§797h Employee and Personal Injury Claims

Summary

For employee claims under railroad collective bargaining agreements that began before April 1, 1976, the Corporation, the National Railroad Passenger Corporation, or a carrier that buys the railroad must take over handling those claims. They must process and pay any claims that are sustained or settled on or after the date the railroad property is conveyed under section 743(b)(1). They can be paid back directly by the Association under section 721(h) when the Association says the claim was the railroad’s responsibility. Those payments stay the pre-conveyance obligation of the railroad’s estate for purposes of section 721(h)(1). If a claim was settled before the conveyance, the employee must seek payment from the railroad’s estate. For personal injury or death claims that arose before the conveyance date, the Corporation or the acquiring railroad must assume, process, and pay claims that are sustained or settled. They may be reimbursed directly by the Association under section 721(h) when the Association finds the railroad was responsible. Such reimbursements, including processing costs, are allowed as current administrative expenses under section 721(h) (except paragraph (4)(A)) and remain obligations of the railroad’s estate.