Union Pacific: Court fight over $61M in fines for drugs on trains continues after talks fail

Talks break down over fines for drugs on trains

OMAHA, Neb. — Union Pacific Corp. says settlement talks with the federal government have broken down in a dispute about restricting drug smuggling on trains crossing from Mexico because the railroad refuses to pay multimillion dollar fines.

The railroad asked a federal judge Thursday to set aside more than $61 million in fines in one of three lawsuits over the matter.

A Justice Department spokesman says the agency won’t comment on pending litigation.

The fines are linked to at least 40 incidents when U.S. Customs and Border Protection agents found drugs stashed in railcars crossing between the U.S. and Mexico. The U.S. government also has seized 24 railcars.

Union Pacific says it doesn’t control the train cars until after they’re inspected by customs agents, so it shouldn’t be held liable for what happens in Mexico.

On the Net:

Union Pacific Corp.: www.up.com

Ferromex railroad: www.ferromex.com.mx

U.S. Customs and Border Protection: www.customs.gov