ATLANTA — Railcar leasing company GATX has sued Georgia Power for at least $5 million, claiming the utility damaged hopper cars.
In the breach of contract suit, GATX claims Georgia Power returned 160 leased cars with damage from corrosion, according to documents filed Oct. 24 in the Georgia Northern District of U. S. Federal Court.
Terms of the lease required Georgia Power to use the cars only for a “non-corrosive, non-placarded commodity,” specifically gypsum and limestone, the GATX court filing says.
As Georgia Power returned cars to GATX in 2017 and 2018, “GATX and Georgia Power subsequently inspected the cars and discovered significant corrosion damage in excess of normal wear and tear,” the GATX filing says.
The damage would require $5 million to repair.
A Georgia Power spokesperson says the company believes the suit has no merit, Yahoo Finance reports.
National Steel Car Ltd. of Hamilton, Ontario, built the cars in 2007.
