or other prohibition against same, and regardless of thenature of the claim or the conduct giving rise to such claim.

(c)        Insurance Required. –

(1)        If the City enters into any contract authorized bysubsection (b) of this section, the contract shall require the City to secureand maintain, upon and after the commencement of the operation of trains by oron behalf of the City, a liability insurance policy covering the liability ofthe parties to the contract, a State‑Owned Railroad Company as defined inG.S. 124‑11 that owns or claims an interest in any real property subjectto the contract, and any operating rights railroad for all claims for propertydamage, personal injury, bodily injury, and death arising out of or related topassenger rail services. The policy shall name the parties to the contract, aState‑Owned Railroad Company as defined in G.S. 124‑11 that owns orclaims an interest in any real property subject to the contract, and anyoperating rights railroad as named insureds and shall have policy limits of notless than two hundred million dollars ($200,000,000) per single accident orincident, and may include a self‑insured retention in an amount of notmore than five million dollars ($5,000,000).

(2)        If the City does not enter into any contract authorized bysubsection (b) of this section, upon and after the commencement of theoperation of trains by or on behalf of the City, the City shall secure andmaintain a liability insurance policy, with policy limits and a self‑insuredretention consistent with subdivision (1) of this subsection, for all claimsfor property damage, personal injury, bodily injury, and death arising out ofor related to passenger rail services.

(d)        Liability Limit. – The aggregate liability of the City, theparties to the contract or contracts authorized by subsection (b) of thissection, a State‑Owned Railroad Company as defined in G.S. 124‑11,and any operating rights railroad for all claims arising from a single accidentor incident related to passenger rail services for property damage, personalinjury, bodily injury, and death is limited to two hundred million dollars($200,000,000) per single accident or incident or to any proceeds availableunder any insurance policy secured pursuant to subsection (c) of this section,whichever is greater.

(e)        Effect on Other Laws. – This section shall not affect the damagesthat may be recovered under the Federal Employers' Liability Act, 45 U.S.C. §51, et seq., (1908); or under Article 1 of Chapter 97 of the General Statutes.

(f)         Applicability. – This section shall apply only tomunicipalities with a population of more than 500,000 persons, according to thelatest decennial census, or to municipalities that have entered into a transitgovernance interlocal agreement with, among other local governments, a citywith a population of more than 500,000 persons. (2002‑78, s. 3.)