Union Pacific sues Metra, seeks over $2.3M

Union Pacific Railroad on Monday filed a federal lawsuit against Chicago commuter-rail operator Metra, alleging underpayment for using UP tracks for three Metra routes.

The Class I is seeking $2.3 million plus interest to cover the compensation that it says it is owed by Metra, according to a copy of the complaint made public by the Evanston Roundtable.

UP's lawsuit is the latest action in the two railroads' ongoing dispute over Metra commuter-rail service on the Class I's lines.

For many years, UP contracted to provide commuter-rail service on UP lines on Metra’s behalf. Although the trains were Metra-branded, UP crews ran the trains and sold the tickets. The arrangement was governed by a purchase and service agreement. Then in 2019, UP informed Metra that it intended to stop these services but was open to Metra operating the trains on the UP Lines.

When Metra objected, the Seventh Circuit held that UP “is not bound by any contractual promise to keep providing rail services to Metra for the indefinite future," according to the UP complaint.

Metra and UP have tried but failed to negotiate a contract to govern this new relationship in place of the purchase and service agreement, with a major sticking point the amount of compensation that Metra will pay to operate trains on UP lines. UP's entire complaint can be read here. 

Also, earlier this month, the Surface Transportation Board granted Metra's application for terminal trackage rights over the three UP lines. The board's decision responds to an application for terminal trackage rights that Metra filed on March 7 to run commuter-rail service over UP's lines.