PALESTINE, Texas — Efforts by the city of Palestine and Anderson County, Texas, to require Union Pacific to maintain jobs at its Palestine car shop have suffered another setback, with a Texas appeals court declaring a 1954 agreement between the city and UP predecessor Missouri Pacific is unenforceable.
The Palestine Herald-Press reports the 12th Court of Appeals issued that opinion on Feb. 22, finding that the agreement requiring UP to maintain a set number of jobs in Palestine — a requirement dating to an 1872 agreement between the city and a Missouri Pacific predecessor and updated in 1954 — places restraints on interstate commerce not permitted by federal law. UP has previously won a similar ruling in federal court [see “Union Pacific wins another round …,” Trains News Wire, Sept. 1, 2022]; the U.S. Supreme Court declined to hear an appeal of that decision last year [see “U.S. Supreme Court declines to hear …,” News Wire, Jan. 12, 2023].
The ruling is automatically stayed pending appeal. Harris Lohmeyer, a retired Union Pacific employee who has led fundraising efforts to continue the court case, told the newspaper lawyers for the county would request a rehearing and, if necessary, review by the state Supreme Court.
The legal battles over the Palestine shops date to 2019, when UP filed suit to overturn the job provision in the contract, saying it should have been invalidated by a number of prior events [see “UP sues to end employment provision …,” News Wire, Dec. 2, 2019]. UP announced plans to close the shop in April 2021, but the closure has been delayed by the ongoing court cases.
wall street at it again the buck go to them
I tend to agree with Mr. Stamey. Union Pacific should have reviewed and negotiated this at the time of the MP murger. But the courts will rule with UP regardless.
A contract signed by both parties is a CONTRACT whether UP likes it or not. It bought MP and all its obligations and should be held to them.
Depends upon individual state law. Contracts have been determined to be no longer enforceable due to external factors.
The City of Burlington, Iowa sued the BNSF railroad. The railroad closed the locomotive shops in West Burlington. The City of Burlington said doing so violated an 1858 agreement with the Burlington and Missouri River Railroad.
“Without merit” was the court’s ruling.
The City of Burlington squandered a good amount of tax dollars suing the BNSF. The City of Palestine appears to be doing the same.
https://www.plansponsor.com/iowa-town-sues-rail-patron-over-1800s-job-pact/
They have funded this through fundraising money only. Led by Harris Lohmeyer, a retired UP shop employee who spent his entire career in this shop.