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Last week, Union Pacific Railroad filed a motion for summary judgment pertaining to its July 2008 lawsuit against the U.S. Department of Homeland Security (DHS) over Customs and Border Protection (CBP) fines and rail-car seizures at the Mexican border.

UP contends that federal laws designed to prevent airlines and ocean carriers from allowing drugs to be smuggled on planes and ships do not apply to the railroad because it does not operate or have any control over Mexican trains. The Class I hoped to resolve the dispute via a settlement, but discussions with federal authorities deteriorated because the U.S. Department of Justice “demanded substantial penalties from UP — penalties that are without merit and would not help prevent drug smuggling,” UP officials said in a prepared statement.

“The law requires UP to act on only what we can control. We expect the court will agree that it is impossible for UP to prevent drugs from being smuggled onto Mexican trains,” said Bob Grimaila, UP’s vice president of safety, security and environment. “UP does not take control of a train until after a Mexican railroad delivers it to CBP, which first inspects the train and then releases it to UP.”

Despite the dispute, the railroad continues to maintain a “cooperative and collaborative working relationship” with CBP, according to UP.