§797h Employee and personal injury claims

Summary

When a Region railroad in reorganization transfers its properties, the Corporation, the National Railroad Passenger Corporation (Amtrak), or a railroad that buys the lines must take over and handle certain employee claims that began before April 1, 1976 and are covered under section 153. They must process those claims and pay any that are sustained or settled on or after the transfer date. If the Association decides the claim was the reorganized railroad’s obligation, the Corporation/Amtrak/buying railroad can be paid back by the Association under section 721(h). The original railroad estate still keeps the pre-transfer obligation for payment, and the party that paid can file a direct claim against that estate for reimbursement and processing costs. If an employee’s claim was resolved before the transfer, the employee must try to get payment from the old railroad’s estate. For injury or death claims that happened before the transfer, the Corporation or the buying railroad must assume, process, and pay those claims. They may also get reimbursement from the Association to the extent the Association finds the reorganized railroad was responsible, and they can file a direct administrative claim against the railroad’s estate for repayment and processing costs.